NALS, Becoming More Competitive, Resilient and Safer

At the 10th North American Leaders’ Summit (NALS), Mexico, the US and Canada discussed plans to strengthen economic competitiveness, promote investment, address climate change and migration and fight drug trafficking, according to the US White House. 

A trilateral meeting between Mexican President Andrés Manuel López Obrador, US President Joe Biden and Canadian Prime Minister Justin Trudeau will take place today. The leaders are expected to review topics regarding the USMCA, but it is expected that the three parties will also delve into non-trade issues to further work on North America’s road to become an economic powerhouse. 

“The NALS strengthens our partnerships and advances our shared priorities. Biden has used NALS to drive North America’s economic competitiveness and promote inclusive growth and prosperity. The three countries will deepen our economic cooperation, promote investment and reinforce competitiveness, innovation, and resilience,” reads a White House Fact Sheet. 

Expanding semiconductor production in the Americas is a key opportunity for deepening economic cooperation, promoting investment and reinforcing competitiveness, innovation and resilience. Key factors to take into consideration are the coordination of the semiconductor supply chain and mapping efforts to develop a collective understanding of the unmet needs within the niche. Also relevant is the organization of the first-ever trilateral semiconductor forum with the industry to adapt government policies and increase investment in supply chains. 

The manufacturing sector is crucial to Mexico’s economy. The country experienced a nearly 30 percent increase in FDI year on year during the first nine months of 2022. The trade war between the US and China has led to disruptions in the supply chain and opportunities for new players in the semiconductor industry. During US-Mexico meetings in September 2022, US Commerce Minister Gina Raimondo stated: “We have already heard from all the semiconductor companies that as they build new manufacturing facilities in America, they would like to see the rest of their supply chain in North America... Mexico specifically.”

In addition, countries will coordinate action against climate change by seeking to reduce methane emissions and food waste by at least 15 percent by 2030. With regard to drug trafficking, the three countries are planning to resume the North American strategy to combat trafficking in persons, improve cooperation and collaborate with the North Americas’ Drug Dialogue (NADD). 

Finally, immigration is on the rise and requires solutions. Prior to his arrival, Biden visited the US-Mexico border for the first time since taking office, tackling one of the most politically charged issues between both countries, as previously mentioned by MBN. The nations are seeking to commit to working together to achieve safe, orderly and humane migration in the region by:

• Sharing their best practices

• Countering xenophobia and discrimination against migrants and refugees

• Giving migrants streamlined access to legal pathways for migration, both digital and in person