Labor certifications, key to greater Canadian FDI

Canada promotes Foreign Direct Investment (FDI) flows to Mexico through labor certifications, which allows facilities to transfer production plants between the North American region.

From January to June 2022, Mexico attracted Canadian FDI for 2,839 million dollars, being the second source of origin, after the United States.

It was the second largest Canadian amount for a first semester, surpassed by the 3,628 million dollars registered in the first half of 2020, according to data from the Ministry of Economy.

We have very positive examples of Canadian companies operating here in Mexico that have been able to work with technical institutions in Canada to certify their employees in Mexico to the Canadian level in terms of welding,” said Frederick Caldwell, Commercial Counselor at the Canadian Embassy. in Mexico.

“That also provides more opportunities for the company, to move its workforce within its plants in North America, because they already have a technical certification; then they can move them (sic) to a plant in Canada or the United States and they are already complying with the standards in that country,” added Caldwell.

This week a forum of the Competitiveness Committee of the Agreement between Mexico, the United States and Canada (T-MEC) will be held in Winnipeg, Canada, to discuss the development of workforce capacity at the North American level.

“(The labor certifications) is an opportunity that we will be highlighting next week (the one in progress) in this forum. I am 100% sure that the members of the Competitiveness Committee are very willing to listen to the opportunities”, commented Caldwell.

Canada has continued to work towards its goals of freer trade and more open markets based on internationally agreed standards and practices at the multilateral, regional and bilateral levels, and is the only country in the Group of (G7) that has entered into agreements trade with all the other G7 countries.

In the trade of products from Mexico with Canada, exports totaled 10,580 million dollars from January to August 2022, which represents an increase of 21.1% year-on-year; while imports were 8,575 million dollars, 15.4% higher, at an annual rate.

At the regional level, the T-MEC, in force since July 1, 2020, preserves the essential commercial benefits of the North American Free Trade Agreement (NAFTA), including existing tariff commitments, and incorporates new and updated provisions that seek tackle the trade problems of the 21st century.

The three countries continue to collaborate to ensure the full implementation of the commitments made under the T-MEC, especially through regular participation in the Free Trade Commission and related committees of the T-MEC.

This treaty is also serving to support the management of regional trade issues, including trade-related disputes over United States rights to Canadian softwood lumber, Canada’s administration of import quotas for United States dairy products, and the interpretation of certain rules of origin for automotive products.

roberto.morales@eleconomista.mx