Despite their moderate size – taken together, Canada and Mexico would only be the fifth largest of the world’s economies – they are the major foreign source of the United States’ wealth. Without its markets and its investment in Canada and Mexico, the US economy would be smaller and less competitive.
The two countries accounted for almost 27% of total U.S. exports — more than the United States’ trade relationship with all 27 countries in the European Union and considerably more than its trading relationship with China. Slightly over 8 million U.S. jobs derive from U.S.-Canadian trade alone, and the average American is $1000 richer every year as a result.
Canada and Mexico are also the U.S.’s largest security allies. Without Canada’s and Mexico’s agreeing to harmonize their visa requirements, integrate their intelligence capacities, and invest billions on border infrastructure, the United States’ perceived exposure to terrorist threats would increase markedly.
The North American paradox is that, while Canada and Mexico make disproportionately large contributions to US economic strength and homeland security, they have virtually no influence in Washington’s corridors of power, where the United States’ policy is made with scant attention being paid to its two North American neighbours.