North American foreign ministers meeting: What's at stake?

Foreign Minister Stephane Dion hosts his American and Mexican counterparts in Quebec City today, setting the stage for the North American Leaders' Summit hosted by Prime Minister Justin Trudeau in Canada later this year.

Dion, along with U.S. Secretary of State John Kerry and Mexico's Claudia Ruiz Mass are expected to talk about the environment and security issues, but issues such as economy and relations between the three countries are also on the table.

A warmer tone

Canada was scheduled to host a meeting of the so-called "Three Amigos" last year, but former prime minister Stephen Harper cancelled the meeting with U.S. President Barack Obama and Mexican President Enrique Pena Nieto amidst tensions over the Keystone XL pipeline and visa requirements that the Conservative government imposed on Mexican travellers to Canada.

Since the leaders last meeting, Obama rejected the proposed Keystone XL pipeline, which required a permit to cross the border from Alberta. While Trudeau has expressed his disappointment with the decision, the Canadian and U.S. governments are now more ideologically aligned on issues such as the environment. 

With a new Liberal government in power since the last North American leaders meeting, and Obama's presidency soon coming to an end, the discussions at this year's meeting are expected to take on a different tone.

Prime Minister Justin Trudeau has already promised to remove visa requirements for Mexican citizens entering Canada.

Increasing trade

A new report from the Centre for International Governance Innovation released Thursday shows trade between Canada, Mexico and the United States has declined over the last seven years.

In 2007, US$8.8 trillion worth of goods, services and financial products flowed between the three countries, which represented 57 per cent of the nations' combined GDP. By 2013, trade within North America was equal to 40 per cent of Canada, Mexico and the U.S.'s GDP.

According to the think tank, if trade between the three countries strengthens to levels that were seen in the decade that followed the 1994 ratification of North American Free Trade Agreement, Canada could see over US$600 billion more in GDP by 2040.

Meanwhile, as the global centre of economic power is projected to shift away from North America and to Asia, the three foreign ministers are expected to address how to remain competitive.

Strengthening Canada's relationship with Mexico

The CIGI report says Canada and Mexico's relationship needs to be strengthened in order to tap North America's economic potential. Mexico's population is projected to grow to 150 millionby 2030 – more than five times the size of Canada's population. Major investments in infrastructure and an emerging middle class in Mexico present opportunities for Canadian companies.