Reaping The Benefits Of A Collective North America: What Businesses Should Know

Founder and Managing Director of by the waywhich accompanies multinational companies through their expansion and transformation efforts.

Over the last few decades, globalization has become an established method of dealing with international affairs. Based on the idea of ​​a world without borders, it promotes economic integration and cooperation among nations, regardless of geographical boundaries. Fostering such interdependence is proving vital to unprecedented economic growth and development around the world.

This “world without borders” is illustrated by three North American countries with one of the most important commercial ties for global trade and a unique trade agreement, the USMCA, which replaced NAFTA in 2020. This regional bloc goes beyond mere diplomacy and integrates commercial reciprocity, significant geographical advantages, cultural and economic similarities among the three countries – an innovative and cooperative vision.

what makes us strong

Such an integrated vision will reinforce strong regional commercial dynamics and leverage existing geographic features. Current cross-border commerce flows make the US-Mexico border the world’s busiest border and the US-Canada border the world’s longest shared border.

The region is fortified by abundant natural resources and double exposure to the Pacific and Atlantic oceans, facilitating trade with other continents. Trade is enhanced by a vast logistics infrastructure that easily transports goods across borders. This geographical proximity is enhanced by the fact that all three countries operate in similar time zones, making cross-border transactions easier to access and manage.

North America also boasts considerable demographic advantages. While Mexico has a large supply of highly skilled young workers, the United States and Canada have significant high-paying jobs in advanced industries. So when you add up multiple data sources for Mexico, Canada, and the United States, the talent and expertise of its workforce collectively add up to about 207 million jobs and contribute about $26.3 billion to global GDP (about $26.3 billion). occupy a quarter. This helps position the region as one of the most competitive, innovative and productive regions in the world. The three countries are also each other’s largest trade and foreign investment partners, enabling a generative integrated production platform.

shared history

The driving force behind the regional economies we see today is rooted in the North American Free Trade Agreement (NAFTA), which was enacted in the early 1990s. A landmark trilateral agreement, NAFTA was responsible for redefining trade ties and deepening economic integration by eliminating most tariffs and liberalizing trade. Trade flows of goods and services continue to increase under the renegotiated USMCA. This decades-long shared history is the backbone of North American cooperation, poised to sustain the larger and more ambitious initiatives moving forward.

Reaping the Benefits: Business and Regional Economic Integration

In the current global geopolitical situation, trade relations actually reflect a shift towards more regional and localized operations. Nearshoring trends reflect this. in particular, Reuters reports that 45% of business leaders (download required) consider relocating manufacturing sites a top priority.

At first glance, this seems to run counter to the premise of a globalized world without borders, but trilateral agreements such as the USMCA prove otherwise, allowing cooperation and trade relations between nations to flourish around the world. It shows that it continues to be the backbone of trade. Globalization has not disappeared. We are just beginning to change our geographic ties.

To successfully reap these benefits, companies must prepare for greater consolidation through three approaches that focus on business practices, people and, to a lesser extent, government. First, the USMCA’s existing professional business framework and tariff-free trade should be used to facilitate reshoring efforts, procurement diversification, and investment in transcontinental infrastructure and innovation projects. Companies should also develop internal narratives that effectively tie their company’s successes to tangible people-centered outcomes to humanize how employees are already benefiting from their integration efforts. I believe we need to start creating and promoting. This will help us get more buy-in at all levels of the business and allow us to reframe local collaboration in a more positive light.

Second, take advantage of the region’s demographic advantage and consider more visa sponsorships, such as TN-NAFTA Professional visas, H1B and L visas, to skilled candidates with specialized technical knowledge. need to increase access. This will facilitate workforce mobility, training and professional development, as well as accreditation of professional and academic qualifications obtained in any of the three countries.

Third, your business should use its influence at all levels and converse with government representatives to promote a continued trade-friendly legal and political environment for such relationships to thrive. This includes modernization of border infrastructure with greater digitization and more streamlined cross-border processes that facilitate the flow of goods, services and people without compromising security. It is included. Lobbying can be a valid strategy, but it is not synonymous with relying on governments to effect change. In the absence of political action, it is important that companies actively work towards this collective vision through their own business operations.

collective north america

A collective North America does not seek political or geographic integration, but rather the alignment and internalization of shared principles and values ​​to propel the region towards greater synergistic and cooperative exchanges. is what you ask for. This is one of deeper economic integration, the adoption of policies that reduce economic friction, promote trade and investment, and recognize the North American workforce as a component of integration efforts.

Companies that can successfully leverage North America’s commonalities while strategically mitigating their differences will reap myriad benefits that will help them position themselves as the driving architects shaping the collective future of North America. can.

The Forbes Business Council is the premier growth and networking organization for business owners and leaders. am i eligible?

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *