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Oh Canada! Over the past decade Canadian trade with Mexico has increased at a notable rate. Both imports and exports have increased as lower cost Mexican manufacturing supplants that in Canada and as Canadian natural resources and services find their way into the Mexican marketplace. In addition to the relative proximity of Canada to Mexico and the omnipresent influence of the United States marketplace, trade has increased between the two countries based in large part on the North American Free Trade Agreement (NAFTA) signed by Canada, the United States and Mexico and the devaluation of the Mexican Peso in the early to mid-1990s. The result for the three NAFTA participants has been a move from inefficient competition towards one centered on the relative strengths or comparative advantage of each economy. That is those countries most efficient and proficient at providing certain goods or services act in those areas and enters into...

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