Knocking Next Door

It's time to maximize trade and investment opportunities in the Americas

For the past two decades, North American Investment Promotion Agencies (IPAs) have cast their nets far and wide. With a particular focus on Asia and the Middle East, US and Canadian states and provinces have been scouring the globe for Foreign Direct Investment (FDI). They've established dozens of subnational international offices, including many in China, and led a continuous procession of governors and premiers aiming to attract investment, solidifying hundreds of MoUs while navigating unfamiliar cultures and local liquors.

Today, that all appears to be just a hazy memory and not just because of the Baijiu shots. Increasing geopolitical tensions, the COVID-19 pandemic, and worldwide conflicts have shifted the international economic landscape. Protectionist policies have become more prevalent, fracturing global trade into blocs. According to data analyzed by the International Monetary Fund (IMF), new restrictions on goods, services, and investment surged by 14% in 2022, surpassing 2,600 measures. Notably, investment restrictions experienced a fourfold increase, reaching a total of 239 measures in 2022. The fallout is clear: for businesses with an international strategy and regions aiming to attract investment, uncertainty has become a constant.

So, where does that leave Investment Promotion Agencies? It's imperative to stay engaged in global markets, but the current reality accentuates the need for robust, stable partnerships. And one of the most enduring and fruitful relationships remains underexplored: that between the US and Canada.

Read the full article on our “States of Trade” blog.