Canada Can Help the U.S. in Latin America

When U.S. analysts discuss Inter-American affairs, they often focus on U.S. relations with Latin American and the Caribbean nations. The United States rarely looks to the North in its engagements with the South. Instead, the United States often views Canada as part of the North Atlantic relationship—with the notable exception of some key trade and integration initiatives, including the U.S.-Mexico-Canada Free Trade Agreement (USMCA) and the recently launched Americas Partnership for Economic Prosperity (APEP).

However, Canada should be a critical partner for U.S. policymakers as they seek to engage more deeply with the region. Canadian interests in promoting the green energy transition, existing business ties to the region, support for democracy, and history with the region closely align with many U.S. priorities. In some of these areas, Canada is better positioned than the United States to engage with the Americas. U.S. policymakers and analysts looking to encourage hemispheric cooperation would do well to identify Canada’s important role in regional affairs and areas for collaboration in promoting shared regional interests.

Canada as Part of the Americas

Canada has increasingly engaged with countries across Latin America and the Caribbean while becoming a key player in regional affairs. Perhaps the clearest example of this is its membership in numerous regional organizations and forums. In the 1970s, Canada began to join some regional bodies, including the Inter-American Development Bank and the Pan-American Health Organization. However, in these organizations, Canada continued to be more of a funder of regional initiatives than a member of the Hemispheric community—similar to the role that European nations play in these organizations, highlighting how Canada remained more connected to the North Atlantic community than to the Americas.

This shifted in the late 1980s as Canada began to seek membership in regional political bodies, finally joining the Organization of American States in 1990. Today, of the over forty regional organizations and forums within the Americas, Canada is an observer or member of fifteen bodies. Notably, this includes participation in both the Caribbean Development Bank (CDB) and the Association of Caribbean States (ACS)—two organizations that do not count the United States among their members or observers. Given the growing concern among U.S. policymakers about Chinese influence in regional organizations, Canadian participation in the CDB is particularly important. China also counts itself as a non-borrowing member state and has shown signs of engagement with the ACS.

Areas For North American Collaboration

Canada’s history and engagement with the Americas make it an ideal partner for the United States to engage with the region in several key areas. These include promoting trade integration (an area where the United States and Canada already collaborate closely), engaging with the Caribbean, accessing essential mineral resources to support the Green Energy Transition, and defending democracy in the Americas.

While aid and assistance are often viewed as the most direct ways that a country can support development abroad, trade and investment often dwarf what countries provide in international aid. This is clear in the case of Canada, which provided $1.23 billion in financial assistance to Latin America and the Caribbean region between 2020 and 2021, compared to over $70 billion in bilateral merchandise trade in 2021. Additionally, Canada is a participant in several regional trade and integration efforts—either as a member or as an observer. In addition to the trilateral USMCA, Canada has bilateral free trade agreements with Chile, Colombia, Costa Rica, Honduras, Panama, and Peru.

Participation in regional integration efforts and these free trade agreements may allow Canada to play an even greater role in promoting regional development. Canada is already taking important steps in this direction; it has joined the Pacific Alliance and the Central American Integration System as an observer in the last few years. Trade is an area where the United States already actively engages with Canada in regional affairs—both through the APEP initiative and USMCA—making this sector a perfect opportunity to deepen U.S.-Canadian collaboration on regional affairs.

One of Canada’s strengths in the Latin American and Caribbean region is its historical engagement with the Caribbean. Canada and several English-speaking Caribbean countries share a long history of British colonial rule, which resulted in common cultural and political frameworks. During the 1960s and 1970s, many of these Caribbean nations gained independence from Britain, leading to economic restructuring and a series of economic crises in the 1980s and 1990s. In this period of economic instability, Canada emerged as a development leader in the Caribbean, instituting CARIBCAN—a “one way preferential trade agreement” which enhanced economic partnership with the Caribbean. 

Canada’s role as an observer in both the ACS and the CDB provides the country with a unique opportunity to engage the Caribbean on questions of economic development and Caribbean-specific financial and political dilemmas. In addition to its unique role in regional multilateral organizations, Canada maintains a strategic partnership with the Caribbean Community (CARICOM). Through this partnership, Canada and CARICOM established a permanent joint mechanism for regular dialogue on issues of mutual interest and diligent collaboration through regular leader, ministerial, and senior official-level meetings. While the United States does engage with the Caribbean, notably through the PACC 2030 initiative, U.S. relations with the Caribbean remain more limited and relatively more recent.

Another area where Canada could play a critical role is in Latin America’s extractive industry and energy sectors. This is particularly important given the crucial role that mining plays in the global shift toward green energy. Latin America is becoming a focal point in this transition due to its rich lithium and copper deposits. Nearly 60 percent of global lithium deposits, a key component in batteries for electric vehicles and renewable energy storage, are found in the “Lithium Triangle” of Argentina, Bolivia, and Chile. Canadian firms are among the major players in this sector, contributing to a supply chain essential for the green energy transition. Canadian mining companies have invested in the extraction of valuable minerals across the Western Hemisphere. In 2022, 595 Canadian companies were linked to Canadian Mining Assets based in the Americas (excluding Canada but including the United States)—worth approximately $150.3 billion—representing the majority of Canadian mining interests abroad.  

However, Canadian mining is associated with several controversial cases of environmental degradation, labor disputes, and conflicts with Indigenous communities, which mar the reputation of Canadian mining firms and, by extension, perceptions of Canada in the region. Despite these concerns, Canadian mining in Latin America can open opportunities for collaboration with the United States—particularly as the geopolitical rivalry between the United States and China heats up and spills over into the mining sector.

While Canada’s historical and financial ties to the region make it a valuable partner, Canada’s ideational support and influence are equally important to supporting U.S. interests in the region. Canada has already demonstrated its leadership in these areas. After joining the OAS, Canadian diplomats played a critical role in developing the regional defense of a democratic regime and the adoption of the Inter-American Democratic Charter. With democracy under assault globally, Canada could be a central force in supporting democracy in the region. This would be particularly important given that the United States is facing its own democratic challenges and is often criticized for its double standards surrounding support for democracy. Additionally, Canada’s parliamentary system makes its experience an important counterpoint to the U.S. experience with a two-party presidential system.

The Other Gringos

As the United States seeks to reinvigorate its relationship with Latin America and the Caribbean, policymakers would be wise to look for areas where the United States can collaborate with the other “gringos” to foster collaboration between these two North American nations and their neighbors in Latin America and the Caribbean. While the inclusion of Canada within the Biden administration’s APEP initiative is an important step, there are areas where U.S. and Canadian interests in the region overlap and several opportunities for Canada to take the lead in promoting Hemispheric partnerships. 

Adam Ratzlaff is a specialist and consultant in Inter-American affairs as well as a member of Diplomatic Courier’s World in 2050 Brain Trust. He has previously worked with the World Bank, Inter-American Development Bank, and Global Americans, among other groups.

Zacarias Saderup is an early career professional with experience analyzing organized crime, money laundering, and environmental crime in Latin America, Africa, and Oceania. He is currently pursuing a Master of Arts in Global Commerce and Policy with a graduate certificate in Illicit Trade Analysis at George Mason University.

Image: Belish / Shutterstock.com.