Canada-Mexico partnership - 2016 Annual report

Table of Contents

• Part I Message from the National Co-Chairs of the Canada-Mexico Partnership
• Part II Profile and 2016 Institutional Report of the Canada-Mexico Partnership
• Part III Reports of the Working Groups
  1. Agribusiness
  2. Environment
  3. Energy
  4. Forestry
  5. Human capital
  6. Labour mobility
  7. Mining
  8. Trade, Investment and Innovation

Part I: Message from the Presidents of the Canada-Mexico Partnership

We are pleased to present the Annual Report 2016 of the Canada-Mexico Partnership (CMP). The CMP is the pre-eminent working-level mechanism for bilateral economic cooperation on issues of mutual importance to the governments of Canada and Mexico. It provides a unique forum to discuss shared experiences and create linkages, to analyze topics of mutual interests and identify areas of future collaboration. At this important time in our bilateral relationship, the CMP offers both our countries an invaluable instrument for exchange of views, discussion of bilateral priorities and sharing of best practices. 

This annual event has established itself as the primary instrument in advancing the bilateral agenda between our two countries in: agri-business; trade, investment and innovation; environment; energy; forestry; human capital; labour mobility; and mining.

The 2016 Annual Report presents an impressive array of results of the 12th Annual Canada –Mexico Partnership Meeting, held in Ottawa on November 23rd and 24th, 2016.  Reflecting the deepening of our bilateral relationship and the value both countries attach to their responsibilities, attendance reached new heights during the two-day meeting with more than 150 Mexican and Canadian delegates from the private and public sectors participating.

The working groups came together with a mandate to evaluate progress made during the previous year, and to plan for the coming year, in ways that align the CMP’s objectives with Canada-Mexico bilateral priorities. This planning cycle is critical to ensure the CMP remains a vital, relevant, action-oriented mechanism for enhancing the bilateral relationship. 

The CMP was founded in 2004 to stimulate innovation and propose new opportunities for bilateral cooperation between our two countries. It is subject to periodic revision to more accurately reflect the changing dynamics, challenges and priorities of our respective societies and governments.

This year, following the establishment of the High Level Strategic Dialogue (HLSD) between Canada’s  and Mexico’ s foreign ministers, it was jointly decided to end the functions of the Executive Committee. The HLSD will provide oversight and long-term vision for the Partnership. As for private sector and non-governmental organization representation, we are pleased that working groups are increasingly incorporating such representation directly.   

Last year, a number of changes were made to the working group structure in order to adapt to new challenges and changing priorities. The new Mining Working Group, co-chaired by Stefania Trombetti of Natural Resources Canada and Armando Pérez Gea of the Secretariat of Economy of Mexico, held its first meeting in November.

The Human Capital Working Group has taken on the responsibility of ensuring issues of science, technology and innovation will be examined as part of its mandate.  The HCWG integrated a range of non-governmental actors to contribute to their discussions. And while education falls under the jurisdiction of the provinces in Canada, the Human Capital Working Group will aim to bring the right people and organizations together to promote results on education and innovation.

One of the goals of the participants was to enhance synergies amongst the working groups. For example, the Human Capital Working Group held joint sessions with the Labour Mobility Working Group and the Energy Working Group. 

We also note the important roles that private industry and the Canadian provinces have taken, in areas of special interest and jurisdiction. For example, the participation of provinces and universities in the Human Capital Working Group was especially appreciated within the context of the Mexican initiative to increase the numbers of Mexican students in Canadian universities and colleges, Proyecta 10,000 (Project 10,000). We are looking forward to more private sector and provincial engagement.

Looking back to its origins twelve years ago, the CMP has helped increase professional networks between Mexico and Canada, in manufacturing, extractive industries and other sectors, and between academic and research institutions. It has been a stage for productive dialogue on a wide range of issues important to our growing and dynamic bilateral relationship.

As national co-chairs, we pledge to help implement the proposals agreed at this 12th meeting with a view to making the CMP an even more dynamic, innovative, integrated and efficient mechanism across the public and private sectors of our two countries in the years to come.

We extend our gratitude to all the co-chairs and members of the Working Groups for their participation, renewed commitment and valuable contribution to strengthening the CMP. We are confident that 2017 will be a year of new achievement for the CMP, befitting a reinvigorated Canada-Mexico bilateral relationship.

Carlos Manuel Sada Solana
Undersecretary for North America
Ministry of Foreign Affairs, Mexico

David Morrison
Assistant Deputy Minister for the Americas
Global Affairs Canada

Part II: Profile and 2016 Institutional Report of the Canada-Mexico Partnership

The CMP was launched in 2004 by the governments of Prime Minister Paul Martin and President Vicente Fox as a bilateral initiative to promote public-private cooperation between Canada and Mexico. It involves participants from the Canadian and Mexican governments, business sectors and other stakeholders. The CMP is organized around eight Working Groups whose goal is to enhance collaboration in their respective sectors of interest. While each Working Group functions autonomously throughout the year, all CMP members gather together for an annual meeting, which is hosted on an alternating basis by each country, most recently in Ottawa, November 23-24, 2016.

While the CMP involves a wide spectrum of actors from different government departments, the overall coordination and management of the CMP is jointly led by Global Affairs Canada and the Ministry of Foreign Affairs of Mexico (SRE). The national co-chairs of the 2016 CMP were: Global Affairs Assistant Deputy Minister for the Americas, David Morrison, and SRE’s Undersecretary for North America, Paulo Carreño King

Subject to Ongoing Review

The CMP was designed from the beginning as a flexible entity, subject to ongoing revision and adjustment to best reflect the changing dynamics and priorities of our respective governments and societies. In fact, over the years, working groups have evolved: new groups have been formed; co-chairs’ responsibilities have changed; some groups have amalgamated, while others have split off, or even disbanded altogether; meanwhile, other groups have reviewed and modified their mandates and focus. 

Ongoing revitalization and revision of the CMP is consistent with past practices and can further stimulate synergies and innovation, streamline working groups, and achieve greater involvement from participants outside of government, including state/provincial authorities, representatives from the private sector, non-governmental organizations and academia.

Working groups and activities of the CMP:

Activities of the eight working groups of the CMP define the work of the Partnership as a whole. Each working group is co-chaired by a Canadian and Mexican senior government official from the appropriate ministries. Currently the eight Working Groups are:

• Agri-business
• Environment
• Energy
• Forestry
• Human Capital
• Labour Mobility
• Mining
• Trade, Investment and Innovation

The establishment of a new Working Group on Mining was announced at the 2015 meeting and met for the first time at the 2016 CMP.

The Canadian working group co-chairs come from the following institutions: Global Affairs Canada, Immigration, Refugees and Citizenship Canada, Natural Resources Canada, Agriculture and Agri-Food Canada, Environment and Climate Change Canada, Employment and Social Development Canada, Canadian Forest Service (CFS), Canadian Federation of Agriculture (CFA), Canadian Chamber of Commerce in Mexico (CanCham) and TransCanada Pipelines Ltd.

Mexican working group co-chairs are from the following institutions and agencies: Ministry of Foreign Affairs (SRE), Ministry of Environment and Natural Resources (SEMARNAT), Ministry of Energy (SENER), Ministry of Economy (SE) Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA), Ministry of Labour and Social Services (STPS), the National Forestry Commission (CONAFOR), , National Agricultural Council (CNA) and the Council of Mexican on Foreign Trade, Investment and Technology (COMCE).

Annual meetings of the CMP

Mexico and Canada alternate hosting duties each year. The annual meetings serve as a focal point for the reorientation of the activities of the Working Groups and at the same time offer the opportunity for national co-chairs of each group to analyze the performance, efficiency and future direction for their Working Groups and the Partnership as a whole. The main objective of the meeting is to adopt and promote a strategic vision and work plan, aligned with the priorities of the bilateral agenda.

Some groups hold joint meetings in order to share experiences, build partnerships, and identify and develop cross-cutting projects. The CMP also promotes the participation of other stakeholders in the annual meetings, including academic and private sector leaders from both countries and from the Canadian provinces and Mexican states, which in the past has led the participation of representatives from Alberta, Ontario, Manitoba, British Columbia, Quebec, Jalisco and Morelos.

Overall, the annual meeting serves as a space to highlight the impact of this Partnership on the bilateral relationship, in which all participants can exchange views, experiences and best practices, and it provides a networking stage for all its members. It is more than the sum of the Working Groups of the Partnership; it is an important mechanism to promote the bilateral relationship.

The CMP has held the following annual meetings:

1. Ottawa, Ontario - October 25, 2004
2. Vancouver, British Columbia - September 30, 2005
3. Ciudad de México, D.F. - March 7, 2007
4. Kanata, Ontario - March 4-5, 2008
5. Jiutepec, Morelos - March 23-24, 2009
6. Niagara on the Lake, Ontario - April 19-20, 2010
7. Ciudad de México, D.F. - April 7-8, 2011
8. Ottawa, Ontario - May 29-30, 2012
9. Ciudad de México, D.F. - July 8-9, 2013
10. Calgary, Alberta - September 8-10, 2014
11. Ciudad de México, D.F. - November 25-26, 2015
12. Ottawa, Ontario - November 23-24, 2016

Part III: Reports of the Working Groups

Agribusiness  Working Group

I. Introduction and objectives

The Agribusiness Working Group (ABWG) aims to foster greater understanding, cooperation and action on initiatives of mutual interest that contribute to the success of North American agri-business. The objectives of this year’s ABWG meeting were to strengthen bilateral ties and identify areas of mutual interest where Canadian and Mexican public and private sectors see value in deepening collaboration. Overarching themes (trade opportunities, climate change, food safety, value-added production) and sector-specific themes important to the agriculture industry (scrapie eradication, genetic evaluation, sheep and goat production and trends in organic and horticultural products) were discussed.

II. Results

Cross-Sectoral Themes

The morning plenary session focussed on cross-sectoral issues and was dynamic and productive. The first discussion, chaired by the Undersecretary for Mexico’s Secretary of Agriculture, Jorge Narvaez focussed on direct trade opportunities between Canada and Mexico, including how the two countries can work together to reaffirm the benefits of NAFTA and to further strengthen the relationship.‎ There was also a discussion around logistics and the efficiency of the transportation of goods, especially as it relates to transhipments through the U.S.

Climate change was another key theme. Both sides spoke of the need to better understand what each other is doing to fight climate change while remaining competitive in a global market. The Canadian Food Inspection Agency presented on the Safe Food for Canadians Act; the Mexican private sector encouraged Canadian and Mexican regulatory agencies to continue collaborating on their food safety systems.  The Canadian Federation of Agriculture ended the morning’s discussion by talking about bringing more value to farmers including through access to agricultural inputs at competitive prices, and general challenges faced by industry.

Sector-Specific Themes

The afternoon portion of the meeting started with a report from the Canadian and Mexican young farmers organizations. They met on November 21, 2016 as part of a strategy session to discuss areas of mutual interest where collaboration can be deepened. The young farmers agreed on a mission statement and a proposed action plan. On Tuesday, November 22nd, 2016, the young farmers participated in site visits to local farms as part of an information sharing and relationship building experience.

The rest of the afternoon focused on presentations from industry that centred on various topics. The first was a presentation on Canada’s Scrapie Eradication Program and the industry’s genetic evaluation program. Mexico’s presentation was about Mexico’s sheep and goat sector and production capacity.

There were also industry presentations from both countries on consumer and production trends in terms of organic and horticultural products.  The Mexican private sector expressed interest in participating in more trade missions for organic and horticulture products.

The private sectors encouraged Canadian and Mexican regulatory agencies to continue working towards organic equivalency determination. Canada also presented on industry’s perspective on Low Level Presence of GMOs setting and implementation.

III. Activities for 2017

Representatives of the Canadian Sheep Federation (CSF) travelled to Mexico in December 2016 as part of a fact-finding mission that resulted from an invitation from the Mexicans to attend Mexico’s Alimentaria Trade Show at the 2016 ABWG meeting. Representatives from the organic sector also traveled to Mexico City in December to participate in Mexico’s Alimentaria Trade Show.

Canada and Mexico’s respective young farmer organizations will continue working closely on their proposed action plan.

IV. Challenges and Opportunities

A key challenge is ensuring the ABWG remains relevant and strategic more than a decade after its inception. In order to address this challenge, both parties will work together to agree on a format for future meetings of the ABWG.

Energy Working Group

I. Introduction and objectives

The Energy Working Group (EWG)’s main objective is to foster dialogue and follow up on subjects of mutual interest and actions on energy cooperation, at a bilateral and regional level.

II. Results

As part of this year’s session of the CMP, EWG conducted a meeting which brought together 29 representatives from both countries (including Mexico’s consul generals in Calgary and Toronto).

As per past practice, the discussion on energy touched on several key topics of relevance for both countries, including: indigenous consultations for the development of energy projects; investment opportunities in the context of the implementation of Mexico’s energy reforms; collaboration on carbon capture, use and storage (CCUS); energy efficiency; methane emissions reduction; in addition to cooperative work on the integration of renewable energy to the electricity grid and the further development of smart grids.

Dialogue was driven on clean energy activities with Manitoba Hydro International and the province of Quebec, the wide and multidimensional range of energy capacity-building and regulatory cooperation initiatives with the province of Alberta, and Ontario’s Independent electricity System Operator (IESO)’s experience with integrating renewable generation in its capacity as the operator of Ontario’s high-voltage transmission grid and overseer of Ontario’s wholesale electricity market.

Canada and Mexico also exchanged views about the trilateral energy information cooperation with the United States. Participants agreed that results in the U.S. Presidential election offered an opportunity to strengthen the bilateral relationship between Canada and Mexico.

Progress under CMP EWG was deemed valuable by all participants in the EWG meeting, and had already been highlighted, back in June 2016, by Prime Minister Trudeau and President Peña Nieto in their official communique on Environmental cooperation between Canada and Mexico, including energy regulation, academic exchanges, and best practices on indigenous consultations for energy projects.

Given the wide variety of energy issues to be discussed, and the need to take stock of many ongoing cooperative activities, participants agreed that EWG would better operate with semi-annual meetings, possibly with a meeting (autonomous from the CMP) on the margins of the Global Petroleum Show (GPS), scheduled to take place on June 13-15, 2017 in Calgary, Alberta.

III. Future activities

The CMP EWG will continue building on the theme areas developed in previous work programs with all relevant stakeholders (including provincial governments, academia, regulators, and research facilities).

1. Indigenous and community engagement

As a result of the first Seminar on Indigenous Consultation for Energy Resource Development Projects, the EWG agreed to organize a second workshop in February 2017. The second seminar will address “Processes of consultation and participation” with Indigenous peoples, which is one of the core areas included in the Memorandum of Understanding between Mexico’s Commission for the Development of Indigenous Peoples, and Canada’s Department of Indigenous and Northern Affairs, signed during the state visit.

The second seminar will focus on strengthening Mexico’s governance system at the community level. One of the key deliverables of this seminar will be a “final report” containing guiding principles and good practices for Indigenous consultation.

2. Mexico’s energy reform and bilateral investment opportunities

In order to promote and build awareness of investment opportunities, the Mexican Government committed to continue pursuing efforts to bring under EWG fold Mexican private sector representatives (such as Mexico’s Hydro Association). Participants indicated that the more and stronger the ties Business-to-business (B2B) and Business-to-Governments (B2Govs), the more productive the relationship would become. These potential links could be further developed on the margins of the Congreso Mexicano del Petróleo, scheduled to take place in Puebla, México, on June 7-10, 2017, the week before GPS in Calgary.

Regarding potential Mexican investment into Canada’s energy sector, the participants agreed to explore opportunities to better understand the variety of provincial jurisdictions and regulatory approaches in Canada, which can prove complex for Mexican partners interested in collaborating with Canada’s energy sector.

3. Regulatory cooperation

In June 2014, the Alberta Energy Regulator (AER) signed a Memorandum of Understanding (MOU) with Mexico’s energy regulator, Mexico’s National Hydrocarbon Commission (CNH). The MOU formalized an agreement to work collaboratively on regulatory best practices in the development of hydrocarbon resources. Building on Canada’s strong relationship with Mexico, AER is currently working to facilitate a two-way knowledge exchange that will help build a strong regulatory framework for the country’s unconventional resources.

The AER will be working with Mexican partners to develop a Centre for Regulatory Excellence (CORE) that will be a training institute for regulators around the world. The vision for CORE is that it will build upon the foundation that the AER and Mexico have established and bring together regulators from around the world in order to build momentum on regulatory best practices.

In the next 12 months, AER will continue to work with Mexican regulators in the following areas: 1) Emergency response and water management approaches; 2) Induced seismicity; 3) Stakeholder engagement; and 4) The development of a Centre of Regulatory Excellence. 

Both countries will also explore further opportunities between regulators and energy system operators, such as between Ontario’s Independent Electricity System Operator (IESO) and Mexico’s National Center for Energy Control (CENACE), to facilitate technical exchanges on setting up electricity markets.

4. Clean energy

The discussion focused on several areas touching on innovation in clean energy: subjectsw included Carbon Capture Utilization and Storage (CCUS), energy efficiency, methane emissions reduction, the Heavy Oil Working Group (part of the Energy and Climate Partnership of the Americas), in addition to work on renewables (e.g. in Québec).

On February 12, 2016, Mexico, Canada and the United States signed an MOU concerning climate change and energy collaboration, which allows them to explore additional cooperation on issues such as low-carbon electricity grids, innovation in clean energy technologies, energy efficiency, CCUS, and reduction of oil and gas emissions.  

CCUS

Three successful trilateral CCUS workshops have taken place since the last CMP in November 2015. The 3rd CCUS multi-stakeholder workshop brought together 47 participants in Regina, Canada, who together identified carbon capture from natural gas facilities, industrial CCUS applications, and university collaboration as the top priorities for trilateral CCUS collaboration moving forward. Participants in the CMP EWG indicated that the establishment of a Mexican Carbon Capture Utilization and Storage (CCUS) centre proposed at the trilateral workshop held in Regina, could receive provincial support from both Alberta and Saskatchewan research centres and academia. Trilateral and Federal support for this centre should also be considered.

The U.S. plans to host another workshop in early spring 2017 at the National Energy Technology Laboratory, with the aim of bringing together technical experts to facilitate future R&D collaborative initiatives (e.g. supporting the development of two CCUS pilot plants in Mexico).

Methane Emissions

During the North American Leaders’ Summit (NALS), held in Ottawa in June 2016, the three countries committed to reducing methane emissions in the oil and gas sector by 40-45% by 2025. As a follow-up action to this commitment, a NALS workshop took place in Mexico City, on December 15, 2016, where governments (NRCan, SENER, U.S. DOE), academic and industry addressed quantification, regulatory path and technologies and best practices in reducing methane emissions.

Additionally, at the bilateral level, both countries are interested in tracking progress of the MOU between SENER and Manitoba Hydro International.

5. Workforce development

Both countries intend to broaden linkages with academia and technology institutions from Mexico and Canada. Greater interaction with the CMP Human Capital Working Group could be sought to share information on scholarships and financing programs for workforce development in both countries. Short technical courses and exchanges in areas of priority will also be considered as collaboration alternatives.

The University of Alberta and the Mexican Petroleum Institute (IMP) have established a continuous relationship in collaboration initiatives in specific oil and gas topics. IMP has executed several visits to Alberta to meet with energy organizations that can provide assistance to IMP in developing critical areas of expertise in Mexico. The topics of interest for IMP are heavy oil field upgrading, shale gas/oil, heavy oil extraction, and enhanced oil recovery. 

The University of Calgary has undertaken several business visits to Mexico City since 2015 to discuss developing agreements to collaborate with various Mexican ministries, agencies, universities and institutions to assist in implementing Mexico’s energy reform agenda. These collaborative partnerships include prospective opportunities in research, training and development, teaching and workshops.

A project was submitted by the Southern Alberta Institute of Technology (SAIT) to the Hydrocarbons-SENER-CONACyT Fund with IT Ciudad Madero for the construction of a drilling laboratory. Furthermore, an additional project was submitted to the Hydrocarbons-SENER-CONACyT Fund with IMP.

In collaboration with Colleges and Institute Canada (CICan), Electricity Human Resources Canada, and SENER, the Embassy of Canada to Mexico, is organizing a Trade Mission on Capacity Building in Electricity comprising around 20-30 Mexican delegates from different electricity-based private and public sector organizations, covering 3 Canadian cities (Montreal, Ottawa and Toronto). Emphasis was placed on transcending the bilateral approach traditionally focused on oil and gas to encompass future work on capacity building in the electricity sector.

This work could focus on transmission and grid planning and operations as well as on the development of human capital in these areas. 

6. Trilateral Initiatives

Canada has a well-developed collaborative relationship with Mexico on energy under the CMP, but the country in between Canada and Mexico – the U.S. – also influences both Canadian and Mexican energy policies and enhances our potential for R&D advances through collaborative partnerships.

Trilateral North American collaboration was initiated over the course of 2015, but, following the North American Energy Ministerial in Winnipeg (February 11-12, 2016), NRCan engaged with its counterparts at U.S. DOE and Mexico’s SENER to identify further collaborative activities corresponding to the themes agreed to in the new MOU Concerning Climate Change and Energy Collaboration.

At a trilateral meeting in Houston (March 23, 2016), the three Energy Ministers agreed to structure collaboration along four-streams covering (i) data and mapping, (ii) clean energy, (iii) infrastructure and resilience, and (iv) Mission Innovation. The three energy departments then confirmed 18 specific projects under the four streams and put project leads in touch to begin work. As of the Clean Energy and Mission Innovation Ministerials (June 1-2, 2016), 6 of the 18 projects were complete, while several other projects have reached key milestones or will be completed soon.

The North American Leaders’ Summit represented a point of convergence by incorporating the energy objectives set during Canada’s State Visit to the U.S. (March 10th) and Mexico’s State Visit to Canada (June 27-28th) into the context of the trilateral energy cooperation which has been ongoing under the MOU Work Plan.

In the lead-up to NALS, NRCan had worked extensively with DOE and SENER, in parallel with collaboration between the departments of the environment and foreign affairs, to develop the Climate, Clean Energy, and Environment Partnership Leaders’ Statement and Action Plan, which, for its energy-related content, draws heavily on the activities of the MOU Work Plan.

Cooperation on Energy Information

The North American Cooperation on Energy Information (NACEI) website represents the longest-standing area of trilateral collaboration and was first launched at the North American Energy Ministerial in February. This website is still evolving as new products are developed, including: 1) Outreach activities to raise the profile of the NACEI website; 2) Website integration has received a boost from some additional funding by the U.S. Energy Information Administration, with a full launch expected by March 2017; 3) New resource layers are still being added, including a storm tracking feature. A face-to-face meeting was held in Ottawa in late October 2016 to facilitate this work, and a showcase was held in December; and work on energy trade data continues, with fuel-specific calls on a monthly basis and collaborative analysis at the working level continuing between these calls.

Energy Efficiency

One of the Work Plan activities was increasing uptake of the ISO 50001 industrial energy management standard, including setting a national coverage target. National targets will be announced publicly alongside Mexico and the U.S. at the 8th Clean Energy Ministerial in June 2017. ALS included the alignment of appliance and equipment standards (six by the end of 2017, and the further four by the end of 2019).

North American clean energy goal

The range of actions in support of the NALS goal of 50% clean energy continent-wide by 2025 is still to be determined. So far, the largest contribution from the MOU projects has been through the North American Renewables Integration Study (NARIS).

Grid connectivity and resiliency

As MOU Work Plan projects, Canada and Mexico have worked with the U.S. DOE to examine a Critical Infrastructure Protection Best Practices study, which should soon be available for distribution to stakeholders. They have also participated in a study assessing the need for a spare large power transformer reserve. Since one of the MOU technology priorities was smart grids and energy storage, Mexico was invited to Niagara Falls, Canada, for the 7th International Conference on Integration of Renewable and Distributed Energy Resources, and NRCan staff attended an August workshop in Mexico on smart grids and initiated discussions on potential initiatives with the Director at the Instituto Nacional de Electricidad y Energías Limpias (INEEL), Mexico. Finally, as part of NALS, Mexico and Canada were recently given the opportunity to provide input into the North America chapter of the Quadrennial Energy Review 1.2, which focuses on electricity.

7. Provincial and State-Level Participation

Alberta’s minister of energy’s visited Mexico City from September 29 until October 3, 2016 to formalize Alberta’s relationship with the Mexican Energy Secretariat through the signing of a MOU around cooperation in the energy sector. Participants in the EWG meeting noted that the wide and multidimensional range of energy cooperative activities conducted by Alberta institutions/regulator/government in Mexico could benefit with a single information/coordination point, likely to be undertaken by the Alberta Office to Mexico.

The province of Quebec is pursuing a strategic bilateral program with Mexico for 2017-2018. Amongst other initiatives, the following topics will be covered: 1) fight against climate change; 2) support for the new economy; 3) support for education and workforce development; 4) fostering bilateral R&D through the promotion of strategic alliances between research and academic institutions for renewable energy; and, 5) development of renewable energy sources. Regarding electric power, Quebec will promote deeper collaboration between Hydro Quebec and Mexico’s Federal Electricity Commission (CFE) and National Center for Energy Control (CENACE) in areas of mutual interest.

There is an opportunity for capacity building at the state-government level in Mexico, to provide them with more information on the energy sector: Canada could facilitate the potential connection between Governors from key Mexican states (with relevant assets/activities in the energy field) and provincial Canadian governments with leading know-how on energy.

IV. Challenges & Opportunities

Few challenges were identified during the 12th meeting of the EWG. Most projects are following their course and collaboration continues to be positive. However, a few areas for improvement were identified.

During the discussion on Mexico’s energy reform and bilateral investment opportunities, participants highlighted the importance of inviting and including a higher number of Mexican industry representatives in the EWG in order to reinforce the B2B links between Canada and Mexico’s energy sectors. Another point raised during this session is the challenge faced by Mexican companies exploring investment opportunities in Canada to understand the variety of provincial jurisdictions and the range of different regulatory approaches. There is a need for Mexican companies to acquire a deeper understanding of these nuances.

Finally the time allocated for the annual meeting was described as insufficient; participants agreed that the EWG would benefit from semi-annual meetings. Therefore, the possibility of hosting a meeting (autonomous from the CMP) on the margins of the Global Petroleum Show (GPS), scheduled to take place on June 13-15, 2017 in Calgary, Alberta, will be explored.

Environment Working Group

I. Introduction and objectives

The timing of the CMP fell between the UNFCCC COP 22 (November 7-18) and the Convention for Biological Diversity (CBD) COP13 (December 4-17), which both involved senior Mexican officials who would have participated in the CMP meeting. Consequently, the Environment working group discussions were postponed until spring 2017. An official from Environment and Climate Change Canada participated in a portion of the mining working group meeting.  

The proposed agenda for the spring 2017 Environment working group discussions may include: a climate change policy dialogue, discussions on carbon markets, furthering cooperation on reducing methane emissions in the oil and gas sector, the Canada-Mexico climate change and green growth cooperation platform, and environmental management in the extractives sector.

The current priorities of Environment working group (agreed in 2015) are to focus our cooperation on:

• environmental aspects of the extractives sector;
• Conservation and biodiversity; and
• Climate change.

In addition to the themes, it was agreed to:

• Emphasize quality rather than quantity of projects;
• Capitalize on opportunities to profile the value of bilateral work to Ministers and stakeholders; and
• Maximize efficiencies and share knowledge across different stakeholders, including the private sector, sub-national governments and even other countries (regional triangular cooperation).

II. Results

Results of the Environmental Working Group meeting will be reported following the meeting in spring 2017.

III. Future Activities

1. Environmental regulation of the extractive sector

During the Mexican State Visit in June 2016, President Peña Nieto and Prime Minister Trudeau identified sustainable development and environmental regulations in the mining sector as a cooperation theme.

On February 15-16, 2017, officials will hold a workshop focused on safety regulations for mine tailings dams. Participants will review Canadian Safety Guidelines as well as lessons learned from a dam breach that occurred in Canada. The intent of the workshop is to help align industry standards across both countries and improve implementation of mining projects in accordance with sustainable development goals.

2. Oil and Gas

At COP22, Canada announced a $7 million investment to support the reduction of short-lived climate pollutants (SLCPs), like methane, in the oil and gas sector in Mexico over the next four years.  The two countries will continue their discussions on this initiative in the context of the CMP. 

3. Biodiversity/Conservation

Parks Canada and CONANP (Comision Nacional de Areas Naturales Protegidas) have agreed to develop an MOU to facilitate sharing of information and best practices for protected areas such as habitat restoration, endangered species, climate change, and management of World Heritage Sites. 

IV. Challenges and Opportunities

Challenges of the Environmental Working Group meeting will be reported following the meeting in spring 2017.

Forestry Working Group

I. Introduction and Objectives

Priority areas of work of the Forestry Working Group over 2015-16 have focused on:

1. Forest Carbon accounting
2. Wildland fire management

The Forestry Working Group has also begun exploring opportunities for collaboration on research and development regarding the use of wood in construction, in particular mid-rise and tall wood buildings, which also has implications for carbon accounting.

II. Results

Wildland Fire Management:

Canada remains very grateful for Mexico’s helpful response to extreme wildland fire challenges by providing 41 professional forest firefighters who were deployed to assist with the Horse River Fire in Fort McMurray, Alberta this past May.

The exchange of wildland fire resources was enabled through the use of the CMP Forestry Working Group derived Memorandum of Understanding and a supporting annual operating plan between Canadian and Mexican participants. As a result of this cooperation, a timely and effective response to Canadian forest fire challenges was supported through international resources during this incident.

Recall the MOU was signed in February 2014 and this past January (2016), the accompanying Operating Plan, which clarifies the terms and conditions for the exchange of wildland fire management resources was signed in Campeche by Mexican and Canadian participants. This enabled a national-level scope for the exchange of wildland fire management assistance between our two countries.

In February, CONAFOR staff met with the Canadian Interagency Forest Fire Centre (CIFFC) in Guadalajara to plan for and define deployment protocols for the upcoming fire season.

In July, at the invitation from CIFFC, the head of Mexico’s National Forest Fire Prevention program visited Manitoba and Ontario fire programs during peak season (stops in Winnipeg, Gimli, Lac du Bonnet and Kenora) to see first-hand how wildland fire management coordination, decision making and implementation occurs. 

(This latter activities addresses CMP 2016 strategic objective: “To encourage increased engagement by Canadian provinces and Mexican states, as well as other relevant actors”)

In addition, over the past year, the Canadian Forest Service in collaboration with CONAFOR, CONABIO and Mexico’s National Metrological Service, has also made significant progress on the software design for the Mexico Fire Danger Rating System (FDRS) which is based on Canada’s FDRS. This new software is ready for testing in Mexico.

III. Future Activities

Canada will extend an invitation to Mexico –key contacts from identified through CONAFOR  -  such as architects, engineers, policy makers to participate in a workshop in Canada on building with wood. Such an event could include visits to existing mid-rise and tall wood buildings as well as wood building manufacturing installations to better understand and further promote future collaboration in this area.

IV. Challenges and Opportunities

In the year ahead, the Working Group will be focussing on:

a. Science and Technology:

A workshop is planned for Feb 2017 in Guadalajara where a team of NRCan-CFS staff will provide instruction, initial installation and testing of the new Fire Danger Rating System. This work is making Canadian forest science more accessible to and used by international partners such as Mexico, which helps enable greater access to partnerships and innovative new science.

b. Operational issues:

• Continue knowledge exchange (operational and administrative) – role of organizations involved in fire management – efficiencies to enable timely response.
• Improve “deployment protocols” based on recent success of firefighter exchange (advance standard operating procedures for marshalling points, invoicing, border crossing (CBSA), manifesting, etc. Meeting Planned for Feb 2017.
• Complete a “Crosswalk” exercise to meet ongoing bilateral cooperation expectations – identify gaps, challenges, actions, workplan to clarify roles, responsibilities, timelines and targets.

c. Forest Carbon Accounting and Climate Change Mitigation

The focus this year has been on Integrated Modeling and Assessment of Climate Change Mitigation Options in the North American Forest Sector. This work has international as well as national dimensions.

Internationally, following the signature of the Paris Agreement, the importance of reducing emissions and increasing the rate of CO2 removal from the atmosphere is greater than ever. 

The land-use sector, and in particular forests, can contribute to mitigating climate change by reducing emissions or increasing removals of greenhouse gasses (GHGs) and help achieve nationally-determined emission reduction targets.

A project supported by the Commission for Environmental Cooperation (CEC) of North America is exploring the most effective approaches to mitigating GHG emissions in the forest sector in Canada, Mexico and the United States. This is a coordinated effort of the three forest services of North America to identify and quantify existing options for forest sector-based climate change mitigation.

Nationally, in 2012 Mexico established a Climate Change General Law supported by a required Monitoring, Verification and Reporting system (also established in 2012)

In this context, the important role of the forest sector in contributing to reducing GHG emissions is recognized in both Canada and Mexico.  For example, Mexico’s Mid-Century Climate Change Pathways, were released in November 2016 at the COP in Marrakesh. Both Marcela Olguin and Werner Kurz from the Forestry WG contributed to this national strategy.

This is just one example of how the ongoing bilateral cooperation of science of forest carbon accounting and mitigation options continues to produce results that inform policy.

Several peer-reviewed scientific publications from the forest carbon accounting work have been produced over the past year. Ex. Impacts of quality of remote sensing estimates of land cover change on GHG emissions; The Importance of the choice of baseline for credits of mitigation activities. 

Other outputs include training, presentations to national and international audiences throughout North America, and briefings of the policy community in both countries. Ex of dates of engagement include: December 2015, January, March, May, August, and September 2016.

New work also includes tools to quantify the carbon storage in harvested wood products and the contribution they can make through substitution of other emissions-intensive products such as concrete and steel.

Planned work continues on improving the analytical tools, with focus on regional-scale mitigation options in 6 pilot regions in Mexico, Canada and the US. Planned potential collaboration with other agencies in Mexico (e.g. National Institute of Ecology and Climate Change - INECC) will apply models at the national scale to support long-term (mid-century) estimation of Nationally-Determined Contributions towards GHG emission reductions.

Lessons learned and tools developed through this process are being shared with other countries in Latin America (and elsewhere). A virtual centre of excellence on forest monitoring for Mesoamerica, for the use of carbon modelling among other technological tools has been set up by CONAFOR. This is to say that the extent of influence of this bilateral work goes beyond Mexico-Canada.

d. Building With Wood (a potential new area for future collaboration

In October, at the request of, and with full support from CONAFOR, NRCan-CFS presented a special session at Mexico’s EXPO FORESTAL on “Building with Wood” - highlighting Canada’s tall wood building demonstration initiative and sharing Canada’s recent advancement in building technologies using wood.

Canada has successfully built a multi-disciplinary research capacity in wood building systems and has also developed a critical mass of design and construction firms and projects which is leading to Canada housing the tallest wood building in the world at 18 storeys tall (currently under construction in Vancouver).   We are optimistic in terms of opportunities for joint partnerships between Mexico and Canada on Research & Development regarding the use of wood in construction.

Human Capital Working Group

I. Introduction and Objectives

This year’s meeting of the Human Capital Working Group (HCWG) included a robust engagement from Canadian and Mexican stakeholders, with a record 46 participants at the meeting. Following the HCWG 2015 recommendations, the HCWG held joint sessions with the Labour Mobility Working Group and the Energy Working Group. 

II. Results

The Proyecta 10,000 mobility program was highlighted as an innovative and relevant mechanism that contributes to educational transformation in Mexico, favouring greater linkages between Mexico and Canada. The Co-Chairs noted the Mexican proposal to strengthen the strategic relationship through the proposed Bilateral Forum on Higher Education, Innovation and Research with Canada (FOBESII-C).

The Working Group welcomed the academic and industrial mobility program between MITACS and CONACYT showing innovative forms of collaboration between institutions seeking to increase mutually beneficial collaboration between universities, research centres and firms from both countries. The Working Group also welcomed joint cooperation between MITACS and CONACYT on training young Mexican scientists within the framework of this program.

Collaboration on mobility between CONACYT and Lakehead University, forged in the framework of President Peña Nieto’s state visit to Canada in June 2016, was highlighted, whereby it was decided to give new impetus to training of high-level human resources and to promoting scientific and technological cooperation. Prime Minister Trudeau and President Peña Nieto had pledged to strengthen synergies to establish an English-language learning mechanism for Mexican indigenous women.

In order to facilitate mobility, it was agreed to work together to support the Mexican initiative to promote exchanges and scholarships for high-achieving indigenous students in high school and and/or university during 2017-2018 to encourage them to study English and/or French in Canada. For its part, Mexico welcomed young Canadians doing internships in the natural environment and/or productive tourism projects.

Universities Canada highlighted opportunities to expand two-way student mobility and research collaboration between Canada and Mexico through its collaboration with CONACYT^{Footnote 1} and ANUIES^{Footnote 2}, as well as through the new Canada-Mexico international work-integrated learning program, and the Canada-Mexico Roundtable on Aboriginal/Indigenous Higher Education.  Universities Canada also provided an overview of its advocacy efforts to encourage federal leadership and investment in outbound student mobility and international research collaboration to foster increased faculty cooperation and student mobility between Canada and Mexico.

The University of British Columbia highlighted university collaboration and their successful forum on innovation and research, hosted in 2015, which had been a proposed pilot for FOBESII-C. CICan (Colleges and Institutes Canada) put forward a proposal to increase youth mobility using a sectoral approach, as well as, highlighted the Pacific Alliance Project.

CALDO spoke about their renewed emphasis on Mexican partnerships and recent agreements established with CONACYT and ANUIES focused on graduate student opportunities and research collaboration. UNAM gave an overview of its Canadian campus and expressed interest in expanding its partnerships in Canada.

Immigration, Refugees and Citizenship Canada (IRCC) highlighted both the temporary foreign worker program and the international mobility program, as well as, updated the HCWG on the new work permit for short stays. IRCC spoke about the review of the Youth Mobility Agreement with Mexico.

The Government of Alberta explained the scope of the provincial role in human capital development and highlighted the success of the Alberta-Jalisco partnership, their focus of Spanish language instruction in schools and a new pilot science education program.

Fulbright Canada updated the HCWG on a new Indigenous youth leadership program launching in 2017.

The Working Group gave consideration to the importance of deepening synergies and establishing common objectives leading to new cooperation projects that benefit both our governments, as well as to the importance of sharing best practices in technology transfer and research.

At the joint session with the Working Group on Labour Mobility, participants recognized the indissoluble link between the economy and labour. Canada offered to develop a mechanism to support Mexico’s National Employment Service (SNE) in assisting workers to train in the English language at Canadian universities, as well as providing greater access to language courses,.  Both initiatives would allow stronger linkages with workforce development programs in key sectors.

During the joint session with the Energy Working Group, priority was given to training of highly specialized human resources in the context of Mexico's energy reform in the oil, gas and electricity sectors. Projects resulting from announcements for scholarships, research and training with the Universities of Alberta and Calgary -as well as the research and training center at UNAM with the University of Calgary, represent a unique opportunity to strengthen Mexico’s energy sector. Results on capacity building will be reviewed in the group’s next meeting.

The Co-Chairs of the HCWG guided discussions on the agenda’s central themes, allowing an open and constructive dialogue between participants over main areas of interest and mutual collaboration.

The Co-Chairs outlined the three main objectives of the 2016 HCWG:

• Identify opportunities and mechanisms for increasing two way mobility;
• encourage increased partnerships by Canadian and Mexican institutions, stakeholders and governments and
• develop an Action Plan for 2017-18.

III. Future Activities

The Working Group agreed to establish specific actions that will guide their efforts through 2018. As a result, the following action plan was agreed upon.

The HCWG agreed to strengthen joint efforts to increase the mobility of experts and students through the promotion of joint research activities, with the active participation of the academic communities and interested stakeholders of both countries.

The HCWG Co-Chairs agreed to strengthen the bilateral relationship through workforce development by establishing regular communications between the Co-Chairs and by promoting and facilitating opportunities to discuss progress on HCWG commitments.

The HCWG will look to leverage high-level visits to improve mobility and partnerships and agreed to maintain an active cross-cutting approach with respect to other CMP working groups, such as the Labour Mobility Working Group and the Energy Working Group.

HCWG participants agreed to work towards the following commitments:

Commitments to identify opportunities and mechanisms for increased  two-way mobility.

• Promote awareness of mobility funding, programs and opportunities among Canadian and Mexican university and college students through strategic channels.
• Commit to more actively promote the 27 Government of Mexico scholarships available to Canadians, with the aim of full demand in 2018.
• Explore the establishment of a new bilateral program that focuses on common priority sectors for both Canada and Mexico, to stimulate mobility and exchange.
• Incorporate additional flexibility to institution-to-institution mobility agreements.
• Focus on language training in various forms, including English as a Second Language, French as a Second Language, Spanish as a Second Language and English for Special Purposes with a particular interest in capacity-building and teacher training in Canada and Mexico.
• Stimulate and encourage opportunities for joint research and applied research activities involving youth, industry and academia in both countries.
• Build networks for Indigenous mobility.

Commitment to encourage increased partnerships by Canadian and Mexican institutions, stakeholders and governments.

• Highlight institutional strengths and sectoral areas of expertise in Canada and Mexico.
• Launch of two new Mexico Chairs in Canada at the University of Calgary and the University of Regina.
• Encourage partnerships with a strategic sectoral focus of interest to both countries with the involvement of the private sector.
• Leverage existing federal, provincial/territorial and institutional partnerships.
• More effectively use existing regional and international fora and memberships.

IV. Challenges and Opportunities

As part of a shared strategic vision, the Co-Chairs stressed the importance of the elimination of the visa requirement as of 1 December 2016, as a first major step towards expanding mobility and joint collaboration contributing to a greater flow and exchange of students to Canada, greater mutual cultural benefit and more qualified human resources, to the betterment of our societies and our economies.

It was noted that Canada recognizes Mexico as a priority partner for the international education sector, and that the Canadian stakeholders maintain significant interest in broadening areas of collaboration in the sector.

Labour Mobility Working Group

I. Introduction and Objectives

The Labour Mobility Working Group contributes to the Canada-Mexico Partnership by strengthening the people-to-people connections and facilitating mobility that foster shared prosperity.

Sustainable labour mobility requires joint coordination to promote and protect labour rights, health and safety standards in the workplace, as well as meet specific requirements of labour mobility programs, and correct violations or incidents of noncompliance when they happen.

In order to increase opportunities for labour mobility, the participation of stakeholders is needed, which includes multiple levels of government, regulatory bodies, the private sector and other business organisations.

Regular exchanges of information (e.g. updates on legislation, regulations, certification, training and skills development, immigration processes, among others) are necessary to support the Labour Mobility Working Group’s principles.

The objectives of the Labour Mobility Working Group for 2017 are:

1. to strengthen regular flows of labour market information that will facilitate greater bilateral labour mobility between our two countries,
2. to foster synergies between different working groups of the Canada-Mexico Partnership where intersection exists, and
3. to tap into high-value opportunities where specific sectors and occupations would benefit from focused collaboration and action, such as in facilitating the mobility of high-skilled sectors or where significant labour market shortages in one country exist.  

II. Results

On April 6, 2016, a webinar and videoconference was held to discuss labour market indicators and information tools. As well, Canada provided a live demonstration of the Job Bank website, followed by a question and answer session among 16 government officials was held afterwards.

Throughout the year, Canada shared information on sector associations of interest to Mexico, Canada’s National Occupational Classification System and contacts in subnational (Provincial and Territorial) governments involved in business sectors with knowledge of subnational labour market demand.

As well, Canada provided detailed information to Mexico regarding the new caregiving requirements of Canada’s Temporary Foreign Worker Program. This information included the specific requirements needed for Mexican citizens to come to Canada under the
Program as caregivers.

The 2016 Annual Canada-Mexico Partnership meeting was held on November 23 and 24. Within this meeting, the Labour Mobility Working Group came together to lay the groundwork for the identification of specific sectors where opportunity exists to support labour mobility. It was understood by both countries that Canada faces a labour market shortage in several sectors and across skill levels, while Mexico often faces a labour market surplus.

The presentations and discussions were designed to hone in on specific sectors where both a high-demand and over-supply exist.

Presentations were delivered on:

• labour market shortages in Canada and labour supply in Mexico;
• foreign credential recognition;
• a primer and update on Canada’s National Occupational Classification system (including the 2016 update to the system); and
• programs that can facilitate labour mobility (such as Mexico’s National Employment Service and Labour Mobility Mechanism and Canada’s Global Skills Strategy).

Also during the Annual meeting, the Labour Mobility Working Group participated in a joint-session with the Human Capital Working Group on opportunities to increase Canada-Mexico youth mobility. Members of the Labour Mobility Working Group gave presentations to the joint-session on programs available to academics and researchers, the review of the Youth Mobility Agreement with Mexico, as well as the new work permit for short stays.

Work-integrated learning was identified as an area where collaboration between the working groups could continue into 2017. As well, Canada offered to develop synergies supporting Mexico’s National Employment Service in developing human capital trained in the English language through cooperation with Canadian universities, as well as greater access to language courses, allowing broader linkages with productive sectors generating workforce development programs.

III. 2017 Future Activities

In line with the objectives of the Labour Mobility Working Group, Canada and Mexico agreed to the following activities for 2017:

In addition, Mexico and Canada will continue the timely exchange of information on matters related to labour mobility, such as labour market information, legislation and regulation, and any other aspects that may cause an impact on the international workers' movement.

Further, it was noted and agreed that the Labour Mobility Working Group will benefit from the inclusion of non-government stakeholders in future working group meetings. Members of the working group will commit to inviting relevant private and sector stakeholders to the 2017 meeting in Mexico.

IV. Challenges and Opportunities

The Labour Mobility Working Group recognizes that it must evolve as Canada-Mexico relations evolve. The successful North American Leaders’ Summit and the creation of the High-level Strategic Dialogue between Canada and Mexico have stressed the importance of people-to-people connections and further facilitating labour mobility to the benefit of both countries.

Traditionally, the working group has supported the flow of temporary workers from Mexico into Canada through programs such as the Labour Mobility Mechanism and the Temporary Foreign Workers Program. Although this has led to positive results, the Labour Mobility Working Group agrees that it could be more effective if the working group focused on specific sectors and occupations where labour shortages are known to exist. By taking a focused approach, the working group can focus their attention on the issues associated with a particular sector, including by inviting non-government stakeholders to participate and share their views.

Another opportunity is the newly-announced Global Skills Strategy by the Government of Canada. The efficient mobility of highly-skilled individuals is an important issue for Canadian employers, and Mexico has an abundance of highly qualified and mobile people. The working group will explore how this program can help to facilitate the mobility of highly-skilled individuals.

As well, the Labour Mobility Working Group recognizes that past activities have been relatively narrow in scope, focusing only on the unidirectional flow of workers to fill a labour market shortage in Canada. While this has been a benefit to both countries, the working group realizes that opportunities exist to support the bidirectional flow of people between the two countries. Work in 2017 will explore opportunities in this area.

Mining Working Group

I. Introduction and objectives

The 14th CMP meeting marked the inaugural meeting of the Canada-Mexico Mining Working Group.  Canada and Mexico share similar visions and priorities for sustainable mineral resource development.  The governance of our respective resources seeks to foster mineral development that is innovative, protects the environment and human health and safety, contributes to socio-economic development, and brings opportunities for growth and development for our communities and Indigenous peoples.

As leading global mining nations, and given significant Canadian mining investment located in Mexico, Canada and Mexico are natural partners in mining.  In fact, Canada and Mexico have a decades-long relationship on mining, which has facilitated the exchange of information on regulatory regimes and mining policy; technical exchanges, such as on green mining and mine closure; and joint efforts to support the market access of minerals and metals under the former Canada-Mexico Lead-Zinc Study Group. 

In more recent years, collaboration has occurred primarily under the APEC Mining Task Force and the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development. 

The formalization of our mining relationship under the Canada-Mexico Partnership speaks to a deepening relationship between Natural Resources Canada and the Secretariat of Economy, and a renewed commitment to focus our efforts on strengthening our bilateral collaboration in areas of mutual interest. 

To that end, the main objectives of this first Mining Working Group meeting were to exchange information about our respective priorities and to reach agreement on: the scope of issues to be addressed by the working group; the creation of an Advisory Group; and to what extent there is potential for the Mining Working Group to collaborate on cross-cutting issues with other working groups under the Canada-Mexico Partnership.

II. Results

Agreement reached on the scope of work for the Mining Working Group

A key outcome of President Peña Nieto's visit to Canada, in June 2016, was a joint statement on Canada-Mexico Environmental Cooperation.  Natural Resources Canada and the Secretariat of Economy negotiated the inclusion of text pertaining to possible areas of work for the Mining Working Group, including Indigenous engagement, sustainable economic development, environmental regulation, critical materials, and green/clean energy technologies.  Other areas agreed upon, though not included in the Environmental Cooperation statement, are corporate social responsibility and international best practices in mining.

Terms of Reference adopted for the Mining Working Group

The Terms of Reference for the Mining Working Group were finalized, reflecting agreement to exchange information, knowledge, technology, experiences and best practices in the areas of:

• Governance of mineral resources;
• Trade, investment and market access;
• Geological and mineral knowledge, methodologies, experiences, technology and information related to mineral exploration and development;
• Social issues, including consultation with communities and Indigenous peoples and corporate social responsibility; and
• Technology and innovation.

It was also agreed to use the Mining Working Group as a platform to share positions and strengthen common approaches in multilateral fora, where feasible and timely, such as at the APEC Mining Task Force, the OECD (National Contact Point and/or Environmental Policy Committee) and the Intergovernmental Forum on Mining, Minerals, Metals  and Sustainable Development. 

Advisory Group

The Terms of Reference include the provision of the creation of a small Advisory Group, consisting of no more than 3 to 4 members each from Canada and Mexico.  Advisory group members may include, but are not limited to, representatives of industry, academia, research institutions and non-governmental organizations. The Mining Working Group agreed that terms of reference explaining the role and responsibilities of the Advisory Group will be decided upon a meeting being planned on the margins of the Prospectors and Developers Association of Canada (PDAC 2017), in Toronto, March 5-8, 2017. At that time, Natural Resources Canada and the Secretariat of Economy will exchange information regarding proposed Advisory Group members.

Collaboration across Working Groups

Representatives from the Environmental Working Group and the Energy Working Group were invited to make presentations describing the areas of work of these groups, for the purpose of identifying potential areas of collaboration with the Mining Working Group.  The Environmental Working Group is continuing its work on mine tailings, from regulatory and technical perspectives (i.e. tailings dams, safety guidelines) and mine site remediation.  The Energy Working Group is continuing its work on Indigenous consultation on energy development projects.  A second seminar on Indigenous Consultation, hosted by the Secretariat of Energy (SENER) will be held in Mexico, in February 2017. The Energy Working Group is also focusing on clean energy and the use of renewables.  The Mining Group agreed to continue to follow-up with these two working groups, to explore opportunities for joint work in the future. 

Memorandum of Understanding on Mining Collaboration

It was agreed that the scope of work and thematic areas raised under the Terms of Reference for the Mining Working Group will form the basis for a bilateral Memorandum of Understanding on Collaboration in Mining between Natural Resources Canada and the Secretariat of Economy.  Members agreed that PDAC 2017 would be an opportune time for signing the MOU (Note: It has since been agreed that the MOU will be signed during Minister of Natural Resources James Carr's mission to Mexico, in early February 2017).

III. Future planned activities for 2016/2017

Advisory Group Terms of Reference

Natural Resources Canada and the Secretariat of Economy will develop Terms of Reference for the Advisory Group, to define its role and responsibilities.  The Terms of Reference will be finalized, along with a list of potential Advisory Group members, at PDAC 2017.

Project:  Environmental Innovation in Mining:  Compendium of Cases Studies in Canadaand Mexico

The Mining Working Group agreed to develop a compendium of case studies to share information about environmental technologies employed by the mining industry and to disseminate and promote industry best practices.  The deliverable will be 16-20 case studies focusing on environmental best practice in areas such as water management, energy efficiency, mine closure and remediation, the use of renewable energy in mining, and community environmental monitoring practices.

Project:  Critical Materials for Clean Technology

The Mexican Geological Survey agreed to consider participating (and has since given its support) in a North American project led by the United States Geological Survey, involving Natural Resources Canada's Minerals and Metals Sector, entitled North American Net Import Reliance for Selected (non-fuel) Minerals and Metals that are Critical for (or enable) Clean Energy Technology.  The main objective of this project is to develop a North American data set of net import reliance for specific commodities, including minerals and metals that enable clean technology.  Deliverables will include a joint publication for a peer-reviewed journal and an infographic for public release.

Project:  Engaging Local and Indigenous Communities

Natural Resources Canada proposed a project to explore the contexts of engaging and consulting with local communities and Indigenous peoples, in relation to mineral resource development, in Canada and Mexico.  The proposal is a roundtable dialogue with government officials and industry representatives on the margins of PDAC 2017.  The main objectives of this project are to initiate dialogue to increase mutual understanding between Canada and Mexico of governance issues and to disseminate and promote industry best practices.  Mexico has agreed to consult with other government agencies and officials responsible for these issues (i.e. Gobernación and the National Commission for the Development of Indigenous Peoples) and will report back on the feasibility of this project, prior to PDAC 2017.

Project:  Mining Development

Following a presentation on Mexico's Mining Promotion Trust (FIFOMI), it was agreed to explore collaborative opportunities to promote mining projects in Mexico.  In the first quarter of 2017, Canada and Mexico agreed to explore the feasibility of doing something at PDAC 2017. 

IV. Challenges and Opportunities

The Canada-Mexico Partnership provides a strong platform through which to strengthen and deepen collaboration on mining, within the Mining Working Group, and also on cross-cutting issues with other working groups.

As a multistakeholder forum, the Canada-Mexico Partnership also provides a collaborative framework through which the Mining Working Group can build and strengthen relations with multiple stakeholder groups (i.e. industry, academic, researchers, non-governmental organizations) to advance inclusive policy dialogue, exchange information, and share best practices.

Trade, Investment and Innovation Working Group

I. Introduction and objectives 

The agenda for this year’s Trade, Investment and Innovation Working Group (TIIWG) meeting was designed to elicit practical and frank discussions on the achievements of the Working Group (WG), and how it could be strengthened going forward, to provide more opportunities for its most important stakeholders (i.e. Canadian and Mexican private sectors).

II. Results

Members shared the view that our two countries have made important progress, and at the moment face challenges from a political environment that offers an opportunity to refocus the goals of the WG to develop new opportunities.

Members recognized that the State visit by President Peña Nieto in June was an important trigger to increase trade relations between Mexico and Canada, along with initiatives and commitments promoted within the framework of the North American Leaders Summit.

There was consensus that the objective of the TIIWG is to strengthen the dialogue between our governments, and to support the growing needs and activities of Canadian and Mexican companies doing business in each other’s markets – such as accelerators and incubators in Canada with Mexican companies.

In discussing some of the past accomplishments of the TIIWG, the conversation naturally and quickly focussed on recognizing the strong commercial relationship between the two countries.  This was illustrated by members’ observations of Canadian FDI into Mexico and recent Mexican FDI into Canada such as the Bimbo purchase^{Footnote 3}. Both sides acknowledged countless activities and interactions between our public and private organizations, at all levels, throughout the year.

III. Future Activities

• The TIIWG agreed to study the concept of a steering committee to ensure more frequent communications with both governments and the private sector.
• Potential projects identified should be linked to strategic priorities and lead to a work plan that is defined shortly after, based on consultations with the respective private sectors.
• Both sides agreed to hold a conference call before the end of the year and a possible meeting in Mexico, sometime in early 2017 (potentially in January).
• The TIIWG Co-Chairs agreed to schedule calls to follow up with industry representatives and to propose new projects for consideration.

IV. Challenges and Opportunities

Challenges discussed included:

• Lack of a structured agenda with timeline, responsible leads, deadlines, commitments, evaluation, and monitoring of projects.
• Lack of communication between all agencies on projects that each promote which causes them to act independently.
• Lack of involvement of academia.
• Low participation of the private sector.

Opportunities detected included:

• At the government level, there is a willingness to continue the TIIWG, taking advantage of the incorporation of new officials, with new ideas on short and medium term goals.
• Commitments made during the State visit to Canada and at the North American Leaders' Summit.
• A growing interest among companies from both sides to increase their presence in the partner country.
• There are many successful initiatives by member government agencies on both sides.
• Rich and ongoing trade, investment and innovation discussions and initiatives taking place in many other CMP-Working Groups.
• There are fora that are fostering joint collaboration and there could be linkages with these, such as the High Level Strategic Dialogue.

Members identified some initiatives that the TIIWG could consider:

• It requires a clearer picture of where we are going and what resources are counted. The key component is the role the private sector will play.
• Further communications among agencies is needed to know the projects and portfolio of projects planned and to have a strengthened agenda, with a joint work plan that generates even more results for stakeholders and that clearly defines the commitments, those responsible, and that is timely and delivers on a high-level mandate.
• It is proposed that regular communications between the co-chairs and project leaders should take place throughout the year, which is required to achieve concrete results.
• The WG should seek a closer relationship with the private sector and identify its needs, interests, and expectations of government in order to form a real work plan with clear and specific deliverables.
• Steps must be clearly defined to reduce uncertainty for the private sector in Mexico and Canada.
• A more active role for the private sector co-chairs should be defined to ensure they become more proactive interlocutors.
• Greater involvement and support from Small and Medium Enterprises is needed, facilitated through the respective governmental agencies and departments responsible for this in Mexico and Canada.