Project North America

Project North America is grounded in a clear and urgent reality: the long-standing trilateral relationship between Canada, United States, and Mexico must now evolve beyond traditional trade into a fully integrated North American mega-region. With a combined population exceeding 550 million people and decades of economic interdependence already established, the opportunity is no longer theoretical—it is actionable. The question is no longer whether North America can compete globally, but whether it will act in a coordinated, strategic, and accelerated manner.

In 2026, this opportunity is shaped by a defining inflection point: the mandated review of the United States-Mexico-Canada Agreement. This process will influence how deeply North America integrates its supply chains, manufacturing base, and investment flows. While differences in national policy approaches introduce uncertainty, all three countries remain aligned on a central objective: reducing reliance on overseas supply chains and strengthening a resilient North American industrial base.

Regardless of federal policy outcomes, Arizona will continue to advance its trade, investment, and tourism relationships with Canada and Mexico, with a particular focus on Sonora. The economic interdependencies across this region are deeply established and will continue to expand through state-level partnerships, private-sector collaboration, and regional alignment.

The primary variable in this environment is the policy direction of the United States federal government and its impact on continental trade dynamics. Arizona must therefore maintain a resilient and adaptable strategy—diversifying trade channels, strengthening direct relationships with Canadian and Mexican partners, and reinforcing supply chain continuity. This includes the ability to expand internal manufacturing capacity and value-added production in areas traditionally performed in Canada and Mexico if required by shifting policy conditions.

Canadian capital remains a cornerstone of this strategy. Investment from Canada has consistently flowed into Arizona across multiple sectors and is expected to continue regardless of short-term policy fluctuations. Canada remains Arizona’s leading source of diversified foreign direct investment, excluding singular large-scale projects such as TSMC, reflecting sustained confidence in the state’s growth trajectory, stability, and strategic position within the North American economy. Increasingly, Canadian investors view Arizona not only as a destination market, but as a central platform within the broader North American economy.

Canadian investment extends deeply across multiple sectors, including significant holdings in mining operations in both Arizona and Sonora, many of which are financed and coordinated through the Toronto Stock Exchange, one of the world’s leading markets for mining capital. In addition, Canada has made substantial investments in Arizona real estate, ranging from land acquisition to large-scale commercial development, reflecting long-term confidence in the state’s growth trajectory.

Canada has invested billions of dollars in Arizona’s water and energy infrastructure, supporting critical systems that underpin long-term economic growth and sustainability. These investments span power generation, grid development, renewable energy, and water management technologies, reinforcing Arizona’s ability to scale industrial activity while addressing resource constraints and positioning the state for long-term growth within the North American mega-region.

Canadian financial institutions, including Royal Bank of Canada, have also played a key role in structuring and coordinating financing, including bond placements for government and university projects, positioning Canada as one of the largest international financial participants in Arizona’s public and institutional development.

Canadian financial institutions further reinforce this cross-border economic integration. Bank of Montreal maintains a significant presence in Arizona, supporting commercial lending, real estate financing, and cross-border business activity, while Scotiabank plays a major role in Mexico’s financial system, facilitating investment, trade financing, and capital flows throughout the region. Together with institutions such as Royal Bank of Canada, these banks provide critical financial infrastructure that supports transactions, development, and long-term investment across Canada, Arizona, and Northern Mexico.

The Canadian Arizona Business Council plays a key role as a supporter of implementation for Project North America, working with its members to strengthen cross-border alignment, reduce barriers to commerce, and adapt to evolving policy conditions across Canada, Arizona, and Northern Mexico. As national-level negotiations evolve, regional execution becomes the defining factor in economic success, with CABC supporting the practical advancement of trade, investment, and collaboration.

Arizona’s strategic value lies in its role as a subnational connector within the mega-region. Positioned geographically and economically between Canada and Mexico, it facilitates large-scale movement of goods, capital, and people across borders. Strong industrial integration with Northern Mexican states—including Sonora, Sinaloa, Baja California, and Chihuahua—combined with established Canadian investment, creates a highly efficient and interdependent regional system. Agricultural products move through Nogales into Canada as part of a multi-billion-dollar trade corridor between Mexico and Canada, with much of this production supported by Canadian investment in Mexico.

This integration exists within a broader global shift toward regionalization. Near-shoring, ally-shoring, and supply chain realignment are now dominant economic strategies. North America is actively working to replace a significant share of overseas imports with regionally produced goods, while Mexico continues to see substantial growth in export activity tied to near-shoring.

The 2026 USMCA review represents a defining moment, but it does not alter the fundamental trajectory. North America is moving toward deeper integration, and regional actors will determine how effectively that integration is executed. Project North America positions Canada, Arizona, and Northern Mexico not as separate economies reacting to change, but as a unified mega-region shaping it. Within this framework, Arizona serves as a critical execution hub—connecting partners, enabling growth, and helping build a more resilient, competitive, and integrated continental economy.