The North American Free Trade Agreement agreed upon by Mexico, Canada, and the US allows for free access to a market of more than 435 million people for the three nations. The United States ranks number three in the world for the ease of doing business, while Canada ranks number seven¹. Additionally, according to the consulting firm KPGM, Canada and the US offer the lowest business startup costs out of any of the G7 countries¹. This study takes into account 27 cost elements in 17 activities.
The tax rates of Canada, the United States, and Mexico are also some of the lowest in the world, with the US corporate tax rate at 34 percent and the Canadian tax rate at just 21.7 percent¹. North America also has very abundant and low-cost energy sources. Oil, gas, and hydroelectricity represent a huge strategic advantage of doing business in North America. A manufacturing plant in Canada, for example, pays $100 on their electricity bill, while the same firm would pay $406 in New York City, $353 in Boston, and $162 in Chicago¹.
There are numerous other advantages to doing business in North America. Canada ranks number three for quality of life according to the most recent United Nations report on quality of life¹. North America also has a democratic and transparent government where business ventures are supported and facilitated legally and fairly.
Reference:
1. Business Climate. Retrieved from https://www.siminca.com/en/climatdaffaires.html#facilite