Special Report: Securing North America's Future

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Table of Contents Beyond Borders: Strengthening North America's Health Security ................................................................................ 5 Powering the Future: North America’s Energy Landscape & Opportunities ........................................................... 7 Feeding the World: North America’s Role in Global Food Security ................................................................................ 8 Strengthening Cybersecurity Across North America: Building Digital Resilience ............................................. 9 USMCA 2026: Navigating the Sunset Clause & the Future of Trade ............................................................................. 11 Unlocking Labor Mobility: North America’s Growth .................................................................................................................. 12 North America’s Competitive Edge: Economic Security ....................................................................................................... 14 Regional Readiness: Strengthening North America’s Appeal ........................................................................................... 16 Seamless Trade, Secure Borders: Advancing North American Connectivity ....................................................... 18 Supply Chains in Focus: North America’s Road to Resilience and Innovation ..................................................... 19 Legislating Across Borders: The Role of Legislators in North American Diplomacy ..................................... 21 Bridging Borders: The Power of Subnational Diplomacy in North America ..........................................................23 Scoring Big: The 2026 World Cup and North America’s Soft Power Strategy ......................................................25 Securing North America: Strengthening Cooperation & Regional Trust ................................................................ 26 Sino Shadow: Strategic Responses in Trade & Security to China ..................................................................................27

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Introduction On April 23, 2025, the inaugural North Capital Meridian Diplomacy Forum convened a dynamic and diverse network of leaders at the Meridian International Center in Washington, DC. Born from the strategic merger of the North Capital Forum and the Meridian Diplomacy Forum, this invitation-only gathering—co-hosted by the U.S.-Mexico Foundation and Meridian International Center—marked a milestone in trilateral dialogue across North America.

Set against the backdrop of shifting political landscapes and an approaching USMCA review, the forum offered a timely platform for addressing the region’s most pressing challenges. From economic and food security to labor mobility, supply chain resilience, cybersecurity, and trade policy, the day’s agenda prioritized both urgent concerns and long-term opportunities for collaboration.

This white paper captures key insights from the forum’s discussions—offering a roadmap for stakeholders committed to advancing a more integrated, secure, and prosperous North American region. As this critical dialogue continues, the ideas and relationships forged represent a foundation for shared leadership and regional innovation in the years ahead.

A special thank you to our sponsors:

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TECH, ENERGY, AND SUSTAINABLE DEVELOPMENT

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Beyond Borders: Strengthening North America's Health Security Through Supply Chains and Innovation Affiliate: Milken Institute

Ensuring health access and security for our patients and communities across North America requires a resilient and coordinated approach to pharmaceutical and medical product supply chains, regulatory cooperation, and technological innovation. The region faces pressing challenges, from securing the steady supply of medicines and critical healthcare products to facilitating efficient technology transfer and regulatory alignment across borders. As global supply chains become more fragmented, it is essential that North America partners work together to bolster the region’s health security, reduce vulnerabilities by strengthening collaboration in research, manufacturing and policy.

About 90% of US prescriptions are filled with generics, most of which are imported; India is the largest source of finished generic drugs, while China supplies a sizable share of the chemical building blocks. Moreover, Asia supplies the great majority of printed circuit boards used in North American medical electronics. This global interdependence of one region strains response capabilities during geopolitical tensions, natural disasters, pandemics, and other times of crisis.

Even during times of steady state, the risk of counterfeit drugs and essential medicine shortages remains.

Recommendations Strengthen Regional Manufacturing Capabilities and Dual Sourcing Years of offshoring and cost-driven global sourcing have weakened North America’s manufacturing base—revitalizing it is vital to ensure supply chain resilience and economic security. This is especially important as North American populations continue to age and become more reliant on health interventions. The US, Mexico, and Canada should invest in dual sourcing strategies and regionalize supply chains for essential health products, such as APIs and medical device components. A “twin plant” model—where manufacturing is split between neighboring countries and supported by publicprivate partnerships via incentives including tax relief, land grants, and retirement fund investments, can help alleviate the current strain on overstretched supply chains.

Align Procurement Practices to Reward Resilient Supply Chains The current procurement model prioritizes the lowest bidder, which undermines supply chain resilience. Instead, hospitals, healthcare systems, and other major purchasers should adjust their contracting practices to require suppliers to demonstrate redundancy, multi-sourcing, and stable supply commitments. Paying a premium for resilience is a key private-sector action that could

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drive structural change. Resilience begins with market signals that put patients and communities first. When hospitals and other private-sector leaders are willing to pay more for resilient supply chains—and partner with public agencies to embed these standards—they help create a more stable, responsive system without waiting for crisis-driven regulatory intervention.

Expand Supply Chain Transparency and Counterfeit Detection Efforts To address the rising threat of counterfeit medicines, additional efforts should be made to

expand technologies that can authenticate products at the point of sale, such as barcode scanning tools already being deployed to pharmacies. Increasing transparency, improving communication among supply chain actors, and developing simple, user-friendly verification technologies are critical steps. Building these technologies and making them widely available— especially at no cost to smaller actors— is essential to safeguarding public health and maintaining trust across the pharmaceutical supply chain.

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Powering the Future: North America’s Energy Landscape & Opportunities Affiliate: Center for Strategic and International Studies (CSIS) Amid the rapidly growing energy demands of the 21st century —driven by AI data centers and other emerging technologies—there is a critical need to expand all forms of energy production and prioritize infrastructure investment across North America. The fragility of the region’s energy grid coupled with the urgent need for reforms to modernize and centralize grid management, make investments essential. However, ongoing political and economic uncertainty has stalled many key energy projects, which require long-term planning and large-scale investment.

Recommendations Coordination Through USMCA Modernization Collaboration between the United States, Mexico and Canada can be essential for achieving energy security and independence. A formal dialogue within the USMCA framework —focused on supply chain capabilities, energy independence, and critical minerals— would provide a platform for ongoing collaboration and policy alignment. This could streamline regulatory processes and enhance investment opportunities across the region.

building LNG capacity for Pacific markets would boost North American energy security, reduce costs, and foster trust among regional partners.

Rethink North American Energy Policymakers must shift from national energy dominance to a shared vision of North American energy independence. This approach would promote collaboration to optimize regional energy resources, ensuring all partners benefit from collective growth and stability. Confidence and trust are essential for long-term energy investment, and aligning policy around regional priorities will provide the continuity that private sector actors seek. By viewing North America as a unified energy powerhouse, stakeholders can leverage Mexico’s manufacturing strength, Canada’s resource wealth, and the United States’ technological leadership to build a more resilient and integrated energy network

Enhance Energy Integration Greater cross-border energy integration, supported by publicprivate partnerships and coordinated regulatory actions, should be pursued to ensure reliable energy flow and regional resilience. Initiatives, such as Mexico exporting LNG to the Atlantic, the U.S. export expansion on the Pacific, and Canada

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Feeding the World: North America’s Role in Global Food Security Affiliates: Consejo Nacional Agropecuario, Corn Refiners Association, Canadian Agri-Food Trade Alliance As global food demand rises, North America plays a critical role in ensuring a stable and sustainable agricultural supply. This often-overlooked sector has strategic importance as a cornerstone of regional economic integration, food security, and sustainability; and agreements like USMCA have enabled year-round, affordable access to nutritious food across borders, even amid global disruptions.

Agriculture is a vital source of employment, supporting four times as many jobs as the auto sector and as an engine for growth in high-value industries. As threats such as labor mobility, climate adaptation, and trade instability continue, coordinated regional collaboration will be critical to address these challenges. Currently, six million agriculture professionals are responsible for feeding North America's nearly 600 million residents.

Therefore, labor shortage in farming communities was identified as a growing concern, closely linked to migration dynamics and rural security. As North America prepares to feed a growing population over the next 20 to 50 years, there is an urgency to invest in agricultural technologies and regional cooperation to build a food system that is affordable and resilient. Agriculture must be treated as a strategic pillar of regional economic development and national security.

Recommendations Leverage Existing Frameworks to Maintain Stability The USMCA provides over 20 technical

committees for expert-level discourse. This existing structure should be used to its maximum potential to ensure trade rules remain transparent, predictable, and supportive of long-term food security. Free trade is essential in keeping food products accessible and affordable, and to avoid trade barriers that may raise consumer prices and fuel inflation.

Address Agricultural Labor Concerns and Looming Shortages The safety and stability of food systems are closely tied to the reliability of the agricultural labor force, making coordinated action essential to address this complex challenge holistically. This includes developing policies that support secure and legal labor migration to meet growing agricultural demands, while also investing in rural infrastructure and community safety to retain and support a stable farming workforce.

Collaboration on Water Sustainability As growing demand and climate change intensify pressure on water resources, disputes over water rights and distribution are likely to escalate globally—including across North America.

Strengthening trilateral cooperation on water access and quality, particularly through existing frameworks such as the International Boundary and Water Commission, should be an urgent priority to promote long-term sustainability and regional resilience.

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Strengthening Cybersecurity Across North America: Building Digital Resilience to Protect Future Growth Affiliates: InCyber and Public Private Strategies Institute Enhancing North American competitiveness requires coordinated investment in cyber infrastructure, supply chain security, and workforce development. Cybersecurity is no longer just an IT concern; it is an enterprise-wide issue and a strategic imperative for governments and businesses alike. As cyber threats evolve and the surface area for attacks expands, strengthening cybersecurity becomes essential for both national security, and to safeguard future economic growth, innovation, and public trust. To properly face this mounting economic and security threat, key challenges including fragmented regulations, talent shortages, and the rising costs of cyber incidents must be addressed.

Recommendations Develop a Trilateral Cybersecurity Framework for North America This group would be tasked with preparing the North American Cybersecurity Principles Agreement; a framework on interoperable cyber standards, incident response coordination, shared cyber threat intelligence protocols, and baseline

cybersecurity requirements for critical infrastructure.

Launch a North American Cyber Workforce Initiative Establish a trilateral public-private program to train and certify cybersecurity professionals, with a focus on mutual recognition of cyber certifications across borders, expanding access to cyber training for underserved and rural populations, and promoting regionally diverse representation in the cyber workforce. The program could leverage partnerships with academic institutions, tech firms, and workforce agencies across all three countries.

Create a Cross-Border Digital Trust and Privacy Taskforce Form a regional task force to align on privacy protections, AI governance, and data trust standards. This group would map out conflicting regulatory environments and propose harmonization pathways; develop joint principles on digital identity, consent, and data portability; and engage civil society and private sector stakeholders to build public trust. This would support secure cross-border data flows and foster trust in digital ecosystems.

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REGIONAL ECONOMIC DEVELOPMENT AND FINANCE

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USMCA 2026: Navigating the Sunset Clause & the Future of Trade Affiliate: The Brookings Institution

Recommendations Address Sensitive Issues Separately from Renegotiation The USMCA review presents a strategic opportunity to modernize and strengthen the agreement. However, some topics, such as fentanyl trafficking and aluminum and steel tariffs should be kept separate from formal negotiations to minimize political volatility and preserve the stability of the trade framework.

The 2026 review of the United States-MexicoCanada Agreement (USMCA) represents a pivotal moment for North American policymakers and businesses alike, as it will unfold in a politically and economically complex environment. Recent unilateral U.S. tariffs on automotive exports, aluminum, steel, and fentanyl/migration IEEPA orders, when non-compliant with USMCA, have introduced uncertainty into the review process.

From the U.S. perspective, tariffs now appear to serve as a structural tool of economic policy, supporting revenue generation and industrial strategy. While integrating economic security into the review is necessary, it risks complicating negotiations and slowing momentum.

Nonetheless, there are encouraging signs for the agreement’s future, including sustained bipartisan support in the U.S. and a continued commitment to trilateral negotiations over bilateral approaches.

Maintain Open and Coordinated Dialogue on Economic Security Risks A key factor that will shape the negotiations will be how the three partners respond to rising economic security concerns, particularly regarding trade and investment ties with China. A North American collaborative effort to reduce the region’s trade deficit with China, as well as to elevate a regional perspective on global governance and security challenges, would reinforce the importance of trilateral cooperation in an increasingly complex international environment. Canada’s upcoming role as host of the G7 meetings in Alberta presents a valuable opportunity to highlight these issues.

Strengthen Traceability and Rules of Origin Under USMCA, the traceability of steel and aluminum, particularly in automotive products, is a crucial aspect to qualify for preferential tariff treatment. The United States, Canada, and Mexico should work together to develop processes and technology to improve the traceability of steel and aluminum to ensure compliance with agreed upon terms.

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Unlocking Labor Mobility: North America’s Growth

Affiliates: Migration Policy Institute and the Center for Global Development Labor mobility is a cornerstone of North America’s economic competitiveness. Given the complementary nature of the region’s economies, labor demands—ranging from high-skill to essential sectors—can be met through well-structured, collaborative mobility pathways. With aging populations and evolving economic demands, migration can be a strategic response to shared demographic trends and labor market needs across the U.S., Mexico, and Canada. This requires a renewed regional approach to migration—one that recognizes Mexico as a proactive partner and views migration as an opportunity for shared growth.

Encouraging deeper regional cooperation will be key, including investment in human capital, the expansion of legal pathways, and greater private-sector engagement in financial inclusion and community integration.

Reframing migration narratives to emphasize

economic opportunity and social cohesion can help build broader support. As there is bipartisan interest in addressing labor mobility, the next five years present a critical window to design an inclusive, forward-looking strategy that strengthens North America’s global competitiveness and social fabric.

Recommendations A Renewed Regional Approach to Migration While existing migration frameworks, such as USMCA labor categories, have served a purpose, there is growing momentum for their modernization and expansion to better reflect 21st-century workforce realities and labor market needs across the U.S., Mexico, and Canada. Migration should be recognized as a strategic economic necessity for North America and an opportunity for shared growth.

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Expanding Legal Migration Pathways through Modern Immigration Systems Increasing the availability of temporary work visas in sectors with urgent labor shortages paired with addressing operational challenges in visa processing and cross-border travel would help ensure that businesses and communities can thrive in a more dynamic economy. North America must respond to demographic shifts through migration policy by proactively integrating migration as part of a long-term economic sustainability strategy,

ensuring a sufficient workforce for critical industries.

Integrating Financial Inclusion for Migrant Communities Efforts should be taken to support initiatives that enhance banking access and income documentation for remittance-receiving populations, thereby strengthening their economic participation. Institutions should also encourage financial products tailored to the needs of migrant workers and their families.

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North America’s Competitive Edge: Economic Security Affiliates: U.S.-Mexico Foundation, American Chamber of Commerce Mexico, Atlantic Council

If North America is to remain competitive amid shifting globalization dynamics, it must act swiftly, align strategically, and plan collectively.

However, the absence of a shared North American vision, with long-term planning and unified objectives, risks leaving the region behind in the global race. Delaying critical revisions, investments, or frameworks could incur steep economic costs. In this sense, economic security was framed as a proactive strategy based on human capital development, infrastructure investment, and aligned industrial policies across the region. To strengthen economic security, governments should be cautious of protectionist tariffs and emphasize regional rules of origin and trade protections under USMCA to shield against global disruptions.

The current momentum around ally-shoring and manufacturing relocation to Mexico presents a window of opportunity—but only if supported by investments in technical education, labor mobility policies, and robust infrastructure. The conversation reframed North American integration as a co-production and shared manufacturing ecosystem, requiring a renewed approach to economic security and institutional capacity. In this context, talent availability, energy access, and infrastructure—especially at the U.S.-Mexico border—are essential. Supply chain resilience and economic security are deeply intertwined

with democratic governance and the rule of law. By working together, the United States, Mexico, and Canada can enhance their shared competitiveness amid global supply chain transformations.

Recommendations Expand Ally-Shoring and Regional Supply Chains The region must leverage ally-shoring strategies to reduce dependency on external markets, particularly in critical industries such as semiconductors, automobiles, and intermediate goods. To do so, regional supply chain standards and collective political clarity should be considered to streamline trade, improve supply chain resilience, and incentivize investments within North America.

Also, addressing infrastructure gaps at key border points to support faster, more reliable movement of goods and people is urgent to improve supply chains.

Invest in Long-Term Workforce Development Technical education and skills development across the region should be prioritized to close gaps in manufacturing and industrial knowledge in order for North America to meet the needs of tomorrow. Mexico’s youthful population was noted as a demographic asset that can be leveraged within a coordinated

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regional strategy, including through publicprivate partnerships to prepare the next generation of workers for emerging supply chain and advanced manufacturing opportunities.

Depoliticize Labor Mobility and Migration Discussions More honest, pragmatic collaboration across borders is only possible through the

depoliticization of key subject matters such as labor mobility. Migration should be reframed as an economic necessity rather than liabilities.

Pragmatic, proactive labor policies that allow for the efficient movement of talent across borders to meet regional industry needs should be the goal of policymakers across the region.

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Regional Readiness: Strengthening North America’s Appeal

Affiliate: World Economic Forum As global economic shifts and geopolitical pressures reshape investment landscapes, North America must enhance its competitiveness to attract and retain Foreign Direct Investment (FDI). This requires fostering investor confidence, streamlining regulatory frameworks, and leveraging trade agreements like USMCA to ensure a business-friendly environment.

With the growing urgency to redefine the region’s competitive edge in a rapidly shifting global landscape, and with countries like China and India investing heavily in digital infrastructure, education, and workforce inclusion,

Mexico’s demographic advantage, Canada’s energy potential, and the U.S.’s market scale all emerged as untapped synergies that demand strategic alignment.

Regional stakeholders must operate as a team—like a global enterprise competing for market share— recognizing that infrastructure, energy connectivity, and digital public infrastructure form the backbone of long-term resilience. However, these investments must be matched by a regional strategy centered on inclusion and innovation.

North America risks falling behind if it fails to act cohesively. Although the USMCA marked a historic milestone in trade integration, the region still lacks a compelling, unified vision—one that positions it as a coordinated economic and security bloc. The challenge is not job shortages, but the widening skills gap, calling attention to generational shifts, automation, and the need for agile upskilling.

Accelerate the Review of USMCA The USMCA review should be seen as a major opportunity to modernize the North American partnership and make it work better for today’s challenges. Efforts should be made to ensure alignment and agreement on the terms to provide the private sector with as much certainty as possible. The forthcoming visibility of the shared World Cup should be leveraged to champion its passage as a further example of regional unity.

Recommendations

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Create a Long-Term Regional Industrial Policy North America would benefit from a shared vision of the continent as a team competing on the global stage. By aligning on key sectors such as electric vehicles, aerospace, and energy, as well as joint infrastructure investment and cooperation, a longterm regional industrial policy can serve as a force multiplier on the global stage and ensure that North America is linked not just by supply chains but also by value chains.

Capitalize Soft Power and a Shared Narrative North American countries should use the 2026 World Cup as an opportunity to demonstrate integration and cooperation, highlighting the region as a dynamic, unified economic and cultural bloc. As part of the World Cup— and beyond— the region should develop a unified narrative for why North American cooperation benefits everyone.

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Seamless Trade, Secure Borders: Advancing North American Connectivity Affiliates: Hunt Institute and Texas Association of Business Balancing border security and infrastructure needs with trade facilitation is essential for economic growth and regional competitiveness. Economic integration, especially in manufacturing, depends on regulatory certainty and the smooth cross-border movement of goods, services, and people. This is particularly crucial as companies navigate multi-jurisdictional supply chains and a rapidly evolving trade environment.

Harmonized procedures and stronger coordination between authorities—especially U.S. Customs and Border Protection (CBP), Mexico’s National Customs Agency (ANAM), and the Canada Border Services Agency—logistical necessities and strategic tools for regional resilience. Recent success stories, such as joint cargo inspections and Unified Cargo Processing (UCP) at ports of entry, which have reduced crossing times by 20–25%, demonstrate that security and efficiency are not mutually exclusive. Fostering a trusted, institutionalized partnership is both a matter of trade logistics and a strategic cornerstone of regional stability and industrial competitiveness. Trust-building mechanisms and sustained intergovernmental dialogue, especially at the state level, enable the flow of updated, actionable information across jurisdictions.

Recommendations Scale and Institutionalize security collaboration such as UCP Given its success, the implementation of joint inspection programs like UCP should be expanded at key ports of entry to reduce wait and clearance times for cargo crossing the U.S.-Mexico border.

Greater training, infrastructure, and operational coordination between CBP and ANAM would also enhance and institutionalize cooperation.

Create a Binational Customs Agency and Strengthen Subnational and Private Sector Engagement The U.S. and Mexico should establish a standing binational agency—modeled on the International Boundary and Water Commission (CILA)—to oversee customs cooperation, streamline regulations, and serve as a long-term institutional anchor for border management. The states should also formalize a Commission of Border Affairs to provide a sustained platform for private sector input on border operations and empower state-level actors to serve as trusted intermediaries in U.S. federal policy discussions.

Launch a North American Industrial Coordination Council The U.S., Canada, and Mexico should utilize Chapter 26 of the USMCA on Competitiveness to bring together public and private sector actors to align industrial policies, identify strategic sectors, and leverage regional complementarities—such as U.S. R&D, Mexican manufacturing capacity, and Canadian resources.

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Supply Chains in Focus: North America’s Road to Resilience and Innovation Affiliates: Canadian Manufacturers and Exporters, CONCAMIN, National Association of Manufacturers North America’s supply chains are under severe stress due to tariff policies, investment uncertainty, and regulatory complexity. While tariff measures are intended to protect domestic industries, their unpredictability has contributed to investment hesitancy and created vulnerabilities in critical sectors such as automotive, technology, and pharmaceuticals, disrupting not only manufacturing, but also essential industries such as healthcare. The rebuilding of U.S. manufacturing without a clear strategy, financial incentives, and tax rebates seems unrealistic. In this sense, it was also noted that unfeasible reshoring could raise costs significantly, particularly in the automotive industry. The USMCA establishes a predictable and rules-based trade environment, and its continued development—grounded in trust and collaboration—will be key to strengthening regional supply chains and supporting strategic sectors. Constructive engagement among all three countries, coupled with pragmatic regulatory approaches, can help North America unlock its full potential as a competitive and resilient economic bloc.

Recommendations A North American Industrial Strategy Rather than relying on reactive tariffs, there is a need for a bold, comprehensive North American industrial strategy. Canada, Mexico, and the U.S. should work as cohesive partners

to regain global competitiveness, particularly against manufacturing powerhouses in Asia. A unified, coordinated 25-year industrial vision would help propel North America forward.

Clear, Long-term Industrial Goals Reinforcing the USMCA and establishing clear, long-term industrial goals are urgent priorities.

A modernization of USMCA rules would ensure that compliance remains achievable and enhances competitiveness rather than hindering it.

Trilateral Institutional Forums The establishment of permanent trilateral forums (beyond the review process) to align trade and industrial policies, coordinate infrastructure and energy investments, and manage critical sector vulnerabilities, including pharmaceuticals, would elevate critical trilateral cooperation.

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GOVERNANCE, INSTITUTIONS AND DEMOCRACY

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Legislating Across Borders: The Role of Legislators in North American Diplomacy

Affiliates: U.S.-Mexico Foundation and Meridian International Center Experts and practitioners alike agree that legislative diplomacy should play an increasingly vital role in addressing regional and cross-border challenges such as trade, migration, and emerging technologies.

Legislative bodies in the United States, Canada, and Mexico offer consistency, representation, and public trust that executive branches alone cannot provide, and legislators themselves are uniquely positioned to build long-term relationships with their international counterparts, influencing national agendas and ensuring domestic laws align with global realities. At present, legislative diplomacy is underutilized across North America, and more attention is needed to fully harness its power and potential. Importantly, successful legislative diplomacy requires more than highlevel meetings; it must deliver tangible results

to constituents, which ultimately lies at the core of the work of legislators.

Recommendations Trilateral Legislative Compact Develop a U.S.-Mexico-Canada Legislative Compact, targeting key areas like migration, trade, AI, and energy. This compact would establish working groups composed of members of national legislative bodies from all three countries, civil society actors, and technical experts to develop coordinated policy proposals and foster sustained dialogue.

Binational Interparliamentary Fellowship or Exchange Program Launch a U.S.-Mexico Interparliamentary

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Fellowship or Exchange Program to address the need for relationship-building and mutual understanding among legislators. This program would facilitate travel, mentorship, and joint sessions between U.S. and Mexican lawmakers (especially new members), allowing them to collaborate on small-scale initiatives and better connect policymaking to constituent concerns.

Legislative Diplomacy Toolkit Recognizing the importance of public buy-in, a public education and engagement toolkit for Legislative Diplomacy would help legislators better explain the impact of international cooperation to their constituents. This toolkit could include templates for town halls, local media op-eds, and digital campaigns highlighting how foreign relationships support domestic economic and security goals, tailored to regional priorities.

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Bridging Borders: The Power of Subnational Diplomacy in North America Affiliate: Meridian International Center As another layer of government and leadership, subnational entities possess significant competencies to engage internationally, and are doing so every day.

Across the continent, mayors, governors, provincial leaders, and their staff are building economic, political, cultural, and tourism bridges across borders that deliver real benefits in local communities. These partnerships, driven by reciprocity and tangible results, integrate the public and private sectors seamlessly. Local governments are champions of North American integration.

In the United States, coalitions of cities and governors advance causes relating to international trade or collaboration with relevant federal authorities, and Mexican states regularly partner with US federal officials via the U.S. Embassy in Mexico City to promote shared interests. This past year has highlighted that amidst leadership changes at the national level across the continent, connections between local government leaders serve as a ballast for dialogue and partnerships.

Sports Host Cities Network With upcoming global sports events in North America including FIFA 2026 and the 2028 Olympics, sports diplomacy will meet subnational diplomacy. Sporting events provide opportunities to accelerate transformational progress and attract investment and innovation. A networking and exchange platform would enable host cities to connect with each other, share lessons, innovation, and best practices.

Subnational Diplomacy Toolkit Local governments are rapidly innovating on the international front, developing sophisticated trade and FDI attraction strategies and leveraging innovation, culture, and sports to maximize their global appeal. A Toolkit for Subnational Diplomacy would document tools and practices to better equip local leaders in maximizing the benefits of international engagement and navigating geopolitical risks.

Recommendations Subnational Diplomacy Matchmaking A pilot program for state-to-state and city-tocity partnerships could develop meaningful ties between communities across North America based on industry complementarity and geared towards expanding economic and market opportunities. The program would identify shared priorities and assets across FDI, trade, innovation, culture, education, and more, to identify high-potential matches and provide sustained support.

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DIPLOMACY AND SECURITY

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Scoring Big: The 2026 World Cup and North America’s Soft Power Strategy Affiliate: Meridian International Center The 2026 FIFA World Cup is more than a sporting event—it's a defining opportunity for North America to demonstrate unity, innovation, and global leadership. With 16 host cities across the U.S., Canada, and Mexico, and a projected $40 billion economic impact in the U.S. alone, the 2026 tournament can serve as a catalyst for economic growth, public diplomacy, and regional cooperation across North America. Much more than just the matches on the pitch, the legacy of the World Cup should extend beyond the final whistle— delivering long-term benefits in diplomacy, infrastructure, and regional identity.

Recommendations Establish a Trilateral Travel and Tourism Facilitation Program With visa delays posing a significant challenge, the governments of the U.S., Canada, and Mexico should create a streamlined travel program—or a regional visa waiver initiative— to expedite entry for fans, athletes, and staff.

This initiative could also serve as a model for

future regional events and strengthen longterm mobility within North America.

Launch a Joint Cultural Diplomacy Campaign To reinforce soft power and foster public goodwill, the three nations should co-create cultural festivals, public art installations, and joint ceremonies that celebrate shared values and diversity across borders. These activities should begin well before 2026 to build excitement and promote mutual understanding.

Develop a North American Sports Legacy Strategy Policymakers and private sector leaders should collaborate on a legacy plan that prioritizes investments in infrastructure, workforce development, and digital connectivity. Such a strategy would help ensure the World Cup delivers lasting benefits—particularly for underserved communities—and supports future international initiatives, including the proposed 2031 Women’s World Cup co-hosting bid.

Expand Regional Engagement Beyond Host Cities To ensure the World Cup resonates across all corners of the U.S., Mexico, and Canada—not just in the 16 host cities—governments and organizers should invest in fan fests, mobile cultural exhibits, and community watch events in secondary markets and rural areas. This approach would democratize access to the World Cup experience, foster national unity, and amplify the tournament’s soft power impact by engaging millions who may not be able to attend games in person.

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Securing North America: Strengthening Cooperation & Regional Trust

Affiliate: Convocation While trade integration across North America has advanced steadily since the days of NAFTA, security cooperation has not evolved at the same pace. Security dynamics remain shaped by outdated frameworks, fragmented approaches, and divergent national priorities.

Trust among the three countries has deteriorated, compounded by domestic political tensions and the politicization of issues like migration, fentanyl trafficking, and tariffs. The momentum to create a North American security perimeter, first envisioned after 9/11, has been lost, and today there is little serious interest in reviving it. Political sensitivities remain an obstacle to deeper trilateral security cooperation, and despite operational ties at the subnational level, the erosion of trust at the national level may impact the breadth of security cooperation. As threats are proliferating from the cybersecurity domain to transnational organized crime, a shared security vision anchored in mutual awareness, preclearance intelligence, and structural modernization is essential.

Recommendations Modernize and expand security cooperation The region suffers from a lack of codified

trilateral security cooperation, and existing bilateral agreements require modernization.

Efforts should be undertaken to identify specific security areas where joint undertakings can yield tangible benefits, such as intelligence sharing and best practices in addressing transnational crime. The U.S. and Mexico should also strive to reset their security cooperation, recognizing that even imperfect frameworks like the Mérida Initiative provided a necessary structure in the interim.

Shared customs cooperation Customs is a strategically vital area where two major challenges confronting North America converge: China’s trade practices and the fentanyl crisis. Countries should undertake a feasibility study and initiate pilot programs for enhanced customs cooperation, potentially leading to a binational US-Mexico agency as a first step, with the long-term goal of a trilateral integration. It is also important to expand joint law enforcement, environmental, and infrastructure projects (e.g., NEXUS, Gordie Howe International Bridge) as platforms for broader coordination. Such efforts would help tackle converging challenges like fentanyl trafficking, trade vulnerabilities, and customs management.

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Sino Shadow: Strategic Responses in Trade & Security to China Affiliate: Peterson Institute for International Economics Across North America, there is growing recognition of the profound impact China exerts across critical industries such as biopharmaceuticals, aerospace, and artificial intelligence. China’s state-driven model— leveraging foreign direct investment, industrial overcapacity, non-market practices, and espionage—poses serious challenges to North American competitiveness and security.

Recommendations Utilize the USMCA to Strengthen Regional Economic Cooperation Countering China's growing economic dominance requires the U.S., Mexico, and Canada to present a unified economic agenda and align priorities at the 2026 USMCA Review.

Rather than focusing solely on restricting China, North America should prioritize building its own regional industrial capabilities. This includes addressing shortfalls in domestic production of essential components such as printed circuit boards and critical minerals vital to advanced manufacturing. While full economic decoupling is currently unrealistic; clearer safeguards, transparency mechanisms, and national security reviews must be established to monitor and regulate Chinese influence without sacrificing North America's economic stability.

Engage the Private Sector More Directly in National Security Efforts Countering China's growing presence, especially in vulnerable regions like Latin America and the Caribbean, requires both military and private sector engagement. In small countries without standing militaries, U.S. security support remains vital but is being outpaced by China’s growing collaborations and investments in the region, making it the "country of necessity" rather than the partner of choice. While government action is necessary

to prompt further military support to counter China, national security can no longer be left solely to governments; the private sector and NGOs must play a leading role in building resilience, investing in and shaping partnerships, and promoting North American values abroad. To support this, North America should incentivize strategic private investment, tapping into the growing momentum around "patriotic capital" to meet national security and economic competitiveness objectives.

Improve Data Collection and Transparency on Chinese Investment Robust data collection is critical to developing coordinated, evidence-based responses to China’s expanding economic footprint in North America. For instance, the number of Chinese companies operating in Mexico has nearly doubled since 2017, yet official data often fail to capture the full picture—particularly when investments are routed through third countries like the U.S. Without clear, accurate tracking of Chinese foreign direct investment (FDI), North America cannot effectively assess vulnerabilities or seize opportunities.

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About the North Capital Meridian Diplomacy Forum The North Capital Meridian Diplomacy Forum, a collaboration between the US-Mexico Foundation and Meridian International Center, merges the North Capital Forum and the Meridian Diplomacy Forum into a single, invitationonly event.

With shifting priorities across North America, diplomats, business leaders, and policymakers tackle actionable solutions for regional security, inspire innovation, and ensure North America’s long-term success in a rapidly evolving global landscape.

About US-Mexico Foundation The U.S. Mexico Foundation (USMF) is a binational non-profit, non-partisan, organization dedicated to fostering cooperation and bilateral understanding between the United States and Mexico. Rooted in the North America Free Trade Agreement, the organization was founded in 2001 and began operations in 2004 with seed capital from the David & Lucile Packard Foundation, Carnegie Corporation and FUNDEMEX. The USMF is governed by a binational board consisting of business and civic leaders, with extensive networks in the U.S. and Mexico. The USMF embarked on a new chapter in 2018, with a compelling agenda that prioritizes policy and advocacy. The organization is focused on creating new strategic alliances, educating important stakeholders, and providing a voice on the most relevant issues concerning the U.S.-Mexico relationship.

About Meridian International Center Meridian is a nonpartisan center for diplomacy founded in 1960 and headquartered on a historic campus in Washington, DC. Our mission is to empower the next era of leaders to advance diplomacy for a better future. Our programs strengthen American leadership by accelerating collaboration on shared challenges, increasing economic competitiveness, and building geopolitical resilience. We equip leaders from business, science and technology, cities and states, culture and sports with insights, networks, and resources to navigate a complex world.

Acknowledgements Report Contributors: Selva Astudillo, Carolina Barroso, Max Bouchet, Connor Brain, Emmanuel Carrasco, Jessica Duhon, Josh Eliot, Priscilla Godinez, Samirah Hussain, Tamara Katzman, Sofia Potes, Ricardo Smith, and Joseph Tufo Special Thanks: Enrique Perret, Ambassador Stuart Holliday, Paola Bertran, Julia Muzquiz, and Matthew Stefanski Photography: Tom Duppa and Jess Latos

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