In the wake of a newly signed trade deal, Canada, the United States and Mexico are setting up a new body to examine cross-border regulatory issues in the financial sector, the governments said Friday.
In a joint statement, the Department of Finance Canada, the U.S. Treasury, and Mexico’s Ministry of Finance and Public Credit of Mexico, announced the creation of the Canada-Mexico-United States Financial Regulatory Forum (CMUSFRA).
The CMRUSFRA is being established in order to enable the three countries to better share information, monitor developments in the financial sector, consider emerging risks to financial stability, and to discuss possible reforms and/or ways to enhance cross-border co-operation.
“The financial sectors of Canada, Mexico, and the United States are highly integrated, and investment in these sectors accounts for a significant and growing portion of cross-border trade and investment across North America. These trends underscore the importance for our three countries to work together to manage common risks and to promote open and efficient markets,” the governments say in the joint statement.
The CMUSFRA will meet annually, with additional meetings on technical issues taking place as needed.
Although the new initiative follows the negotiation of the United States-Mexico-Canada Agreement (USMCA), the new forum will operate independently from the Financial Services Committee that was established under the USMCA, the governments say.