Why don't we have a common North American labour market?

In recent weeks, Canadian leaders have been preparing for potential major changes in their relationship with the United States following a suggestion from U.S. President-elect Donald Trump regarding tariffs. Trump indicated he may enforce a 25 percent tariff on all products imported from Canada and Mexico, which has prompted discussions among Canadian officials about the implications of such a trade policy. The suggestion also included a controversial remark that Canada could become the ‘51st state’ of the U.S. if it struggles to cope with the economic impact of the tariffs. This context of increased trade tension has opened a conversation on the benefits of deeper economic integration between the U.S. and Canada, akin to the European Union's common market. There is a burgeoning dialogue about the possibility of a common labor market that would allow increased mobility for workers across North America. Currently, certain higher wage workers are already benefiting from a system of TN visas that facilitate temporary and reciprocal labor mobility between the countries. The recent renegotiation of the United States-Mexico-Canada Agreement (USMCA) has further paved the way for comprehensive discussions about the labor market. With the existence of TN visas persisting through the contentious negotiation of the USMCA, some anticipate that extending these arrangements could be positive for both economies. However, advocates argue that there is much more to be done, including expanding the list of eligible occupations and creating a more flexible visa system. Moreover, discussions about including a lower wage mobility clause in any future agreements have also emerged. While there may be concerns about how this could affect lower-wage workers in the recipient countries, a balanced approach could offer substantial economic opportunities and benefits stemming from a more integrated labor market in North America. As trade issues continue to escalate, Canadian leaders recognize the importance of preparing for unpredictable shifts in their relationship with the U.S. and are keen to leverage any potential opportunities for cooperation and growth amidst the turmoil.