Link to article: https://www.reuters.com/world/americas/canada-join-mexican-complaint-about-us-auto-industry-move-2022-01-13/
Ties between the US and its adjacent neighbors are straining right now, specifically in the continental auto industry. Canada is joining Mexico in requesting a dispute settlement panel under the terms of the U.S.-Mexico-Canada trade pact. The two countries have been disagreeing with the US over how to apply auto sector requirements according to the treaty, which replaced NAFTA, and want to settle these disputes. The pair are also displeased with possible US tax breaks for American-based electric vehicle manufacturers. Mexico and Canada want a more flexible interpretation of the regulations than the US, and they think that the US interpretation is inconsistent with the pact. However, the US response states that the US is confident that their interpretation is consistent, and that their approach will attract new investment and create good jobs.
It is interesting how Canada and Mexico have teamed up in an attempt to persuade the US, considering the significant difference in power between the US and the other two. The situation could go either way, but will likely end in compromise. Depending on the outcome, this could set a precedent for future interactions between the three North American countries. If Mexico and Canada have their way, then the US may be perceived as more easily persuaded and the pair may attempt to gain ground in other areas as well. This may drive more of a hardline response from the US, in hopes that this will reinforce who the top dog is both in the hemisphere and the world.
This situation involves three states in the category of International Economics since the countries are disputing over a trade pact. The unipolar system of the world is demonstrated here since Mexico and Canada are having to back each other up in an attempt to influence the US, and even then the US still maintains its view on the issue. A realist viewpoint seems to fit here, since the US and Canada have not proposed much to compromise on and instead seem intent on getting the other side to acknowledge their position. This relates to how treaties and pacts are only there for convenience and personal benefit to the country and its national interest, so each country will only agree to what leaves them with benefit.