Canada needs to strengthen economic ties across the Americas to bolster business in the face of aging domestic populations and lagging global trade talks, says the chief executive for Bank of Nova Scoita.

CEO Rick Waugh made the remarks today during a keynote address at the Empire Club of Canada in Toronto.

“Canada needs more of the world,” Waugh told an audience of business leaders. “Globalization is our future, including the enormous markets of China and India, but I believe the near-term opportunity for us, here in Canada, is closer to home, specifically in the Americas.”

Waugh said the North American Free Trade Agreement (NAFTA) has been a great step in the right direction, as trade between Canada, Mexico and the U.S. has more than doubled to over US$650 billion a year since 1994.

But as Europe consolidates its strength in its economic union and as Asia also explores market integration, Waugh envisions a tremendous regional opportunity for Canadian businesses seeking access to younger, more vibrant populations in markets in the Americas.

“We are seeing an increasing degree of regionalism in reaction to the absolute lack of momentum in the Doha Round of world trade talks,” said Waugh. “Regardless of whether the World Trade Organization falters or not, Canada had better have a strong position to compete against these new regional forces. We need to better align ourselves within our hemisphere.”

A measure of globalization by the firm Mercer Oliver Wyman predicts the economies of Brazil, India and China will be half the size of the G-6 by 2025, compared to 15% today.

“The demographic reality is part of the underlying rationale for businesses looking to expand in emerging markets,” said Waugh, noting Mexico has a median age of just 22 years, compared to 35 in the U.S. and 38 in Canada. “Younger populations tend to be low on savings and consume and borrow more.

“For countries with increasing populations and consumption, it will lead to stronger per capita Gross Domestic Product growth in these regions,” added Waugh. “In essence, it is a rebalancing of growth to countries with younger populations.”

Scotiabank’s International Banking business is one of the bank’s three core businesses. Scotiabank is the leading provider of financial services in the Caribbean and Central America, has the broadest Asian network of any Canadian bank and is active in the Latin American market through operations in Chile, Costa Rica, Dominican Republic, El Salvador, Mexico and Panama, with affiliates in Peru and Venezuela and a representative office in Brazil.