The Parliament of Canada, led by Prime Minister Sir Wilfrid Laurier, had deadlocked over the issue. Canadians turned Laurier out of office in the September 1911 election and Robert Borden became the new prime minister. No cross-border agreement was concluded, and the debate deepened divisions in the Republican Party.[88][89]

Latin America
See also: Dollar Diplomacy
Taft and his Secretary of State, Philander Knox, instituted a policy of Dollar Diplomacy towards Latin America, believing U.S. investment would benefit all involved, while diminishing European influence in regions where the Monroe Doctrine applied. The policy was unpopular among Latin American states that did not wish to become financial protectorates of the United States, as well as in the U.S. Senate, many of whose members believed the U.S. should not interfere abroad.[90] No foreign affairs controversy tested Taft's policy more than the collapse of the Mexican regime and subsequent turmoil of the Mexican Revolution.[91]

Taft and Porfirio Díaz, Ciudad Juárez, Mexico, 1909
When Taft entered office, Mexico was increasingly restless under the grip of longtime dictator Porfirio Díaz. Many Mexicans backed his opponent, Francisco Madero.