CANADIAN AMERICAN BUSINESS COUNCIL POLICY PRIORITIES (2011)
*Coming Soon- CABC's 2012 Policy Priorities
Since 1987, the Canadian American Business Council (CABC) has been a leader in advocating the enormous
advantages of the multiplicity of ties that bind Canada and the United States. We share far more than geography.
We share history, values, and common interests and objectives. This shared history and proximity has also formed
the foundation upon which the unmatched Canada/U.S. commercial relationship has developed. The mutual trust
and loyalty between the two countries has provided a unique setting for the most prosperous and largest bilateral
trading partnership on earth. NAFTA -- which was enacted more than fifteen years ago, and which the CABC
supports steadfastly -- is an example of the successful bilateral commercial relationship between Canada and the
U.S.
The historic Canada/U.S. relationship goes well beyond economic ties to areas such as security and the
environment. 2008 marked the fiftieth anniversary of the establishment of the North American Aerospace Defense
Command (NORAD). Canada and the U.S. collaborate in defending the continent and are partners around the
world in multi-lateral efforts from Afghanistan to Haiti to the coast of Somalia. Defense and intelligence
collaboration are hallmarks of Canada/U.S. joint efforts that date back before the World Wars, Korean Conflict, and
continue along on our own borders.
Last year marked the centennial anniversary of the Boundary Waters Treaty between Canada and the United
States, one of the world’s oldest and most successful environmental treaties. It provided a fitting context of
environmental collaboration as our countries set out the path for the Canada/U.S. Clean Energy Dialogue to find
ways to mutually combat the challenge of climate change. In addition, as the world watched the 2010 Winter
Olympics in Vancouver, the CABC celebrated the special relationship between our two nations through an
awareness television campaign in Washington, D.C. and earned media coverage throughout Canada.
Looking ahead, Canada and the U.S. will soon commemorate the bi-centennial of the end of the War of 1812. The
peaceful cooperation and collaboration between our countries for the past two hundred years is unique in the
world and truly worthy of celebration.
II. Economic Recovery and North American Competitiveness
It is now more important than ever that Canada and the U.S. collaborate on economic recovery. With the near
financial collapse in 2008 and the subsequent government rescue and economic recovery of 2009-2010, a picture
emerged of the similarities and differences between banking systems in North America, government responses, and
the integrated nature of our economies.
Leaders in both countries have expressed a strong commitment to work together on global financial regulatory
reform, access to markets, and fairer trading rules. As the United States focuses on the creation of jobs through a
national export initiative, the recent agreement with Canada to provide reciprocal access to government
procurement programs will prove to be a key component of a resurgence in cross-border commerce and overall
economic recovery.
III. The Council promotes free trade and opposes protectionism
The CABC is a champion of free and comprehensive trade and has consistently opposed protectionist efforts that
have emerged on both sides of the Canada/U.S. border. Given the integrated nature of our markets, supply chains,
and overall economies, Canada and the U.S. produce goods together and provide services that enhance North
American competitiveness. Any protectionist measure is harmful to both countries. This bi-lateral commercial
partnership has been a pillar of strength in the world economy. Our unparalleled economic links have helped shape
the global trading framework and paved the way for mutually beneficial trading agreements around the world.
The CABC’s opposition to protectionism helped lay the groundwork for the Canada/U.S. agreement on sub-national
procurement in the American Recovery and Reinvestment Act of 2009. This new understanding sets forth the
means for dealing with future Buy American provisions by elevating the importance of state and provincial
economic ties. The CABC also opposes efforts by legislators to include “U.S. only” ownership and employment
requirements for critical economic recovery initiatives, including infrastructure projects. History shows that when
various protectionist efforts are invoked to spur domestic growth, unintended negative consequences ensue.
In addition, the CABC encourages more collaboration between governments about contemporary barriers to trade,
such as security demands and the conflicting regulatory policies across industries. Today’s economic challenges
make it more important than ever for Canada and the U.S. to work in partnership to resolve trade barriers, and
thereby expand their economic relationship in all areas.
IV. The Council promotes a collaborative approach to energy security and sustainability
Just as the U.S. is Canada’s largest energy export market, Canada is the single largest supplier of energy to the U.S.
and is the country best-suited in terms of safety, security, and predictability to supply U.S. requirements for energy.
By encouraging collaboration and cooperation between governments, industry, and communities on both sides of
the Canada/U.S. border, the CABC supports the environmentally-responsible development of Canadian resources,
including but not limited to, oil sands and hydro-electric power. The CABC supports the development of new
technologies and innovative programs to reduce the environmental footprint of the development of such resources
as we work towards transitioning to a low-carbon economy.
Increased awareness of the long-established and shared methods of energy production and delivery, and of the
actual range of physical resources upon which Canada and the U.S. have mutually depended for energy, is an
important component in the development and advancement of the Canada/U.S. Clean Energy Dialogue. The
current dialogue will certainly be a precursor for domestic and international negotiations of various climate change
regimes. Crucial to the legitimacy of any such regime will be that Canada and the U.S. work as one so that neither
are unintentionally affected by possible border tariffs aimed at less-environmentally committed nations across the
globe.
V. The Council stands for improving the efficiency of the Canada/U.S. border.
Approximately 300,000 people cross the Canada/U.S. border each day. In addition to people, Canada is the largest
export market for most states and an average of US $1.5 billion in commerce is exchanged across the 49th parallel
daily. The efficiency of the Canada/U.S. border is critical to the well-being and livelihood of millions of Canadians
and Americans.
Since 2001, increased precautionary measures for security have transformed the border, while institutions for
proper trans-border governance and standard-setting have not been simultaneously and sufficiently established.
The border must not develop into a competitive disadvantage for Canadian and American businesses. Although the
CABC fully recognizes the importance of a secure border and supports effective security measures, such as those
implemented under the Smart Border Accord of 2001, the organization advocates for security measures that are
reasonable, harmonized to the maximum extent possible, and that do not hinder legitimate and vital trade.
Improving border efficiency will improve more than just travel for ordinary Canadians and Americans; reducing
border delays will directly reduce the cost of doing business and help propel economic recovery. By reducing wait times
at the border and by streamlining compliance and regulatory regimes, Canada and the U.S. can provide a
setting in which cross-border business is efficient and affordable, and in which companies do not incur millions of
dollars in unnecessary and avoidable costs. Improving border management through overdue improvements to our
shared infrastructure should be a key component of economic recovery spending in North America.
Regulatory harmonization is central to enhance cross-border business and stimulate job growth, for small
businesses in particular. To take one example, there is widespread agreement among scholars and experienced
industry leaders across North America that reducing regulatory divergence of automotive standards on both sides
of the Canada/U.S. border would significantly complement both governments’ responses to that industry’s financial
problems. This particular argument can easily be applied to policies in other areas and industries, including food
safety and environmental standards. Small businesses and consumers are the direct beneficiaries of regulatory
coordination because it allows companies to re-allocate resources to, for example, improving the competitiveness
of products by modernizing technology and lowering costs.