CANADIAN AMERICAN BUSINESS COUNCIL POLICY PRIORITIES (2009)

I. The Council promotes the unique relationship between Canada and the U.S.

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. Given the current economic difficulties around the world, it is now more important than ever that Canada and the U.S. jointly approach economic recovery.

The historic Canada/U.S. relationship goes well beyond economic ties to areas such as security and the environment. Last year 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 here on our own borders.

This year marks 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 provides a fitting context of environmental collaboration as our countries begin this year to establish the Canada/U.S. Clean Energy Dialogue to find ways to mutually combat the challenge of climate change.

President Obama’s decision to visit Canada on his first official international trip is also evidence of the importance of the unique relationship between our two nations.

II. 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 unparalled 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 is evidenced in its efforts to persuade the U.S. Congress to remove “Buy American” provisions that appeared in the U.S. economic stimulus bill of 2009. 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.

III. The Council promotes a collaborative approach to energy security and climate change

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.

The CABC supports the environmentally-responsible development of Canadian resources, including but not limited to, oil sands and hydro-electric power, through collaboration and cooperation between governments, industry, and communities on both sides of the Canada/U.S. border. The CABC supports the development of new technologies and innovative programs to reduce the environmental footprint of the development of such resources.

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/US Clean Energy Dialogue. That dialogue will certainly be the precursor for domestic and international negotiations of various climate change regimes.

IV. 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 become 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. 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.

Immediate border management issues provide our governments with the opportunity to work collaboratively in the coming months and years to develop cost-effective solutions to address border delays. Improving border efficiency is dependent upon shared knowledge and coordinated management by agencies which understand that national security and economic prosperity are mutually reinforcing. The CABC encourages initiatives such as a new joint commission on the border and pilot projects that endeavor to move customs processes away from ports of entry.