Thank you, Mr. Chairman.
I'm here today on behalf of the Canadian American Business Council and as a representative of the board of the Association of Equipment Manufacturers, which sits on the board of the CABC. Just to give you an idea who the Association of Equipment Manufacturers is, it's the trade association that represents the manufacturers of heavy equipment used in fields and mines and other such things. We have members from southwestern Ontario, such as Sellick Equipment, and members from western Canada, such as MacDon Industries out of Manitoba.
Let me begin the testimony. As the chair said, I'm sitting in on behalf of somebody who's become tied up at an airport, due to our lovely weather here in Canada. So bear with me.
Committee members, fellow witnesses, ladies and gentlemen, thank you for inviting the Canadian American Business Council to address your committee. My comments here do not reflect the position of AEM member companies; I'm here to address you in my capacity as a representative of the board of directors of CABC.
Since 1987, the CABC has championed close cooperation between Canada and the U.S. and has been a leader in advocating the private sector perspective on issues that affect Canadian-U.S. relations. In particular, the council promotes the truly unique relationship between Canada and the U.S. and the multiplicity of ties that bind the two countries. The focus of our presentation today will be on the new era in Canada-U.S. relations.
The Canadian American Business Council promotes the benefits of free trade and opposes the protectionist efforts that surface from time to time on either side of the Canada-U.S. border. The council helps foster a collaborative approach to energy supply and security and a joint approach to climate change initiatives.
The council also advocates for better facilitation of the movement of legitimate goods, services, people, and natural resources across our common border, particularly during these difficult economic times. Indeed, these difficult economic times provide an opportune time for Canada to play a key role in influencing American policy. One message that Canada can help deliver to U.S. policy-makers is that adopting protectionist trade measures, regardless of intent, will only exasperate and prolong the current economic crisis.
The council and its member companies, which include businesses based across Canada and the U.S., are active on both sides of the border and are very involved in the Canadian-U.S. dialogue. The CABC has played a key role in supporting bilateral and regional initiatives, such as the work of the Pacific Northwest Economic Region and the North American Competitiveness Council.
The Canada-U.S. relationship is based on commercial interdependence and shared prosperity. Our 200-year-old history sheds light on the admiration, mutual respect, and loyal friendship that have solidified over time and made possible the, until now, robust North American economy. The unique cooperation between Canada and the U.S. has been and will continue to serve as a model for peace and prosperity around the world. The special partnership between Canada and the U.S. has been a pillar of the world economy. It is imperative that we maintain this leadership role.
As President Harry S. Truman so eloquently said in his 1947 address to the Parliament of Canada:
Canadian-American relations for many years did not develop spontaneously. The example of accord provided by our two countries did not come about merely through the happy circumstance of geography. It is compounded of one part proximity and nine parts good will and common sense.
Both Prime Minister Harper and President Obama recently echoed this sentiment in the context of the unique Canada-U.S. relationship. Indeed, Canada and the U.S. share the world’s most unique partnership. The ties between our two countries are stronger than those between any two nations on earth. This leads me to the focus of my discussion with you today: the new era of Canada-U.S. relations.
My colleagues and I at the CABC recently outlined our priorities for the Canada-U.S. collaboration for the coming months. Leading up to President Obama's visit here to Ottawa, we publicized on both sides of the border our message about the significance and impact of the Canada-U.S. relationship.
On behalf of the CABC, I'm pleased to offer some ideas to your committee about the steps Canada can and should take to improve Canada-U.S. relations.
As you know, there are many new players on the U.S. political scene. In addition to Obama's new team, several of whom have yet to be confirmed, there are new members of the U.S. Congress, congressional committees, and gubernatorial governments. Now is the time for Canada to educate and engage these new U.S. legislators—federal and state—about the importance of the Canada-U.S. relationship to Americans.
I will couch my comments in terms of their importance to Americans purposely, in order to highlight to the committee that American lawmakers are focused on and concerned about American interests. In presenting its position to the U.S., the Government of Canada would be well advised to lead with what is in the interests of Americans. Just as the Government of Canada endeavours to protect the interests of Canadians, so the U.S. government is concerned first and foremost about what is best for Americans. For example, lobbying efforts by Canadian governments to impede “buy American” legislation should include arguments about the negative impact such legislation has on jobs in the U.S.
I will begin my summary of the three CABC priorities with a few analogies that I hope you'll find informative and amusing.
First I encourage you to retire Prime Minister Trudeau's elephant-and-mouse analogy in favour of what has been described as the “binocular syndrome”. The binocular syndrome depicts the way our two countries look at each other. Canada looks to America as one would ordinarily look through a pair of binoculars, and sees America clearly. America, on the other hand, looks to Canada through the same pair of binoculars, except from the wrong end. They see Canada in a fuzzy and uncertain way. Instead of looking the same way through a single set of binoculars, Canada is looking to America and America is looking back through the same lens. The two countries should put aside the binoculars and see each other for who we really are.
I also present you with something to consider about the way in which the closeness of the Canada-U.S. relationship is perceived on this side of the border by our electorate. Former U.S. ambassador to Canada, Gordon Giffin, coined the term “the Goldilocks syndrome” to describe the fine line Canadian leaders walk when building relationships with their U.S. counterparts. Like Goldilocks and the three bears, Canadian prime ministers have to find a relationship that is perceived to be at just the right temperature by Canadians—not too hot, not too cold, but just right.
Let us hope that President Obama's popularity among Canadians will provide Canada with some leeway in walking this political tightrope. Support for engagement with the U.S. is vital to the economic viability of the Canadian economy, and Canadians must be willing to tolerate a close relationship with the U.S. if our economy is to recover quickly. Canadian leaders must be willing to stand up and advocate in Canada and among Canadians for engagement with the U.S.
The first of three CABC priorities that I will present to you today is our organization's support for free and comprehensive trade. Governments in Canada and the U.S. must work together in defence of free trade. For many reasons, this is imperative for economic recovery on both sides of the border. Governments must unwaveringly oppose protectionism and condemn such efforts by state and provincial governments. The organization I represent is a champion of free trade and has consistently opposed protectionist efforts by governments in both the U.S. and Canada.
Let me move to the second priority. The council promotes a collaborative approach to energy supply and security and a joint approach to climate change.
Canada is the single largest supplier of energy to the U.S. and the country best suited in terms of safety, security, and predictability to supply U.S. requirements for energy. Given this reality, it is in the best interests of both countries to collaborate on implementing strategic policies to achieve a safe, secure, reliable, and sustainable North American energy supply.
The CABC encourages the environmentally responsible development of the oil sands through collaboration and cooperation among 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 environmental impacts and the consumption of water and gas in the development of such resources.
Third, the council stands for facilitating the efficient movement of legitimate goods, services, people, and resources across the Canadian-U.S. border. The close and extensive relationship between the United States and Canada is reflected in the staggering volume of bilateral commerce—the equivalent of $1.5 billion a day in goods—as well as in people-to-people contact. About 300,000 people cross our shared border every day. Since Canada is the largest export market for most states, an efficient and streamlined Canada-U.S. border is critical to the well-being and livelihood of millions of Americans.
Governments are at a decisive point in the administration of border crossings. Governments in Canada and the U.S. should take a careful look at measures aimed at tightening the ability of imports and exports to reach their destinations. In this new era of Canada-U.S. relations, and during this window of opportunity with the new U.S. administration, there is an opportunity for Canada to get its message to the Secretary of Homeland Security, Janet Napolitano. Canada could frame its efforts to improve border efficiency by making the case that the Department of Homeland Security portfolio is an economic security portfolio as much as it is any other type of security portfolio.
Let me close by making one final observation, and I think everybody who has seen commerce work in Canada will agree with this. Our trade with the United States is not simply a trade of consumers on one side and manufacturers on another side. We make things together; we manufacture things together. Plenty of examples show that certain components, whether it's a piece of machinery that our manufacturers in southwestern Ontario or the west make...those pieces of equipment make their way back and forth across the border. I would encourage the committee to ensure that this is a key understanding, that Canadian and American companies make things together, so we should do everything we possibly can to allow that to happen.
Thank you, Mr. Chair.