Good afternoon, everyone.
I am very pleased to be here with you today.
Mr. Chairman, members of the committee, thank you very much for the invitation to appear before you on behalf of the members of the Canadian American Business Council.
We didn't coordinate it, but this is a perfect tee up to what I'm about to suggest to you today. It's certainly an interesting time to be focused on Canada-U.S. policy matters, more broadly on the common ground and uncommon friendship that we have long shared, a hallmark of an enduring, affectionate, productive relationship between Canada and the United States. Mr. Chairman, I'm delighted to know that you're travelling the country with the committee and getting outside of the swamp where I live. I'm a swamp dweller, if you will, and I'm glad that you're seeing the real America and taking the story of our integrated economy to the United States. That's very important to do.
For those of you who are not completely familiar with the Canadian American Business Council, please allow me just a moment to describe our organization, and then I'll go into our specific policy recommendations for you to consider.
We are 30 years old, a non-profit, non-partisan, issues-oriented organization dedicated to delving into the issues that affect businesses and citizens in Canada and the United States. Our aim is to maximize competitiveness for companies large and small on both sides of the border as we face challenges in the global economy. Our members are key business leaders and stakeholders, who range from entrepreneurs and small businesses to some of the biggest brand names on the planet. Collectively, CABC members employ about two million people and have annual revenues of close to $1.5 trillion. All four witnesses here share some common members, and then we have some unique members.
For the past three decades the CABC has nurtured, cultivated, and celebrated a uniquely close Canada-U.S. relationship, bringing our message to critical stakeholders on both sides of the border, Capitol Hill, Parliament Hill, and beyond. Notwithstanding the periodic strains in our trade and commercial relationships, there remain countless areas of goodwill and co-operation between our two countries that we'd both be wise to capitalize upon. One is staring us right in the face at the moment. It was alluded to, and I'm going to go into it more deeply. Despite recent tensions over dairy and softwood lumber in the North American Free Trade Agreement, President Trump's executive order of February 24 of this year, entitled “Enforcing the Regulatory Reform Agenda”, is aimed at streamlining federal regulations. That executive order directed U.S. agencies to create task forces to identify regulations that eliminate jobs, are outdated or are too costly. That's not all it does. It also provides a perfect opening to accelerate and enhance a long-standing bilateral project known as the Canada-U.S. Regulatory Cooperation Council, which is also working to streamline regulations on both sides of the border.
Bilateral regulatory co-operation may not be as enthralling as Russian spies or border walls, but it is critical to businesses on both sides of the border. Regulatory harmonization will also have a direct impact on your constituents, all of whom are consumers and some of whom own businesses that spend far too much money every single year dealing with red tape that is the result of regulatory disharmony. For a president who's eager for some wins, this is a golden opportunity for Canada, and it has a win-win potential for both governments.
In the sectors of agribusiness, energy products, medical devices, medicines, and especially consumer products, there are an array of conflicting regulations that make it difficult to do business on both sides of the 49th parallel. In some cases those regulations even impede a consumer's ability to buy the goods that they want to buy or obtain the medications that they want or need if they are suffering from certain illnesses or conditions. Some cosmetic products in the United States, for example, aren't available in Canada. Some medications that are sold over the counter in the United States are still prescription-only in Canada, and vice versa, causing headaches for companies trying to market their products in both countries. There are also differing recall mechanisms for medical devices on either side of the border, and imposing regulations, for example, on a drug that helps people with Parkinson's syndrome, and the list goes on and on.
Meat producers in both countries deal with an antiquated, old headache involving the requirement that an actual veterinarian certificate be manually placed on a certain outward-facing spot in every case of exported or imported meat, even though the information is more easily available via other methods. It's an example of a costly and dubious regulatory requirement that also prevents producers from fully embracing automation, such as high-tech shipping methods. There are plenty of redundant and expensive regulations just like it on both sides of the border.
Why not leverage President Trump's interest in cutting red tape and creating regulatory harmony for the benefit of the bilateral economy? This doesn't have to wait for NAFTA renegotiation or WTO trade actions. It is something that is ready to go right now, today. Canadian and American officials have been working together on this since 2011, as many members of this committee know well. As the great Canadian Gary Doer would say, it's time to “put the puck in the net”. The CABC has also been on the front lines of this issue working hard to ensure that the concerns and suggestions about regulatory harmony, from stakeholders on both sides of the border, are being heard.
In the midst of fears about President Trump's NAFTA intentions, now is the time to work even harder on the Canada-U.S. relationship and to focus on the issues that are not contentious. Regulatory harmony is a critical piece in that strategy, and success there could well ease tensions everywhere.
Now is not the time to cave—like the Toronto Maple Leafs did to the Washington Capitals earlier. Now is the time to focus on the positive and keep our eye on the prize. Remember, as always, that every long-term relationship has its chilly periods. The trick is looking for the bright spots—and here we believe that regulatory harmony could be one—and the shared goals and common ground that ensure the Canada-U.S. relationship remains as vital and robust as always.
With that, thank you for having us today, and because it is today, I have to end with “May the 4th be with you”.