moved:
That, in view of the growing protectionism in the United States, which is reminiscent of the counterproductive behaviour that led to the great depression of the 1930s, this House calls upon the Government to intervene forthwith and persistently, with the United States Administration, and the Congress, in order to protect Canadian jobs, and urge the United States to respect its international agreements including the Canada-United States Trade Agreement (CUSTA), the North American Free Trade Agreement (NAFTA), and the World Trade Organisation (WTO).
Mr. Speaker, it is with pleasure that I rise today to speak to this motion, a tremendously important motion because for Canada no trade issue or policy is more important or as complex as our relationship with the United States. The amazing level of integration between our economies makes this a complex relationship, but by and large a very positive one.
That is why it is more important for us to strengthen our relationship, especially now, during this economic crisis.
Our relationship with the United States transcends economics and politics. We are friends, neighbours and family. We share common values. We believe in equality, democracy and the rule of law. We share common interests and we face common challenges, whether in security, the environment or economic policy.
The fact is, we trade $1.5 billion worth of goods and services every day across the Canada-U.S. border, and since 1989 Canada-U.S. trade has more than tripled to over $700 billion this year. That increase is about 10% every single year.
We are each other's biggest trading partners. In fact, Canada is the most important destination for exports from 39 U.S. states. The Canada-U.S. trade relationship is responsible directly and indirectly for seven million U.S. jobs.
The U.S. economy is heavily dependent on trade and investment linkages with Canada and this interdependence between Canada and the U.S. has only increased over time. In fact, 40% of our bilateral trade is intrafirm, trade within divisions of the same company or corporate family.
Companies on both sides of the border have integrated their North American operations to take advantage of economies of scale and to become more competitive in North America, and to compete and succeed globally.
In terms of our energy market, Canada is the largest supplier of energy products to the United States, supplying 94% of U.S. natural gas imports, nearly 100% of electricity imports, and 35% of uranium imports used for nuclear power generation.
The U.S. imports more petroleum from Canada than from any other country, including Saudi Arabia and Venezuela. This is particularly important, given the continued U.S. concern around energy security.
The North American gas, electricity and oil sectors are highly integrated, as is our infrastructure for transporting energy and other commercial products. Our shared infrastructure is increasingly being organized on north-south continental lines.
Canada and the United States do more than simply trade. We build things together. The average North American car crosses the Canada-U.S. border the equivalent of four times before it is completed.
Each province in Canada now trades more with the United States than with each other. Two-thirds of our trade between our nations is within established supply chains. Our economies are so intertwined that if we were ever to try to separate them, it would be like trying unscramble an omelette.
Canada is also the largest purchaser of American exports. These facts are important because they illustrate why protectionism, whether in Canada or the U.S., is bad for both of our economies. Increasingly, during a time of economic crisis, protectionism anywhere can turn a downturn into a depression. That is what happened in the 1930s with the Smoot-Hawley tariff act, which raised tariffs on 20,000 goods and ignited retaliation globally against U.S. protectionist measures.
The response from the government to the current situation in the U.S. and the rising protectionism has been late, and has demonstrated a lack of foresight in failing to see it coming during an economic downturn. At a time when some U.S. legislators are proposing buy American plans, the response from the NDP has been to support the U.S. buy American programs and to say that in fact we should introduce buy Canadian plans.
If I look at what social democrat leaders and parties around the world are espousing today, they are espousing trade. They understand that in today's world, trade is critical, that during an economic downturn, the worst thing we could do would be to put up protectionist barriers.
I am hoping that during this debate we can convince the New Democrats to join their social democrat colleagues from around the world who understand the importance in today's modern global economy of trade in terms of protecting Canadian jobs and interests, because when it comes time to vote on this motion, if they do not vote to support the motion, that simply applies pressure to U.S. legislators to avoid these kinds of protectionist measures that can hurt Canadian jobs, they will be voting against Canadian interests.
I hope that during this debate we can have a rational debate that engages New Democrat members, Conservative members and Bloc members in what ought to be a less partisan approach to Canada-U.S. relations, an important foreign policy and trade policy area for us.
The fact is that President Obama has demonstrated great leadership this week. He has moved forward and has set a tone that I hope will have a significant influence on what happens in both the Congress and the Senate, not just on this issue but on future issues, because protectionism continues to percolate. There is a strong vein of protectionist sentiment in the U.S. Congress.
We have not seen that kind of leadership on this issue here in Canada from the Prime Minister or the Minister of International Trade. When we see American congressmen move forward with protectionist measures, we should be responding immediately. We should be working through established relationships. One of the problems is that the Conservatives have focused so much over the last three years on building relationships with Republicans that they have completely forgotten to build relationships with Democrats. They have put their narrow partisan agenda ahead of the interests of Canada, and now, when there has been a sea change in American politics, Canada is disadvantaged.
This is really important, because on issues of foreign policy and trade policy, we cannot pick one party or another. We have to have bipartisan relations that are strong during the good times and that help protect our joint interests during the tough times.
We must recognize the importance of the Obama agenda and how positive it can be not just for the Americans but for the Canadians, and the importance of our working with President Obama in terms of his priorities. Securing access for Canadian business to the U.S. market is one of our priorities, but how can we expect American politicians to take action on our priorities if we are unwilling to take action on theirs?
If one looks at the Obama government's stimulus package, at the measures on greening the American economy, investing in education and creating the jobs of tomorrow, it is starkly different from the budget recently presented in this House by the Conservatives. It is no surprise that a green economy is a priority for the Obama administration. In fact, Ambassador Wilson recently stated:
We should expect policies [from the Obama administration] designed to move the country noticeably away from a carbon-based economy. Policies reinforced by a strong commitment to technological change and greater reliance on alternative energy sources.
Yet we are increasingly seen as both foreign in an adverse sense, and purveyors of dirty fuel.
What we ought to be doing is making the case to the Obama administration that we are going to be not just their energy partner but their clean energy partner. We are going to invest in cleaning our oil sands operations and CO2 sequestration more vigorously than in the past, in cleaner conventionals, cleaner oil and cleaner gas. We are going to invest more in alternatives and we are going to be the clean energy partner that Americans need and that Obama wants.
We know that addressing climate change is a priority for the Obama administration. We know that as the U.S. moves forward with a cap-and-trade system and as the U.S. Congress moves forward with a form of carbon tariff aimed at imports from other countries, Canada will be disadvantaged. This is another case where the Conservative government is failing to look ahead. It is failing to look at the challenges of the future and to prepare for those challenges.
The Obama administration realizes that bad environmental policy is ultimately bad economic policy. We have a responsibility to move ahead as a partner in progress with the Obama administration and the Americans and to build the clean energy solutions of the future.
There are other issues, not just this immediate protectionist issue, where the Conservative government has failed to see a challenge looming and has failed to take action early.
I have talked to business people and business organizations across Canada. The thickening of the Canada-U.S. border is a number one issue for many of them. The smart borders initiative introduced by the Chrétien and Martin governments has not moved forward effectively under the Conservative government. On January 23, U.S. Department of Homeland Security Secretary Janet Napolitano issued an action directive on the northern border strategy. It reads:
The northern border of the United States has become, since 9/11, important to our national security. As we have designed programs to afford greater protection against unlawful entry, members of Congress and homeland security experts have called for increased attention to the Canadian border.
That is ominous when we now see a January 23rd letter from the U.S. Secretary of Homeland Security speaking of the risks at the Canadian border. Much of that is based on what I believe to be a false impression of our border and an impression we should be correcting.
Once again, relationships come into play. The Prime Minister should be speaking with the president. We should be reaching out to legislators and members of the Obama administration and making the case that this kind of thickening of the border will not enhance U.S. security and in fact, will do everything to undermine Canada-U.S. economic prosperity. But once again, there is silence from the Conservative government until the issue becomes a crisis.
In terms of ITAR, the fact is that Canadian companies are subject to ITAR restrictions by the Americans which actually prevent Canadian companies in many cases from competing for and succeeding in obtaining U.S. defence and aerospace contracts.
We saw that as one of the principal reasons MacDonald, Dettwiler said that to succeed in achieving contracts with the U.S. Space Agency it actually had to become a U.S. company. That was one of the rationales. The company pointed to the fact that Australia and the U.K. have successfully negotiated exemptions from ITAR from the Americans, but we have not. We are a trade partner with the Americans. We are a security partner. We are a defence partner. We are a friend of the Americans, and it is inexcusable that the Conservative government has not negotiated ITAR exemptions from the Americans.
It is clear that there needs to be greater cooperation and a better and stronger relationship between not just the Prime Minister and the president and their administrations, but between legislators.
Another issue that we have seen in recent months is the negotiation on the bailout of the Detroit three.
The Conservative government sat back and allowed those negotiations to proceed in the U.S. without trying to get a seat at the table, without having any influence on what was happening down there. While we were sitting up here saying that once the deal was done we could provide them with a commensurate amount of money, perhaps 20%, to reflect the Canadian auto sector's percentage of the North American operation, while that was going on and we were sitting back, American legislators, congressmen and senators, were demanding commitments from the auto sector companies to invest in jobs and good product mandates.
Back in 1979 when the Chrysler bailout was being discussed, Gordon Ritchie, a Canadian negotiator, was part of those negotiations. Canada was successful at that time. Negotiators were successful in getting the mandate for the Chrysler mini-vans, which was a very successful mandate. Now we are at the end of the current negotiations and Canada does not have any leverage whatsoever.
We saw the spectacle a few weeks ago when the Minister of Industry went down to Washington to meet with the auto sector leaders but they were all in Detroit. In fact, while he was in Washington he was not able to get any meetings with influential legislators. It is bad enough that we are not at the table, but the minister cannot even find the table. At the end of these negotiations, Canadian auto workers will be lucky to find crumbs off the table.
It is critically important that we work together on an ongoing basis and that we do not ignore the Canada-U.S. relationship as badly as the Conservative government has done.
These are just some examples--the border, the ITAR issue, the auto sector negotiations--of where the Conservative government, long before the current issue around protectionist policies in the U.S. Congress emerged, had already failed Canadians on the Canada-U.S. relationship.
Behind every trade statistic is a personal relationship or a human story. Relationships are important. When building relationships in the U.S., they need to be bipartisan. As the Conservatives over the last three years fawned almost exclusively on the Bush Republicans, they missed the sea change that was going on in U.S. politics.
The Prime Minister's Office interfered in the U.S. primaries, and the whole NAFTA-gate issue prematurely biased the new administration against the Prime Minister. There is a new U.S. president who provides hope to Americans while our Prime Minister deals in fear. President Obama is a uniter. Our Prime Minister is a divider. President Obama is a multilateralist. We have a Prime Minister in Canada who is a unilateralist who does not trust multilateralist organizations. President Obama appeals to people's better angels. Our Prime Minister pits one group against another. President Obama is a dreamer. In Canada we have a Prime Minister who is a schemer.
In a speech which Ambassador Wilson made on January 19, he said, “These personal relationships matter a lot in Washington, at all levels, especially with new administration officials and staff”.
The Prime Minister has not built the relationships in the U.S. that are important to protect Canadian interests and it should not surprise Canadians because he has not built relationships within Canada. We should not wait for an economic and political crisis to build these relationships. It is a little bit like trying to fix the roof during a rain storm. We should not wait for an economic or protectionist crisis to point out the importance of Canada-U.S. trade and economic relations to the U.S. economy to American legislators. We should be communicating on an ongoing basis as allies and as friends.
Building those relationships one by one during the good times is essential to protecting Canada's national interests during the tough times. On issues we have to look ahead. The Conservatives failed to see the protectionist sentiment brewing in Congress. They failed to see the political sea change happening in the U.S. They failed to recognize the importance of building relationships on both sides of the House.
Wayne Gretzky, that great Canadian economic and political theorist, once said, “I skate to where the puck is going to be, not where it has been”. The Conservative government has ignored where the world is going and where the Americans are going under their new leader.
The Conservative government's narrow ideological and partisan focus in the U.S., in ignoring the Democrats, has hurt Canada's national interests. We cannot only focus on both parties in the U.S., we have to focus on both ends of Pennsylvania Avenue. It is not enough to deepen our relationship with the presidential administration. We have to one by one as legislators do more to deepen our relations with individual legislators.
Premiers are tremendously important. The relationship that premiers and governors have is tremendously important. Four of the last six presidents were former governors. President Obama four years ago was a state legislator. These relationships are important. Governor Howard Dean once spoke to me about his relationships with Canadian premiers. He said that we are all in the same boat and there are a lot of commonalities. If the Prime Minister wants to deepen relations with the Americans and to improve his chance of defending our interests, he had better start with building better relationships with Canadian premiers. Bill Clinton was a governor. The former U.S. ambassador to Canada, James Blanchard, started as a governor. These relationships are critically important.
The fact is relationships do matter. My leader knows people like Larry Summers, one of the chief economic advisers to President Obama, and Cass Sunstein, the regulatory czar of the Obama administration, and Samantha Power, a senior foreign policy adviser to the Obama administration. We need to reach out on a bipartisan basis in Canada to people like Frank McKenna and people like Gordon Giffin in the U.S., people like Derek Burney. There is a lot of expertise. We cannot be partisan in whom we work with in the U.S. or Canada on what is our most critical trade and foreign policy relations.