Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
Remarks to U.S. and Canadian Chambers of Commerce
Washington, D.C.

Thank you for the kind words. And thank you for hosting this Conference. I’m pleased to be here with my colleague, Jim Prentice, Canadian Minister of Industry.

Almost 50 years ago, in a conversation with President Eisenhower, Canadian Prime Minister Diefenbaker said that the relations of Canada and the United States had reached the height of friendliness, cordiality and true cooperation that had never before been attained, as far as he knew.

He went on to say, “… to my mind, those relations are a model for the world, if the world is truly seeking, through cooperation, to attain a just and permanent peace.”

These words still hold true today.

Over the decades, bound by geography and history, our two countries have forged an unprecedented relationship based on common values and common objectives.

First and foremost, we are friends. Canadians opened their doors to U.S. travelers re-routed to Canada on 9/11. And Canada was among the first to offer assistance when Hurricane Katrina hit our Gulf Coast.

We are allies in the war on terror. The Canadian military is courageously serving in Afghanistan, in support of the Afghan people.

And we are trading partners.

Today, our two countries have one of the most vibrant trading relationships in the world. We are each the other’s number one trading partner. Last year, U.S.-Canada bilateral trade in goods exceeded $533 billion, a record high. And our bilateral investment reached $405 billion, among the highest in the world.

I want to thank all of you who’ve reached across the border to build these commercial partnerships, and who are working with us to promote competitive and secure borders.

Smart and secure borders are one of the top priorities of the Security and Prosperity Partnership of North America, which was launched by the U.S., Canada, and Mexico in 2005.

The SPP builds on the North American Free Trade Agreement. NAFTA created the world’s largest free trade area. It now links 439 million people, producing over $15 trillion worth of goods and services.

Since the agreement went into effect, total merchandise trade between our respective countries has grown from $297 billion in 1993 to $883 billion in 2006, generating growth and jobs.

The SPP is an opportunity to create an environment that will enable our commerce and investment to continue to grow well into the future.

And we’re finding areas where we can work together to improve competitiveness. For example:

• The U.S. and Canada have decreased transit times at the Detroit/Windsor gateway, our largest border crossing point, by 50 percent;
• We’re implementing a coordinated strategy to combat counterfeiting and piracy in North America; And,
• We finalized a regulatory cooperation framework that encourages agencies to coordinate at the onset of the regulatory process.

The SPP also gives us a forum to address and head off the kinds of problems that creep into a bilateral trading relationship such as:

• A Canadian company’s inability to sell jelly beans to the U.S. because of different regulations, including package disclosure requirements such as labels for daily nutritional intake. Or,
• A U.S. company being restricted to selling baby food in only two jar sizes in Canada, precluding innovative packaging.

Though these may seem small issues, they are big deals to the companies involved. And the problems were acknowledged at the Leaders’ Summit in August.

I want to recognize the members of the private sector North American Competitiveness Council, who were at that Summit and thank them. They provided valuable recommendations on eliminating barriers and growing our trilateral trade.

Some of you may be aware that the SPP is under fire because of some absurd stories being perpetuated about what some claim is its “real purpose.” We get a lot of calls and e-mails about this at the Commerce Department.

So let me state clearly once again for the record: the Security and Prosperity Partnership of North America is about security and competitiveness for our citizens, our countries, and our region.

There is no secret plan to create a North American union, or a common currency, or to intrude on the sovereignty of any of the partner nations.

The SPP was formed because we believe that when we tackle challenges together—from securing our borders, to expediting commerce, to protecting our consumers—trade expands, economies grow, and our citizens and nations benefit.

Clearly, the 21st century global economy demands regional engagement. China has a regional FTA agenda. Japan and Korea have their own FTA agendas.

In addition to the SPP, in our hemisphere, the United States has been reaching out to our neighbors in Latin America to promote growth, social justice, and democracy through free trade agreements.

We have FTAs with eight Latin American countries. And FTAs with Peru, Colombia, and Panama are now pending before Congress.

Canada has concluded FTAs with Mexico, Chile and Costa Rica and is now in negotiations with Colombia.

I’ve traveled to Colombia twice recently. They have made an incredible turnaround in that country and tremendous progress in fighting the drug trade.

As Prime Minister Harper recently said in an article in the Latin Business Chronicle, Colombia needs its democratic friends to lean forward and give them a chance at partnership and trade with North America.

President Bush said Canada represents America’s most vital trade relationship in the whole world, and we will do all that is necessary to keep that relationship strong.

I want to thank you for being here. And I look forward to working with all of you to strengthen and grow our trade, our partnership, and the security and prosperity of North America.

Thank you.