Deputy Secretary's Speech

Deputy Secretary of Commerce David A. Sampson
Institute des Grands Leaders and the American Chamber of Commerce in Canada
Washington, D.C.

Thank you, Ron Kaufman, for that introduction and for bringing some of Canada’s leading business leaders to Washington. Mutual understanding can often lead to mutual benefit, so thank you for taking the time to deepen your understanding of our system.

Many people from outside of our partnership think Americans and Canadians are very similar, and we are in that, as Prime Minister Harper said, “we share very important common values -- values like freedom, democracy, human rights and the rule of law.” But how our systems work, how our governments function, and sometimes how we go about achieving those goals is often different. So I am pleased you are here to meet the people and visit the institutions of our government and see how the U.S. government system works.

You will hear from me, and from others, I suspect, about the genuine affection and friendship Americans hold for Canadians. Our relationship goes far beyond trade, with more than 200 million border crossings each year and our common interests that extend in every direction including energy, environment and security. As President Bush has said, “the best foreign policy is one that improves your own neighborhood first.” And Canada is a very vital neighbor and a true friend.

Indeed it is in times of trouble that you find out who you can truly rely on. Canada has consistently stood up when we have been down, and we have reciprocated in our relationship, one that goes well beyond the 140 years of the Confederation that you are celebrating this month. So whether it was your help after 9/11 or after Hurricane Katrina, your friendship did not go unnoticed or unappreciated.

In an important way these crises highlight our regional interdependence, which goes I think to the purpose of your visit: collaborating to make our region more competitive and enhancing our trading relationship.

Two-way trade was more than a half-trillion dollars last year, more than any other two countries in the world. We often take this trade, which is more than a million dollars a minute every hour of every day of the year for granted because so much of it goes so smoothly. Because of the size and the ease with which commerce takes place between us, even incremental changes in our trading, investment and security relationship can significantly benefit Canadian and American companies and our economies.

Indeed, our bilateral manufacturing trade is the result of thousands of businesses that have integrated their operations on a truly regional basis. As a result, many of our manufactured products, such as cars and consumer goods are co-produced.

There has been no greater catalyst for this enhanced collaboration than NAFTA, which is now 13 years old. It is clear that this landmark trade agreement has benefited Canada, Mexico and the U.S.

Trade between our three countries has tripled in those 13 years, and the GDP of Canada and the U.S. have grown by nearly 50 percent. Together with Mexico we have created a market of 435 million people producing more than $14 trillion in goods and services, making NAFTA one of the largest free trade areas in the world. This has resulted in not just a growing economic relationship within NAFTA but between North America and the world.

We need to think about this as other economies, especially emerging economies develop, grow and become involved

The success of NAFTA and the desire to expand the dialogue beyond trade resulted in the launching of the Security and Prosperity Partnership for North America in 2005. This forum created a mechanism to discuss many issues that were not part of NAFTA but influence the flow of trade and North American competitiveness. This includes measures that have:

• Enhanced innovation by combating piracy and counterfeiting;
• Sped up response times in case of infectious disease outbreaks by increasing coordination between our national laboratories; and
• Decreased travel time for freight by 50 percent across the Detroit/Windsor gateway.

These are concrete actions that are making a significant difference in our region’s competitiveness. And these agreements also illustrate how governments can help create an environment in which companies can better position themselves in global markets.

Beyond NAFTA and SPP, the U.S. and Canada are seeking to extend our region’s competitiveness to all of Latin America.

For example, earlier this week Secretary Gutierrez, was joined by Canadian Minister of Industry, Maxime Bernier in Atlanta at the Americas Competitiveness Forum. They discussed how we can:

• Sustain innovation;
• Educate and develop our workforces;
• Design successful supply chain strategies;
• Foster small business development and growth; and
• Strengthen the rule of law and good governance.

These are all issues we face and for which we have experiences to share with friends throughout the Americas. We know that when our neighbors prosper, that benefits us through increased exports, enhanced innovation, and increased stability for the Western Hemisphere.

These important improvements are part of a process of continuous, global progress. As we expand our relationship and make our region more competitive, other regions around the world are also improving their business environments. But amidst all of this progress, there are challenges that must be faced, from threats to health and safety, to new technologies that alter the way we perceive the world and interact with one another.

For example:

Border security remains a paramount concern. Protecting our borders from terrorists means re-thinking the way we have operated in the past. One of these new approaches is the Western Hemisphere Travel Initiative that is based on recommendations of the 9/11 Commission.

Our objective is a secure border that minimizes the impact on legitimate travel and commerce. This is a particular challenge with a border that experiences more than a half-million crossings every day.

Because our two countries are so closely integrated, Americans expect to be able to go to Canada to watch a hockey game, while Canadians spend an afternoon shopping in our malls. We don’t want this to change, and we will continue to work to maintain the ease of travel between our two countries without compromising security.

Toward that objective, we are working to develop types of low-cost documentation at the border, including enhanced drivers’ licenses and a PASS card. These documents will work as substitutes for a traditional passport, yet are also compatible with these new border security requirements. I understand that some of the security measures implemented since 9/11 have presented new challenges, however we will continue to work toward long-term solutions that balance security with the convenience we all want.

Additionally, there remain other regulatory barriers that hinder deeper integration between Canada and the United States, and we are working with our Canadian counterparts to address these issues and tackle new challenges. Being here helps you understand the process we go through in Washington just as your counterparts seek solutions in Ottawa. As business leaders, I hope you will continue to let both governments know of impediments you experience so we can find ways to fix them.

In spite of the challenges we have ahead of us, I am confident that U.S.–Canada relations will continue to flourish.

We are connected through our people, our geography, and through business, and we both benefit as a result of these relationships.

When we tackle challenges together our economies perform better with more trade, more commerce and more prosperity.

I look forward to working with you to turn today’s aspirations into tomorrow’s reality of a safer, and more secure and prosperous partnership between our two nations.