Keynote Speaker, Senator Jerry Grafstein, Co-Chair, Canada-United States Inter-Parliamentary Group
·provinces and states along our shared border can
work together in the formation of cross-border regions that will enhance
prosperity for all
·there are a variety of models that can be used
in forming these bi-national economic regions
·one very successful model is the Pacific
Northwest Economic Region, known as PNWER
·PNWER is a private-public partnership comprised
of representatives from the federal governments, the provincial and state
legislatures and the private sector in Alaska, Idaho, Montana, Oregon,
Washington, British Columbia, Alberta and the Yukon Territory
·
·the common goal of PNWER partners is the
creation of a dynamic, growth-oriented, seamless regional market that will
enhance global competitiveness and result in greater prosperity for citizens
and businesses in the region
·the PNWER model, which is a model of success,
should be emulated by other states and provinces all along the 49th parallel
·another possible model is being pursued through
the Atlantica prosperity initiative, which involves a commitment to promote Canada’s Atlantic provinces and the Northeastern region of the United States as the Atlantic
Economic Region and to foster continued cooperation within the region in
business development and international marketing
·other options also exist, such as a Great Lakes
Economic Region, comprised of Ontario, New York, Michigan and perhaps such
other states as Ohio, Pennsylvania and Illinois
·within a 500-mile radius of Niagara Falls –
comprised of Ontario, New York, Ohio, Michigan, Pennsylvania and Illinois –
there are more than 78.5 million people who represent more than $3.09 trillion
in Gross State or Provincial Product in U.S. dollars; if the region were one
nation, it would have the largest economy in the world behind the United States
and ahead of Germany
·another model is provided by the Memorandum of
Understanding and Cooperation signed in 2001 by New York and Ontario; the
Memorandum is designed to increase trade, economic development, tourism
promotion, education, technology and other policies and programs for the New
York-Ontario region; the Memorandum was augmented by a New York-Ontario
Economic Summit, as well as other meetings
·also to be applauded are such initiatives as the
Council of Great Lakes Governors and the Great Lakes Commission, which include
Ontario and Quebec as associate members, and the International Association of
Great Lakes and St. Lawrence Mayors
·while we must modernize our east-west corridors
of trade, economic development and transportation, we must also bear in mind
the need for north-south corridors to ensure our joint prosperity
·what is needed is a vision of trade corridors
matched by accessibility to coastal port facilities, a north-south interstate
highway, direct high-speed rail links and the reduction in – and hopefully
removal of – trade barriers as well as harmonized regulations
·it is important that not too much time or energy
is spent on determining precise regional boundaries, since regions will – of
necessity – overlap and the composition of economic regions may change somewhat
over time
·for now, states and provinces that form a
natural geographic and economic nexus should galvanize willing players, and
form the economic regions that will result in the enhanced prosperity,
productivity and competitiveness that leads to a rising standard of living
·our provinces and states have comparative
advantages that are underutilized, and they can quickly become more globally
competitive together than they are individually, particularly if they have the
right tools and the right infrastructure
·North America cannot
afford for any region to lag behind economically; it is much too costly, and
our taxpayers cannot afford it; we must change entrenched practices and laws
that inhibit growth
·as stewards of our national economies,
legislators in Canada and the United States have a role to play in encouraging,
promoting and creating the types of programs, policies and actions that will
facilitate economic growth, productivity and prosperity for all
Welcome and Opening Remarks, Jean-Pierre Voyer, Executive Director, Policy Research Initiative (Privy Council Office)
·convergence of regulations in Canada and the United States would facilitate business in cross-border regions
·networking is a key to success in cross-border
regions
Overview of Cross-Border Best
Practices, Jim Phillips, President & CEO, Canadian/American Border Trade Alliance
·a transcontinental framework is needed; regions
have commonalities as well as unique problems and attributes
·what is needed is synergistic activity, with
transportation corridors – north, south, east and west – and border gateways
·a “border recovery plan” to be activated in the
event of another terrorist incident is also needed
·a key priority should be measures that would
stop “risky” cargo and people before they reach North America
·about 40% of the trade crossing the border is
intra-company in nature
·linkages among private-sector partners – not
just political and public-sector partners – are important
·three important questions are:
owhat are the top impediments to growth and evolution?
owhat are the top developments, trends and forces that are positive
for growth and evolution?
owhat are the top actions that should be taken to improve bi-national
regions?
New England/Eastern
Canada, Brian Lee Crowley, President, Atlantic Institute for Market Studies
·the New England/Eastern Canada region has a
distinctive position in the trading system, with relatively limited bi-national
trade; the region is, however, becoming more of a gateway for Asian and other
trade, both north-south and east-west
·Atlantica is the intersection of three major
North American regions, with an orientation that is south and west, rather than
north and east:
oWindsor-Quebec
oAppalachia
oNew Atlantic Triangle
·the Atlantica region is characterized by
above-average levels of unemployment and out-migration, and below-average
levels of income
·the ability of west coast ports to handle the
growing trade from Asia is limited
·with rapid increases in vessel size, ships are
having to go through the Suez Canal – which currently has spare capacity –
rather than through the Panama Canal, which is too small to accommodate the
larger vessels
·Halifax is the only
major port on the Suez Canal-New York route; parts of the New York/New Jersey
route are characterized by bridges that are too low and water that is too
shallow; as well, there are capacity concerns
·there is potential for a fully developed
short-sea shipping network
·there is merit in having U.S. Congressional and Canadian Parliamentary committees sit jointly in order to make joint
decisions
New York/Quebec, Garry Douglas, CEO, Plattsburgh-North Country Chamber of Commerce
·trade is no longer nation-to-nation; it is now
bloc-to-bloc
·we are facing internal economic realignment,
with corridors, bi-national economic regions, etc.
·the annual economic impact of Canada on Clinton County, New York was $1.53 billion in 2004, up from $784 million in 1994
·where things move is where prosperity occurs
·success results from identifying those things
that are bigger than you but of which you can be a contributing part
·transportation defines regionality
·best practices include:
oan initial rallying point or defining cause
odefinition of the stakes
othe appointment of committed partners and champions
oa private/public – rather than a public/private – orientation
oa “big picture” vision with early and steady successes
ocommunication and the building of coalitions
osavvy political relations
·the American members of bi-national regions give
Canadians access and legitimacy in Washington, which is critical since “all
politics is local”
·in the absence of a positive Canada-United
States agenda, disputes have come to define the bilateral relationship and North America is now behind the global curve
·the North American Free Trade Agreement was an
end in itself, rather than a process
·important elements include:
otransportation infrastructure
omulti-faceted connections
osustained momentum
Niagara Frontier/New
York/Ontario/Quebec, Pat Whalen, President, PJW Consulting and International
Business Development Manager, Speed Transportation, Buffalo
·the situation in Niagara Frontier/Ontario is,
essentially, the mirror image of the situation in New York/Quebec
·cross-border linkages have developed despite the
absence of a plan
·there has been commercial progression, with
businesses on both sides of the border and much intra-firm activity across the
border
·there is increasing recognition of our
dependence on each other
·the west coast ports are congested, and there is
little – or no – rail competition in parts of the west, resulting in higher
rail costs
·the bilateral relationship is perceived as being
far more important to Canada than it is to the United States
·the lack of coordinated effort and government
focus worsens as you move away from the shared border
·while bridge capacity is adequate at the present
time, the lack of excess capacity is problematic if growth occurs
·the impact of the U.S. Western Hemisphere Travel
Initiative is likely to be greatest in the Niagara region because of tourism,
and will affect individuals and businesses on both sides of the border
Great Lakes Frontier, Bill Testa, Vice President and Director of Regional Programs, Federal Reserve Bank of Chicago
·we are moving toward a global economy where national
borders matter less; the strongest regions will be those that are the most
cohesive and have the fewest impediments
·“work local, be global”
·the Great Lakes have integrated our economies in
several ways, including transportation; it is one of the world’s wealthiest
bi-national regions and is growing stronger; in particular, bilateral trade has
soared since the Canada-U.S. Trade Agreement (CUSTA)
·the CUSTA has resulted in expanded integration
on both sides of the border
·among the U.S. gateways for international
freight, the Great Lakes region is second to none in exports and imports (in
tons)
·manufacturing is the basis of the Great Lakes bi-national relationship, and has been for some time
·with just-in-time delivery systems, it is
important to be as concentrated geographically as possible in order to be as
low-cost as possible
·the “big three” automakers are getting smaller
and are losing market share; their market share declined 8% in a decade
·the future is a knowledge economy; knowledge
workers, those with a higher income and older citizens prefer environmental
amenities; the result, for example, is that housing demand amidst or adjacent
to scenic areas is rising steeply
·in terms of the future of the bi-national Great Lakes region, the following factors should be considered:
othe auto industry is in flux
othe border is “uncertain”
othere is more work to be done in relaxing barriers to trade,
commerce and migration
Mid-Continent, Greg Dandewich, Economic
Development Director, Destination Winnipeg and Board Member, Northern Great
Plains Inc., Winnipeg
·it is important to identify willing partners who
are willing to cooperate
·information technology will continue to
transform the way we live and work, and the pace of change will accelerate
·action should be regionally focussed
·trade within North America has grown rapidly
since the signing of the North American Free Trade Agreement
·increasingly, agricultural producers are tied to
processors’ needs for specific, identity-preserved varieties, and traceability
is important
·best practices include:
odirect contact with businesses
ohistoric behaviour and performance
oidentification of priorities and leadership, with the private sector
collaborating with the public sector
·transportation agencies, economic development
agencies and the private sector should be collaborative and integrated
·strengths include:
ostrong networks
oa common purpose and objectives
osimilar and diversified economies
oan ability to mobilize public decision makers
otransportation systems that are not congested
·weaknesses include:
oisolation from major markets
osmall population base
ostruggling rural economies
·elements of successful communication include:
oclearly articulated objectives
oleadership and champions
omanaging expectationsRocky Mountain/West, Larry Swanson, Director,
Center for the Rocky Mountain West, Montana
·Rocky Mountain West is one of the United State’s fastest-growing regions, and there is rapid growth
on both sides of the border
·city regions make sense in terms of pulling
people together and engaging them
·the U.S. southwest is in danger of running out
of water
·the economy of the future will be knowledge-,
information- and service-based, and will be more “footloose” in terms of people
and jobs
·increasingly, people want to live close to
environmental amenities
·many areas have an agricultural sector that is
unprofitable, and this situation is not sustainable, especially without
government support and off-farm income
·important considerations include:
othe quality of the community
othe quality of the workforce
othe quality of the environment
Cascadia Pacific, Matt Morrison, Executive Director, Pacific Northwest Economic Region, Washington State
·the Pacific Northwest Economic Region (PNWER)
acts as a catalytic facilitator and as a focal point for increased bilateral
cooperation mechanisms
·PNWER has grown from 5 working groups when it
was established by statute in 1991 to 15 working groups at the present time
·the working groups, which are co-chaired by
representatives of industry and government, are instrumental in helping to
attain the organization’s goals, and each develops action items and a work plan
·each state/province has a private-sector council
that meets quarterly with the government to develop an “agenda” for the region
·the organization is able to address issues
regularly, thereby pre-empting more costly and slower international processes
·intermodal infrastructure connections,
bi-national seamless border processes and worker mobility are key to North
American productivity
·the Canadian government is not engaging with
border stakeholders, in a systematic and regular manner, on the Security and
Prosperity Partnership action plan; cross-border regions would be ideal
partners to make this engagement happen
·cross-border regions could be used to influence
U.S. policymakers, to build trust and to establish long-term relationships What
Should be the Role of the Government of Canada? Key Findings from the Regional
Roundtables on the Emergence of Cross-Border Regions Between Canada and the U.S., André Downs, Senior Project Director, Policy Research Initiative
·there is an important distinction between
private/public and public/private; the private sector is the key driver
·new economic models, organisms and nuclei are
needed, rather than political structures
·there is a need to ensure that political
structures match the economic reality on the ground
·governments should provide the tools that are
needed
·a focus should be the economic relationship
between Canada and the United States, rather than the trade relationship
·the northern and southern borders deserve to be
treated differently/similarly when they are different/similar
·key messages from the regional roundtables
include:
othere is a need for recognition
oborder issues include security and infrastructure
otransportation linkages and intermodalism are important
oregulatory differences exist between the countries
obranding should exist, such as with tourism
oa regional vision is required
onetworks and relationships are important
·regarding the Pacific NorthWest Economic Region,
there is/are:
oinstitutional strength
oa sense of remoteness
ostrong private-sector engagement
oinnovative approaches, such as NEXUS+
·regarding the Great Plains region, there is/are:
oinstitutional weakness
oinformal and pragmatic approaches
ostrong economic links, although they are limited by geography and
population
oa need for infrastructure
oan emphasis on intermodalism
·regarding the Great Lakes region, there is/are:
omature economic linkages
oinstitutional weakness
oa limited sense of regional identity
oa lack of leadership
oa distinction between cooperation and competition
·regarding the Quebec/New England region, there
is/are:
oa realization of the importance of the Quebec/New York axis
obilateral memoranda of understanding
omature and emerging economic linkages
oa limited sense of regional identity
·regarding Atlantica, there is/are:
oa strong sense of regional identity
oa recognition of the importance of history and geography
ostakeholder engagement
oa need for infrastructure
oa recognition of the importance of personal relationships
oeconomic prosperity as a key goal
·federal policy considerations include:
oa consensus on North American regions as “Global Production
Platforms”
oa need to recognize cross-border regions and cross-border
organizations
oa need to support, rather than to interfere
oa multi-level approach: public, private and civil
oa variable geographic approach, since “one size” does not “fit all”
oa central role for the private sector
Closing Remarks, Jean-Pierre Voyer,
Executive Director, Policy Research Initiative
·key messages include:
oa consciousness of shared interests
osynergistic activity, border gateways and transportation gateways
osimilarity should not be a requirement in defining cross-border
regions, since it is differences that lead to comparative advantage and trade
oa sense of belonging or of being part of a cross-border “something,”
perhaps because of shared interests or identity
oif we cannot “get it right” for cross-border regions, we will not
“get it right” for the United States and Canada
osince the North American Free Trade Agreement dispute-settlement
mechanisms are not working, there is a need for more dispute-resolution
mechanisms
othe focus should be dispute management and prevention, rather than
dispute settlement
o the federal government should provide the tools needed to
facilitate the prosperity of economic regions
owe must continue to look at issues through the prism of the health
and prosperity of cross-border regions
Respectfully
submitted,
Hon. Jerahmiel Grafstein, Senator
Co-Chair, Canadian Section Canada-United States
Inter-Parliamentary Group