From August
6-9, 2012, members of the Canadian Section of the Canada-United States
Inter-Parliamentary Group (IPG) attended the annual legislative summit of the
National Conference of State Legislatures (NCSL), which was held in Chicago,
Illinois. The delegation included four Vice-Chairs of the Canadian Section –
the Honourable Wayne Easter, P.C., M.P., Senator Michael L. MacDonald, Mr. Rick
Dykstra, M.P. and Mr. Brian Masse, M.P. – as well as Senator Jim Munson and Mr.
Merv Tweed, M.P. The delegation was accompanied by Ms. Angela Crandall, the
Canadian Section’s Executive Secretary, and Ms. June Dewetering, the Canadian
Section’s Senior Advisor.
THE EVENT
Founded in 1975, NCSL is a bipartisan
organization serving the legislators and legislative staff of the 50 U.S.
states as well as its commonwealths and territories. It provides research,
technical assistance and a venue for the exchange of ideas on state issues. As
well, it advocates state interests before the U.S. Congress and federal
agencies.
NCSL is governed by a 61-member Executive
Committee, and has 12 standing committees comprised of legislators and
legislative staff. These committees are:
·Agriculture and Energy
·Budgets and Revenue
·Communications, Financial Services and
Interstate Commerce
·Education
·Environment
·Health
·Human Services and Welfare
·Labor and Economic Development
·Law and Criminal Justice
·Legislative Effectiveness
·Redistricting and Elections
·Transportation.
As well, NCSL has a number of task forces:
·Energy Supply
·Federal Education Policy
·Homeland Security and Emergency Preparedness
·Immigration and the States
·Military and Veterans Affairs
·School Dropout Prevention
·State and Local Taxation of Telecommunications
and Electronic Commerce
·Sustainable Energy.
ACTIVITIES
AT THE EVENT
At the
legislative summit, presentations were made on a variety of subjects, many of
which have relevance for Canada; at these meetings, IPG delegates benefitted
from information that will inform their legislative work in Canada.
Specifically,
the subjects of the sessions were: agriculture and rural development; banking
and financial services; budget and tax; economic development and trade; education;
elections and redistricting; energy and electric utilities; environmental
protection; government; health; health reform; human services and welfare;
immigration; insurance; international; jobs; juvenile justice; labor and
employment; law and criminal justice; leadership; legislatures; natural
resources; pensions; telecommunications and information technology; and
transportation.
The sessions
involved meetings of the NCSL standing committees and task forces, as well as a
number of plenary meetings. This report summarizes the discussions that
occurred at the plenary and selected committee sessions.
DELEGATION
OBJECTIVES FOR THE EVENT
The Canadian
Section was pleased to have the opportunity to participate in a meeting of the
Labor and Economic Development Standing Committee, with the Honourable Wayne
Easter speaking at a session entitled “Fostering International Trade in Today’s
Global Economy.”
The
interaction with state legislators enables members of the Canadian Section of
the IPG to achieve better the aim of finding points of convergence in
respective policies, initiating dialogue on points of divergence, encouraging
exchanges of information and promoting better understanding on shared issues of
concern. Moreover, the meetings with state legislators provide members of the
Canadian Section with an important means to give input to, and gather
information about, state-level issues that affect Canada.
SUMMARY OF
THE PRESENTATIONS
LEADERSHIP
IS A TEAM SPORT
Representative
Jay Kaufman, Massachusetts General Court
·An adaptive leadership culture can be measured
by:
Øvisions/goals are articulated, aligned and
alive: does the team dedicate time to reflecting, taking stock and learning
about how to identify and fulfil a shared vision and mission?
Øshared accountability and responsibility: to
what extent do team members share a concern for the team’s overall
effectiveness and results, rather than just attending to their own territory,
department or division?
Øprivate conversations are brought into
leadership/team meetings: to what extent do the “real issues” come into the
“centre of the room” and get discussed explicitly, and to what extent are there
structures and discreet invitations to bring these “real issues” into “the
light”?
Øsmart risk-taking is rewarded: is there a
culture of “playing it safe” or are employees encouraged to experiment with new
ideas and approaches as well as rewarded for a worthwhile effort, even if it
fails?
Ødiversity and voices of dissent are honoured: to
what extent do those who raise the issues that are uncomfortable for everyone
to talk about supported and “given space,” rather than being marginalized and
“silenced,” and to what extent is the behaviour of raising tough issues on
behalf of the organization rewarded?
Øindividual personal and professional growth is
nurtured: is personal and professional growth nurtured and encouraged, is there
encouragement to develop new skills and to advance within the organization, and
is the development of future leadership encouraged?
·There is a difference between authority and
leadership; the former is related to a power relationship, while the latter may
be exhibited by people who do not have the former.
·People may be uncomfortable when they are asked
to change; people tend to resist change and are not always very adaptable.
·Leadership entails taking people out of their
comfort zone; it is an activity that involves changing hearts and minds.
·Political leadership is very rare.
·In the absence of team-building exercises, there
is no team.
OPPORTUNITY
AND RISK IN AN EVOLVING ENERGY MARKET
Stuart
Dalton, Electric Power Research Institute
·The price of natural gas is driving many of the
opportunities and risks today.
·There are storage options for gas.
·Many U.S. states have renewable energy
standards.
·There is no “silver bullet,” but there is a
promising outlook for natural gas.
·Wind and solar power are growing rapidly, with
lots of installation and some tax credits; that said, the wind blows less when
it is very hot or very cold, and the costs of solar power are falling but are
still high.
·Germany is producing solar energy.
·Nuclear power tends to be base load.
·Unlike the United States, China and Korea are
building nuclear plants.
·In the United States, some coal plants are being
constructed; such plants are facing new requirements regarding pollutants,
water use and carbon dioxide emissions.
·Policy “trumps” finance, which “trumps”
technology.
·The United States will be exporting liquefied
natural gas.
·It is not windy in all parts of the United
States.
·Tax credits incent behaviour.
Ron Binz, Public
Policy Consulting
·Regulators are better at estimating costs than
they are at estimating risks.
·The U.S. power industry is in a “build cycle”
and will grow rapidly over the next 20 years.
·Utility challenges include aging infrastructure,
new transmission requirements, and stronger air and water quality regulations.
·There are several essential strategies for
risk-aware regulation:
Ødiversify utility supply
Øuse robust planning processes
Øuse transparent rate-making practices
Øuse financial and physical hedges
Øhold utilities accountable
Øpractise active, “legislative” regulation
Øreform and reinvent rate-making policies.
·Rewards for sound decision making include:
Øfor consumers, higher quality and a lower price
Øfor utilities, improved corporate health and
predictability
Øfor investors, safety and value
Øfor utility employees, safety as well as welfare
and pride
Øfor society, higher quality and safety.
Dan Mullen,
Ceres
·The costs for nuclear power may be higher
because of the nuclear disaster that occurred in Japan.
·There are cost- and time-related risks.
·There are several main categories of risk:
Øconstruction costs
Øfuel and operating costs
Ønew regulations
Øthe price of carbon
Øwater constraints
Øcapital
Øplanning.
·Renewable energy sources have lower risk
exposure.
FOOD
SAFETY MODERNIZATION ACT
Joe Reardon,
U.S. Food and Drug Administration
·A national, integrated food safety system is
needed, with more consistency across the nation, an increased ability to
identify risks and enhanced public health protection as it pertains to food
safety.
·According to the Food Safety Modernization
Act, the federal government can rely on inspections done at the state
level.
·It is important to be able to respond to, and to
recover quickly from, food-borne and food-related illnesses.
·There is nothing more important than the safety
of the food that people consume every day.
SMART GRID,
DEMAND MANAGEMENT AND ENERGY SECURITY
Mike Jung, Silver
Springs Network
·Today’s electricity grid is like the telephone
switchboard of bygone years: manually operated.
·With a smart grid, manual operations are
replaced with digital operations.
·Today, everything is being networked, including
the electricity grid.
·A smart meter permits consumption to be “time
stamped.”
·An informed marketplace makes better decisions,
and a smart grid “liberates” information.
Mike
McMahon, ComEd
·Networks need to be secure and “scaleable.”
·Smart meters need to:
Øhave an open architecture
Øbe intellectual-property based
Øhave “scaleability” for cybersecurity.
·With smart meters, there is no reason to have an
“estimated” bill.
·Smart meters enable the creation of a peak-time
rebate program.
Mike Oldak,
Utilities Telecom Council
·Some people have concerns about the safety of
smart meters.
·Some people believe that it should be possible
to opt out of smart metering; however, the decision by anyone to opt out
affects everyone else.
·With smart meters, it is possible to see, in
real time, what is happening with the network, as well as to avoid problems and
restore the network more quickly when problems occur.
·There are some privacy issues with smart meters.
NATURAL GAS
FOR THE FUTURE
Don
McClure, EnCana Oil & Gas (USA) Inc.
·The current drilling techniques in the oil and
gas market are game-changing.
·In the United States, the natural gas supply is
equivalent to 85-149 years.
·Because of the economic recession, the supply of
gas has exceeded the demand for gas in the United States.
·In the United States, natural gas is abundant
and affordable.
·There are a number of challenges in relation to
natural gas:
Øoil and gas ratios, since the price of oil
relative to the price of gas should be 6:1 and it is currently 30:1
Øpublic perceptions
Øcommunity impacts
Øregulatory certainty and predictability.
·In order to address challenges, it is important
to:
Øengage in discussions about concerns
Øeducate
Øexecute.
Tom
Hassenboehler, America’s Natural Gas Alliance
·The economic impacts of shale gas are
significant.
·With lots of supply, attention is being paid to
identifying new and innovative ways to use it.
NAVIGATING
AN UNCERTAIN ECONOMY
Diane
Swonk, Mesirow Financial
·Unlike Europe, the United States still has “an
open window” in which to make needed changes.
·Hesitation has a cost and is dangerous to the
United States’ economy at this point in time.
·There is a cost to Washington’s impotence, and
the United States could enter another recession; some businesses are not hiring
because of the paralysis in Washington.
·In the United States, the unemployment rate has
been about 8% for 42 months.
·It is not possible to have capitalism without
capital.
·The United States needs a future to grow upon
rather than a future from which to shrink.
·A downgrade of the United States’ sovereign
credit rating is unlikely to be averted; a downgrade would have ripple effects.
·State legislators have made difficult choices,
and federal legislators should do the same.
·The U.S. economy is surviving, but it is not
thriving.
IDENTITY
THEFT AND PRIVACY IN AN ONLINE AGE
Jim
Halpert, DLA Piper
·Identity theft is among the most serious
consumer issues; it damages credit, harms reputations, and is hard and
time-consuming to resolve.
·State responses to identity theft vary; some
states restrict the use of social security numbers, some have criminalized
identity theft and some have instituted security breach notification
requirements.
·Privacy legislation can “get in the way” of
preventing identity theft; for example, social security numbers may be used to
authenticate identity.
·Information is both a risk factor and a tool to
prevent wrongdoing.
·Privacy legislation has been somewhat
sector-specific.
·States have been active in a number of
legislative areas:
Øsecurity breach notification requirements
Ødata security
Øsocial security privacy
Ømarketing
Øfinancial privacy
Øpharmacy privacy
Øemployee privacy.
Senator
Charleta Tavares, Ohio General Assembly
·In the past, telephones were “the” technology
for communicating.
·Phone calls are supposed to be private;
increasingly, such “private” activities as banking, shopping and paying bills
are occurring online.
·Employees should not have to give away their
privacy rights in order to obtain or retain employment.
·Technology may change more rapidly than can be
imagined.
Representative
James Durkin, Illinois General Assembly
·There is a need to respect privacy and the
rights of both employees and employers.
·It is possible that privacy rights may impede
the investigation of incidents related to occupational health and safety.
Senator
Ellen Roberts, Colorado General Assembly
·Identity theft occurs when someone knowingly
uses a social security number that is not his/her own.
Senator
Delores Kelley, Maryland General Assembly
·Mail that is taken from someone’s mailbox could
lead to identity theft.
·Identities that are stolen are used to access
new credit and to cover up crimes, among other uses.
FRESH FOOD:
A RECIPE FOR HEALTHY SCHOOLS AND COMMUNITIES
Helen
Binns, Ann and Robert H. Lurie Children’s Hospital of Chicago and
Northwestern University
·Good nutrition promotes brain development,
growth and immune function.
·Fruits and vegetables provide essential vitamins
and trace minerals, play an antioxidant role in that they fight “free radicals”
and “reactive oxygen species,” and provide colour, flavour, texture, bulk,
fibre and satiety without adding lots of calories.
·About 20% of oxygen breaks down into free
radicals and reactive oxygen species, and stressors can increase that
proportion to 80%.
·“Child” factors associated with higher weight
include:
Øa rapid rate of eating
Øhigh food-cue responsiveness
Øa greater focus on food
Ømore impulsive behaviour when making food
choices
Ømore motivated when provided with immediate
rewards, such as good taste
Ølow satiety responsiveness.
·The “child” factors associated with higher
weight can be affected by environmental influences, such as parenting
practices, that can turn the behaviours “on” or “off.”
·Health habits developed early can last for a
lifetime.
·The modeling of healthy eating by parents and
peers influences the eating patterns of children.
·Children should be provided with an array of
healthy food options at home and at school.
Erika
Allen, Growing Power
·It is not possible to have a safe community
without healthy food.
·Several actions ensure that schools and
communities can access local food, including:
Øfarmers who grow food
Øinfrastructure related to food production
Øaccess to capital
Ønutrition education
Øcommunity-based initiatives.
Rochelle
Davis, Healthy Schools Campaign
·Healthy students are better learners; there is
an important link between health and/or wellness and academic achievement.
·Schools should include health and wellness
throughout the school experience.
·The federal government has been involved in
feeding hungry children since the 1940s, when the focus was calories; now, the
focus is nutrient-dense foods.
Tricia
Kovacs, Washington State Department of Agriculture
·Washington State’s 2008 Local Farms-Healthy
Kids Act sought to support and strengthen:
Øthe health of children
Øagricultural economies
Øenvironmental conservation through the
preservation of farmland and open spaces
Øaccess to healthy food for vulnerable
individuals.
·The Local Farms-Healthy Kids Act
eliminated low-cost bidding requirements in school food purchases and encouraged
school gardens as a means of growing food for education and for consumption in
school food programs.
·Policies and procedures were developed to
encourage purchases of food grown in Washington, to assist producers and others
to market Washington State-grown food to schools, to help schools to “connect”
with local producers, to support such efforts as school gardens and farm
visits, to seek additional funds to leverage state expenditures, and to share
educational resources on the nutritional, environmental and economic benefits
of locally grown foods.
·The Local Farms-Healthy Kids Act provided
Washington State with a variety of benefits; for example, it:
Øsupported emerging agricultural markets
Øreduced regulatory barriers
Øraised awareness of food and farming in
Washington State
Øensured cost-effective delivery of service
through partnerships
Øbuilt healthy eating habits for children and
families
Øleveraged state funding to obtain federal grants
and other funds.
·The “current landscape” includes:
Østrong local food networks
Østate budget challenges
Øfederal interest in local food systems
Ønew school nutrition standards
Øpartnerships
Øspecialty crop funding in the Farm Bill.
·Schools value:
Øhigh-quality, fresh produce
Øgood community relations
Øsupport for the local economy and the local
community.
·Farmers value:
Øhaving a positive impact on the health of
children
Øraising public awareness about food and farming
Østrengthening community relationships.
WHAT
AMERICANS REALLY THINK
Peter Hart,
Peter D. Hart Research Associates
·Elections are about the mood of the nation; at
this point, 30% of the nation believes that the United States is on the right
track, while 60% of the nation believes that the United States is seriously on
the wrong track.
·Elections are about what is happening in 12
states, rather than in the nation as a whole.
·Elections are about the voters who go to the
polls.
·The 2012 election campaign is likely to be the
most expensive and negative campaign ever.
·This election is likely to be difficult for
President Obama.
·The election is likely to be very close.
·Most Americans would vote to replace every
member of the U.S. Congress if they could.
·President Obama has an advantage with women and
youth, but is behind with the elderly and is losing support among males.
Neil
Newhouse, Public Opinion Strategies
·On average, an incumbent President gets a
7-point “bounce” following the nomination at the convention; the challenger’s
“bounce” is higher because he/she is relatively less well-known.
·During the 2012 election campaign, President
Obama’s challenge will be his record.
·The 2012 election is likely to be decided in 14
states.
A PENNY
SAVED: KEEPING PEOPLE HEALTHY, MANAGING DISEASES AND CONTROLLING COSTS
James
Sheeran, MillerCoors LLC
·The term “wellness” can be defined as “an active
process through which people become aware of, and make choices towards, a more
successful existence.”
·It is a myth that people want to be healthy; the
reality is that people do not want to be sick.
·It is a myth that “if you build it, they will
come”; the reality is that people need to be “led” to wellness and they need to
be made to “drink,” again and again.
·A 2011 Gallup poll of 11,000 employees estimated
that unhealthy workers cost U.S. employers about $153 billion each year in lost
productivity.
·There are compelling reasons for employers to
seek innovative solutions to engage employees in their health care.
·The aging workforce is increasingly less
healthy.
·Shortages in primary care physicians will
increase as 33 million people enter the insured system.
·There is a correlation between health and
financial stability and security, especially as people age.
Lee
Francis, Erie Family Health Center
·In 2011, America’s Health Centers had:
Ø20.2 million patients
Ø80 million patient visits
Ømore than 138,000 staff.
REVOLUTIONIZING
CARE THROUGH TELEHEALTH TECHNOLOGIES
John Blum, Loyola
University
·Telemedicine has been in development for 20
years.
·There is a need for greater consistency in
terminology and its use; a variety of terms are used, including telehealth,
telemedicine, e-health and m-health.
·Telehealth should be subject to standards and
guidelines.
·Telemedicine is most often used in dermatology,
radiology and psychiatry.
·“Drivers” of telehealth include:
Øaccess
Øcost savings
Øcoordination of health reform.
·Barriers to telehealth include:
Øa siloed approach
Øa lack of broadband coverage
Øadoption by health professionals and patients
Ølegal and regulatory considerations, including
licensure of interstate telemedicine, prescribing, credentialing,
reimbursement, fraud and abuse, anti-trust, privacy and medical liability.
·The goal is to provide the right patient with
the right treatment at the right time.
STRONG
TOWNS: A NEW PERSPECTIVE ON ECONOMIC DEVELOPMENT AND GROWTH
Chuck
Marohn, Strong Towns
·The United States needs financially strong,
resilient towns.
·There are several big concepts to keep in mind:
Øthe current path of cities is not financially
sustainable
Øthe future for most cities will differ from
their past
Øthe main determinant of future prosperity for
cities will be the ability of local leaders to transform their communities.
·Growth in cities leads to increased local tax
revenues, but it may create an illusion of prosperity.
·The construction of infrastructure comes with an
obligation to maintain it.
·The period of horizontal expansion of cities has
ended.
·In the future, it will not be able to finance
growth with historically low interest rates.
·A lack of innovation, rather than a lack of
productivity, is a fundamental problem.
·People respond to incentives, and the property
tax system punishes those who improve the value of their property.
·It is possible to have growth without new
infrastructure.
FOSTERING
INTERNATIONAL TRADE IN TODAY’S GLOBAL ECONOMY
Honourable
Wayne Easter, P.C., Canadian House of Commons
·As a small, open economy, Canada is a nation
that depends on trade to grow and prosper.
·In recent years, the value of Canada’s global
merchandise trade, services trade, direct investment abroad and inbound foreign
direct investment have grown.
·In 2011, the value of Canada’s merchandise trade
with the world totalled almost $894 billion, the value of global services trade
was more than $174 billion and the stock of Canadian direct investment abroad
was valued at almost $685 billion.
·In 1990, Canada’s merchandise exports were
valued at $149 billion and imports were valued at just over $136 billion; by
2011, these merchandise exports had grown to almost $448 billion and
merchandise imports had grown to $446 billion.
·In terms of Canada’s services trade, exports
were valued at more than $22 billion in 1990 and rose to almost $75 billion in
2011, and imports rose from $33 billion in 1990 to more than $99 billion in
2011.
·In terms of foreign direct investment, in 1990,
the stock of Canadian direct investment abroad totalled more than $98 billion,
an amount that grew to almost $685 billion in 2011, and the stock of foreign
direct investment in Canada grew from just under $131 billion in 1990 to almost
$608 billion in 2011.
·Canada’s global presence is shaped by
merchandise trade, services trade, and inbound and outbound foreign direct
investment.
·While Canada has many trading partners, the
United States continues to be the most important partner in terms of
merchandise trade, services trade and foreign investment, although its
importance as a trading partner has declined somewhat over time.
·In 2011, Canada’s merchandise exports to the
United States were valued at just over $330 billion, accounting for almost 74%
of the value of Canada’s total exports, a decrease from almost 82% in 2006.
·In 2011, the value of Canada’s merchandise
imports from the United States totalled just under $221 billion, accounting for
about 50% of the value of Canada’s total imports, a decrease from about 55% in
2006.
·In 2011, Canada’s services exports from the
United States were valued at almost $40 billion, accounting for just under 53%
of the value of Canada’s total services exports, a slight decrease from about
54% in 2006.
·In 2011, the value of Canada’s services imports
from the United States totalled almost $57 billion, representing about 57% of
the value of Canada’s total services imports, about the same proportion as 5
years earlier.
·In 2011, the stock of Canadian direct investment
in the United States was valued at just over $276 billion, accounting for just
over 40% of the total stock of Canadian direct investment abroad, a decrease
from about 43% in 2006.
·In 2011, the stock of U.S. direct investment in
Canada totalled just over $326 billion, representing almost 54% of the total
stock of foreign direct investment in Canada, a decrease from about 61% in
2006.
·While the importance of the bilateral
relationship in terms of merchandise and services trade as well as foreign
direct investment has declined somewhat in recent years, the relationship is
still Canada’s most significant.
·While the bilateral trade relationship between
Canada and the United States occurs largely without disputes, which is thought
to be remarkable in light of the size of the relationship, disputes arise from
time to time.
·In recent years, disputes have arisen related to
the United States’ country-of-origin labelling requirements, trade in softwood
lumber, the “Buy American” provisions in certain pieces of U.S. federal
legislation and a $5.50 fee imposed on those entering the United States by air
or sea, among others.
·It is important to remember certain facts about
the bilateral relationship:
Øan estimated 8 million American jobs depend on
trade with Canada
Øan estimated 2.5 million Canadian jobs depend on
trade with the United States
Øin 2011, bilateral trade was valued at more than
$700 billion, which is equal to more than $1.9 billion each day or $1.3 million
each minute
Ø35 U.S. states have Canada as their primary
foreign export market.
·Canada has signed a number of international
agreements designed to promote trade and investment.
·Some of the trade agreements signed by Canada
are multilateral in nature, such as the World Trade Organization (WTO), whose
overarching rules frame and govern Canada’s bilateral and regional trade
agreements.
·Some of Canada’s free trade agreements (FTAs)
are regional, such as the North American Free Trade Agreement, and some
are bilateral, such as Canada’s agreement with Colombia.
·While FTAs are important to Canada, other types
of agreements have also been signed or are being negotiated.
·In essence, and while the WTO’s Doha Round has
yet to be concluded, Canada has signed or is negotiating a number of agreements
designed to promote trade further and to protect investments by Canadians
abroad:
ØFTAs
Øforeign investment promotion and protection
agreements (FIPAs)
Øtrade and investment cooperation agreements
(TICAs)
Øtrade and economic cooperation agreements (TECAs)
Øother types of “comprehensive” agreements, such
as economic partnership agreements (EPAs) as well as comprehensive economic and
trade agreements (CETAs).
·FTAs seek to achieve economic benefits and
growth in commercial relationships by facilitating an increased flow of trade
and investment.
·While individual FTAs vary, they often include
provisions related to the elimination of tariff or non-tariff barriers to
merchandise trade, measures to promote cross-border services trade, and
expanded protection for – or access to – investment.
·FIPAs are designed to protect companies from the
risks involved in undertaking direct investment abroad; they are not
instruments of further trade liberalization.
·FIPA partners may be selected on the basis of
such criteria as economic interests, current and future prospects for direct
investment, existing investor protection, the likelihood of reaching an
appropriate agreement, and other trade or foreign policy factors.
·When comparing FTAs and FIPAs from the
perspective of investment, it should be noted that a FIPA is not an instrument
of liberalization and does not eliminate restrictions to investment in a
foreign country.
·As an example of a “comprehensive” agreement,
Canada and the European Union (EU) are currently negotiating a CETA that would
include provisions related to goods and services trade, investment and
government procurement, among other topics.
·The negotiating agenda for a Canada-EU CETA
includes trade liberalization, as well as a number of forms of economic
integration, such as mutual recognition of professional qualifications,
regulatory cooperation, agreements on sanitary and phytosanitary measures,
reduced barriers to labour mobility and provisions related to sustainable
development.
·Canada and India are negotiating an agreement
that could cover substantially all trade in goods and services, investment,
trade facilitation and other areas of economic cooperation, leading to
additional trade flows and economic gains; while the term that is being used in
reference to the Canada-India agreement is an EPA, these negotiations could
result in an agreement that is similar to a traditional FTA.
·In Canada’s EPA negotiations with Japan, the
terms FTA and EPA are being used interchangeably, reflecting the terminology used
in these two countries for such agreements.
·Canada has also negotiated TICAs and TECAs.
·Until relatively recently, the scope of trade
agreements negotiated by the Canadian federal government did not extend to
provincial, territorial and municipal governments or to Crown corporations.
·A number of measures help Canadian suppliers in
terms of access to the government procurement market, including:
Øthe WTO’s Agreement on Government Procurement
ØChapter 10 in the North American Free Trade
Agreement (NAFTA)
Øprovisions in bilateral agreements with Chile
and Peru
Øthe February 2010 Canada-U.S. Agreement on
Government Procurement (AGP), which allowed Canadian companies to participate
in U.S. infrastructure projects financed under the American Recovery and
Reinvestment Act (ARRA).
·According to some commentators, the AGP was – in
some ways – a turning point, since provinces, territories and certain Canadian
municipalities agreed, for the first time, to temporary commitments allowing
U.S. corporations to bid on Canadian government contracts.
·One part of the AGP addressed provincial and
territorial procurement commitments under the WTO’s Agreement on Government
Procurement for all Canadian provinces and territories – with the exception
of Nunavut – in exchange for U.S. sub-national AGP commitments.
·Another part of the AGP makes provision for
temporary Canadian procurement commitments for construction projects for some
provincial and territorial agencies not included in the WTO’s Agreement on
Government Procurement and a number of municipalities in exchange for the
United States exempting Canada from the “Buy American” provisions of the ARRA
for 7 programs of interest that received funding under the ARRA.
·In the context of involvement by sub-national
governments, government procurement seems to be the area of greatest
importance.
·According to some sources, opening up government
procurement markets in Canada – particularly at the provincial, territorial and
municipal levels – is one of the priorities for European negotiators in the
context of a Canada-EU CETA, and it appears that European negotiators will have
to gain concessions from Canadian provinces, territories and municipalities in
order for the CETA negotiations to succeed; in that context, Canada’s chief
negotiator has said that, while some markets are likely to be opened to the EU,
Canada’s procurement system is largely open to begin with, and municipalities,
provinces and the federal government often have contracts with foreign
suppliers.
·By all accounts, Canada’s sub-national
governments are now engaged in consultations with the federal government when
issues that affect them are being negotiated.
·NAFTA is one of Canada’s most comprehensive
FTAs; signed by Canada, the United States and Mexico and into force in 1994,
NAFTA led to the elimination of most tariff and non-tariff barriers to trade
and investment among the three signatory countries.
·NAFTA is broad in its scope, encompassing
provisions related to market access for goods and services, protection for
investments and intellectual property, the facilitation of travel for business
persons, access to government procurement, and provisions regarding rules of
origin.
·NAFTA includes dispute-resolution provisions
administered by the NAFTA Secretariat, and the NAFTA partners have negotiated
side agreements related to environmental and labour cooperation.
·In June 2012, Canada and Mexico were invited to
join 9 countries – Australia, Brunei, Chile, Malaysia, New Zealand, Peru,
Singapore, the United States and Vietnam – participating in the Trans-Pacific
Partnership (TPP) negotiations; the first round of negotiations in which Canada
would be able to participate is the 15th round, which will be held
in December 2012.
·Since all NAFTA partners will be participating
in the TPP negotiations relatively soon, there are some who hope that the TPP
will be a catalyst for a closer and more prosperous relationship that results
in greater North American prosperity, growth and jobs; some hope that the NAFTA
countries – using the TPP negotiations as a vehicle – will be able to advance
interests that were either not addressed in the NAFTA or that were addressed
but require change or refinement.
·The NAFTA countries share a common “economic
space,” and the enhanced trade, investment and job growth since 1994 is a
testament to what can be accomplished together.
·Because of integrated supply chains and other
linkages among the people and businesses in the NAFTA countries, the prosperity
of any of the countries has positive results for the other countries.
·Going forward, the NAFTA countries –
trilaterally and bilaterally – must find ways to work together cooperatively
and with common cause to ensure global competitiveness and growth; the
countries must treat each other as economic friends and allies, and must work
together with a singular focus in the global marketplace, particularly as
trading blocs continue to emerge and new countries become economic forces.
Eduardo
Arnal, Mexican Consulate in Chicago
·In January 2012, NAFTA had been in existence for
18 years; the agreement had positive results, with increased competitiveness in
each of the NAFTA countries and North America generally.
·Each NAFTA country is expected to increase its
global trade in the future.
·Mexico has a global strategic plan.
·Since 1994, the value of U.S.-Mexico trade has
increased more than 5 times; nearly 35% of Texas exports are destined for
Mexico, and 22 U.S. states have Mexico as their first or second most important
foreign export market.
·It is important to keep shared borders open in
order to facilitate the flow of goods and people.
·Mexico is happy to have been invited to
participate in the TPP negotiations; the TPP’s agenda is Mexico’s agenda.
Isaac Faz, Office
of the U.S. Trade Representative
·An Executive Order established the Trade
Enforcement Center within the U.S. Department of Commerce.
·The goal of the TPP negotiations is the
conclusion of a robust, 21st-century trade agreement, with strong
labour and environment agendas.
·The United States welcomes the participation of
Canada and Mexico in the TPP negotiations.
U.S.
ECONOMIC OUTLOOK
Leslie
McGranahan, Federal Reserve Bank of Chicago
·The “Great Recession” ended in June 2009; the
path of the current economic recovery in the United States is relatively muted
when compared to the recovery cycles of past deep recessions.
·The United States’ gross domestic product (GDP)
is expected to grow near trend in 2012 and to grow slightly above trend in
2013.
·Between December 2007 and February 2010,
employment in the United States fell by more than 8.7 million jobs; employment
then began to rise, with just over 1.8 million jobs added in a 12-month period.
·After peaking in October 2009, the U.S.
unemployment rate has fallen by 1.7 percentage points and is expected to
continue to fall.
·In the United States, inflation has moderated,
in large part due to changes in oil prices; inflation is expected to rise 1.7%
in 2012 and 2.2% in 2013, with slackness in the economy leading to a relatively
contained inflation rate.
·U.S. monetary policy has been very aggressive;
the policy rate has been near 0% since December 2008; it is expected to remain
very low over the forecast horizon.
·Housing starts are improving, and a very gradual
recovery in housing is expected.
·Capacity utilization in the manufacturing sector
has been rising since June 2009; growth in manufacturing output should be
solid.
·Consumer confidence is fragile.
·The personal savings rate has fallen.
·The stock market has improved since March 2009,
but remains below previous levels.
·State sales tax revenue has been improving, as
has income tax revenue; that said, local government revenue has been falling.
·The federal government is
under pressure.
HOW ARE THE
KIDS DOING IN YOUR STATE?
Lisa
Hamilton, Annie E. Casey Foundation
·There is a new index to measure child
well-being.
·The old index of child well-being ranked states
on 10 indicators of child well-being and was dominated by health indicators; the
influences of education, family and community were minimized.
·The new index of child well-being ranks states
on the basis of 4 domains – economic well-being, education, health, and family
and community – with 16 indicators of child well-being that permit more
comprehensive and nuanced views of child well-being.
·In terms of trends in economic well-being, the
key indicators are:
Øchildren in poverty
Øchildren whose parents lack secure employment
Øchildren living in households with a high burden
in relation to housing costs
Øteens not in school and not working.
·In terms of 2012 state rankings on the economic well-being
domain, the top-ranked states were North Dakota, Nebraska and Iowa, while the
bottom-ranked states were New Mexico, Nevada and Mississippi.
·In terms of trends in education, the key
indicators are:
Øchildren not attending preschool
Østudents in grade 4 not proficient in reading
Østudents in grade 8 not proficient in math
Østudents in high school not graduating on time.
·In terms of 2012 state rankings on the education
domain, the top-ranked states were Massachusetts, New Jersey and Vermont, while
the bottom-ranked states were Mississippi, New Mexico and Nevada.
·In terms of trends in health, the key indicators
are:
Ølow-birthweight babies
Øchildren without health insurance
Øchild and teen deaths per 100,000
Øteens who abuse alcohol or drugs.
·In terms of 2012 state rankings on the health
domain, the top-ranked states were Vermont, Massachusetts and Maine, while the
bottom-ranked states were Mississippi, New Mexico and Montana.
·In terms of trends in family and community, the
key indicators are:
Øchildren in single-parent families
Øchildren in families where the household head lacks a high school
diploma
Øchildren living in high-poverty areas
Øteen births per 1,000.
·In terms of 2012 state rankings on the family
and community domain, the top-ranked states were New Hampshire, Vermont and
Utah, while the bottom-ranked states were Louisiana, New Mexico and
Mississippi.
·At the national level, the education and health
of children are improving, while their economic well-being is worsening; the
northeast and upper Midwest continue to do well, while the southeast and
southwest continue to struggle.
FINE-TUNING
REGULATIONS TO STIMULATE JOB GROWTH
Katherine
Schill, Minnesota State Legislature
·Regulations:
Øidentify or constrain rights in an effort to
allocate responsibilities
Øseek to produce or prevent outcomes that might
not occur otherwise
Øare commonly administrative rules, but can be
legislation or judicially made law
Øcome in various forms, including price controls
and pollution thresholds
Øare monitored by various entities, including
governments and industry.
·The benefits of regulation include protections
from:
Ømarket inefficiencies, such as collusion and
externalities
Øirreversible impacts, such as outcomes affecting
future generations
Øsubstandard professional conduct
Ø“crony capitalism.”
·The costs of regulation include:
Øeconomic impacts
Øtime impacts
Øadministrative confusion for those being regulated, perhaps due to a
lack of clarity and/or transparency, limited coordination among agencies and
failed coordination among levels of government.
Senator Jim
Hughes, Ohio General Assembly
·In 2008, Ohio had more than 900,000 small
businesses.
·According to the National Federation of
Independent Business, small employers spend about 45% more time complying with
government regulations than do larger companies.
·Ohio’s small business rule review process
reformed the way that businesses are regulated; the objective was to help
employers “navigate” state regulations and reduce “red tape.”
·Ohio’s Regulatory Reform Task Force discussed
ways in which to make the state’s regulatory system more efficient and to
identify duplicate or unnecessary regulations.
·Ohio’s Common Sense Initiative Office (CSIO) has
helped to improve the process, with a view to ensuring that regulations are
reasonable and that businesses are able to comply.
·The CSIO has helped to alleviate unnecessary
regulations on small businesses, enabling the businesses to focus on the job
creation that will help Ohio’s economy to prosper.
·The CSIO requires rule-making agencies to
prepare a small business impact analysis report for rules that may have an
adverse impact on small businesses and a regulatory flexibility impact report.
·A rule can be rejected if the state agency that
has submitted it has failed to demonstrate that the regulatory intent of the
rule justifies the adverse impact it would have on businesses in Ohio; a rule
must meet specific criteria in order to prove that it does not adversely affect
businesses.
Representative
Brent Yonts, Kentucky General Assembly
·Statutes beget regulations.
·Regulatory changes can be used to attract and
retain businesses.
·Kentucky is focused on creating jobs through
legislative changes.
·Kentucky is providing loans, grants, bonds, tax
and other business incentives.
FEDERALISM
AND THE STATES
Senator Joni
Cutler, South Dakota State Legislature
·The federal government should work with the
states to ensure the development of legislation and regulations that the states
can implement.
·The U.S. Congress appears to be ignoring the
role of states as policy laboratories.
·When the federal government establishes new
mandates, the true costs that will be faced by state governments should be
considered.
·The federal requirements regarding REAL ID have
cost states billions of dollars to implement.
·The United States needs cooperative, rather than
coercive, federalism; cooperation, compromise and civility should exist.
Alison
Lacroix, University of Chicago
·Federalism is not just a constitutional
doctrine; rather, it is the entire structure of government.
·In some cases, Congress can pre-empt the
jurisdiction of states.
·In the future, conditional spending may become
less of a “work around” than has historically been the case.
·Incentives may become coercive at some point.
·Cooperative federalism is not dead in the United
States.
THE PUBLIC
WORKS: CAN WE CREATE JOBS THROUGH INFRASTRUCTURE PROJECTS?
Andrew
Herrmann, American Society of Civil Engineers
·According to the American Society of Civil
Engineers’ 2009 report card on America’s infrastructure, the estimated 5-year
investment needed to raise the grade from “D” to “B” is $2.2 trillion; since
about half of this amount would be spent in any event, the actual deficit is
about $1.1 trillion.
·The American Society of Civil Engineers’ report
card on America’s infrastructure considers condition, capacity, operation and
maintenance, funding, future need, public safety and resilience.
·If there is a failure to act, the economic
impact of current investment trends in surface transportation infrastructure
would be job losses, a lower standard of living for families as a consequence
of lower earnings and higher spending, and a lower GDP than would otherwise be
the case; there is a need to invest $94 billion.
·If there is a failure to act, the economic
impact of current investment trends in water and wastewater treatment
infrastructure would be increased costs for businesses and households; there is
a need to invest $84 billion.
·If there is a failure to act, the economic
impact of current investment trends in electricity infrastructure would be
blackouts and brownouts, with implications for jobs, income, exports and GDP;
there is a need to invest $11 billion per year.
Senator
John Cullerton, Illinois General Assembly
·It can be difficult to raise revenues to finance
infrastructure.
·It is possible to finance infrastructure through
raising fees in relation to title transfers, vehicle registrations, drivers
licences and liquor.
·Once funds for infrastructure are identified,
decisions must be made about infrastructure spending priorities.
Deb Miller,
Cambridge Systematics, Inc.
·There are links between transportation and jobs,
and between transportation and the economy.
·If deployed strategically, investments in
transportation create long-term jobs.
·Leadership and bipartisan support are helpful.
Geoffrey
Buswick, Standard & Poor’s
·Credit ratings are:
Øan opinion about relative credit risk
Øan opinion about the ability and willingness of
an issuer to meet financial obligations in full and on time
Øforward-looking and regularly evolving
Øintended to be comparable across sectors and
regions.
·Credit ratings are not:
Øinvestment advice
Øindications of market liquidity or price
Øguarantees of future credit risk
Øabsolute measures of default probability
Øexpected ultimate loss given default.
·The Standard & Poor’s investment-grade
rating scale, from strongest to adequate, is:
Østrongest: AAA
Øvery strong: AA+, AA, AA-
Østrong: A+, A, A-
Øadequate: BBB+, BBB, BBB-.
·The Standard & Poor’s speculative-grade
rating scale, from least speculative to in default, is:
Øleast speculative: BB+, BB, BB-
Øspeculative: B+, B, B-
Øhighly speculative: CCC, CC, C
Øin default: D.
·Sources of unpredictability in Washington, D.C.
and in the economy include:
Øreauthorization risks
Øprolonged minimal-to-slow economic growth
Øhigher fuel costs
Ødrought in much of the United States
Øsequestration and deficit-reduction options.
·Typical transportation funding options include:
Øgeneral obligation bonds
Øsales tax revenue bonds
Øgas tax revenue bonds
Øenterprise revenue bonds
Øfederal grant-secured obligations
Øpublic-private partnerships.
WHAT
AMERICANS THINK ABOUT HUNGER
Tres
Bailey, Walmart
·Hunger is a big problem in the United States.
·Retailers that have food products can donate
food, share best practices in relation to distribution and donate refrigerated
trucks.
·People should not have to choose between
nutritious food and food that is affordable.
·Nutrition and education about nutrition should
begin at an early age.
Margie
Omero, Momentum Analysis
·Food is salient for women.
·In the United States, food is seen as unhealthy,
overwhelming and dangerous; as well, it is seen as plentiful and diverse, with “plentiful”
and “overwhelming” being “sides of the same coin.”
·For a number of Americans, being able to afford
food is “top of mind.”
·Some Americans are concerned about abuse of the Supplemental
Nutrition Assistance Program.
·It is possible to be concerned about the ability
to feed a family without characterizing the situation as hunger.
·There are concerns about food deserts and food
accessibility.
·Like the campaign designed to encourage the use
of seatbelts, a focus by children on healthy eating will have spillover effects
on parents; eating healthily is “passed down” and “passed up.”
·Food cost, availability and planning work in
concert.
·Challenges in relation to food include:
Øcost, since healthy food is relatively more
expensive
Øtime and planning, since more is required with
healthy food
Øtaste
Øaccessibility.
FOOD AND
FARM ISSUES
Jerry
Hagstrom, The Hagstrom Report and National Journal
·Many in Washington, D.C. feel that farmers are
much better lobbyists than are other groups.
·Congress typically “writes” a Farm Bill every 5
years; the current bill expires on 30 September 2012.
·In recent years, food prices have been
relatively high, giving rise to pressures to reduce support for farmers.
·In Congress, the districts and states
represented by members of committees are important in influencing the areas
that are supported.
·Some Republicans are sceptical about some
elements of the U.S. food stamp program.
·The drought in the United States has changed the
entire atmosphere in relation to the Farm Bill; in general, there is a desire
to help, but the form that help should take is not entirely clear.
·Agricultural legislation requires a “coalition
of the middle.”
THE
BUSINESS OF CREATING JOBS
John
Engler, Business Roundtable
·The primary issue facing the United States is
job creation; an estimated 92% of Americans see the creation of good jobs as
the most important job facing the next President.
·The states compete with each other in attracting
businesses and thereby jobs; at the same time, they are competing with many
other nations.
Doug
Oberhelman, Caterpillar Inc.
·Research and development is critical for the
manufacturing sector, and leads to innovation.
·Considerations when determining a location for
investment include:
Øthe needs and wants of customers
Øthe availability of infrastructure
Øthe availability of a skilled workforce and
educational institutions that train people
Øthe existence of a supply base or the ability to
develop such a base
Øa favourable business climate, including in
relation to the fiscal stability of the state and the extent to which legacy
costs are under control.
·About 5% of the world’s population resides in
the United States; the United States must become a supplier to the remaining
95%.
·The United States needs to have an economy that
is growing; growth cures many ills.
·Relative to Asian locations, the United States
“wins” through education and debt.
·In the United States, revenue has to be raised
and expenses have to be reduced.
·The United States should have a
business-friendly environment, with low tax rates and legacy costs, among other
considerations; most states have relatively similarly valued incentives
although, from a global perspective, the United States taxes corporations at
the highest level.
·The standards developed by the Governmental
Accounting Standards Board are not sufficiently “tough.”
·In the move from an agrarian to an urban
civilization, many mechanical skills have been lost.
·The United States was built on entrepreneurs and
businesses, yet they are now in disfavour.
·Businesses have an obligation to be ethical and
to “do the right thing.”
Ed Rust,
Jr., State Farm Mutual
·A major underlying contributor to the United
States’ slow growth is students who graduate without having the skills that
employers need, including verbal and written communication, initiative and
critical thinking.
·Businesses can play a key role in creating the
environment needed for job creation and long-term success.
·It is not possible to recover from a sustained
recession “over night.”
·Regarding mandating transparency, it is easier
to say it than to do it.
·Education is critically important, and it is
especially important to ensure that children are in the right learning
environment from kindergarten to grade 6.
·Common core educational standards are valuable.
·The United States cannot afford remedial
education, which is costly.
·Demographic change means that everyone must be
performing, which requires that people have the skills that are needed.
·There is a need to be competitive in an economy
that is truly global.
·Legislators and businesses should partner and
should share their perspectives.
TEDDY
ROOSEVELT: LEADERSHIP LESSONS FOR TODAY
Doris
Kearns Goodwin, Author
·Theodore Roosevelt had many of the same
attributes as Abraham Lincoln.
·Like now, the turn of the 20th
century was a time of great unrest.
·With the dysfunction in Washington, it is up to
the states to be creative in meeting the needs of citizens.
·Theodore Roosevelt had the ability to withstand
adversity and to be resilient; he had life-threatening asthma, which weakened
his body but focused his mind, he forced himself to do difficult and dangerous
things, thereby developing courage, and his 22-year-old wife and 49-year-old
mother died on the same day.
·Theodore Roosevelt recognized challenges and
opportunities; he learned from his mistakes, he developed ordinary qualities to
an extraordinary degree, had a strong work ethic and an array of emotional
strengths, and had a legendary power of concentration.
·Theodore Roosevelt was a master communicator; he
captured an agenda in a single phrase, with “square deal,” and coined the terms
and phrases “bully pulpit,” “special interests” and “speak softly and carry a
big stick.”
·Theodore Roosevelt worked hard to negotiate
differences, but he was prepared to walk away and he carried a big stick; he
also advocated “do not hit until you have to, but when you have to, hit hard.”
·Theodore Roosevelt was able to laugh at himself,
and accepted criticism with grace.
·Theodore Roosevelt knew how to relax and
replenish his energies; reading was a staple for him, and he typically
exercised in the late afternoon.
STATES AND
DEFICIT REDUCTION: SURVIVING THE BUDGET CUTS
Marcia
Howard, Federal Funds Information for States
·The post-election “to do” list includes:
Øcomplete the appropriations for the 2013 fiscal
year
Øaddress sequestration resulting from the Budget
Control Act of 2011, which – absent legislation – will begin in January
2013
Ødeal with the expiring tax provisions, including
those initially enacted by President George W. Bush, the Alternative Minimum Tax,
the payroll tax reduction and the child tax credit
Øconsider other expiring legislation and
authorizations, including the 2008 Farm Bill, Temporary Assistance for Needy
Families (TANF), and Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users (SAFETEU-LU).
Øreassure markets and American consumers, including through
addressing the debt limit.
Michael
Bird, National Conference of State Legislatures
·Medicaid is “low hanging fruit,” and federal
budget savings must be realized.
·Federal tax reform of some sort will happen at
some time.
Respectfully
submitted,
Hon. Janis
G. Johnson, Senator
Co-Chair
Canada-United States
Inter-Parliamentary Group
Gord Brown, M.P.
Co-Chair
Canada-United States
Inter-Parliamentary Group