Report

 

From 25-30 March 2008, Mr. Rob Merrifield, M.P., Co-Chair of the Canada-United States Inter-Parliamentary Group (IPG) led a delegation of IPG members to the 47^th Canadian-American Days in Myrtle Beach , South Carolina. The IPG delegation included Senator Frank Mahovlich, Mr. Tom Lukiwski, M.P., Mr. Brad Trost, M.P., the Honourable Wayne Easter, P.C., M.P., Mr. Guy André, M.P. and Mr. Paul Crete, M.P.

The meetings were also attended by the Honourable Peter Milliken, P.C., M.P., Speaker of the House of Commons of Canada, the Honourable Jay Hill, P.C., M.P., Secretary of State, the Honourable Gary Lunn, P.C., M.P., Minister of Natural Resources, the Honourable Monte Solberg, P.C., M.P., the Minister of Human Resources and Social Development, and the Honourable Greg Thompson, P.C., M.P., Minister of Veterans Affairs, each of whom appeared as a panellist. Canadian Chief of Defence Staff General Rick Hillier, Ambassador David Wilkins, the United States Ambassador to Canada, U.S. Representatives Henry Brown and J. Gresham Barrett, as well as various governmental and private-sector representatives from the United States and Canada, also attended the meetings.

Members of the IPG travelled to South Carolina in order to participate in panel sessions on four topics:

Ø  enhancement of the bilateral business relationship;

Ø  Canada as an "energy superpowerhouse; "

Ø  the political realities of two diverse democracies; and

Ø  the United States, Canada and the global stage.

In each session, Ambassador Wilkins posed a series of questions and the panel’s participants were invited to provide their comments. In opening the meetings, he noted that South Carolina and Canada have long-enjoyed a mutually beneficial trade and tourism relationship, although we can always do better as we work together in light of changes in our economies, challenges at the border and the need to continue the global fight against terror. Ambassador Wilkins stressed that while Canada and the United States may encounter difficulties from time to time, we always manage to work out our differences.

The IPG members view the relationship between Canada and South Carolina as being very important. According to recent estimates, about 95,250 South Carolina jobs are supported by Canada-U.S. trade, and bilateral trade between the countries totals about $4.8 billion annually; exports to Canada are valued at approximately $2.8 billion, while imports from Canada total about $2 billion. Moreover, recent data suggest that about 450,800 Canadians visit South Carolina annually and spend about $224 million, while about 78.500 South Carolinians visit Canada and spend about $55 million. An indication of the importance of the relationship is also indicated by the opening, in 2007, of a South Carolina trade and tourism office in Toronto, Ontario.

Given the importance of the trade and tourism relationship between Canada and South Carolina, members of the IPG intend to continue their efforts to foster the relationship, including through possible participation in Myrtle Beach’s annual Canadian-American days in 2009 and continued dialogue with South Carolina’s Governor, state representatives and federal delegation in Washington, D.C. In this regard, it should be noted that Representative Brown is one of the co-chairs of the Congressional Friends of Canada Caucus.

THE TIES THAT BIND: ENHANCING THE BEST BUSINESS RELATIONSHIP IN THE WORLD

Panellists:

The Honourable Monte Solberg, P.C., M.P., Canadian Minister of Human Resources and Social Development

The Honorable Henry Brown, Member of the U.S. House of Representatives and Co-chair of the Congressional Friends of Canada Caucus

Secretary Joe Taylor, Jr., South Carolina Department of Commerce

Mr. Bob Deluce, President and Chief Executive Officer, Porter Air

Mr. Michael Keaveny, U.S. Commercial Service of Canada

Question: What is the single largest economic challenge or concern facing the Canada-United States relationship?

Minister Solberg opened the discussion by indicating that, in the short run, the state of the U.S. economy and selected other world economies are creating challenges. Given this reality, he identified the need to keep the trade and foreign direct investment relationship as strong as we can; as well, we must continue to ensure the free flow of labour across the shared border.

In noting that the Congressional Friends of Canada Caucus has about 100 members, Representative Brown told participants that Canada has many friends in the U.S. Congress. He also highlighted the positive trade and tourism relationship, as well as the rising relative value of the Canadian dollar. Representative Brown also commented on Congressional efforts in respect of the important issue of the Western Hemisphere Travel Initiative, and suggested that the shared border is fairly open and should continue to be so. Finally, he mentioned funding for bilateral highways.

Secretary Taylor spoke about the significant bilateral tourism relationship that exists between Canada and South Carolina, and noted the existence of the South Carolina office in Toronto. In his view, the important issues occur at the shared border, which must remain open and secure; consequently, careful attention must be paid to the border. He also emphasized that the United States, and South Carolina, benefit from foreign direct investment from Canada, and made particular mention of Canadian investments in the forest products industry in South Carolina.

In the opinion of Mr. Keaveny, the challenge for both countries is to maintain competitiveness in global markets as we compete with emerging economies. He also commented on the bilateral energy trade between Canada and the United States, as well as the integrated nature of such sectors as automotive and telecommunications.

Mr. Deluce told participants that the airline industry faces new challenges on a daily basis, and noted – as examples – rising fuel prices and currency fluctuations; in respect of currency fluctuations, he pointed out that the result has been good for the airline industry but detrimental for Canada’s manufacturing sector. From his perspective, border-crossing documents should be harmonized and participation in such programs as NEXUS should be encouraged. Mr. Deluce also spoke about customs and immigration as well as pre-clearance. Finally, in his view, when things fluctuate, there are always opportunities for people to "turn lemons into lemonade."

Question: In the context of possible re-negotiation of the North American Free Trade Agreement, how concerned are Canadians?

Minister Solberg characterized Canada as a trading nation, and remarked that this trade occurs overwhelmingly with the United States; consequently, Canadians are concerned about any discussion of changes being made to trade agreements. Moreover, according to him, Canadians are always interested in finding ways to enhance the North American Free Trade Agreement. Minister Solberg advocated the need to speak plainly about the real benefits of rules-based trade and to continue with public education efforts regarding the benefits of trade in enhancing the standard of living.

Question: What is the degree of support in the U.S. Congress for the North American Free Trade Agreement? What is the degree of protectionism in Congress in respect of trade agreements?

Representative Brown observed that while President Bush supports free trade, the "new climate" in Washington is not pro-free trade; Congress is now more protectionist, and there are concerns about labour rights and protection of the environment. In his view, ways to raise the standard of living in developing countries must be found, and trade is one tool that can be used, since free trade enhances the quality of life of trading partners.

Question: Does a significant number of members of the U.S. House of Representatives support re-negotiation of the North American Free Trade Agreement?

In Representative Brown’s opinion, there is a great deal of rhetoric in Washington about re-negotiation of the North American Free Trade Agreement. He predicted that, in the future, it will be difficult to conclude free trade agreements, and that such agreements will not be "free" because they are likely to include provisions in respect of labour standards.

Question: What would a change in the U.S. Administration mean for Canada? How important is a change in government in either country to the bilateral relationship?

In the view of Mr. Deluce, the bilateral relationship and bilateral friendships will remain strong, regardless of the governing political party in either country; however, the strength ebbs and flows based on personalities. He said that both countries must ensure the continued existence of a close, respectful relationship.

Minister Solberg identified the United States as Canada’s great neighbour and ally, and shared his opinion that anything that happens in the United States is important to Canada and to the rest of the world; as a result, there will always be concerns about public policy changes that have detrimental effects. He noted that Canada will work with whoever becomes the U.S. President. Finally, Minister Solberg indicated that heated campaign rhetoric is a phenomenon that occurs in both countries.

Mr. Keaveny reminded participants that the Canada-United States Trade Agreement was signed under the presidency of President George H. Bush while the North American Free Trade Agreement was signed under the presidency of President Bill Clinton. He emphasized that both political parties in the United States have signed trade agreements.

Question: In the context that Canadians think "trade" first when looking at the border, while Americans think “security” first, is the shared border getting better or worse?

According to Secretary Taylor, tourism and exports are major aspects of South Carolina’s economy. In his view, ease of movement across the border and spending by Canadians benefits South Carolina.

Mr. Keaveny told participants that border issues are faced daily, and that dialogue is needed. In his opinion, Americans have been scarred by the events of 11 September 2001 and it is hard for Canadians to accept that there is a changed relationship between our countries in terms of the ease with which the border can be crossed. Mr. Keaveny also spoke about the importance of the United States in world markets, and indicated both that trade is affected by security and that the United States needs security. Finally, he asserted that, for every problem, there is a solution.

Mr. Deluce noted that, for airlines, borders are critical and there should be seamless crossing of the shared border. He stressed the importance of pre-clearance, but commented that it does not always work well; Toronto’s Pearson International Airport was provided as an example. He also mentioned biometrics and the NEXUS program.

Finally, Minister Solberg informed participants that Canada is the primary trading partner for 35 U.S. states and cautioned that we cannot take our friendship for granted: we must respect each other. He observed that Canadians are sensitive to the effects of the 11 September 2001 terrorist attacks, in part because Canadian lives were lost as well, and are in favour of security measures that are proportionate to the risk. In the Minister’s view, we must work together in an effort to push the perimeter outwards, and should share information as well as engage in joint off-site cargo inspection. Finally, he highlighted Canada’s participation in stabilization and reconstruction efforts in Afghanistan.

Question: Will the U.S. Congress change the implementation date for the land and sea aspects of the Western Hemisphere Travel Initiative?

According to Representative Brown, the needed technology must be in place at the land and sea borders in order for the June 2009 implementation date for the Western Hemisphere Travel Initiative to be respected. In his view, with the existence of trusted travellers programs, there is no need to inspect every truck that crosses the shared border. Moreover, in stressing the requirement for documentation that cannot be duplicated easily, Representative Brown indicated that the United States needs to be able to identify the 12-20 million illegal aliens in the United States.

Question and Answer Session

In the "question and answer" session, the following topics were raised: trade, tourism and the local economy; car purchases in one country for use in the other country; the benefits of trade agreements in terms of job creation and higher wages; the cost of production as a criterion in business location decisions; bilateral cooperation in order to compete with emerging economies; issues related to the Northwest Passage; bilateral review of immigration policies; international information-sharing among allies; pushing the border outward; security measures that are proportionate to the risk; and environmental issues, including in respect of sustainable energy, air and water.

ENERGY: CANADA’S BEST KEPT SECRET

Panellists:

The Honourable Gary Lunn, P.C., M.P., Canadian Minister of Natural Resources

The Honorable J. Gresham Barrett, Member of the U.S. House of Representatives

Mr. Rob Merrifield, M.P., Co-Chair of the Canada-United States Inter-Parliamentary Group

Mr. Emerson Gower, Progress Energy

Question: What are the biggest challenges facing both countries in respect of energy production as well as the environment in the next ten years?

Minister Lunn told participants that the insatiable appetite for energy must be met while protecting the environment and recognizing the needs of a growing and strong economy. In his view, the key challenge is reducing the carbon footprint, and challenges must be turned into opportunities. He also indicated that Canada has "much energy," while the United States has "much need."

In noting that France is "far ahead" and that a new coal-fired plant is completed every week in China, Representative Barrett characterized the United States as "35 years late in coming to the dance" and "35 years behind the power curve." In his view, what the U.S. needs must be balanced with where the U.S. needs to go. He suggested that there is no "silver bullet," and argued that all forms of energy must be part of the solution. Moreover, in Representative Barrett’s opinion, while the carbon footprint must be reduced, there is also a need to be competitive in the global market-place. He also suggested that the United States is the Saudi Arabia of coal. Finally, he indicated that the United States needs to be on the road to energy independence. Representative Barrett said that, as a member of the U.S. House of Representatives, security is his "first job," and argued that security cannot occur without energy independence.

Mr. Merrifield spoke about the need to increase energy production in a manner that is environmentally sustainable, and asserted that new technology will be important in this regard. He also indicated that, at present, too much energy is coming from regions with too much geopolitical turmoil. Finally, Mr. Merrifield commented on the need to ensure that our bilateral relationship does not become compromised, and mentioned the notion of North American energy independence.

According to Mr. Gower, household consumption of electricity is double what it was three decades ago. In his view, generation capacity and transmission lines are needed, and consumers want utilities to be energy efficient. He also noted the importance of nuclear energy and reminded participants of Canadian uranium in this regard.

Question: What is the future of nuclear power in Canada?

Minister Lunn told participants that nuclear energy will be a vital part of the future energy mix, and is becoming cleaner. He also indicated that if a decision is made today to build a nuclear plant, it will be 12-16 years before the plant is operational. Minister Lunn also spoke about coal, noting that clean coal is relatively more costly and its technology is relatively new. In characterizing the Alberta oil sands as the second largest reserve in the world, he indicated that next-generation technology will make extraction less costly. Finally, he argued that legislators must expedite the environmental regulatory approval process; in particular, approval should not take five years.

Mr. Merrifield agreed that nuclear energy will be an important aspect of the future energy mix, but cautioned that there is some public opposition to it. He suggested that there will be some "pain along the way."

Question: Is Canada an energy superpower?

According to Minister Lunn, Canada is the only Organisation for Economic Co-operation and Development country that is a net exporter of energy; in this context, the United States is a great market for Canadian energy exports. He also told participants that while there must be an increased focus on renewable energy, we will continue to rely on fossil fuels for some time to come; the key challenge is determining how to produce traditional energy in a cleaner manner.

Mr. Merrifield characterized Canada as an energy superpower and highlighted both Canada’s significant energy resources and the need to produce energy in an environmentally friendly way. He also noted the energy activities in the Mackenzie Valley and, within the United States, in Prudhoe Bay. 

Question: Are there any comments that should be made in respect of the Arctic National Wildlife Refuge?

Representative Barrett shared his opinion that while drilling in the Arctic National Wildlife Refuge would help the United States to become more energy independent, there is little chance that Congress would allow drilling to occur.

Question: Does a change in the U.S. Administration affect the energy industry?

According to Mr. Gower, a change in the U.S. Administration has a large effect on the energy industry. That being said, he believed that, regardless of who becomes President, there will be energy legislation in respect of greenhouse gas emissions that will include a carbon tax or a cap-and-trade system; the result will be higher costs. Mr. Gower also commented that the intermittent nature of wind, solar and biomass energy make them unsuitable energy sources with which to meet base load demand, leading to at least some reliance on nuclear, coal and natural gas.

Representative Garrett said that it is important for the U.S. Congress to provide the private sector with some idea of where the United States is going with its energy policy.

Question: What energy legislation is pending in Canada?

Minister Lunn told participants that the Canadian government recently announced a framework for greenhouse gas emissions, and that all new oil sands development after 2012 will have to meet carbon capture and storage standards. He noted that the framework will involve costs for industry, and these costs may be passed along to consumers in the form of higher prices. Minister Lunn indicated that a common trading system will likely develop with the United States, since he believed that the U.S. will take the same approach as Canada, regardless of who becomes President.

Question and Answer Session

In the "question and answer" session, the following topics were raised: more timely regulatory approval; zero-emission coal plants; U.S. Congressional legislation in respect of energy independence; and the North American Free Trade Agreement and security of energy supplies.

THE POLITICAL REALITIES OF TWO DIVERSE DEMOCRACIES: POLITICAL THEATRE, CAMPAIGN FINANCE AND DYNAMIC DIFFERENCES IN THE U.S. AND CANADIAN SYSTEMS

Panellists:

The Honourable Peter Milliken, P.C., M.P., Speaker of the Canadian House of Commons

The Honourable Jay Hill, P.C., M.P., Secretary of State

The Honorable Henry Brown, Member of the U.S. House of Representatives and Co-chair of the Congressional Friends of Canada Caucus

Mr. Theo Caldwell, President, Caldwell Asset Management, Inc.

Dr. Eddie Dyer, Coastal Carolina University

Question: What recent changes have been made in respect of campaign financing?

Minister Hill observed that campaign finance laws are evolving in both Canada and the United States, and informed participants that, in Canada, all corporate and union donations to federal political parties have ended; as well, there are limits on donations by individuals. He also indicated the existence of limits on the amount that federal political parties can spend during an election campaign and that candidates can spend in their constituency. Finally, Minister Hill noted that federal support for campaigns exists through rebates of a portion of election expenses provided that a certain proportion of the votes is gained; federal support for political parties exists through payment of a pre-determined amount for each vote cast in favour of the party.

According to Representative Brown, some candidates spend more than $4 million on their election campaign, which occurs every two years for members of the House of Representatives and every six years for U.S. Senators. He also spoke about filing fees, donations by individuals and political action committees, and contributions made by those who hold leadership positions to their party and to weaker candidates.

 

Question: What changes should be made to the current election system?

In focussing on the U.S. election system, Dr. Dyer argued for limits on the duration of election campaigns.

Mr. Caldwell told participants about recent Canadian legislation providing fixed election periods, and suggested that Democratic Party primary and caucus rules should be revisited.

According to Speaker Milliken, the advent of fixed election periods in Canada may influence the amount of spending that occurs just prior to the beginning of the federal election campaign, since there are limits on the amount that can be spent during the 36-day campaign period. Moreover, he observed that if candidates are confident they will secure the proportion of the vote required for a federal rebate of some election expenses, there is no requirement to raise 100% of the funds spent during an election campaign.

Finally, Minister Hill commented on the first-past-the-post system, which he characterized as potentially problematic in a system with more than two parties. In this context, he mentioned such other options as proportional representation and preferential balloting. Finally, he told participants that in a majority Parliament, the power of the Prime Minister is virtually uncontested.

Question: In the context that Canadian election compaigns may be too short to allow a full vetting of candidates while the U.S. campaign season may be too long, what should be the length of the "campaign season"?

In the view of Speaker Milliken, the federal election campaign period is sufficiently long to enable candidates to be fully vetted. He suggested that the fixed election-date system in the United States enables a long campaign period and a great deal of planning; with a similar system legislated for Canada, the manner in which campaigns have historically been conducted may change.

Mr. Caldwell observed that, until recently, Canadians knew "who" but not "when," while Americans know "when" but not "who," with legislative changes in Canada, both "who" and "when" will be known. In his view, the answer to the question about whether a 36-day period in which to vet candidates is sufficient depends on location, since certain constituencies always vote in a particular way, and on the incumbency status of the candidate.

Minister Hill expressed his support for a 36-day campaign period.

Question: What impacts are race, gender and religion having in the race for the U.S. Presidency?

In Dr. Dyer’s view, race is an issue in the current race for the Presidency, although the definition of "race" must be considered; he noted, for example, that Senator Barack Obama has a caucasian mother. Moreover, he commented on the racial polarization of voting in the current race for the Democratic Presidential nomination.

Mr. Caldwell suggested that race, gender and religion are playing too great a role in the current race for the Presidency. In his opinion, candidates should be judged on the basis of their ideas.

Finally, Representative Brown remarked that race is not a big issue in the United States, and argued that what is needed is someone who can bring everyone together.

Question: During the next Canadian election, what is the probability that the United States can be "left off of the ballot"?

Minister Hill shared his view that it is hard to leave the United States out of Canadian elections, since the bilateral relationship is so fundamental to Canadian prosperity.

According to Speaker Milliken, barring a big news story, there is no reason why the United States should be "on the ballot" during the next federal election campaign in Canada. In his opinion, the United States typically is not a significant consideration during Canadian campaigns.

Question: Is the daily Question Period in the Canadian Parliament a valuable opportunity or a waste of time?

Speaker Milliken suggested that the daily Question Period enables the opposition to hold the government to account and the government to defend its policies.

Similarly, Minister Hill shared his view that Question Period is beneficial in a demographic system, and provides the opposition with an opportunity to question Ministers on a daily basis.

Question and Answer Session

In the "question and answer" session, the following topics were raised: the role of media and the internet in election campaigns; the possibility of more than two political parties in the United States; and federal support for health care in the United States.

U.S. AND CANADA AND THE GLOBAL STAGE: COMBATTING TERROR AND WINNING THE WAR IN AFGHANISTAN

Panellists:

The Honourable Greg Thompson, P.C., M.P., Canadian Minister of Veterans Affairs

General Rick Hillier, Canadian Chief of Defence Staff

Major General Stan Spears, Adjutant General of South Carolina

This session started with a presentation by General Hillier, who made the following points:

Ø  some changes are being made to the command and control structure in the Canadian Forces, and personnel are being empowered to do the job for which they have been selected and trained;

Ø  changes are being made in the way that Canadian Forces personnel are educated and led;

Ø  the Canadian Forces is changing its focus on fitness, in part because it is important to be fit in order to wear and carry 100 pounds of equipment in heat as high as 53 degrees Celsius, and in part because fitness is a fundamental aspect of the war on terror;

Ø  at present, the level of recruitment into the Canadian Forces is quite high, since competitive pay and benefits are being offered, and recruits want a challenge and to serve their country;

Ø  the target population for recruitment is those 18 to 29 years of age, and 17% of this demographic group in Canada envisions joining the Canadian Forces within the next three years;

Ø  in light of sovereignty claims, the Canadian Forces is paying more attention to the North;

Ø  in the last year, the Canadian Forces was involved in 8,000 search and rescue operations;

Ø  the Canadian Forces provides humanitarian aid when disaster strikes, including hurricanes and ice storms;

Ø  the Canadian Forces is being re-equipped, including with C-17 and C-130 aircraft as well as Leopard II tanks;

Ø  Canadian Forces personnel are involved in the United Nations mission in Afghanistan at the request of the residents of Afghanistan, and are trying to help them build their future, including in respect of health, education, infrastructure, etc.;

Ø  in Afghanistan, education is seen as the way out of the current situation, although assistance in developing governance, economic and security institutions, etc. is also important;

Ø  at present, there are more than two million mines in Afghanistan;

Ø  fighting terror must be a multinational effort in order to ensure gravitas, needed skills, etc.; and

Ø  the support of Canadians enables the Canadian Forces to continue with its efforts.

Question: What is the role of the South Carolina National Guard?

Major General Spears told participants that the South Carolina National Guard has lost ten people since the war in Afghanistan started. The National Guard is training the Afghan National Army, and is helping to rebuild communities.

Question: Why was the degree of support in the House of Commons for the second motion on Afghanistan so much more decisive than the degree of support for the first motion?

According to Minister Thompson, Canadians are making a connection between the sacrifices that are being made and the value of Canada’s international obligations. In his view, Canadians support what is being achieved in Afghanistan. Minister Thompson also said that Canada has a long history of peace-keeping and peace-making. Finally, he shared his view that Canadian Forces personnel must know that Canadians will be there for them if and when things go wrong.

Question: What is needed in order for North Atlantic Treaty Organization personnel to prevail?

In the opinion of General Hillier, consistency, coherence, cohesiveness and confidence are needed for success, and a coalition of the willing within a coalition of the less-willing must be avoided. He argued that everyone must remain focussed on the mission.

According to Major General Spears, the troops are proud of what they are doing and what is being achieved; the North Atlantic Treaty Organization needs to win.

Finally, Minister Thompson told participants that progress is being made. He believed that the civilized world has drawn a line in the sand, as it did in the First and Second World Wars and in Korea.

Question: How long will we be in Afghanistan?

In General Hillier’s view, the international community will be in Afghanistan until the country’s governance issues are resolved.

Minister Thompson indicated that although headway is being made and capacity is being built, it is not clear how long troops will remain in Afghanistan.

Finally, Major General Spears told participants that South Carolina has “staying power” in Afghanistan.

Question: What should people know about the Pakistan border?

General Hillier observed that those who lead the Taliban reside in Pakistan, where there is no governance. In his view, although Pakistan is doing a lot, it must do more; the border between Pakistan and Afghanistan is no more secure today than it was one year ago.

Major General Spears expressed his view that he does not expect the relationship to improve.

Finally, Minister Thompson said that the border between Pakistan and Afghanistan continues to be a problem; there is a great deal of work that must be done.

Question and Answer Session

In the "question and answer" session, the following topics were raised: the motion in the House of Commons in respect of Afghanistan; the Sudan; cooperation between the Taliban and Al Qaeda; the report of the Independent Panel on Canada’s Future in Afghanistan (the "Manley Report"); economic opportunities in Afghanistan unrelated to the drug trade; the importance of education; and microfinancing.

Respectfully submitted,