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New study proposes 'strategic bargain' with U.S.
By SHAWN MCCARTHY
PARLIAMENTARY BUREAU CHIEF
Tuesday, April 16, 2002 – Print Edition, Page A11
OTTAWA -- The Canadian government needs to negotiate a new "strategic bargain"
with the United States that would increase economic and security integration and
ensure Canadian access to U.S. markets, says a new study by the C. D. Howe
Institute.
Without some overarching agreement, Canadian interests are likely to get short shrift
in the United States, where politicians are increasingly focused only on security
issues, says the study by prominent University of Toronto economist Wendy Dobson.
"What we require are large initiatives that address U.S. objectives at the same time
that they open new economic opportunities," Ms. Dobson writes in the report to be
released today.
"A major strategic bargain would afford the opportunity to advance a vision of North
American economic security and to obtain linkages that would be out of reach if we
proceed on a piecemeal basis."
The C.D. Howe Institute -- a business-financed think tank -- is launching a series of
papers on North American integration, driven by the assumption that improving
Canadians' standard of living depends on closer economic ties with the United
States.
The Liberal government is currently working with the Americans on a series of fronts,
including border security, immigration controls, energy security and trade irritants
such as the softwood-lumber duties imposed by Washington on Canadian
producers. But for the most part, these negotiations occur on an ad hoc basis -- co-
operation on border security, for example, has little relation to softwood talks.
Ms. Dobson said the Liberal government should instead propose a sweeping new
agreement that would deal with U.S. interests in security and energy, and Canadian
desires for ensured access to American markets.
To some degree, that would mean moving toward a customs union in which both
countries would treat goods from outside North America the same, but would not
hammer one another with trade laws. It would also mean deepening the provisions in
the North American free trade agreement that allow for the free movement of people
across the border.
In return, Canada would increase its co-operation with the Americans in the energy
sector. And it would ensure its immigration, defence and antiterrorst policies satisfy
American concerns about potential terrorist attacks.
Ms. Dobson conceded some Canadians would be concerned about a loss of
sovereignty under such an arrangement.
Copyright © 2002 Bell Globemedia Interactive Inc. All Rights Reserved.
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