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Conference on North American Integration


Mexico City
April 11-12, 2005
Speaking Notes for Panel: Political Cooperation and Coordination

Reid Morden©

Will spend a few minutes talking about the possibilities and limits to further institutional coordination and integration and then take a brief look at the security agenda as an area of these possibilities and constraints.

The broadest question, of course, is whether it is desirable, or possible, to take two sets of multilayered arrangements with substantial histories and find enough points of commonality to let us build a true trilateral North American community? It is important to continue to challenge the presumption that trilateral integration is both good and possible.

Even if the answer is yes (not a foregone conclusion), the inclination will be to find an anchor or a foundation on which to build. That leads us directly to the further development/expansion of NAFTA.

NAFTA was and is about trade policy. Perhaps some of the framers had a glint in their eye that the treaty could become much more. However, my recollection was that the negotiations pretty well exhausted the participants just getting agreement on the main trade issues. Also, at least initially, Canada’s motives seeking a seat at the Mexico-US table were defensive in seeking to protect the gains from a brutal set of bilateral negotiations which had led to the Canada-US FTA.

Note that when Messrs. Manley, Aspé, and Weld issued their ambitious statement for constructing the North American community, they avoided this particular trap, ascribing only additional trade measures to the NAFTA arena. That said, they should be congratulated for the vision contained in their recommendations for cooperation and institution-building in a number of other areas. [1]

There are, not surprisingly, other views. In a paper from the Patterson School at Carleton University, Jean Daudelin argues that “for Canada, the trilateral option should not be pursued beyond existing arrangements, essentially around NAFTA, except in an ad-hoc manner and avoiding any significant institution-building. Canada's bilateral relationship with the United States is vital and its management should not be cluttered by the massive complexity of Mexico-US affairs.

Canada's relations with Mexico, for their part, are developing quickly and should be deepened, but they are and will remain marginal to the country's core interests. As such, they should be kept as separate as possible from the critically important Canada-US relationship.  Arguably, and in spite of the Fox administration current infatuation with the concept, the same reasoning applies to Mexico: There is simply no sound rationale for trilateralism in North-America.”[2]

I also note that, while there is a welter of ministerial-led activity coming from the recent meeting of our three leaders in Waco, institution-building was not at the top of the tree. Mr. Martin, asked for his views on how integrated NA might become over the long haul, said that future cooperation is a not a “big bang”. He apparently did note that the leaders were talking about “big progress”. However, North America would not end up looking like the EU.[3]

I think substance should certainly precede institutions but institutions become important at certain points when progress toward a goal makes it desirable.

 However, just to take two instances in the reporting from Waco demonstrates how far we must go if anything close to a North American community is to be built. The New York Times report notes that Mr. Martin was present and never mentions him again. The Toronto Globe & Mail account reports that the meeting was about trilateral issues, but gives almost as little notice of President Fox.

Whatever the differing views on the broader issue, North American security issues are almost ubiquitous whenever there is talk about closer coordination and cooperation. Why? We need look no further than the leader’s statement in Waco. Having determined that changing times demand more to be done in North America with respect to prosperity and security, the three leaders declared that “Our (Security and Prosperity) Partnership will accomplish these objectives through a trilateral effort to increase the security, prosperity, and quality of life of our citizens.  This work will be based on the principle that our security and prosperity are mutually dependent and complementary…..”,[4]

Complementary? I don’t think so. In this post 9/11 era, security is top dog. To borrow a statement from Frank Harvey at Dalhousie University, “
The economics of security (the negative economic impact of security failures) will invariably trump the security of economics (the positive impact of sound economic policies) for at least two reasons: “First, any terrorist attack on U.S. soil will inevitably have a major, immediate and uniformly negative impact on the American (and international) economy anyway. Second, in a security-conscious society faced with the challenge of perfection in the war on terror, the loss of 3,000 lives will invariably be perceived by the American public as a far more significant tragedy than the loss of 300,000 jobs. Conversely, the potential to save 3,000 lives will be perceived as far more important than the potential to create 300,000 new jobs.”[5]

The 2004 Auditor General’s report on Canada’s contributions to security after 9/11 summarized Canadian priorities in terms of a profound sense of “economic insecurity” resulting from “heightened border security” and the “shutdown of civil air transport”.[6]   

While Americans are very worried about another attack, the strategic calculations in Canada remain focused on preventing or mitigating the economic consequences of America’s response. This is perhaps understandable given our economic dependence on the U.S. -- 43% of our wealth; 87% of our trade; 35,000 trucks and 500,000 individuals cross the border every day; etc. Billions of dollars tied to Canada-U.S. trade were lost as a direct consequence of 9/11, and despite the obvious economic benefits to both countries of keeping the border open there is no reason to expect a different outcome after the next attacks.[7] 

In short, regardless of the mutual benefits of two-way trade, economic interests will be sacrificed at the altar of homeland security every time. John Manley has always been at pains to remind Canadians of the uncomfortable need to understand this North American reality.

Where is the post-Waco security work to focus. On securing the continent from external and internal threats by beefing up measures to screen people and goods crossing North America’s borders by sea and air. Drugs and crime get a mention as does enhanced intelligence sharing.

Let us take a quick look at these elements of the Waco work plan. Start with the last- enhanced intelligence sharing.

Obviously, multilateral approaches to gathering and coordinating intelligence on terrorist activities and recruitment efforts, or tracking terrorist fund raising and other financial activities, are likely to be more efficient and cost effective than trying to do these things alone. As far as these relatively straightforward (and risk free) strategies go, of course, the U.S. is perhaps the most committed, active and successful multilateralist around.[8] 

Except. Fundamental point. Intelligence organisms, wherever they may be housed (e.g. intelligence agencies, police forces, immigration services) are not prone to share. In fact they are highly allergic to sharing even with the occupant of the next office, never mind----foreigners. When they do share, it is the result of broadly perceived and accepted national interest and years in the build up of mutual trust and confidence. This exists between Canada and the US and has done for years. It may also exist between Mexico and the US. However, a Canadian intelligence sharing relationship with Mexico will only be built up over time.

Leaving this cavil aside, our leaders missed an opportunity in Waco, as Manley et al did not, to look at the continent as a single entity, a single perimeter, in all aspects of which each of the three countries has an individual and collective interest. The idea of a perimeter causes a neuralgic reaction among politicians---especially in Canada. Unwonted fear that giving content to the concept will trigger that other bogeyman, the “harmonization” of laws with others on the continent,  thereby inevitably leading to a loss of sovereignty. Utter nonsense, and I was pleased to see that Manley, Aspé and Weld, in their report have addressed this head on.[9]

This is not to argue for the disappearance of the border and is not to equate the “harmonization” of policies and procedures with the disappearance of Canadian laws, policies and procedures to a set of those same laws, policies and procedures “made in the U.S.A.”.  What the Perimeter does mean is finding the common elements of those different sets of laws, policies and procedures, and incorporating them in a common set of rules that will rebuild the mutual trust and confidence vital to let life return as closely as possible to pre-September 11 levels.

If progress is made on the perimeter, it will among other things facilitate dealing with the threats which largely originate outside of North America. There is a fairly rich security menu where cooperation can be actively enhanced. Much has certainly gone on since 9/11 in these areas between Canada and the US. The same between Mexico and the US.

Along the border, among other things, this will certainly mean augmenting the relatively small number of border control officials on both sides of the Canadian/US border.  Also needed are methods and processes for filtering the bad from the good within the transport networks which move goods and people.  Specifically this may mean the positioning of more control points, singly or jointly, at key termini abroad as well as the co-location of Canada and United States’ agents at continental arrival points.

As to the agenda itself, there is demonstrable progress. For example, bilateral joint teams have been agreed in a number of sectors, eg immigration, refugees, OC. There are also programs to ease passage of innocent goods and people. In terms of specific sectors:

  • Customs – means going abroad.  Progress on agreement on selecting high risk individuals for inspection.
     

  • Crime – opportunity to interweave with Mexico – joint enforcement, integrated intelligence, technology, joint training.
     

  • Immigration.  Also issue with Mexico – focus of much criticism – some tightening.  Same re Refugee Destination – is there sufficient political will? – Jury still out.  Suspect because of changing demographics in Canada.
     

  • Transportation:

    • Need to focus on ground which carries overwhelming  percentage of trade by road and rail.

    • All have been very slow to respond to seaborne risks.  Major gap. Joint teams abroad just beginning.  Need to use technology. Miniscule amount of sea cargo currently inspected.

    • Air – U.S. ahead of Cda but not airtight – Primitive I.D. inspections – lack of equipment to X-ray checked baggage.
       

  • Financing.  Fintrac.  In Canada have gone from nothing to very draconian money-laundering legislation. Opportunities exist to intensify cooperation.

 How to integrate 2 bilateral dialogues into a 3-way discussion.

  •  Post 9/11 – a test to design a North American security perimeter.  Reactions, at least in Canada, not encouraging.  The business community, loudly but behind closed doors – argued for bilateral solution to the borders – on the grounds of vastly different issues.
     

  • Granted – differences would make a trilateral negotiation awkward – but not impossible.
     

  • Exist models of assymetrical multilateral negotiations – notably in the area of trade policy.  Should use these models if possible and devise new ones if necessary – otherwise fly in face of partnership we are seeking for forge in North America.

 To conclude:

  • We seek a partnership of shared interests

  • Political will should be energized, at the very least, by the recognition that the world in changing

  • There is a need to be adventurous and contemplate institutions which will consolidate and give permanent form to integration progress.

Endnotes
[1] Chairmen’s Statement, Independent Task Force on the Future of North America, sponsored by the Council on Foreign Relations, Consejo Mexicano de Asuntos Internacionales, Council of Canadian Chief Executives, 2005
[2] Jean Daudelin, The Tri-Lateral Mirage: The Tale of Two North Americas, Carleton University, May, 2003
[3]  Globe and Mail,. Martin, Bush Stand Together, Brian Laghi, March 24, 2005
[4] Joint  Statement of Presidents Bush and Vincente Fox and Prime minister Martin, Waco, Texas, March 23, 2005
[5] Frank Harvey, Canada and the New American Empire, Implications for Security Policy, Conference held jointly by University of Victoria and CBC Newsworld, November, 2004
[6] Report of the Auditor General (2004). National  Security in Canada: the 2001 Anti-terrorism initiative…(pg 3)
[7] Frank Harvey, ibid
[8] Frank Harvey, ibid.
[9] Chairmen’s Statement, Independent Task Force on the Future of North America, ibid., Recommendation 2
 

June 2008
A Navy for the Future

  by Jack Granatstein

Now Available:
Spring 2008 Edition of
"The Dispatch"

 

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