Relations between U.S.-Canada are vital to mutual prosperity
Canada and the United States have the largest country-to-country trading relationship in the world. Some $1.7 billion in trade crosses our border daily and by the time you finish reading this, our two nations will have traded well over $1 million. That’s $1 million every minute of every day.
A third of this Canada-U.S. trade is intra-firm and another third is through established cross-border relationships among suppliers — not finished goods but components and sub-assemblies. Not only do Canadians and Americans produce things together, we create jobs together. In fact, Canada-U.S. trade supports 7.1 million American jobs — that’s 1 in 25.
Since the North American Free Trade Agreement was enacted in 1994, we’ve seen trade among the three partner nations increase threefold in what has become a powerful North American economic space. A space within which, Canada is the number one customer of 35 U.S. states. Canada buys four times as much from the United States than does China — indeed, more than any other country in the world.
As Canada’s ambassador to the United States, I often highlight the importance of the Canada-U.S. economic relationship to Members of Congress. My message? Think North American competitiveness. Think jobs in your state. Think Canada. It is an important message intended to ensure that the economies of Canada and the United States continue to flourish and that our citizens achieve the prosperity they have earned.
Canada and the United States enjoy an open relationship that is so natural and so positive that we often take it for granted — seldom contentious, rarely dramatic, but the most productive bilateral relationship in the world. For people living along the Canada-U.S. border, daily interactions between our two countries are a way of life that has been running smoothly for many, many decades. We study together, we visit each other, we share emergency services, and we are the best of friends, business partners and allies.
Given the strength and importance of this mutually beneficial relationship, we must ensure that the North American supply chain continues to run smoothly. As people and products continue to move in ever-growing numbers between Canada and the United States, it is the security and the efficiency of our border crossings that will be of the utmost importance. After all, it is the integrated nature of our cross-border supply chain that makes our businesses more competitive with Asia and Europe — and that keeps more jobs in North America.
Products we make and use together — in some cases with parts crossing the border multiple times before there is a final product — include automobiles, rail cars, buses and aircraft, solar panels, telecommunications equipment, food products, chemicals and petroleum. Indeed, Canada is the largest foreign supplier to the United States of energy: oil, natural gas, uranium, and electricity.
Like the United States, the Government of Canada is committed to a safe, secure and efficient border. This is vital to Canada’s economy and to the safety and security of all Canadians, just as it is for U.S. citizens. Since 9/11, both our nations have invested heavily in border security, for all the right reasons. But security versus prosperity is not a zero sum game. An idle truck waiting to cross the border is not a secure truck; inspecting every container as it enters the United States — given that resources are finite — brings you less security than a targeted, intelligence-based approach that focuses on shipments that represent the highest risk.
Now, it is time to reinvest in a border that is a gateway to our prosperity. By that I mean a border without unnecessary fees and unnecessary inspections. A border that pays back tangible benefits to our best corporate citizens, those who have partnered with us in securing their cargo supply chain. A border that uses sound risk-management practices to keep dangerous people and goods out. In other words, a modern 24/7 border built around 21st century infrastructure and border policies. A border that stimulates jobs, creates wealth, and keeps North America competitive. That is why our prosperity — your prosperity — needs our border to be not a choke-point, but instead a secure gateway to prosperity.
And a final word on exports and jobs: U.S. economic growth accelerated sharply to 3.1 percent in the second quarter. The U.S. Department of Commerce attributed this performance to a 13 percent jump in sales abroad by U.S. exporters. This was a ray of sunshine in an otherwise challenging economic environment. This is how jobs, good jobs, are created and sustained. This is how an open trading system brings more, not less, prosperity.
Canadians and Americans, we are in a globalized marketplace together. Together, we are more competitive. Together, we create more jobs. Together, we have a better economic future.
Wilson is ambassador of Canada to the United States.
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