Too Much, or Not Enough? The Montebello Summit in Perspective

August 29, 2007

(The following article, slightly abbreviated, appears in the August 29, 2007, issue of the National Post)

By Thomas d’Aquino

Reality, the writer Salman Rushdie once observed, is a question of perspective. The truth of his statement is clear in the divergent reactions of various interest groups to the 2007 North American Leaders’ Summit in Montebello, Quebec.

In Canada, agitators on the far left of the political spectrum claim to have seen a nefarious conspiracy to weaken health and safety regulations, export bulk water to the United States and sign away our sovereignty. In the United States, it is the far right that is promoting similar paranoid theories, accusing the leaders of planning a massive new NAFTA Superhighway as a prelude to merging Canada, the United States and Mexico into one big “North American Union”.

Yet while fringe critics on both the right and the left complain of secret plans to go too far, other commentators say the leaders did not agree to go far enough. According to this view, the real problem with the two-year-old Security and Prosperity Partnership of North America (SPP), the trilateral framework within which these annual summits are held, is that it hasn’t achieved anything of any real significance.

Too much, or not nearly enough? As someone with a stake in the process, allow me to suggest that the SPP is achieving exactly what it is meant to achieve. Far from being either a threat to political sovereignty or a meaningless photo-op, the Montebello Summit produced significant progress across a range of policy areas that are vital to the prosperity and competitiveness of North America. Examples:

Regulatory cooperation. Last February, the North American Competitiveness Council (NACC), an advisory body of business leaders from Canada, Mexico and the United States, recommended that the three governments conclude a Regulatory Cooperation Framework that would promote consistent application of standards and regulatory requirements in each country and eliminate redundant testing and certification processes. In Montebello, the three leaders—Canada’s Stephen Harper, Mexico’s Felipe Calderon and the United States’ George W. Bush—delivered in full measure. Over the coming year, they committed their officials to achieving closer regulatory cooperation in areas such as the chemical, automotive, transportation, and information and communications sectors. The new Regulatory Cooperation Framework will reduce costs and facilitate increased trade in goods and services, while enhancing protection of health, safety and the environment.

Intellectual property. In its report last winter, the NACC also called for a coordinated North American strategy to protect intellectual property rights and combat counterfeiting and piracy. The leaders responded in Montebello with a new Intellectual Property Action Strategy. Officials from the three countries have been instructed to develop “collaborative measures to improve the detection and deterrence of counterfeiting and privacy” and to expand public awareness of the importance of intellectual property to our economies. As U.S. Commerce Secretary Carlos Gutierrez put it during a dinner in Ottawa last week, strong protection for intellectual property is essential to ensure that North America remains a centre for innovation.

Rules of origin. Differing rules-of-origin requirements in Canada, Mexico and the United States increase the time and cost of border administration, put North American manufacturers at a competitive disadvantage, and ultimately lead to higher prices for consumers. In Montebello, the three governments announced changes to the existing rules of origin that will reduce transaction costs for approximately $100 billion in annual trilateral trade.

Movement of people. A competitive North America depends on the efficient movement of people, not just goods. Ever since 9/11, business groups across North America have sought an integrated credentialing program that would better protect our citizens from criminal and terrorist threats while enabling low-risk travelers to cross the border with minimal or no interference. This is admittedly a difficult challenge, but at last week’s summit the leaders pledged to enhance the benefits of existing “trusted traveler” programs, through streamlined application processing, further program integration and coordinated infrastructure investments. 

Emergency management. The rapid resumption of commerce after a disaster, whether natural or man-made, demands close cooperation among all levels of government and the private sector. As recommended by business groups, the three leaders last week urged their ministers to continue work on a common approach to all aspects of emergency management and to improve communications between governments and industry.

Air cargo. Inefficiencies in the movement of cargo between North America and trading partners outside the region can have a significant impact on the competitiveness of North American businesses. Although more work remains to be done, the leaders promised at Montebello to “eliminate duplicate screening for baggage placed on a connecting flight in North America, and for inbound and outbound air cargo shipments.”

The Montebello Summit highlighted tangible results across a range of other issues, as well, including a trilateral agreement for cooperation in energy science and technology, a commitment to explore cooperation on national auto fuel efficiency standards, and an agreement to develop mutually acceptable approaches to screening people during a pandemic.

Small steps? In some cases, that is certainly true. A threat to national sovereignty?  Plainly not. In reality, the Montebello Summit achieved what it was meant to achieve: significant progress toward the ultimate goal of making North America a more dynamic and competitive player in the global economy while remaining a safe place to live and work.

Thomas d’Aquino is Chief Executive and President of the Canadian Council of Chief Executives, and chairs the Secretariat advising Canadian members of the North American Competitiveness Council.