Thank you Jim (Phillips, President and CEO of the alliance) for that kind introduction. I’m delighted to be here today. Secretary Gutierrez sends his regrets. Like President Bush, and all of us in his Administration, Secretary Gutierrez is focused on dealing with the aftermath of Hurricane Katrina and wasn’t able to adjust his schedule to come here this morning.
I want to thank Canada for the outpouring of support and good will for the victims of Hurricane Katrina. Canadian rescuers were among the first to arrive on the scene. Times of national crisis like this vividly remind all of us of the importance of having good neighbors. And Canadians have never let us down.
North American Interdependence Katrina also highlights the extreme complexity of our interdependence. Economic stability and national security are closely intertwined. And for us …Canadians and Americans … the two are inextricably linked.
So the more we can do to enhance cooperation along our border, the better off we will be, especially in times of emergency.
We have several initiatives and plans that I want to update you on this morning. I also want to leave some time to hear from you.
Our approach to economic policy is very straightforward. It’s based on a single principle: that the American people make good decisions for themselves and their families. President Bush’s policies let Americans keep more of what they earn, and give them more control over how they spend and invest their money.
American history has shown time and time again that government can set the stage. But the private sector … the risk-taking entrepreneurs like some of you here today … drive the economic growth that creates the jobs and the wealth.
In this day and age, all of us understand the need for security, especially along the U.S.-Canadian border At the same time, the reality of global competition is also here to stay. Our competitive strength as North American economies will increasingly be defined by our level of cooperation … integration … and competitiveness … as a region.
With that in mind, the goal of our policies must be to ensure that North America continues to be the best place in the world to do business.
Security & prosperity partnership is key That’s the philosophy behind the Security and Prosperity Partnership of North America (SPP). The SPP announced last March by President Bush, Prime Minister Martin and Mexican President Vicente Fox, unveiled a blueprint for a safer and more prosperous North America for the 21 st century.
They agreed on ambitious security and prosperity agendas to keep our borders closed to terrorism but open to trade.
SPP aims to promote growth and the competitiveness of North American firms while improving the quality of life for all North Americans.
I know that we have business leaders, government officials, and frequent users of the U.S.-Canada border with us today. Your companies and communities bind us together and play a pivotal role in North America’s economic progress.
You know that much of our bilateral manufacturing trade is a result of the thousands of businesses that have successfully integrated their operations on a regional basis to take advantage of convenience, quality, and differences in capacity utilization.
That’s what the SPP is all about – building on free trade and deepening North American cooperation.
Free trade has been an enormous success for all of us. L ower trade barriers thanks to NAFTA have expanded trade in all three countries. And this has increased employment, given more choices for consumers at competitive prices, and raised prosperity.
The road ahead for SPP/regional trade But, there is still work to be done. President Bush defines economic success as mutual progress. He takes the long-term view. That is why he was so determined to accelerate economic and political progress in the Americas by passing the Central American Free Trade Agreement.
We know that when our trading partners prosper, it will eventually translate into stronger growth and more jobs at home.
You can be a part of this latest chapter in pursuit of free trade.
Earlier this year, the Organization of American States convened the first-ever Americas Private Sector Forum. This forum brings together leading businesses throughout the Americas to strategize on how best to improve our hemisphere’s competitiveness in a changing global economy.
The forum meets next in November at the IV Summit of the Americas in Argentina. I strongly urge you to get involved with this latest expression of economic democracy.
Improving our regional competitiveness is absolutely critical. Europe and Asia are turning up the heat by working to improve their own regional competitive positions.
The Europeans are bent on surpassing North America as the world’s most important market.
In Asia, China is negotiating free trade agreements with its regional partners, including the Association of South East Asia Nations and Australia. Japan and Korea each have an FTA agenda of their own.
You have to admire their competitive spirit. But our mission is to keep our neighborhood on top. That’s why a new strategic and economic partnership for North America … the SPP … is so vital.
As we learned in the aftermath of 9/11, our borders must be sealed to terrorists, yet remain open to trade.
And as we see in the aftermath of Hurricane Katrina, we need coordinated regional procedures that give our people and our infrastructure the highest possible level of protection from the threats of nature.
Removing trade obstacles We can make our region more competitive by eliminating red tape, such as unneeded regulations, testing duplication, and other obstacles that impair growth.
While small, such steps would be significant.
Let me highlight just a few: One of the main objectives for the SPP is to make commerce within North America both safe and seamless. Another objective is to further integrate sectors that make up a significant portion of our economy.
Two such sectors are steel and autos. The North American Steel Trade Committee (NASTC) has greatly enhanced our competitiveness globally. We hope it can be the model for a new Automotive Partnership Council of North America.
The panels work cooperatively to eliminate market distortions that adversely affect North American steel and auto markets. In turn, this reduces costs and promotes competitiveness through innovation and market development.
Another area of focus for the SPP is deregulation.
Under the SPP, we’re developing a trilateral Regulatory Cooperation Framework by 2007. This will help regulators to write rules that are compatible, and to reduce redundant product testing and certification requirements while maintaining high health and safety standards.
A growing area of concern … worldwide … is protecting intellectual property. Without strong legal protections for the genius of invention, economies like ours that depend on innovation will be harmed. We’re going to use our new partnership to take a coordinated approach to fight counterfeiting and piracy.
These are but a few of the new areas of cooperation that we’re working on.
Conclusion In closing, I would like to relate something from my experience in economic development over many years at the local, state and federal levels.
One of the most important lessons that I learned is the importance of creating truly collaborative, action-oriented, and market-based strategies that position local economies not just to compete and survive, but to thrive in today’s’ 21 st century global economy.
As demonstrated by your ability to help build a regional competitive advantage in North America , this clearly is an effective and proven strategy for achieving successful results.
I look forward to working with all of you in meeting the challenge of re-inventing a future all out citizens will want to live in for years to come.
Thank you very much.
Questions!
Source: U.S. Department of Commerce
