US embassy cable - 03OTTAWA443

UNCLAS SECTION 01 OF 02 OTTAWA 000443 
 
SIPDIS 
 
STATE FOR EB/TPP/BTA EB/ESC/ISC (MCMANUS AND ERVITI), 
WHA/CAN (MASON AND RUNNING), OES/EGC (MIOTKE AND 
DEROSA), D/HS (OPTICAN) AND PM (MARKOFF) 
 
HOMELAND SECURITY FOR EPR (BROWN) 
 
DOE FOR IE-141 (DEUTSCH) 
 
COMMERCE FOR 4320/MAC/WH/ON/OIA/BENDER 
 
E.O. 12958: N/A 
TAGS: PREL, ETRD, EINV, CA, Security and Prosperity Partnership 
SUBJECT:  CANADIAN CEO'S PUSH "NORTH AMERICAN SECURITY AND 
       PROSPERITY" INITIATIVE IN WASHDC ON APRIL 7 
 
 
1.   THE CANADIAN COUNCIL OF CHIEF EXECUTIVES 
(CEOCOUNCIL.CA), THE ORGANIZATION WHICH BUILT NORTH AMERICAN 
BUSINESS SUPPORT FOR U.S.-CANADA FREE TRADE IN THE 1980'S 
(AND THEREBY BUILT MUCH OF THE FRAMEWORK FOR NAFTA AND 
FTAA), IS LAUNCHING A SIMILARLY AMBITIOUS AGENDA FOR THE 
CONTINENT'S TRILATERAL FUTURE.  CCEA PRESIDENT TOM D'AQUINO 
WILL PRESENT THIS PLAN TO U.S. CEO'S IN WASHINGTON, D.C. ON 
APRIL 7. 
 
2.   D'AQUINO POSSESSES STRONG CREDIBILITY IN CANADA BASED 
ON HIS PERSONAL LEADERSHIP OF THE LOBBY FOR BILATERAL FREE 
TRADE IN THE 1980'S.  INITIALLY HIS ORGANIZATION - THEN 
CALLED THE BUSINESS COUNCIL ON NATIONAL ISSUES -- FACED 
DISMISSAL OR SKEPTICISM, BUT D'AQUINO EVENTUALLY BECAME A 
PUBLIC FACE (SECOND TO THEN PRIME MINISTER BRIAN MULRONEY) 
OF THE VICTORIOUS PRO-FTA SIDE IN CANADA'S DECISIVE 1988 
ELECTION CAMPAIGN.  AS D'AQUINO ENJOYS NOTING, THE DOOMSDAY 
ECONOMIC SCENARIOS WHICH HIS CRITICS THEN FORECAST HAVE BEEN 
"SPECTACULARLY FULFILLED, IN REVERSE" BY CANADA'S SUBSEQUENT 
TRADE AND ECONOMIC PERFORMANCE. 
 
2.   THE "NORTH AMERICAN SECURITY AND PROSPERITY" INITIATIVE 
IS OUTLINED AT LENGTH IN A PRESENTATION ON CCCE'S WEBSITE 
(CEOCOUNCIL.CA).  D'AQUINO STRESSES THAT IT DOES NOT/NOT 
PROPOSE A CUSTOMS OR CURRENCY UNION, COMMON MARKET, UNION OF 
FOREIGN/DEFENSE POLICIES, OR SUPRANATIONAL GOVERNMENT. 
RATHER, ITS KEY POINTS ARE: 
 
(I) MAKING THE U.S.-CANADA BORDER A "ZONE OF COOPERATION," 
NOT A LINE OF DEFENSE; MOVING ENFORCEMENT ACTIVITIES AWAY 
FROM THE BORDER ITSELF; AND MAKING THE BORDER "AN EFFECTIVE, 
SHARED CHECKPOINT WITHIN AN INTEGRATED ECONOMIC SPACE." 
 
(II) REGULATORY INTEGRATION TO MAXIMIZE EFFICIENCY.  THREE 
SENSITIVE AREAS ARE RECOGNIZED:  THE INCOMPATIBILITY OF 
TRADE REMEDY LAWS WITH AN INTEGRATED MARKET; THE NEED TO 
REMOVE RESTRICTIONS ON ACCESS AND OWNERSHIP IN BIG 
INDUSTRIES; AND IMPEDIMENTS TO THE MOBILITY OF SKILLED 
LABOR. 
 
(III) BUILDING RESOURCE SECURITY BASED ON OPEN MARKETS AND 
REGULATORY COMPATIBILITY, ON THE PATTERN NOW WORKING SO WELL 
IN ENERGY MARKETS - WITH PERMANENT RESOLUTION OF PRICING AND 
SUBSIDIES ISSUES IN OTHER RESOURCE INDUSTRIES, SUCH AS 
FOREST PRODUCTS AND AGRICULTURE. 
 
(IV) MEETING HOMELAND SECURITY NEEDS, WITH CANADA AFFIRMING 
ITS SOVEREIGNTY BY MAKING A VASTLY MORE EFFECTIVE 
CONTRIBUTION TO ITS OWN DEFENSE, MOVING TO A NEW PHASE OF 
COOPERATION WITH THE UNITED STATES ON CONTINENTAL SECURITY, 
AND BEING AN EFFECTIVE PLAYER IN THE GLOBAL EFFORT TO COMBAT 
TERRORISM. 
 
(V) BUILDING TWENTY-FIRST CENTURY INSTITUTIONS.  NAFTA NEVER 
PRETENDED TO OFFER A FRAMEWORK FOR MANAGING ALL CONTINENTAL 
ISSUES, AND THE EU (SUPRANATIONAL) MODEL IS NOT APPROPRIATE 
FOR NORTH AMERICA.  SPECIALIZED, EXPERT JOINT COMMISSIONS, 
ON THE PATTERN OF THE U.S.-CANADA INTERNATIONAL JOINT 
COMMISSION (IJC), MIGHT OFFER A BETTER MODEL FOR 
IMPLEMENTING NASP AMONG THE UNITED STATES, CANADA AND 
MEXICO. 
 
3.   COMMENT:  MISSION CANADA HAS WITNESSED MANY INITIATIVES 
TOWARD GREATER U.S.-CANADA INTEGRATION OVER THE YEARS SINCE 
THE BILATERAL FTA WAS FIRST IMPLEMENTED IN 1989.  OF THESE, 
THE RIDGE-MANLEY SMART BORDER PROCESS STANDS OUT AS HAVING 
DELIVERED THE SWIFTEST AND MOST RECENT RESULTS.  WE BELIEVE 
THAT THE CCCE'S NASP INITIATIVE MAY HOLD LONGER-TERM 
PROMISE.  FIRST, IT FOLLOWS AND BUILDS UPON THE RIDGE-MANLEY 
PROCESS.  SECOND, IT ORIGINATES WITH MAJOR BUSINESSES, THE 
GROUP BEST ABLE TO PROVIDE DETERMINED, BOTTOM-UP LEADERSHIP 
OF THE SCOPE LIKELY TO BE REQUIRED.  THIRD, NASP CONFORMS TO 
OUR OWN VISION OF A DESIRABLE AND ATTAINABLE AGENDA FOR 
BILATERAL INTEGRATION.  ITS INCLUSION OF A MAJOR 
SECURITY/DEFENSE COMPONENT IS BOTH ITS STRENGTH (NASP 
ACKNOWLEDGES THE IMPORTANCE OF THIS ELEMENT TO THE USG, 
THOUGH D'AQUINO STRESSES THAT THE GOC MUST INVEST IN 
SECURITY FOR ITS OWN SAKE, NOT MERELY AS A CONCESSION) AND 
ITS WEAKNESS (AT LEAST UNTIL NOW, THE GOC HAS NOT BEEN 
PREPARED TO MAKE DEFENSE INVESTMENTS ON THE SCALE CALLED FOR 
UNDER NASP). 
 
CELLUCCI