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Cablegate: Canadian Ceo's Push "North American Security And

This record is a partial extract of the original cable. The full text of the original cable is not available.

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
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

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