Speech

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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Speech to the Economic Club of New York

September 20, 2006
New York City, New York

Introduction

Good evening ladies and gentlemen.

Thank you, Barbara, for your kind introduction.

And thank you all for that warm welcome.

Before I begin this evening, I’d like to take a moment to acknowledge the presence of a couple of people.

First, I’m delighted to see the Canadian Ambassador in Washington, the Honourable Michael Wilson.

Also let me acknowledge our former Consul General here in New York, Pamela Wallin.

Pamela is originally from Saskatchewan, a province that produces more than its share of exceptional Canadians. I think she brought a little bit of Saskatchewan to the Big Apple, and you’re the richer for it.

So on behalf of Canadians, I want to thank Pamela for the tremendous job she has done representing our country.

We will be announcing Pamela’s successor shortly.

It’s a great pleasure to be here tonight to address this prestigious society. I note that you have hosted some of the most eminent statesmen and women of the past century.

As a Prime Minister who has served in office for less than a year, I consider this invitation a great honour.

9/11 Remembered

As you know only too well, nine days ago we marked the fifth anniversary of 9/11.

On that day Americans, Canadians, and the world watched in disbelief and horror as the twin towers of the World Trade Centre crumpled and collapsed under terrorist attack.

The terrorists who committed those murderous acts thought that this city’s strength and will would somehow crumple and collapse in the same way.

How wrong they were.

For the people of New York – this incomparable, unconquerable city – showed that you are stronger than even the concrete and steel of the twin towers.

You paused to remember those who perished and the heart-wrenching sacrifices and heroism of so many that day.

And then you rose up again, defiant, determined, and strong.

Let us never forget that while, on 9/11, we saw the worst evils of which humanity is capable, we also bore witness to countless acts of extraordinary human courage and compassion.

I think especially of the brave men and women of your police force, fire department and other emergency services.

Canada, too, did what it could to help.

On that day, Canadians opened their arms and their homes to 33,000 passengers whose flights were diverted.

Those who did so were saying to New York and to all America that you are not alone, that the ties that bind us as neighbours in times of need are the strongest bonds of all.

On that day, a building that was both a symbol and vital part of our global economy was destroyed by agents of our most dangerous global security threat.

And so, since then, we have come to understand as never before that all of our challenges: economic, social, and political, are truly global in scope.

So why, ladies and gentlemen, in a turbulent and uncertain world, when our economy and our security are affected by developments in far-off lands, should you focus your attention and your energies on Canada?

Because Canada is the opposite – a stable and positive force for good – that has much to bring to the table in chaotic and trying times. And, make no mistake, Canada intends to be a player.

So allow me to highlight tonight three things Canada has to offer in facing global challenges:

First, a strong and robust economy and, in particular, an energy industry that is increasingly one of the most important in the world;

Second, a strong partnership in building both a more competitive and more secure North America;

And third, a common will to advance, in concert with our democratic allies, our shared values and interests throughout the world.

Canada: Robust Economy and Energy Superpower

First, Canada has a strong economy, based on long-term free-market fundamentals. We are leading the G-7 in economic and fiscal performance. And Canada is an emerging energy superpower, the only stable and growing producer of this scarce commodity in an unstable world.

The strength of Canada’s economy goes beyond low inflation, solid growth and the lowest unemployment rates of the past three decades.

This spring, our Conservative government tabled Canada’s ninth consecutive balanced budget.

We are projected to lead the G7 in GDP growth this year and next.

Our current account is in surplus for the 27th consecutive quarter.

Our national pension plan is actuarially sound for the next 70 years.

And we have dramatically lowered government debt – to around 35% of GDP – the lowest in the G7 and falling.

Solid, conservative financial management is being used by this government to improve our competitive position.

We have lowered taxes on individuals and businesses while maintaining a balanced budget; in fact, our corporate tax rate is now lower than the United States.

Our recent budget accelerated corporate tax reductions which had been delayed by the previous government, and has allowed us to move up the elimination of the federal capital tax entirely.

Canada’s back: We’re on the best economic footing of any of the G7 countries.

But we will not stop here. We will accelerate this virtuous cycle.

We will continue to pay down debt.

We will continue to reduce taxes on individuals and businesses.

We will continue to make smart investments while effectively managing government spending through a review of federal expenditures and stronger, ongoing expenditure management over the longer term.

These measures will make our economy even stronger which, in turn, will make Canada an even more attractive destination for foreign direct investment – investment which will be welcome.

Of course, one of the underpinnings of Canada’s recent economic success has been the tremendous growth of our energy sector.

In a recent speech in London, I described Canada as an emerging “energy superpower.”

Normally, Canadians don’t like to boast about their dominance in anything - except hockey - so I will confine myself to the statistics.

We already rank fifth in the world in total energy production.

Seventh in global oil production.

Third in global gas production.

Second in hydro-electric generation.

First in uranium production.

We are the largest exporter of energy to the United States.

We are America’s largest supplier of oil, natural gas, electricity and uranium.

The production from Alberta’s oilsands – the second largest proven petroleum reserves on the planet – stands at more than a million barrels a day – on its way to four million a day by 2015.

What this means in terms not only of the strength of our economies – but also the security of our continent – is sometimes under-appreciated.

At a time when energy security is an increasing preoccupation, when political events around the world can disrupt global energy supplies or influence the behaviour of major producers,

the United States’ largest energy supplier is its largest trading partner, an enduring democracy that believes in free markets and binding contracts.

Our strong and robust economy, with its enormous energy potential, represents a tremendous opportunity for American business and a crucial element of continental energy security.

Building a Continental Partnership

Second, is Canada‘s commitment to forging a solid partnership, so as to establish a prosperous, competitive and more secure North American continent.

Both of our countries are adapting to economic globalization. We see the rise of China, India, Brazil and others. We see deepening economic integration in Europe.

And given the deep integration of our own economies, these global challenges and opportunities call for a continental response.

We were ahead of the curve in 1988 when then Prime Minister Mulroney and President Reagan signed the Free Trade Agreement.

Today Canada and the United States, and our third NAFTA partner in Mexico, must act to build on our complementary strengths through the North American Security and Prosperity Partnership.

At Cancun last spring, President Bush, President Fox and I took steps to further develop this partnership by focusing on North American competitiveness, energy security, regulatory cooperation, emergency management, and smart and secure borders.

We are increasing our cooperation in areas ranging from electronic cargo monitoring to pipeline standards to the recent renewal of our historic NORAD treaty.

But our partnership on all of these issues depends vitally on our maintaining a secure and efficient border.

Our border must not be seen as a fence where one country’s national security stops and the other’s begins. It’s not like that in the real world.

We are operating the largest commercial relationship in the history of the planet.

Think of how closely linked our economies are - the Detroit-Windsor corridor, for example, the heart of our integrated auto industry and the busiest border in the world -10,000 trucks a day crossing the Ambassador Bridge.

300,000 of our citizens and over a billion and a half dollars of goods and services cross the border every day – more than you have with all of the countries of the European Union combined.

That’s why, for example, our two governments are acting to end the softwood lumber dispute that has been poisoning our trade relationship.

Canada is also doing its part to ensure enhanced security on our side of the border.

Since 9/11, Canada has made major efforts on domestic security, to make sure that terrorists don’t come to Canada, don’t find haven in Canada, and don’t pass through Canada.

We have increased financial resources and frontline personnel to enhance our security.

In our most recent budget, we provided $1.5 billion to improve emergency preparedness and the security of our border and our transportation systems – adding to billions already invested since 9/11.

We have made significant investments in technology, in better training and arming of our border guards, at the same time as we are working to expedite border passage for frequent and preferred travellers or secure and reliable cargo.

While both Canada and the U.S. are investing heavily in border security, we cannot let our vital links be endangered by measures which, however well intentioned, are poorly thought out or poorly implemented.

Take the Western Hemisphere Travel Initiative. This law passed by Congress requires that, in less than a year and a half, all Americans and Canadians must have a passport or equivalent secure documents to enter the United States -- even those who are only shopping for a few hours, playing in a baseball tournament or commuting daily for work.

We are very much concerned about the potential impact of the WHTI on the economies and border communities of both our countries – and you should be just as concerned.

In our view, this initiative threatens to divide us at exactly the time we should be collaborating closely on global economic and security challenges.

I do not question Congress’ desire to have stronger border security.

But let’s make sure the WHTI works before it goes into effect, and let’s take the time to get it right.

And you, in the American business community, who know what border disruptions could mean for business and tourist travel, or for closely integrated supply chains, will be crucial in ensuring that WHTI is implemented only in a pragmatic manner and on a realistic timetable.

Advancing Shared Values in the World

The third point I want to address this evening is Canada’s determination to play a leading role to take on the challenges facing our planet. We are striving to work with our democratic allies to advance our common interests and values.

Finally, I want it understood that we are determined that Canada’s role in the world will extend beyond this continent. Our needs for prosperity and security, our values of freedom, democracy, human rights and the rule of law, are, in the view of our government, not only a heritage we share, they are also the common destiny of all humanity.

Just as we work together for a more secure and prosperous North America, we need to work for a more stable and just world.

Canada is working closely with its democratic allies – including the United States – to penetrate terror networks.

We are taking a leadership role in the international effort to choke off terrorist financing.

Toronto will be the new headquarters of the Egmont Group, which brings together 101 of the world’s financial intelligence units to track terrorist money-laundering.

When Canada and the United States recently renewed the NORAD treaty we included, for the first time, a warning function for our continent’s maritime approaches – in addition to air and space.

Our security cooperation does not end at the water’s edge.

Canada is shouldering our responsibilities in the international fight against terrorism.

Our new government has recently invested billions of dollars in new defence capabilities to ensure that the Canadian Forces have the equipment they need to work alongside the international community wherever we are needed around the world.

This includes the purchase of new strategic and tactical lift aircraft, new helicopters and new supply ships, with more improvements of our defence capacity still to come.

After 24 Canadians died on 9-11, we also became aware that domestic security cannot be divorced from global security.

And that’s why Canada has been in Afghanistan from the beginning. Today we have close to 2,300 soldiers on the ground in Kandahar province, the toughest in the entire country.

And we are taking real casualties. It is heart-breaking, but standing up for a more peaceful, more democratic world is a long tradition in both of our countries.

Nearly 120,000 Canadians fell in defence of freedom on the battlefields of Europe and in the Pacific – the terrible cost of our participation in two world wars and in Korea.

Canada did not shy away from those conflicts – in fact, we entered both world wars before the United States.

This summer I visited Vimy Ridge in northwest France, the scene of some of the most terrible fighting in the First World War.

For Canadians, Vimy Ridge, where we led the successful fight at a staggering human cost, is much more than a monument of victory or a memorial of the carnage of war.

Instead, placed as it is in a modern, democratic, prosperous, peace-loving nation, it constitutes a reminder of the abiding principles on which our country is based, of the aspirations we share for other peoples, and of the actions we are prepared to undertake to make this a better world.

And those actions don’t and can’t end with security. In Afghanistan and many other places, we go out in the world to do many other things: to promote men’s liberty, women’s rights and children’s education, to build roads and provide irrigation, to fight disease and protect the environment.

Difference Without Division

Ladies and gentlemen, let me conclude by saying I understand that from time to time we will, as nations, disagree on actions or diverge on priorities.

But these differences must never mask the vital interests and values that we share.

We have differences, and they are real.

Your founders called for life, liberty, and the pursuit of happiness while our constitution embraced the more modest goals of peace, order and good government. (We usually, by the way, get two out of three.)

We both have a dynamic market economy, but we have had different approaches to social policy - for example, our universal system of public health insurance is embraced by all political parties in Canada.

Both of our countries have been shaped by successive waves of immigrants.

But while the United States has often emphasized a great cultural melting pot of shared citizenship, Canada has actively embraced both two national languages and a multicultural heritage.

We will defend our sovereignty over all our territory – including over the islands, waterways and resources of the High Arctic – even if that conflicts with American claims.

In Canada, hockey is almost a religion – at least to those with common sense - as opposed to ranking somewhere behind golf and NASCAR. And we play football on a bigger field, with 12 players, and punt on third down (just to be safe).

But all these differences, large and small, are not cause for fundamental divisions between us.

The relationship of Canada and the United States shows the world how close two countries can become, leading to their mutual benefit, without losing what makes them unique.

So let us continue to embrace our different national identities, even as we share common ties and common convictions.

And may the border which defines our countries never divide our peoples.

Thank you, and until next time.

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The Prime Minister’s Office - Communications
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