Thomas d'Aquino Sets the Record Straight
on Canadian Economic Policy
Thomas
d’Aquino, Chief Executive and President of the
Canadian Council of Chief Executives (CCCE) issued a press release on October
14, 2005 entitled "CCCE Strongly Rejects Linkage Between
Softwood Lumber and Energy". In this statement, which is reprinted below,
he states that the Canadian economic elite supports NAFTA, notwithstanding the
softwood lumber dispute, and that even though it will pursue economic
opportunities with China and India, its strategic alliance is with the United
States. On the one hand, the statement seems to be setting the record straight
on behalf of Paul Martin. On the other hand, the statement contains advice for
the federal and other levels of government stating that: "The role of
governments is and should be to enhance opportunities for trade rather than to
play one market off against another." In other words, this is a warning
not to play around with the US-Canada economic, political and military alliance.
CCCE Strongly Rejects Linkage Between Softwood Lumber and Energy (CCCE Press Release –
October 14, 2005)
Earlier this month, the Prime Minister
delivered a speech to the Economic Club of New York in which he warned that the
U.S. Administration’s approach to the softwood lumber dispute brings into
question the integrity of the North American Free Trade Agreement (NAFTA) and
threatens to set back the bilateral relationship.
The Prime Minister’s message was clear and
unequivocal. Regrettably, in the days since his speech, political spin has
obscured the substance of his remarks. Anyone who was not present for his
speech – I was there – would be forgiven for thinking that the Prime Minister
had directly linked the softwood lumber issue to trade in energy. Media
coverage has focused on the idea that Canada might retaliate against the United
States by somehow limiting American access to Canadian energy. It has further
been suggested that the government’s efforts to promote stronger trade and
investment ties with China are in fact aimed at punishing the United States
over softwood.
Both of these suggestions are ridiculous.
Regardless of how others may have interpreted his remarks in New York, the
Prime Minister in no way linked softwood lumber with energy. The two issues are
separate, and the Canadian Council of Chief Executives (CCCE) unreservedly condemns any
effort from any quarter to make such a linkage. Such a step would fly in the
face of NAFTA obligations, economic realities and Canada’s national interests.
Furthermore, it would make progress on the softwood dispute even more
difficult. In any event, it must not be forgotten that sales of Canadian
resources are determined by commercial arrangements undertaken by Canadian
companies. The role of governments is and should be to enhance opportunities
for trade rather than to play one market off against another.
The CCCE fully supports the government’s
efforts to find a solution to the softwood lumber dispute. As we said in a
major policy statement last month, “We must not
let this single dispute distract us from the main challenge, that of building a
safer and more competitive North America within a transforming global economy.”
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(500 words)