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February, 10, 2012

The Canada-U.S. Bilateral Ledger

Where Canada is winning and losing in Obama's America.
Published July 29, 2009



The annual August Congressional break always seems to prompt pundits to tally the administration's legislative successes and failures. President Obama's recent record was judged a wash as the session drew to an end.

While the defeat of bills that would have authorized $1.75 billion for procuring seven F22 fighter jets and that would have extended concealed weapons rights to apply between states were considered Obama victories, the announcement that health reform would be delayed until fall, and possibly the end of the year, was judged one of the president's few sour notes.

The looming summer break also occasioned some informal surveys of President Obama's overall record thus far. Except for the pundits of the farthest reaches on the right, he's been deemed successful by almost any measure put forward.

Unfortunately, a mid-year review of Canada-U.S. relations under Obama wouldn't be quite as rosy, although the fundamental friendship, of course, remains fully intact.

To be fair, the assumptions of the world's longest undefended—but secure—border have been under attack since Sept. 11, 2001. We have never recovered from a widely held belief that Canada is soft on terrorists and that some of the 9/11 conspirators entered the U.S. through Canada.

The 'soft on terror' problem was only a taste of things to come. Canada has been batted around by Congressional bullies on lumber, livestock exports and 'Buy America'. Our greatest renewable energy resource, hydropower, has been shut out of the alternative energy debate and dour bureaucrats in Homeland Security continue chipping away at the special border status Canadians once enjoyed.

Canadians, weary of the bellicose, security focused, Bush Administration welcomed Barack Obama as if he were our own. But unfortunately the downward trajectory has not halted. Homeland Security Secretary Janet Napolitano seems to have drunk the "security-first" kool-aid in calling for more northern border fortification and Agriculture Secretary Vilsack seems indifferent to the damage mandatory Country of Origin Labelling (COOL) is doing to Canada's livestock industry.

We consistently underestimate the momentum of the security imperatives now ruling Washington and always overestimate Canada's capital in the Capitol. Years of quiet diplomacy in the backrooms—once sufficient to get special treatment—have proved ineffective against an intractable security bureaucracy and an increasingly protectionist Congress looking to score points with insecure voters.

While the negatives outnumber the positives in this mid-year review, the issues on the plus side are emblematic of a mature, deep relationship. The two countries are still family—steadfast on the big issues and in tough times.

With Congress out, August will bring few surprises, but we can start testing those family relationships again in September.

editor@embassymag.ca

The Good

Afghanistan: there is genuine admiration in the U.S., indeed around the world, for Canada's effectiveness and sacrifices.

Arctic sovereignty: the issues are complicated but in a rare case of Canadian confidence and assertiveness, Canada is firmly in control of the arctic agenda.

Auto company bailouts: the efficacy of massive cash transfers to car companies is debatable but there has been admirable cross-border co-operation on rescuing Chrysler and General Motors.

Canadian financial system: one of the few issues where Americans agree they have a lot to learn from Canada.

Enhanced Driver's Licenses: will be accepted as WHTI-compliant border crossing documents. For residents of the provinces that issue them, these will make border crossings a breeze.

Washington presence and engagement of premiers and legislators: Washington visits and advocacy by senior government members and officials have increased exponentially in the past year. Most Canadian premiers enjoy excellent relationships with their governor counterparts and communication among legislators on both sides of the border is increasing.

The Bad

'Buy American': already causing some Canadian manufacturers to move operations south of the border and prompting talk of retaliation by Canadian municipalities.

COOL, along with H1N1 "swine" flu: prompting a significant downsizing of the Canadian pork industry and leading to talk of large-scale "culls" of live animals.

The "black liquor" subsidy: American tax credits for the bio-fuel byproduct of pulp production threatens Canadian paper operations.

Oil sands sanctions: the "dirty oil" label is starting to stick despite Alberta's attempts to change perceptions.

Energy bill: excludes hydropower from its definition of "renewable energy" closing a huge new market as U.S. utilities scramble to meet renewable targets.

Health care bashing: portrays Canadian health care as inferior when the opposite is usually the case.

The Western Hemisphere Travel Initiative: passport requirements at land crossings has discouraged same-day trips and vacation visits. The Associated Press reported on July 24 that American visits to Canada are at a 37 year low, in part because of passport restrictions.

New lumber tariff: despite settling the softwood lumber case, the American industry convinced the U.S. trade representative that Canada hadn't respected its side of the bargain and imposed a new 10 per cent duty.

Omar Khadr: while not an issue that has captured American public attention, Canada continues to baffle many American policy-makers by being the only western democracy that has not repatriated its citizens from the Guantanamo prison.

The Neutral

Ambassador-designate David Jacobson: while some claim Jacobson's relationship with President Obama makes him a good pick, his exceptionally thin credentials are not congruent with Canada's status as largest trading partner.

President Obama's Ottawa visit: was good for the six hours it lasted but, in hindsight, a perfunctory and largely symbolic "drop-by."

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