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April 21-22, 2008
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 CD Howe Institute backs Canada-EU deal and deep integration through NAFTA renegotiation
September 24, 2008
Posted by Brent Patterson
Alan Alexandroff, who recently co-wrote a CD Howe Institute paper on NAFTA titled 'Still Amigos', writes in today's Globe and Mail that, "As Canada readies for a massive free-trade negotiation - perhaps starting as early as Oct. 17 - many hope the talks between Canadian and European officials could eventually result in a wide-ranging agreement. Such an EU-Canada agreement could even exceed NAFTA's scope by guaranteeing the free movement of skilled labour, free exchange of services and competitive public procurement."
He adds, "If the EU and Canada can forge an accord that covers services, government procurement and skilled labour, that could well set the table for reviving the original NAFTA - the North Atlantic Free Trade Agreement espoused by far-seeing commentators in the 1960s. If the EU and Canada join hands, the U.S. and Mexico will be eager to join the party."
In an effort to revive the Security and Prosperity Partnership agenda, the pro-NAFTA Alexandroff argues, "The North American free-trade agreement needs improvement. After all, the text is 15 years old and the world has changed since 1993, when the deal was sealed... What Canada and the U.S. need is a new negotiation agenda built on the mutual incentives that drive co-operation in energy security and environmental sustainability."
He argues that some have suggested the "big bang" approach to integration with the US, while others have called for a "below the radar" incremental approach, but that "very little progress has been made on this agenda, whether in regulatory harmonization or lowering non-tariff barriers."
In his argument that NAFTA should be updated, which he says should include "co-operation" on water, he writes, "Water...has long sparked Canadian fears of bulk exports and Canadian officials have been reluctant to raise the issue bilaterally. Clearly, bulk water exports from Canada should be prohibited, but a collaborative project on water management could enhance water resources on both sides of the border."
(In his 'Still Amigos' paper, a significant qualifier to this bulk water ban is added - "climate change and technology might lead to environmental conditions that could bring about political reconsideration. Canada should leave open the possibility of revisiting the arrangement after a given time period, say 10 years.")
On energy integration, he writes "ample room exists for an accord that would meaningfully contribute to North American energy security, and the same can be said of measures to control greenhouse gas emissions."
With a Canada-EU deal on the horizon, the SPP stalled, and the likelihood of an Obama administration in the US moving to renegotiate NAFTA, it would appear that the CD Howe Institute is evaluating this situation and looking for ways to push their deep integration agenda.
Alexandroff's full op-ed can be read here.
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