Canada's Minister of Industry Jim Prentice Cautions against "Thickening Borders"

Focusing on North American collaboration, Canada’s Minister of Industry Jim Prentice highlighted opportunities to improve cross-border trade flows, boost infrastructure, and enhance energy security. Prentice addressed the COA’s Washington Conference of the Americas, where he described Canada and the United States as “pioneers in trade liberalization. And I believe that we will be pioneers in the next phase of collaboration and cooperation in the Americas.”

After quickly reviewing the history of the North American Free Trade Agreement (NAFTA), the minister called the pact’s results “overwhelmingly positive.” Trade between the three NAFTA members is expected to reach $1 trillion in 2008. Each hour, Canada, Mexico, and the United States carry out $100 million in total trade, noted Prentice. “We don’t so much trade goods and services so much as we produce goods together.”

Yet he also warned against inefficiency and increasingly sluggish inspection rates that burden trade at the borders. “We want security and prosperity; instead we make it more difficult to have either,” said Prentice, pointing out that when an automobile part crosses the border, the cost and delays related to inspections for that part can push up the cost of a North American car by hundreds of dollars. However, he said, cars from Asia face comparatively fewer bureaucratic hurdles to entering North America. He urged improved technology and regulations to combat the “thickening” the borders that causes impediments to trade.

Prentice also emphasized the importance of border and energy security and discussed Canada’s $33 billion investment in infrastructure development. Describing conservation efforts related to oil production and exploration in Canada, Prentice urged innovation in the field of renewable energy to meet global demand. “The time is right to ask big questions, to explore big ideas that will build a stronger and more prosperous and more secure North America within a more confident, prosperous Americas region,” the minister concluded.

Prentice serves as chair of the government's Operations Committee of Cabinet and as a member of the Priorities and Planning Committee. Before assuming office as ministry of industry, Prentice was minister of Indian Affairs and Northern Development. A lawyer by profession, Prentice has specialized in property rights and, after serving as a commissioner of the Indian Specific Claims Commission of Canada for a decade, is recognized as an expert in land claims negotiations.

For nearly four decades, the annual Washington Conference on the Americas has served as the top forum for government, industry, and policy leaders to engage in substantive analysis on timely themes affecting the Western Hemisphere.