In this age of Tea Partiers and Free Staters working to dismantle government both in Washington and Concord, it was especially refreshing to spend time last week focusing on ideas dealing with solving problems and how the US and Canadian economies can be more seamless and efficient. The aim is that with technology, planning and standard policies we will collectively become more effective in the transportation of goods, and provide services that will translate into better jobs and an improved standard of living. So, with apologies to Robert Frost, the title good neighbors equal fewer fences.
Last week I had the privilege to be in Halifax Nova Scotia and represent the New Hampshire House and the NH-Canada Trade Council at the 52nd Annual Council of State Governments Conference. Their focus, on how states and provinces can better work together as well as engage their federal counterparts in the process, is a novel approach of everyone pulling in the same direction!
These yearly conferences provide an excellent opportunity for policy makers from different political parties to come together and discuss the challenging issues currently facing state and provincial governments. Two unique aspects of the Council of State Governments are that it includes the legislative and executive branches of government, as well as the participation of Canadian Provinces as full members. The rationale being that in this day of international supply chains and inter-connected economies a positive and collaborative relationship between states and the Canadian provinces is sound policy.
I had long known of our shared history and culture and that 30% of NH residents are of French Canadian ancestry. However, it was an eye opener to learn how our two economies are so intertwined – for example a car built in Detroit, crosses the border in some shape or fashion eight times before completion! The Canadian Government provided a sampling of statistics that demonstrated this economic marriage. For example, I learned that more than 8 million U.S. jobs depend on USA/CAN trade; Canada is the top export destination for 35 states, and the total USA/CAN merchandise trade is $481 billion dollars. Also, Canada is the United States largest and most secure supplier of energy (oil, natural gas, electricity and nuclear fuel).
Specifically as it applies to the Granite State – last year there were 471,700 Canadians who visited NH and 179,000 granite staters visited Canada – with 59 million dollars spent in the process! NH exports 493 million dollars in goods to Canada yearly, while we import $5.8 billion in goods from Canada. Furthermore, there are forty six Canadian owned companies in New Hampshire that employs 5,116 people. Estimates are that 37,700 jobs in NH depend on Canada-US trade. Locally, a good example of this economic connection is Structal Steel – a key Claremont employer providing quality jobs, but owned by the Canam Group from Boucherville Québec. Needless to say this all helps explain why our neighbors to the north are concerned about our economy and fear we may let politics get in the way of mature decision making.
The idea of New England working collaboratively with Maritime Canada is nothing new and goes back to our colonial past. However, the participation on the federal level is especially interesting. Last February Prime Minister Harper and President Obama announced a new perimeter security agreement called “Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness” which established a partnership to accelerate the legitimate flows of people and goods between the two countries. They identified four areas of cooperation: addressing threats early; trade facilitation, economic growth and jobs; integrated cross border law enforcement; and critical infrastructure and cyber security.
Specifically, we learned that this will translate into increased investments in modern infrastructure and technology at our busiest land ports of entry. Also, as part of this initiative, Nova Scotia is building a deep water container port at Cape Breton to accommodate large container ships unable to access the Panama Canal. This means goods will be transported quicker to New England via a short sea shipping service from Nova Scotia to Boston. We also learned that rail service is vital to the plan thus the need for high speed rail. The Amtrak Vermonter, which stops in Claremont, is projected to resume service to Montreal with fewer delays. Apparently, New York, Vermont, and Quebec are working closely with the feds to make this happen by 2013.
Both Vermont’s Governor and Nova Scotia’s Premier stressed that not only do we need sound budgets, but we should use growth as a way to get out of our economic doldrums. They both contend that the green energy being produced by Canadian hydro, wind, and tidal projects will provide New England and industrial Canada with cheap reliable energy. They stressed that not only will this eliminate our dependency on fossil fuel, but have an economic impact greater than the Industrial Revolution of the 19th century.
So again with apologies to Robert Frost, I somewhat disagree that good fences make good neighbors – in regards to the future of the region. Maybe the motto should be good neighbors equal fewer fences.
