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Policies & Politics: Adjusting to Obama's "new" USA

Edward Campbell

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Canada, more than any other nation in the world, will have to adjust to the new reality of a Democratic USA.

The US president is not, normally, an issue – he has far less national power than does a Canadian prime minister – but the Congress is and this new Congress, having even more Democrats than the old one is unlikely to be friendly to Canada.

Here, reproduced under the Fair Dealing provisions (§29) of the Copyright Act from today’s Globe and Mail is the first of what promises to be a series on Canadian hand wringing and tea-leaf analysis:

http://www.theglobeandmail.com/servlet/story/RTGAM.20081105.wcanadaus04/BNStory/usElection2008/home
Canada quietly adjusts to Obama's agenda

CAMPBELL CLARK

From Wednesday's Globe and Mail
November 5, 2008 at 4:42 AM EST

Stephen Harper's government has made earning coin in Washington a key part of its foreign policy. But today, Ottawa will make its own transition from George W. Bush's security agenda to Barack Obama's economic agenda.

The changing times mean Canada must focus on finding shelter from a wave of protectionism expected in Congress, persuading Washington's new power brokers that U.S. and Canadian jobs are linked, and possibly, selling Canada as a path to reducing U.S. dependency on Middle East and Venezuelan oil, analysts say.

With opinion polls predicting that Mr. Obama, the Illinois Democratic Senator, would easily triumph over Arizona Republican John McCain, capitals around the world have been preparing for an Obama administration.

For Canada and Mr. Harper's government, it opens an opportunity similar to pressing a reset button on Canada-U.S. relations. But it also means vying for the attention of a new president facing a daunting mix of international and economic problems.

"There isn't much of a track record of interest on the part of Obama," said Allan Gotlieb, Canada's ambassador to Washington from 1981 to 1989. "The challenge will be to engage him in the Canada-U.S. file."

Mr. Obama is from a northern state, Illinois, that trades heavily with Canada, but unlike Mr. McCain, did not visit Canada to burnish his foreign-policy credentials, he noted.

Some of the issues that earned credit with Mr. Bush's administration, such as increased military spending, and Canada's role as a staunch NATO ally in Afghanistan, will still be appreciated in Washington, as Mr. Obama has pledged to make that mission a priority.

But a bigger Canadian concern will be a Democratic president backed by a heavily Democratic Congress riding a wave of protectionism fuelled by economic recession. The question is how Canada manages it, many analysts say.

"Will there be protectionist tendencies coming out of the 111th Congress? Yes. Will Barack Obama be more likely to stand in the way of those than George Bush would? Probably not. But that does not mean Canada should panic about its relationship with us," said Maryscott (Scotty) Greenwood, who was chief of staff at the U.S. embassy in Ottawa during the Bill Clinton administration and is now executive director of the Canadian American Business Council.

Despite Mr. Obama's comment during the Democratic primaries that he would force renegotiation of the North American free-trade agreement, he is surrounded by economic advisers friendly to North American trade, and many analysts believe he is not likely to threaten the core of the deal.

Congress is always more protectionist than the administration, because it reacts more to the pressures of local industries, so Canada must find broad strategies to argue that U.S. jobs depend on Canadian trade, said Colin Robertson, a former senior Canadian diplomat now heading a Carleton University project to create a blueprint for relations with the new administration.

Mr. Robertson has called for a "Team Canada Inc." approach - enlisting business and unions to argue that Canadian and U.S. auto plants, for example, work together to make cars, so that strengthening the North American supply chain, rather than weakening it, will keep Americans employed.

Mr. Gotlieb noted that a good relationship between leaders, can bring U.S. attention to Canadian concerns, and said Canadian officials should press for an early Harper-Obama meeting.

Few see obvious grounds for a close relationship; the two seem different in background, temperament and political leaning. They have spoken once, when Mr. Harper called to congratulate Mr. Obama on winning the Democratic nomination.

And a Canadian leak that weakened the credibility of Mr. Obama's position on NAFTA in rust-belt states created a political headache, although Ms. Greenwood bets it is forgotten. She said that Canada already has a card it can play to make its interests relevant to Mr. Obama, by selling itself as the solution to a U.S. "obsession" with energy security.

"Whether it's 'drill, baby, drill,' or 'reduce our dependence on foreign oil,' it's in every single political speech of everybody who's on the ballot right now," she said. A few weeks ago, Mr. Obama switched from criticizing dependence on "foreign" oil to decrying dependence on Middle East oil.

Ms. Greenwood said that wasn't insignificant, and Mr. Harper should seek to open common initiatives that tie efforts to reduce greenhouse-gas emissions to energy security, so Canada's oil sands are viewed as a potential political help to Mr. Obama.


NAFTA may be a big issue: potentially a loser for both the USA and Canada. We must, first and foremost, remember that the US Congress has a long, sad history of cutting off its nose to spite its face. Protectionism – a colossally stupid policy for the USA – is on the rise, driven by trade unions (with steadily diminishing powers but a stranglehold on too many Democratic legislators) and the Lou Dobbs lunatic fringe. Remember, also, that Smoot-Hawley – one of the dumbest, most destructive pieces of US legislation ever – was passed by a (Republican) congress bent on ‘protecting’ American workers and manufacturers from foreign competition; the current (Democratic) congress promises to be seized with the same issue and I, personally, have very, very little regard for the brains or rationality of any most US legislators when they are driven by fear. Many US legislators are going to be looking to punish Ontario because it competes too much and too well with too many US states – Ontario is, all by itself, one of the US’ top trading partners and 85% of Ontario’s production is sold to the US. One our side we have oil, other strategic resources and water and we may well have to play the oil card to save Ontario’s markets or to retaliate for US actions harmful to Ontario. Suffice it to say that both Canada and the US are set up to administer self-inflicted wounds.

Relations with the USA are and must remain at the very centre of all our foreign policy decisions. History may be changing but geography is not. China and Europe and India may be rising, but America is not shrinking - nor is it going away. We need to find ways, quickly, to engage the USA to our advantage. The USA is our only real neighbour, it is our greatest and best trading partner and it remains our best friend, whether Canadians like it or not (as Robert N Thompson so famously defined the relationship).

 
While I agree with much of your assessment, I am still under the impression that Canada will be sideswiped by the NAFTA issue simply because the US needs to do something about the jobs it is losing to Mexico.

Canada is not stealing jobs, just marketplace, and that is a two way street, even if they (the US) don't want to admit it. But the US is losing massive manufacturing jobs to Mexico, and these are the high paying union jobs, simply because the unions have priced themselves out of the world market. (eg: the auto industry labour cost is somewhere around $67.00/hr).
 
Our first challenge: Obamanomics

http://www.financialpost.com/story.html?id=933161

Welcome to the world of Obamanomics
Jacqueline Thorpe,  Financial Post  
Published: Tuesday, November 04, 2008

Jason Reed/Reuters
As the fervor fades and the hoopla dies, the world will have to get used to a new word: Obamanomics.

It includes tax hikes for the rich, tax cuts for the poor and middle class, a renegotiation of NAFTA, greater union power, windfall taxes on oil and gas profits, higher taxes on capital gains and corporate dividends, and more comprehensive health care insurance.

It may deliver the greater income equality Americans apparently desire but also likely slower growth. Despite the vast tax hikes, it will cost a vast sum and U.S. federal finances, already ravaged by bailouts and recession, will slide deeper into the red.

It is not particularly market-friendly but that does not mean the markets will not like an Obama presidency. If Obama can give the United States back its confidence, restore its reputation and sense of optimism, markets will take the bait as they have done with Democratic presidents so often in the past.

If he can become a Clinton-style pragmatist, resists caving to every whim of a deeply left Congress, and does not meddle with the financial bailouts that seem to be gingerly gaining traction, markets may even run with his presidency. The year from hell for investors could then be nearing an end.

At its heart, Obamanomics is essentially about taking more money from the rich and giving it to the poor, plain old-fashioned "neighborliness" as Obama has described it or, as others have less charitably so: taking money from those who earn it and giving it to those that don't.

Under his income tax plan, Mr. Obama says he will provide tax cuts for 95% of Americans. He will do this by repealing Bush tax cuts and bumping the top rates back to 36% from 33% and to 39.6% from 35%. Individuals earning over US$200,000 and families over US$250,000 will see sizable tax increases. This includes sole proprietors of businesses like lawyers, accountants or plumbers called Joe.

Since 38% of Americans currently do not pay federal income taxes, Obama will provide them with refundable tax credits. Under his plan, 48% of Americans will thus pay no income tax.

"For the people that don't pay taxes, he is simply going to write them a cheque," says Andy Busch, global foreign exchange strategist at BMO Capital Markets. "That is income redistribution at its worst and produces very little value."

Other plans include raising taxes on capital gains and dividends to 20% from 15% for families earning more than US$250,000. He plans to leave the corporate tax rate at 35%, which in a world of rapidly falling rates, looks positively antibussiness. He will introduce windfall taxes on oil and gas companies but offer US$4-billion in credits to U.S. automakers to retool to greener cars.

Much has been made of Obama's plan to renegotiate NAFTA, though no-one seems to believe he will actually make it more protectionist. On the push for greater union power however, there has been no softening of tone.

He was a co-sponsor with Joe Bidden of the Employee Free Choice Act. It would allow a union to be certified once a simple majority have signed union cards, eliminating the time-honoured secret ballot. The bill died last year but under an Obama presidency is sure to get resurrected.

Bottom line is the Obama plan is likely to be a drag on growth and it will cost money. The nonpartisan Tax Policy Center estimates Obama's program would add US$3.5-trillion to U.S. debt over the next 10 years, including interest. His plans for health care - which may be delayed by financial necessity - would tack on another US$1.6-trillion.

That is on top of the US$2.3-trillion increase the Congressional Budget Office forecasts over the next decade due to recent stimulus measures and financial bailouts.

"It runs up a very large deficit," says Roberton Williams, a principal researcher at the center. "In general, tax cuts that are not accompanied by spending cuts have a long-term negative on the economy." It means taxes will have to be raised later - just as the draw-down from the Baby Boomers begin.


With the U.S. economy festering and job cuts mounting, it is likely Obama will have to hold back on many of his grand plans.

One hopes that once he is able to manoeuvre, he is more Clinton than Carter.

As economist Arthur Laffer recently pointed out in the Wall Street Journal, Clinton thoroughly reformed the welfare system, making job searches mandatory, pushed NAFTA through against union wishes, signed the largest capital gains tax cut in history and reduced spending as a share of GDP by three percentage points - more than the next best four presidents combined.

If Obama is also more practical than progressive and he manages to catch a break from a recuperating economy ‹-thanks to the dirty work performed by Fed chairman Ben Bernanke and Treasury Secretary Henry Paulson - markets will breath a big sigh of relief.

Copyright © 2007 CanWest Interactive, a division of CanWest MediaWorks Publications, Inc.. All rights reserved.
 
Here, reproduced under the Fair Dealing provisions (§29) of the Copyright Act from today’s National Post, is some useful commentary by former Canadian Ambassador Derek Burney:

http://network.nationalpost.com/np/blogs/fullcomment/archive/2008/11/05/derek-burney-the-obama-inheritance.aspx
Derek Burney: The Obama Inheritance

Posted: November 05, 2008, 7:00 AM by Kelly McParland


In the annals of miserable bequests, the one left to President-elect Obama tops the list since at least the days of Franklin Roosevelt in 1933. True, Roosevelt inherited the Depression left to him by Herbert Hoover, but America was not then fighting two wars at the same time. When Ronald Reagan took the presidential oath in 1981, the U.S. economy was mired in stagflation, a toxic combination of anemic growth, high inflation and rising unemployment, bequeathed by Jimmy Carter, but the country was at peace.

The country left to Obama by Bush is broken in spirit, bitter about the economy, and tired of the burdens of leadership. Globally, the U.S. reputation is in ruins, its supporters few and far between, its days of moralizing long past. In these circumstances, the challenges landing on President Obama’s desk are by any measure formidable.

The United States is running a massive budgetary deficit estimated to exceed US$1-trillion (7% of GDP) in the current fiscal year. The newly elected Democratic Congress will undoubtedly favour increased stimulus over spending cuts. Meanwhile, Social Security and Medicare outlays are increasingly unsustainable — projected to absorb more than the entire U.S. budget by 2020.

The U.S. consumer confidence index is already in the dumpster; the personal debt carried by Americans is at record levels; the prospects of a consumer-led recovery are highly unlikely. Complicating the situation are protectionist pressures, provoked by rising unemployment and certain to find ready voices in the more heavily Democratic Congress. Candidate Obama left some protectionist chits on the table during the campaign, and they will be called in. He will be particularly beholden to the demands of organized labour — one of his key support groups — to protect jobs by restricting imports. While Canadians may think a Democrat in the White House should be able to work constructively with Democratic majorities in Congress, they should think again. In the American system, the unique “separation of powers” usually trumps party loyalty.

The foreign-policy challenges confronting the new president are scarcely more appealing. The fallout of the financial crisis will occupy centre stage for the next several months beginning with the G-20 summit later this month. From the preacher of market rectitude, the U.S. will be the preached-to, and come under considerable pressure from the Europeans and probably the Asians to accept new international rules of financial governance: the so-called new Bretton Woods. But practical remedies are needed most on the home front.

The NATO alliance, the anchor of Western security for over 60 years, is, to put it charitably, suffering a mid-life crisis. If the Iraq war exposed deep fissures in the alliance, the Afghanistan war may bust it for good. It is patently unreasonable and unacceptable that a select few NATO members do the heavy lifting while the others take a pass. If NATO fails in Afghanistan, who would trust it to succeed anywhere else? Obama will substantially increase U.S. military commitments in Afghanistan and assert more leadership than the cumbersome NATO structure has allowed. The stay-at-home, do-nothing NATO members may find their embrace of the Obama presidency comes at a price.

A recent survey reported in the Wall Street Journal found that more than one-third of Americans believe that the United States should “stay out of world affairs.” The real danger facing of all of us is that the country, battered and bitter, humbled and apprehensive, may retreat into fortress America. President Obama will have about six months to show whether he is a Carter or a Roosevelt. There will be pain enough to go around as the United States recovers its footing but, if Obama proves to be the former, the strong winds that lie ahead may achieve hurricane force. If Obama shows the courage and determination of a Roosevelt to confront the challenges facing his country, he may be able to rally the mood and resolve of Americans.

Obama is a powerful, almost messianic, orator, but he has also shown that he can listen and learn. Key appointments to watch will be the nominees for Treasury, State and Defence. He will want these appointees to provide instant gravitas and shore up his most glaring weakness — experience.

The President-elect will not be looking for wish lists from allies such as Canada, but there is an opportunity for creative Canadian diplomacy rooted in our national interest and backed by the necessary material and political resources. Striking postures and prattling about values will fail the test of relevance and influence. We need to keep our interests front and centre and propose common sense initiatives that will offer mutual benefit.

Apart from the slumping global economy, the most serious threat to Canada’s well-being would be a severe bout of U.S. protectionism aggravated by a shrinking export market as a recession takes hold. We need to remind ourselves and the Americans that Canada remains the closest economic partner, and largest export market, of the United States.

We should tackle blockages at the border and unnecessary overlap of regulations in key sectors, like automobiles, to kick-start productivity. We should design and implement stronger security arrangements on our respective external borders in order to ease congestion on our shared internal border. We also should leverage creatively our importance as a secure energy supplier to the United States and explore the scope for common action on climate change. Both countries need a credible position for the Copenhagen Climate Conference. Canada’s economic fundamentals, especially the strength of the financial system and solid public finances, give us a voice that we should use judiciously in working with the U.S. on regulatory reforms. Excessive zeal on that front needs to be tempered with balance and sober judgement.

Obama will have to finesse his concerns about NAFTA in a manner that appeases his supporters but leaves the agreement itself intact. Canadians should not lose sleep over new commitments regarding labour and environmental standards, as the real focus will be on Mexico, not Canada.

The Harper government needs to propose an agenda to the Obama Administration at the earliest opportunity — a plan of action to manage Canada-U.S. relations over the life of his administration. It should address both critical bilateral issues that engage our national interest, such as the border and the energy/environment nexus, and global issues such as financial-systems reform, the challenge of Afghanistan and the future of NATO. Separate but persistent engagement with the Congressional leadership should be an essential component of any Canadian strategy.

It may be audacious for any Canadian government to believe that it can exercise influence in Washington. And there is no guarantee of a constructive response to our agenda. Obama will have a full plate of demands — domestic and global — and issues with Canada will not feature prominently or automatically. The first challenge, therefore, will be to get his attention — demonstrating in compelling fashion why common sense solutions to common problems offer tangible value to both countries, especially at a time when the U.S. economy is struggling.

Canadians are genuinely attracted to Obama’s message of hope and to the prospect of new global leadership by America. Our government has a unique opportunity to build on that mood and propose a constructive agenda of mutual benefit to his new Administration and the U.S. Congress. The President will need some early achievements in order to establish momentum and conviction to meet the huge challenges ahead. A good place to start would be with his northern neighbour.

National Post

Derek H. Burney was Canadian Ambassador to the United States from 1989 to 1993. He is Senior Strategic Advisor with Ogilvy Renault LLP.


One advantage for Prime Minister Harper is that Obama is not George W Bush; Harper can, indeed must engage him, soon and with some concrete proposals that serve our national interests. The importance of ‘soon’ cannot be overemphasized. Obama is the ”promised one” for many, many Canadians and those Canadians, broadly, will applaud any and all efforts by our PM to engage him; but that may not last; the ‘shine’ cannot last, Obama may not have feet of clay but he is human and he is a politician – sooner rather than later Canadians will think less and less of him and they will be less and less inclined to engage.

The key issue might be The Great Wall of the USA. It will be useful for PM Harper to engage with a big issue proposalcommon, continental borders – rather than be perceived as going, cap in hand, with a list of little requests and complaints.

As others have said, we need to separate ourselves from Mexico – which is the real problem for the USA. Maybe NAFTA can be renegotiated to our advantage or even (better) abandoned so long as the original Canada/US Free Trade Agreement is respected or, better, renegotiated in our favour. A customs union would be a good first step – ‘open borders’ for goods and services; the second, much more complex and controversial, step is an ‘immigration union’ – ‘open borders’ for people, too.

 
The American "Classical Liberals" (not necessarily Republicans) also have their work cut out for them over the next four years. The constitutional fundimentals need to be enumerated, protected and preached as much as possible.

The Battle Ahead For The Individualist Right
Tim Ferguson, 11.05.08, 1:48 AM ET

One attribute of our increasingly volatile business world is how often failure is punished on a dime. Top managers are axed within months of definitively bad results (though lame boards linger longer). But the U.S. political system constitutionally lags. The House of Representatives can turn over in two years, and in 2006 it did, despite a modern incumbency bias. On Tuesday, long after the electorate had decided against the Republican Party, the rest of the GOP order was sent off to the wilderness.

In selected cases, there’s injustice, guilt by association with practices and policies that a candidate or officeholder didn’t willingly embrace. John Sununu was as good a senator as a libertarian is likely to find outside of the energy belt but he lost on something else. Still, the rigors of contemporary partisanship means that one’s banner matters. Surely this is something that the Republican right very much sought over the last generation.

A majority of Americans now want rule by Democrats. Legislative changes will be gained, though with a fight, even with big majorities. Regulatory shifts will come quicker. Judicial appointments will be swift, although the appellate-court balances will take time to tilt.

Even as this history is made, the great contest goes on. Those of us who still favor limited government weigh whether (and how) a reversal in the public mood--after all, these will be difficult days ahead for President Obama and his Congress--might bring about another shift. Could a center-right pitch be restored before long in a country that basically likes freedom, including the freedom of enterprise? Will a nation soon forget how sick it was of the bumbling Bush White House, the many Capitol Hill whores and the corrupting Republican K Street?

Maybe in this 24/7 news-opinion environment that kind of snap-back is again possible as the new taxes and rules are felt, the inevitable scandals occur, the disappointment over sluggish recovery and protracted hostilities sets in.

Or maybe this is again the early 1930s, ushering in 20, 30, 40 years of soft socialism and cynicism about markets, a bent for the bosom of the organized state over the seemingly fractious pursuits of individuals. It did happen before in America. If hard times instead freeze opinions in place, then we may be looking to a long haul.

Short term or long term, what is to be done by those still enamored of an America “conceived in liberty”?

First, consider the “how” of a comeback, per the adage that you don’t beat something with nothing. The Republican label is besmirched and many have walked away. The party too often combines narrowness, know-nothingism and self-serving elites. No wonder it ended up with a national ticket unable to articulate even the few useful policies on offer. The GOP has become the war party, the prisons party, the deficits party. The incompetent party.

Perhaps a Mugwump revival is called for. Yet, today the electoral system so revolves around two major parties that a Republican vessel is probably needed. Even today’s sorry GOP sometimes can hear a peace-and-prosperity drummer; freed of the martial discipline of “governing,” its light brigade might gain strength. The likes of Rep. Jeff Flake of Arizona could rebrand Republicanism. As independent Democrats reveal themselves, a reform bloc can materialize. In the short run, an ad hoc coalition could score wins. Years down the road, if that is our time frame, then maybe a new banner will rise.

When that day comes, sooner or later, competent managers of the state will need to be found. Obviously they were in short supply in this now-past Republican era. The lesson of turning over even distasteful agencies to boobs and hacks ought to be clear. America might even draw interesting lessons from what happens overseas in the years ahead--there, despite what Monsieur Sarkozy hopes, market liberalism is not in retreat. A grudging consensus holds that in fact it works, properly governed, and experiments continue.

Alongside whatever is done politically, the ideas battle must be waged. The good news on the individualist right is that “the remnant,” as the libertarian core was known in the FDR days, is larger now and better funded. We should keep up our talking--and keep critically thinking all the while. We should challenge ourselves about what has just happened in our economy and our politics. The majority’s trust in a system of financial capitalism will have to be won back. What was it about this system that brought on a calamity, or seemed to? Why was the prosperity before the crash not more widely felt?

In this, economists have a central role to play. A special charge belongs to those who go by the rough description of supply-siders. Their creative analysis of the stagflation of the 1970s helped to unleash bursts of growth since. But somehow that analysis, in the last part of the boom, failed to sound an alarm. Indeed, a lust for leverage, insouciance about accounts, was exposed by the events of 2007-08. This was the stuff Austrian credit-cycle analysis or the “green eyeshade” crowd would have warned about (and did). If this cataclysm was at the same time a function of currencies, tax rates and incentives, trade laws and the other elements of the supply-side catechism, then we ought to have heard more of it. The skeptics will have to be enticed again to listen. Start with the tax debate that now looms. Demonstrate the revenue streams from lower rates, speaking directly to the "rich get richer" criticism. Saying X when the orthodox economists say Y is fun on the op-ed pages, but you have to reach more than the faithful. Because we the faithful are now on the outs.

Tim Ferguson is executive editor of Forbes.
 
Democrats don't have a monopoly on protectionism. Many recent protectionist policies that have affected Canada have come from Republicans. (when I have more time I'll research that) Senator Helms and many other Republicans were/are not fans of Canada.
 
Here, reproduced under the Fair Dealing provisions (§29) of the Copyright Act from today’s Globe and Mail is a good example of a useful engagement:

http://www.theglobeandmail.com/servlet/story/RTGAM.20081105.wobamcan1105/BNStory/Front
Canada to seek climate deal with Obama

ALEXANDER PANETTA AND STEVE RENNIE

The Canadian Press
November 5, 2008 at 1:50 PM EST

OTTAWA — Canada hopes to achieve a North American climate-change deal with U.S. president-elect Barack Obama and will begin working on the file within weeks, Foreign Affairs Minister Lawrence Cannon said Wednesday.

Meantime, officials told The Canadian Press the Harper government has been waiting for the departure of President George W. Bush to work with his successor on an integrated carbon market.

While states and provinces have been cobbling together a patchwork of approaches, federal officials said they have been eyeing a continent-wide solution for some time.

Mr. Cannon confirmed the issue will be an immediate priority.

“We will be able to tackle this file on the North American level — on a continental level,” he said. “Over the coming weeks I know my colleague Jim Prentice, minister of the Environment, will be active on that file. I see that in a positive light.”

Mr. Prentice was not immediately available to comment.

The Conservatives pledged in their 2008 election platform to work with the U.S. and Mexico to develop and implement a continent-wide cap-and-trade system between 2012 and 2015.

Cap-and-trade systems place a ceiling on greenhouse gases and allow participating countries, provinces and states, or companies to buy and sell emissions permits within that cap.

Participants who don't meet the emissions targets can buy credits from those with a surplus instead of reducing their emissions.

The idea is to gradually lower the ceiling to control emissions. As permits become more scarce, they become more valuable, which in theory makes it more economical to improve energy efficiency or switch to less-polluting power sources.

Cap and trade is one part of the Conservatives' plan to lower greenhouse gases three per cent from 1990 levels by 2020.

Mr. Obama has set the target of reducing greenhouse gases to 1990 levels by 2020.

Both targets fall well short of the Kyoto Accord, an international agreement ratified by 180 countries, including Canada but not the U.S., that sets targets for reducing greenhouse gases.

Kyoto is supported by Europe and the developing world. The Conservatives have eschewed Canada's Kyoto obligations, claiming its benchmarks are unattainable after years of inaction by their Liberal predecessors.

Mr. Cannon said the White House and the Harper government could easily work together on the file.

“There are a lot of similarities between the positions put forward and our position.

“This augurs well for a North American approach on environmental issues — specifically on climate change.”

An internal Environment Canada briefing prepared in April compares Canada's regulatory requirements with those in major global-warming legislation that could become law under Mr. Obama's administration.

The briefing says a “rough comparison” of the bi-partisan U.S. Climate Security Act and the Conservatives' Turning the Corner plan “suggests that the two pieces of legislation are comparable.”

The Canadian Press obtained the briefing under the Access to Information Act.

The document, dated April 14, says Canada will seek a shared carbon market with the U.S., once Washington sets out its own regulations.

“If a greenhouse-gas regulatory regime and offsets system is developed in the United States, cross-border trading in emissions credits and offsets will be pursued,” it says.

Another federal official close to the climate file put it more bluntly. He said Ottawa has been in a holding pattern for some time, expecting that only in a post-Bush era would there be movement toward a continental system like the one in Europe.

Prime Minister Stephen Harper has hinted at that himself. At a G8 summit in Germany last year, he said it's difficult for one country in a shared economic space to set hard targets like a cap-and-trade system while its neighbour doesn't.

“We didn't want to go too tough on targets with Bush in the White House,” said the federal official. “Because then if they (Americans) didn't follow, it would place Canadian industry at a disadvantage.”

In the absence of a continental or national carbon market, regional schemes have begun popping up.

The Western Climate Initiative, a coalition of four Canadian provinces and seven U.S. states, plans a regional market to trade carbon emissions. The WCI's goal is to lower greenhouse gases 15 per cent below 2005 levels by 2020.

And earlier this year, the Ontario and Quebec governments agreed to forge ahead with an interprovincial carbon trading system. Ontario Premier Dalton McGuinty has said he would like the program in place by 2010.

The climate file offers a glimpse at the political benefit Mr. Harper could draw from an Obama presidency.

Even Liberals say they expect Mr. Harper to align himself closely with the popular president. They cite the climate file as one example where Mr. Harper has taken flak for turning his back on Kyoto — but could actually win plaudits by twinning his approach with that of a popular U.S. president.

While I think the climate change issue has more than a hint of ”children’s crusade” in it, I agree that it is something that the people, on both sides of the border, want to do, so it may make a good entry point.

 
PanaEng said:
Democrats don't have a monopoly on protectionism. Many recent protectionist policies that have affected Canada have come from Republicans. (when I have more time I'll research that) Senator Helms and many other Republicans were/are not fans of Canada.

Quite correct - but, broadly, throughout the second half of the 20th century, most Democrats were and still are more protectionist than most Republicans.

Equally broadly, for almost all of the past century, the White House has been pro-Canadian or, at worst, neutral. The Congress is not a monolith. It is, in fact, 500+ legislators, each with an individual agenda. Many of those agendas are anti-Canadian, even when that is not the specific intent. The US Congress is not (cannot be?) whipped like our HoC - the Executive cannot compel the legislature to pass this, that or the other bill and, sometimes, the legislature can overturn a presidential veto.
 
While I remain committed to the notion that, for Canada, the US congress matters a least as much as the US president (and more than most cabinet secretaries) the shape of the American cabinet is important. Here, reproduced under the Fair Dealing provisions (§29) of the Copyright Act from today’s Globe and Mail, is a preliminary look at things:

http://www.theglobeandmail.com/servlet/story/LAC.20081106.ELECTIONTEAM06/TPStory/TPInternational/America/
Obama's White House dream team slowly emerges

TIMOTHY APPLEBY

With a report from Associated Press
November 6, 2008

Barack Obama's first day as president-elect began predictably enough: his inaugural top-secret intelligence briefing, pledges of co-operation from outgoing President George W. Bush, the scheduling of a press conference.

Now begins the far more complex task of selecting his cabinet. There are sure to be surprises.

When the guard changes under Canada's parliamentary system, many of the new faces can be foreseen. Almost all have been elected, and some will have held equivalent jobs in an opposition shadow cabinet. But a U.S. president can pick whomever he wants.

In Washington yesterday, it was announced that the Obama transition team would be led by three Democrat stalwarts: John Podesta, former president Bill Clinton's chief of staff; Peter Rouse, who ran Mr. Obama's Senate office; and Valerie Jarrett, a long-time Obama friend and adviser.

No appointments are expected until next week at the earliest and so far only one clear candidate has emerged: House of Representatives Democrat Rahm Emanuel of Illinois, whom Mr. Obama has asked to be his White House chief of staff. A long-standing member of the party's liberal wing, with a formidable reputation for toughness, Mr. Emanuel would be no stranger to the White House, where he served as an adviser to Mr. Clinton.

John Kerry, a Massachusetts senator and former presidential candidate, was said yesterday to be actively seeking the job of secretary of state, the equivalent of foreign minister and arguably the most crucial cabinet post. Other names in the air include Colin Powell, who held the post under Mr. Bush until he resigned.

Whoever does become secretary of state, the challenges of the job will be daunting, ranging from Iran, North Korea, China and a newly unpredictable Russia, to Iraq, the Israeli-Palestinian conflict, Afghanistan and Pakistan. All of this will put diplomatic polish near the top of the appointee's must-have skills set.

Working in tandem with the secretary of state will be the defence secretary. And after proving singularly more adept than his predecessor Donald Rumsfeld, particularly in his dealings with Congress, incumbent Robert Gates is said to be open to suggestions that he accept a new mandate under the new president.

Amid continuing fiscal turmoil at home and abroad, the second major priority for the new administration will be the economy and finding a replacement for Treasury Secretary Henry Paulson, seemingly caught flat-footed by the Wall Street collapse.

Given that one of the hallmarks of the Obama campaign was its firewall-like prevention of intelligence leaks, it's unlikely that many cabinet possibilities will be confirmed ahead of time. The website Politico.com reported yesterday that Democratic officials are giving some indication of Mr. Obama's choices, including Caroline Kennedy, who helped Mr. Obama lead his vice-presidential search, for U.S. ambassador to the United Nations. Some Obama officials doubt she would take the post, however.

But whoever they are, here are some of the other principal portfolios they will run and the challenges they will face:

Justice: Expect the new attorney-general to re-examine and probably overhaul Justice Department policies governing surveillance, interrogation and the detention and trial of terrorism suspects. That review will likely lead to the closing of the Guantanamo Bay detention centre in Cuba.

Energy: A staple in Mr. Obama's election campaign was the development of alternative energy resources, and a revamping of national priorities is likely in store, with a high-profile eco-expert at the helm.

Health care: Here too, a small revolution probably awaits. Its chief plank will likely be government aid allowing millions of needy Americans to obtain health insurance.

Environmental protection: Clean air, clean water and limits on greenhouse gases head the Obama wish list. But the laws needing to be dispatched through Congress will be contentious, testing the new secretary's powers of persuasion. Politico.com reported yesterday that Democratic officials said Mr. Obama is considering Robert F. Kennedy Jr. to head the Environmental Protection Agency.

Appointing a neophyte like Caroline Kennedy to the (cabinet rank) position of US Ambassador to the UN would, likely, cause dismay in some foreign capitals.

Robert F. Kennedy Jr. is more than just an environmental ‘activist.’ He is, arguably, nearly a fanatic. He would be bad for Canada because whenever he fails in the US, as he surely will, he will be tempted to score ‘points’ by punishing Canada.

Gates would be a good choice to stay on, for a while, in Defence. He is an able secretary and it would demonstrate bipartisanship.

Colin Powell is, obviously, an attractive candidate for something, too – maybe National Security Advisor?

 


 
E.R. Campbell said:
Ontario is, all by itself, one of the US’ top trading partners and 85% of Ontario’s production is sold to the US. One our side we have oil, other strategic resources and water and we may well have to play the oil card to save Ontario’s markets or to retaliate for US actions harmful to Ontario. Suffice it to say that both Canada and the US are set up to administer self-inflicted wounds.

Relations with the USA are and must remain at the very centre of all our foreign policy decisions. History may be changing but geography is not. China and Europe and India may be rising, but America is not shrinking - nor is it going away. We need to find ways, quickly, to engage the USA to our advantage. The USA is our only real neighbour, it is our greatest and best trading partner and it remains our best friend, whether Canadians like it or not (as Robert N Thompson so famously defined the relationship).


Reading between the lines, what this is really saying is that relations between the US and Ontario are at the centre of negotiations. 

Which is concerning because what's good for Ontario is not always what's good for the rest of the country...

 
The PM's first phone call, highlights mine, shared in accordance with the "fair dealing" provisions, Section 29, of the Copyright Act.

Canada's leader calls Obama
Associated Press via International Herald Tribune, 7 Nov 08
Article link

Canada's prime minister spoke to U.S. president-elect Barack Obama about the global financial crisis as well as the strong friendship between Canada and the U.S. in a phone call on Thursday.

Prime Minister Stephen Harper called to congratulate Obama on his victory over Republican John McCain.

Harper's office said in a statement that they spoke about the G20 Leaders' Summit in Washington next week and its importance for addressing the global financial crisis.

The prime minister's office said the two leaders emphasized their countries' close alliance and vowed to build upon it. Harper's office called it a warm exchange.

The two agreed to talk again in the near future.

Canada and the United States share one of the largest trading relationships in the world. Canada has also been key contributor to the war in Afghanistan with 2,500 troops in Kandahar province, the epicenter of the country's violence.

Earlier Thursday, Harper called Obama's victory a "truly inspiring moment" that signifies an "era of possibility."

Harper spoke of his admiration for Obama's hard-fought primary victories over Sen. Hillary Clinton. Harper's Conservative party won re-election last month. Analysts said Harper wanted to face voters ahead of the U.S. presidential election, which could have encouraged Canadians to choose a more liberal government after an Obama victory.

Harper had closer ties with President George W. Bush than Canada's previous Liberal government.

Obama, in a sense, "came from out of nowhere to beat established political machines," the prime minister said.

Harper noted that Obama faces tremendous challenges in the financial crisis and the wars in Iraq and Afghanistan, but said Canada will be there for the U.S. as its most reliable ally.

"For Canada it's never a question of who is the president or who is the prime minister," Harper said. "We have shared challenges and we will always work in full collaboration with our ally, our most important partner."

Harper also said he believes Obama, who has vowed to reduce America's dependence on Middle East oil, will understand that Canada remains America's "major source of energy and the most secure source of energy."

Harper officials say the country's massive oil sands operations in Alberta could help Obama reduce America's dependence on Middle East oil. Industry officials estimate northern Alberta could yield as much as 175 billion barrels of oil, making Canada second only to Saudi Arabia in crude oil reserves.

The Bush administration sees oil-rich Alberta as a reliable source of energy that will help reduce reliance on Middle East oil. U.S. Ambassador to Canada David Wilkins has said the oil sands will define the relationship between the two countries for the next 10 years.

However, Obama's top energy adviser said earlier this year that the greenhouse gas emissions from the oil sands projects are "unacceptably high" and may run counter to Obama's plan to shift the U.S. away from carbon-intensive fossil fuels.

Canada has warned that Washington would lose energy security if it doesn't take Alberta's oil. Canadian Foreign Affairs Minister Lawrence Cannon said Wednesday his government has been able to explain to Obama advisers what Canada is doing to mitigate the environmental impacts.


Canada is expected to try to negotiate a climate-change agreement with an Obama administration that protects the oil sands. The oil sands have created thousands of jobs and a booming economy in western Canada.

Daily production of 1.2 million barrels from the oil sands is expected to nearly triple to 3.5 million barrels in 2020.

Alberta Premier Ed Stelmach said Thursday that Obama will need the oil sands to provide cheap energy to help the sagging American economy.

 
Well from what I've heard on the news today, that there is talk about building a nuclear power plant on the peace river which will be used to lessen the use of natural gas in the extraction process. If this comes to fruition, the greenhouse gas argument will become less of and issue and help to muzzle the nay sayers in the Obama camp.

The only way the US is going to break its dependency from Saudi oil is to utilize the tarsands and no amount of shouting and screaming over greenhouse gas emmisons is going to change that. The fact still remains that if the US wants to keep its business as usual status quo, it needs oil, the only difference is, where it gets that oil. The decision Obama has to make, is whether or not he wants our oil. If not then I think the Chinese will be more than happy to buy it.

http://www.cbc.ca/canada/edmonton/story/2007/05/25/peaceriver-nuclear.html

http://www.albertaconstructionmagazine.com/articles.asp?ID=538
 
Here, reproduced in two parts under the Fair Dealing provisions (§29) of the Copyright Act from today’s Ottawa Citizen is a long but useful bit of analysis by Robert Sibley:

Part 1:

http://www.canada.com/ottawacitizen/news/observer/story.html?id=329ffaa3-b670-4260-b0a4-3094d0828057
Curb your enthusiasm
Barack Obama, like all presidents, will make U.S. interests his priority, observers say -- and this reality means that, despite Canadians' admiration for the new president, his election 'will probably not mean a warm and cozy relationship with Canada.
'
Robert Sibley, Citizen Special

Published: Saturday, November 08, 2008

CHICAGO - Anti-Americanism is so deeply embedded in the Canadian psyche that it sometimes seems part of what it means to be Canadian. We are Canadian because we are not American. Sadly, this negative assertion of identity has been particularly virulent in recent years, largely because of antipathy toward the Bush administration and the Iraq war.

Former Liberal MP Carolyn Parrish, to mention one notorious example, encapsulated this hostility when she stomped on a George Bush doll and declared, "Damn Americans, I hate those bastards." Françoise Ducros, the one-time communications director for prime minister Jean Chrétien, referred to Mr. Bush as a "moron." Such hostility goes a long way to explain Canadians' enthusiasm for the new Democratic president-in-waiting, Barack Obama. He is everything that Mr. Bush is not, or so they'd like to believe.

Of course, Canadians have long preferred Democratic to Republican presidents. The hostility toward Mr. Bush and his policies merely pushed this preference to an extreme. Still, the enthusiasm for Mr. Obama goes far beyond anybody-but-Bush sentiment. Like Americans, Canadians have cast him as the cure-all for the ills of the United States and, by extension, the world. Indeed, Canadians would have voted overwhelmingly for Mr. Obama if they'd had the chance. Pre-election polls showed that more than 70 per cent of Canadians favoured the Democratic candidate, compared to fewer than 20 per cent for the Republicans' John McCain. They also share the world's great expectations for an Obama presidency. Some 75 per cent of Canadian respondents believe Mr. Obama's election will mean good things for Canada.

Unquestionably, the election of a black, liberal Democrat to the presidency portends changes to American policies, domestic and foreign. Rev. James Forbes, president of U.S.-based Healing of the Nations Foundations, summed up this expectation at a recent conference of the American Academy of Religion in Chicago, when he described those who voted for Mr. Obama as engaging in a "major symbolic act" that reflected the desire of Americans to heal their country's relations with the rest of the world. "He (Mr. Obama) is not just any American. He brings the capacity to get inside the cultures of many people."

Michael Lerner, a prominent American Jewish rabbi and editor of Tikkun magazine, echoed that sentiment when he told conference attendees that Mr. Obama represents the politics of hope versus the politics of fear. It was Mr. Obama's ability to "stay true to that message of hope" that would win him the election, says Mr. Lerner. "Obama needs to articulate ... a new approach to foreign policy: what we call the Strategy of Generosity."

Mr. Obama certainly appears to be as different from Mr. Bush "as Mars is from Venus," to borrow historian David Bercuson's phrase. But appearances don't always correlate to reality. Paul Cellucci, a former U.S. ambassador to Canada, said recently that an Obama presidency might be "a little bit of a danger for Canada." Mr. Cellucci was a Bush appointee, so the remark may have been partisan. But that doesn't necessarily invalidate the point, say scholars.

"Obama has come into power on the rhetoric of change and hope," says Michael Hart, a Carleton University professor of international relations. "Two years from now, people will wonder, 'what was it that convinced us he was the man who'd fix everything'?"

Barry Cooper, a political scientist at the University of Calgary, is also skeptical Mr. Obama will live up to the messianic hopes people have invested in him. "I think he's a confidence man, quite frankly. He has addressed badly some serious issues, but there's a huge number of issues that he's papered over with this business about hope."

Even those who think an Obama administration will be a positive change acknowledge that Canadians, like Americans, have invested the president-elect with expectations on which it will be difficult to deliver. "Hopes are well in excess of realization all across the board," says Derek Burney, a former Canadian ambassador to the United States. "The biggest fundamental challenge he will face is even coming close to meeting any of those expectations."

Nevertheless, others such as Paul Heinbecker, a former Canadian ambassador to the United Nations and Germany, argue Mr. Obama's election is a "signal that America is capable of serious change and of keeping faith with its vast promise."

"The world, including Canada, needs the United States to return to the astute, principled leadership it once provided," says Mr. Heinbecker, a Distinguished Fellow at the Centre for International Governance Innovation at Wilfrid Laurier University. "The world is more likely to accept that kind of leadership from someone who represents a break with the unpopular, exceptionalist, military-based, unilateral policies of the Bush administration."

Maybe so, but that still leaves the question whether Canadians' expectations of Mr. Obama are too high. His administration won't be subjected to the knee-jerk anti-Americanism that would have been directed at John McCain, if he'd won the election, but is it naive to assume Canada will benefit unequivocally from the new order in Washington? Mr. Obama may be a liberal and a Democrat, but he is also "a patriotic and mainstream American who will, quite simply, pursue American national interests -- as did George W. Bush -- albeit in a different way," says Mr. Bercuson. The realities of American national interests, says the University of Calgary historian, "will probably not mean a warm and cozy relationship with Canada."

- - -

During his campaign for the Democratic presidential nomination, Mr. Obama stirred concern in Canada on a number of issues. He said that if elected he would insist on renegotiating the North American Free Trade Agreement with Canada and Mexico, suggesting the United States would opt out of NAFTA if Canada and Mexico didn't agree to new labour and environmental standards. Was he serious, or was he pandering to American labour organizations and constituencies in industrial states? Should Ontario and Quebec be concerned?

Mr. Obama also referred to Canadian oil exports to the United States as "dirty, dwindling and dangerously expensive." Was this more pandering to the environmental lobby? Should Alberta and Saskatchewan worry?

To some degree, Mr. Obama's campaign rhetoric can be regarded as just that, particularly when it comes to Canadian oil. "There's no way on God's green earth that the Americans will turn off the tap," says Barry Cooper. However, renegotiating NAFTA is not out of the realm of possibility. The Democrats, who now dominate the U.S. Congress, tend to be more protectionist than Republicans. Many represent northeastern states that have lost manufacturing industries to foreign lands. Justified or not, the trade agreement has become, in Paul Heinbecker's words, "a metaphor for bad economic times." Mr. Obama will inevitably face pressure from a Democrat-controlled Congress, which has authority over American trade policy, to renegotiate the agreement. While much of the pressure would be directed toward Mexico, Canada would also be caught in the squeeze.

This was Mr. Cellucci's point: "There will be pressure on Barack Obama to ... open up NAFTA and make significant changes, I don't think that's in the U.S. interest; I don't think that's in Canadian interests."

It is "extremely unlikely" the United States would abandon NAFTA, says Mr. Heinbecker. "There are too many benefits from NAFTA, not least energy security, for the Americans to walk away from it." Still, Mr. Heinbecker acknowledges renegotiating NAFTA would likely result in some loss of trade and jobs for Canada. Canada, he says, would need "a lot of preparation and forethought" to ensure it benefits from any negotiations.

But then "forethought" should be the watchword for any Canadian government in dealing with the Obama administration, says Derek Burney, a senior strategic adviser for the law firm Ogilvy Renault, who played a central role in the NAFTA negotiations. "We can't go to Washington with a gimme list. We have to go with a list that says, 'this is as much in your interest as ours'."

He agrees Mr. Obama will be under pressure from labour groups and a protectionist-minded Congress to address domestic issues, especially the battered American economy. This presents a significant challenge for the Canadian government, which, he says, will only get a responsive hearing from the new U.S. administration if it offers ideas for solving problems of mutual concern -- everything from energy and the environment to trade and border security.

"You have to find a way of registering with an American administration through relevance in order to establish influence," Mr. Burney says. "Because Obama is going to be so overwhelmed by challenges -- an American president really has about six to nine months to show whether he's got the mettle for leadership or not -- it seems to me it would be almost easy for him to do something on his northern border, to show a sense of achievement that would give him momentum to deal with some of the bigger challenges out there."

Perhaps most importantly, Canada has to use its status as a historic ally and a major market for the United States, to persuade the Americans against their isolationist tendencies, says Mr. Burney. "If America retreats into itself, we're going to have a vacuum of power that's going to be very dangerous for the global situation," he says. "Canada can play a role in demonstrating how we can do things with the United States, but also demonstrating how we can be a constructive ally to the United States in some of the global challenges they'll be taking on."

That may be easier said than done. American presidents, including those Canadians admired, are not necessarily solicitous of Canadian interests. Despite the apparent friendship between Brian Mulroney and former president Ronald Reagan, it was second-tier bureaucrats in the Reagan administration who conducted free trade negotiations with their Canadian counterparts, Mr. Burney notes. Even relations between Liberal prime ministers and Democratic presidents have been frosty. Lyndon Johnson was so angered by Lester Pearson's criticism of American policy in Vietnam in the 1960s that when Mr. Pearson visited him he reportedly grabbed the prime minister by his lapels and yelled in his face, "you pissed on my rug!"

Relations between presidents and prime ministers have sometimes gone beyond name-calling. In the early 1960s, Canadians were as enthused about John Kennedy's Camelot-on-the-Potomac vision as they are today about Barack Obama's change-you-can-believe-in mantra. Many regarded prime minister John Diefenbaker as an out-of-date fuddy-duddy in his attachments to Canada's parliamentary traditions and British heritage. They adored Mr. Kennedy's youthfulness in the same way they now regard Mr. Obama as the "captain of cool," as one columnist recently put it. Would they have been so approving if they'd known of Mr. Kennedy's regime-change tactics to undermine Mr. Diefenbaker's government after the prime minister attempted to assert Canadian sovereignty in a way contrary to American preferences?

Mr. Diefenbaker was not anti-American. He admired president Dwight Eisenhower and accepted American leadership in the Cold War. But he still thought Canada was a sovereign nation -- "we are a power, not a puppet," he once said. He hesitated to accept American nuclear weapons on Canadian soil, much to the Americans' annoyance. Mr. Kennedy was also angered by Mr. Diefenbaker's hesitation in placing Canadian forces on high alert after the president announced the blockade of Cuba during the Cuban missile crisis in 1962.

Historians in recent years have pointed out how during this crisis U.S. ambassadors to Canada briefed Canadian journalists, business leaders, politicians and even military officers on the follies of Mr. Diefenbaker's opposition to nuclear weapons. During the federal election in 1962, Mr. Kennedy sent his friend, pollster Lou Harris, to advise Lester Pearson and the Liberals. They used the advice to reduce the Tories to a minority government.

Mr. Pearson, it seems, was willing to set aside concerns about Canadian sovereignty for the sake of power. In early 1963, he announced the Liberals would accept American nuclear weapons on Canadian soil. U.S. National Security Advisor McGeorge Bundy and the acting Secretary of State, George Ball, approved a state department press release that effectively accused the Canadian prime minister of lying. The Liberals, backed by the New Democrats, won a non-confidence vote in Parliament and forced another election. Once again Lou Harris provided the Liberals with state-of-the-art polling advice. Well-coached journalists attacked Mr. Diefenbaker like wolves bringing down an injured moose. The Liberals won a minority government, and shortly after taking office Mr. Pearson sent his external affairs minister, Paul Martin Sr., to tell the Americans, more or less, their warheads were welcome.

The lesson for Canadians was, and is, obvious: American presidents do not take kindly to unsupportive allies. This was true of Mr. Kennedy, and it will be true of President Obama, say scholars. "Obama will be looking out for American interests, however they are defined," says Barry Cooper. "Concern for Canadian sovereignty will be way down the list."

Michael Hart concurs. "No American president can avoid pursuing American national interests, which are not necessarily congruent with Canadian national interests."

The scholars argue that it would be prudent of Canadians to curb their enthusiasm for Mr. Obama, particularly given that their enthusiasm for the man is largely based on his charismatic appeal. Charismatic leaders, they say, can be both disappointing and dangerous.

Max Weber, the 19th-century German sociologist, defined charisma as "a certain quality in an individual personality by virtue of which he is set apart from ordinary men and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or qualities." Mr. Obama certain qualifies on this quality. As Guardian columnist Simon Jenkins puts it: "The anticipation that he will be a harbinger of peace, friendship and economic salvation is probably greater than for any American since Roosevelt." He casts himself as the agent of "change you can believe in." He promises to "begin the process of changing politics and our civic life."

Some have taken this rhetoric to cast Mr. Obama as a moral prophet. In the words of Rabbi Lerner: "Some people have told us that it's not fair to expect a political leader to have the clarity of a moral prophet. But we say the contrary: it's only when moral prophecy shapes public policy that America and indeed the entire word can be saved ..."

This is heady stuff, but it's also potentially dangerous, tainting Mr. Obama with a patina of demagoguery unsuitable to and dangerous for liberal democracy. Politics is not a matter of salvation and politicians are not saviours. Politics is the human response to the permanent frailties and limitations of human nature, our less-than-perfect method for dealing with the inherent conflicts of the human condition. In Max Weber's words, "politics is a strong and slow boring of hard boards." To believe there is a "process" for "changing politics" in the sense of ridding the world of conflict is to misunderstand the purpose of politics and to indulge in naive utopianism. Not only do charismatic politicians inevitably disappoint, but their disappointments foster impatience with the complexities and compromises of the liberal democratic system. "Changing politics" doesn't lead to salvation, but, all too often, promotes the kind of disorder that leads to authoritarian rule.

"Charismatic politicians are very often a disappointment because they don't bring a serious set of policy objectives that they want to pursue," says Mr. Hart. "The 'audacity of hope,' 'the change we can believe in.' Well, what is it?"

 
Part 2:

- - -

Good question. Commentators already speculate that the United States' enemies -- the Russians or Iranians, for example -- will test whether Mr. Obama's charisma has any substance. As Barry Cooper puts it: "You can't deal with the Russians with 'audacity of hope'."

That happened to another charismatic president, John Kennedy. When Soviet premier Nikita Khrushchev first met the president he concluded there was little substance to the man. Mr. Kennedy eventually faced down Mr. Khrushchev over Soviet efforts to install nuclear missiles in Cuba but, as Mr. Hart notes, he took the world to the brink of nuclear war in doing so. "We got as close to nuclear war as we ever did because the Russians thought he wasn't a serious man." Mr. Obama will face similar challenges, says Mr. Hart. "The Russians or somebody will test him in some way to see just what he's got."

It is also possible Mr. Obama will feel the need to prove himself. As Simon Jenkins says, a Democratic president cannot appear soft on terrorism. "Such is politics that the more liberal the man, the more illiberal he can feel compelled to behave ..."

Canadians might well curb their enthusiasm for Mr. Obama on this point alone. Except for the matter of timing, Mr. Obama's intention to wind down the American military presence in Iraq is little different from that of Mr. Bush. He has retreated from his willingness to "negotiate" with Iran over its nuclear ambitions. He appears to support bombing targets inside Pakistan to get at al-Queda terrorists. He has indicated he intends to go ahead with the U.S. missile defence program. And the president-elect also says he intends to prosecute the war in Afghanistan with even more vigour. Will Canadians be so enthusiastic about the man if he asks the federal government to keep Canada's soldiers in Afghanistan beyond the current 2011 exit date?

Canadians should also be cognizant of Mr. Obama's political past. He is by all accounts a conventional Democrat with a predilection to tax-and-spending policies and an interest in expanding the role of government, as well as an inclination to protectionist sentiment, as his notions of renegotiating NAFTA imply.

But there is a potentially positive side to having Mr. Obama as the American president that should not be ignored. Canadians' enthusiasm for Mr. Obama might well have subtle, if ironic, benefits for the Canadian psyche. Hostility toward the "other," as philosophers will tell you, is one way of defining who you are. Liberal ads during the federal election demonstrated this propensity. They may have intended to cast Conservative leader Stephen Harper as a Bush clone, but they also reeked of anti-Americanism. As David Bercuson observes, "This disdain for the U.S. president -- combined with that nasty streak of anti-Americanism that is an ever-present reality in left-of-centre Canadian politics -- has made linking Mr. Bush to any Conservative government initiative an effective tactic for both Liberals and New Democrats."

Indeed, asserting Canadian self-superiority by means of anti-Americanism is a psychological habit to which those on the left of the political spectrum are particularly prone. Mr. Obama will change this dynamic, but in ways the Left might find awkward, says Mr. Bercuson. "Those Canadians who deeply fear being labelled 'politically incorrect' will simply not subject President Obama to the type of personal invective that has become stock-in-trade for them when referring to the current president."

In other words, Mr. Obama's presidency presents something of a challenge to self-righteous Canadians. It will be difficult to indulge in anti-American sentiments if, or when, President Obama asks Canada for more troops in the war on terror, or throws up barriers to Canadian exports. How do you "hate those bastards" when their president is the kind of cosmopolitan, multicultural liberal Canadians are frequently told this country needs too? Therein lies the irony: President Obama might well force Canadians to confront the ugly side of their identity -- anti-Americanism.

Robert Sibley is a senior writer for the Citizen. His blog, Ideas & Consequences, can be read at ottawacitizen.com/blogs.

© The Ottawa Citizen 2008​


Sibley is almost certainly on target here. Obama is, at heart, a pretty conventional, old fashioned Democratic ward heeler and we, Canada, ain’t in his ward.

Obama is, also, a thoughtful American politician, bent upon re-election in 2012, so he will do everything he can, everything he must to advance America’s interests – and please remember Lord Palmerston’s wisdom when he said “Nations have no permanent friends or allies, they only have permanent interests.”

We must hope demand that our government advances our interests just as certainly as Obama will push America’s.

 
This opinion piece, reproduced under the Fair Dealing provisions (§29) of the Copyright Act from today’s Globe and Mail, belongs both here and in the 15 Oct 08: Challenges for the Next Canadian Government  thread:

http://www.theglobeandmail.com/servlet/story/LAC.20081110.RAGENDAMORGAN10/TPStory/Business/columnists
Time to nurture our trade relations, both old and new

GWYN MORGAN
Gwyn Morgan is the retired founding CEO of EnCana Corp.

November 10, 2008

Pollsters report that Barack Obama is much more popular among Canadians than in the country where he has been elected President with 52 per cent of the popular vote.

But after the adulation of Canadians turns to economic reality, will the Democratic Party's stranglehold on both the White House and Congress turn out to be good or bad for our country's economy? Unless the actions of Mr. Obama and his Congressional colleagues differ from their campaign rhetoric, Canadians are in for disappointment.

Trade with the United States accounts for three quarters of our international commerce. During both the presidential primary and election campaigns, Mr. Obama and his fellow Democrats blamed job losses in northern rust-belt states on imports of Canadian manufactured goods.

The President-elect also vowed to help reinvigorate the waning big union movement, whose No. 1 objective is to foster protectionist legislation. This would be worrying enough if the movement of goods and people across our common border wasn't already troubled by unwieldy anti-terrorism measures imposed by the Homeland Security Department bureaucracy.

Beyond that, an increasing array of regulatory and procedural measures have distorted the intent and spirit of NAFTA. Canada's forest products industry knows all too well the power of U.S. lumber producers to litigate and lobby for protectionist barriers. Our beef and pork producers are reeling from thinly disguised protectionist measures that require onerous documentation and separation of Canadian animals at U.S. feedlots and packing plants.

Much of the protectionist electioneering was based on the uninformed conclusion that our cross-border trade benefited Canada more than the United States. It is crucial that our federal, provincial and business leaders vigorously engage the White House and Capitol Hill, pointing out the enormous mutual benefits of our trade relationship. More than ever, in this time of global economic challenges, trade harmonization and security streamlining are essential to improving productivity and competitiveness in both nations. We should also firmly remind Americans that free trade underpins their most important and secure source of imported energy; including natural gas, oil and electricity.

While Mr. Harper and Mr. Obama may come from different shades of the political spectrum, there is no reason why a positive bond cannot be developed. The same early and earnest effort needs to be made between cabinet ministers and their U.S. counterparts. The objective shouldn't simply be damage control, but rather to advance trade harmonization and free up border gridlock.

And the dialogue must be between Canadians and Americans alone. Recent experience with the trilateral Security and Prosperity Partnership of North America has demonstrated the futility of trying to handle issues that are unique to our two nations within the NAFTA straightjacket.

The United States has very different concerns regarding the Mexican border, including illegal immigration, drug smuggling and much lower-cost labour. Looking back, a separate free trade agreement with each of the United States and Mexico would have been to Canada's advantage, but we must not let NAFTA be a barrier to bilateral trade discussions.

The bottom line is the new U.S. administration presents both challenge and opportunity for Canadians. But no matter how well our engagement efforts work out, it won't change the fact that the U.S. economy is in real trouble.

The Great Republic has become a debtor nation so many trillions of dollars in the hole that an extra digit had to be added to the debt clock in Times Square - and the clock's numbers don't include the many more trillions of dollars in guarantees on the debt of mortgage companies Fannie Mae and Freddie Mac, plus insurer AIG and the banks.

The personal debt of Americans is also at record levels, all of which portends a long, grinding payback period. This serves as a jolting reminder that Canada's dependency on the U.S. economy is just too great.

We need a major diversification of Canada's trading relationships, and what better place to look than to the world's largest and richest market. No, that's no longer the United States. The European Economic Union (EU) has grown to include 27 countries who share a powerful common market.

Canada and the EU share a rich history. Millions of Canadians are of European descent; we share similar values and are partners in global security.

The EU is Canada's second largest trading partner and our second largest source of foreign investment.

Moving Canada closer to Europe economically isn't just a pipe dream. For many years, the EU rejected our free trade overtures, but Canada and the EU have just announced the initiation of free trade talks. French President Nicolas Sarkozy, the current head of the EU, gave further impetus to the upcoming initiative while meeting with Prime Minister Harper at the recent Francophonie Summit in Quebec.

Achieving agreement won't be easy. EU negotiators have already warned that agreement will not be possible as long as Canadian provinces maintain non-tariff barriers between one another that are greater than between members of the EU.

There is no doubt about the urgency of engaging the new U.S. administration in the most positive and effective way. But as we look forward, Canadians also need to reduce both our dependency on the U.S. economy and our exposure to the unpredictable winds of U.S. trade policy. The long-hoped-for opportunity to strengthen our economic relationship with Europe is at hand. Provincial premiers need to join together with the Prime Minister in seizing this unprecedented opportunity to diversify our economic base and help create a new era of long-term prosperity.


While I agree that a deal with the EU will be beneficial – and I also agree that President Sarkozy may succeed where generations of Canadians have failed and force stupidly irresponsible provincial governments to reduce intranational trade barriers – I think we need to get aggressive in Asia. We have what China, India, Japan and South Korea need: resources. But we also want to sell partially processed resources (e.g. cut lumber rather than raw logs, and flour rather than wheat) and, above all we want to sell services and we want fair access to investment markets. Those things can be negotiated as part of free trade agreements.

 
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