Posted: Thursday, 22 March 2007

Executive Summary

A decade after the North American Free Trade Agreement came into effect, the governments of Canada, the United States and Mexico agreed to develop a new regulatory framework for North America. The “Security and Prosperity Partnership” is a process of negotiation concerning ongoing economic and political integration in North America. These discussions are being held behind closed doors. Corporate executives are the only ones who are being consulted on the priorities for further cooperation in North America, while the security interests of the United States shape the boundaries of the discussion.

In this paper, I explain why a broad based agenda of regulatory reform should be of concern to the Canadian public. I situate the discussion in terms of a short history of North American integration and describe what is meant by “deep integration”. I go on to discuss the role of corporate executives in the Security and Prosperity Partnership and reflect on the economic interests behind it. I then turn to the customs and immigration issues arising, as well as the impact of the US security agenda on workers in Canada.

As social activists, we usually have our eyes on the laws that are proposed, passed, reformed or defeated in our respective legislatures. What the SPP reveals, is that government executives in North America are willing to co-operate to avoid legislative change and public debate. Democratic debate and decision is making way for privileged corporate access and new rules that undermine sovereignty and human rights.

The Canadian economy has become increasingly tied to the United States. The most recent trade figures from the US indicate how badly out of balance the U.S economy is. Nevertheless, since 9-11, Canadian investors with powerful economic interests in closer integration with the United States have refocused their efforts, but now have cloaked them in the language of national security. Given the context of widespread opposition within civil society and among progressive political parties, a bold new treaty on customs union would never survive the opposition. Proponents of ongoing liberalisation have moved underground to promote what is known as “deeper integration” across North America.

“Deep integration” refers to the idea is that the more governments harmonize regulations across borders, the “deeper” economic integration has been achieved. It is not just about policy harmonization in North America. It is policy harmonization that increasingly opens social life across the continent to the discipline of the market. So, in this respect it is about increasing the power of corporations and ongoing de-regulation.

However, the current project of regulatory reform is also meant to impose a new layer of regulations on workers, citizens and residents of North America. In this sense then, deep integration is also about re-regulation and a much stronger role for the state.

The general goal of the SPP is to increase cooperation on economic and security issues without changing a single law. In the first year of the SPP, governments established Ministerial-led working groups. Government leaders announced the formation of the “North American Competitiveness Council” (NACC) to advise them. Membership on the NACC is comprised of chief executive officers from large companies in Canada, the United States and Mexico, as well as key leaders of business organizations.

The SPP is not a signed treaty, and it has never been brought before the legislatures of North America for discussion and review. It is driven by the executive levels of government in consultation with the business community, but excludes the legislatures and parliamentary oversight. No parliamentary committee is holding hearings on the work of the SPP. It is a process that depends upon working groups within the public service of all three countries, but excludes public consultation. The CEOs, however, have unfettered access to this process.

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