<http://online.wsj.com/article_print/0,,SB111154136476287187,00.html>

The Wall Street Journal


 March 23, 2005

 COMMENTARY


North America the Beautiful

By JOHN P. MANLEY, PEDRO ASPE and WILLIAM F. WELD
March 23, 2005; Page A14


When the leaders of Canada, Mexico and the United States meet for a summit
in Texas today, they will represent countries that together face growing
challenges to their economic competitiveness and security. In the 12 years
since the landmark North American Free Trade Agreement was signed, much has
changed. Nafta revolutionized trade in North America, helping to unlock our
region's economic potential. But meanwhile, China and India have become
increasingly integrated into the global market, the European Union has
expanded to 25 nations, and terrorist and criminal activity have
underscored North America's vulnerability.

Deepening the integration of our three countries promises great benefits
for our citizens. But as the September 11 attacks showed, integration is
neither inevitable nor irreversible. We cannot afford to stand still or to
take one another for granted.

To make North America more competitive and secure, the three leaders should
announce a plan to establish a North American security and economic
community by 2010. The aim of this community would be to guarantee a free,
safe, just and prosperous North America. The boundaries of the community
would be defined by a common external tariff and an outer security
perimeter, within which the movement of people and products would be legal,
orderly and secure. To meet these objectives, three broad challenges must
be addressed:

The first challenge is security, a precondition for growing our economies.
We learned after September 11 that without effective security cooperation
among our three countries, our commercial relationships suffer and our
freedoms and quality of life are affected. The three leaders meeting in
Texas should set the goal to establish a common security perimeter for
North America that would give a terrorist trying to penetrate our borders
an equally hard time no matter which country he tried to enter first. This
would require far-reaching changes in our border patrol, including
harmonizing visa and asylum regulations, synchronizing entry and exit
screening and tracking procedures, fully sharing data on the exit and entry
of foreign nationals, and jointly inspecting container traffic.

Our second major shared challenge is our regional economic competitiveness.
Over the last decade, the pace of economic integration within North America
has outstripped the capacity of the Nafta framework, even as global
competitive pressures have grown. Our three governments need to remove
restraints on our ability to compete, including adopting a common external
tariff and entering into negotiations to find a joint approach to unfair
and anti-competitive trade practices -- like dumping -- which have had a
toxic effect on our relations. We also need to make travel within North
America easier and more secure. A North American Border Pass with biometric
identifiers would speed travel within our region so that border officials
can focus on genuine threats.

Our third challenge is to address the disparities in economic development
within North America, which threaten us all. Trade and investment flows on
the continent have increased dramatically, but the development gap between
Mexico and its two northern neighbors has widened. Low wages and lack of
economic opportunity in parts of Mexico stimulate undocumented immigration,
and contribute to human suffering that can sometimes translate into
violence. Mexico must take steps to attract investment and accelerate
growth. At the same time, the U.S. and Canada, as a matter of their own
national interest, should assist by establishing a North American
Investment Fund to create infrastructure linking the poorer parts of Mexico
to the markets of the north.

To meet these challenges, we need regular summit meetings like this month's
gathering in Texas. There is no better way to demonstrate to our citizens
the importance of our continental partnership than to have the American and
Mexican presidents and the Canadian prime minister meet at least annually
to discuss major issues, agree on shared priorities and provide energy and
momentum to the North American agenda.

It is time to get serious about North America. Today's summit in Texas is
the place to start.

Mr. Manley is the former Canadian deputy prime minister and finance
minister. Mr. Aspe is the former finance minister of Mexico. Mr. Weld is
the former governor of Massachusetts and assistant U.S. attorney general.



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