Reuters
April 21, 2008
Deborah Charles and Jeremy Pelofsky
NEW ORLEANS (Reuters) - With the U.S. election looming over their annual summit, North American leaders gathered Monday for largely symbolic meetings likely to be dominated by questions about free trade.
At the two-day summit, President Bush and his Canadian and Mexican counterparts are expected to defend the 14-year-old North American Free Trade Agreement, which has come under fire in the United States amid concerns that the country is in or headed to a recession.
Shortly after arriving, Bush said he chose New Orleans for the summit to celebrate the the "comeback of a great American city."
Bush's administration was lambasted for its poor response to the August 2005 Hurricane Katrina -- the worst natural disaster in U.S. history. Critics have said recovery has been slow in the city once known mainly for its jazz and lively night life but now marked by memories of deadly flooding.
"I wanted to send a clear signal to the people of my country that New Orleans is open for business, it's a good place to visit and that after the devastation of Katrina, it's become a hopeful city," Bush said at a ceremony to reopen the Mexican consulate, which was shut down in 2002 in a cost-cutting move.
Aside from showcasing the city, analysts expect few concrete results from the "Three Amigos" summit with Mexican President Felipe Calderon and Canadian Prime Minister Stephen Harper -- in part because Bush is leaving office in January.
"The political environment's not terribly conducive to any big progress," said Leonardo Martinez-Diaz, a Mexico expert at the Brookings Institution. "The Mexican president already knows that Bush can't deliver, given his lame-duck status."
"I think what's most important from the Mexican side is to get some assurances that what was negotiated in NAFTA will not be disturbed in any big way, regardless of what happens in the election."
Canada is the United States' largest trading partner and Mexico ranks third. Trade between the three countries last year totaled $930 billion and is expected to reach $1 trillion by the end of this year.
Canada and Mexico are the largest sources of imported energy to the United States, and Canada is the largest supplier of foreign oil.
QUESTIONS OVER NAFTA
Trade issues have been in the spotlight in the U.S. presidential race as Democrats Barack Obama and Hillary Clinton have appealed for labor backing by promising to renegotiate or even abandon the unpopular NAFTA, citing the loss of roughly 3 million U.S. manufacturing jobs since 2000.
Obama and Clinton are vying for the Democratic nomination with the winner facing Republican John McCain in the November presidential election to replace Bush. Their opposition to NAFTA has caused concern in Canada and Mexico.
"We believe the NAFTA, while not perfect, continues to work well for the continent and that it is important to have a balanced dialogue about its merits," said Maryscott Greenwood, executive director of the Canadian-American Business Council. "The current political debate tends to be more about broad economic anxiety concerning globalization, and less about the actual impact of the NAFTA."
U.S. Chamber of Commerce President Tom Donohue warned against reopening NAFTA for labor or environment issues because it could expose the United States to demands to renegotiate other parts on valuable commodities such as oil.
In their meetings, the three leaders will talk about the environment and ways to reduce greenhouse gas emissions. They are also expected to discuss regulatory cooperation; harmonizing energy efficiency standards and coordinating efforts to prevent unsafe food and products from entering North America. (Additional reporting by David Ljunggren; Editing by Doina Chiacu)