With U.S. President George Bush's replacement officially waiting in the wings, Ottawa has opened up about its plans to seek a joint climate-change plan with president-elect Barack Obama.
Foreign Affairs Minister Lawrence Cannon confirmed the government's plans to The Canadian Press on Wednesday, one day after Obama was elected to office.
He said Canadian officials hope to begin working with their U.S. counterparts within weeks.
Officials told CP the Conservatives had been waiting for Bush's replacement to be elected before they began working with the incoming president to design an integrated carbon market.
Cannon said the efforts will be a top priority for Environment Minister Jim Prentice, noting that Obama's climate change policies are similar to Canada's in many ways.
"We will be able to tackle this file on the North American level -- on a continental level," Cannon told CP.
"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.
Prentice later said: "If you look at the targets that President-elect has spoken about in terms of greenhouse gases they are surprisingly close to the Canadian targets."
Obama's stated goal is to reduce greenhouse gas emissions to 1990 levels by 2020.
Ottawa's plan would reduce the rates by three per cent from 1990 levels in the same period.
Such a continent-wide plan to deal with climate change by controlling greenhouse gas emissions would provide uniformity and supplant the patchwork of plans that have been implemented in various states and provinces.
"We really need to ensure that the standards, the full economical, fuel efficient standards that we have in North America are harmonized," Prentice said.
International Trade Minister Stockwell Day said Obama is "tracking in the same direction" as Canada and they would work together on all manner of trade issues.
"He's concerned about the environmental picture related to fossil fuels and we're the only federal government in North America that has actually legislated a reduction of greenhouse gases by 20 per cent -- he's talked about doing the same," Day said.
"There are a lot of similarities between the positions put forward and our position," Cannon said.
"This augurs well for a North American approach on environmental issues -- specifically on climate change."
'Dirty' oil
During the campaign, Obama said he would reduce U.S. dependency on foreign "dirty, dwindling, and dangerously expensive" oil -- prompting fears that an Obama administration would tighten the U.S. border to Canada's oilsands products.
Day said the federal government has watched the election campaign closely and he believes Obama is thinking in a "North American context," and Canada may not be included in his criticism of foreign oil.
"I think he recognizes and understands that Canada's reserves of oil are probably the second largest in the world and he also recognizes there are environmental issues, so with a combination of those two things I think it's going to work out favourably for us," Day said.
Vital trade relations
Day pointed out that 400,000 Canadians and Americans cross the border every day, and $1.7 billion in trade flows between the two nations on a daily basis.
Obama is sure to recognize the value of that relationship to both Americans and Canadians, and treat it respectfully, Day suggested.
Besides Obama's environmental concerns with the North American Free Trade Agreement, Day said his criticism of the trade pact has largely focused on labour issues which appear to be related to Mexico, rather than Canada.
"I think he's tracking in the same direction so we'll watch and wait. We'll work with the Americans and the new administration and on some of these areas I think we track sort of in the same direction, trending on the same lines," Day said.
Sherry Cooper, chief economist for BMO Capital Markets, agreed Obama is unlikely to introduce sweeping economic policies that will harm Canada.
In a news release, she said changes Obama might make to NAFTA would impact Mexico more than Canada "because they will deal with the assurance of environmental and labour practices already in force in Canada."
Cooper also said Obama's willingness to support the major North American automakers could benefit Canada, as could his economic stimulus plan.
Obama's first major decision as president-elect should ease fears that he may become more protectionist via NAFTA.
Obama has offered the job of White House Chief of Staff to Congressman Rahm Emanuel, according to Democratic insiders.
Emanuel was a key proponent of NAFTA during his time as an aide in the Clinton White House.
