June 27, 2003

How business can prosper in U.S. The following article is excerpted from the 26 June 2003
edition of the “Toronto Star”.

So, all is forgiven.

In a recent speech to the Quebec and New York Chambers of Commerce, U.S. Ambassador Paul Cellucci told companies that relations between Canada and the United States are "back to normal."

Canadian executives, however, know that good fences don't make good neighbours. If cross-border trade is to continue to thrive, Canadian executives cannot rely on their politicians alone. They have a responsibility to their shareholders to get involved.

Here are five steps Canadian executives can take to ensure their business continues to prosper in the United States.

Recognize that the United States has changed Since 9/11, American politicians and citizens have become intensely concerned about their security. Americans now recognize they are targets of terrorism, and will continue to be for the foreseeable future. By ignoring this fact,
Canadians and Canadian businesses appear insensitive and out-of-touch.

To continue to do business successfully in the United States, Canadian executives must appreciate this sense of vulnerability and the resulting fixation with security and accept both as fundamental elements of American attitudes….

Assess the security of your business Americans expect as much from the Canadian private sector as they do from the Canadian government. No matter the industry and no matter how beneficial to the United States it may be, a reputation for weak security enforcement will hurt Canadian companies.

Canadian executives must identify the security dimension of their operations, address any weaknesses and closely monitor the almost daily changes in U.S. security requirements and standards. Whenever possible, Canadian companies must be "first" on security.

If Canadian business appears to be less than enthusiastic in identifying and remedying security gaps then they will be bypassed in favour of those who are ahead of the curve, those
who "get it."

Get involved. Stay involved In American politics, horse-trading is common and an issue
is never over.

A president will only try to resolve a trade dispute when he has a good reason to expend political capital. Surely we have learned these lessons in spades on softwood lumber.

As a result, Canadian executives cannot resign themselves to peering over the fence from time to time. They must monitor events, receive expert advice, have local representation and
protect their interests at all times.

When it comes to security, the American private sector is acting on all fronts to demonstrate that it understands what is expected of it and is wasting no time in developing secure supply chains for food, energy, packaging and services. Canadian companies must be a part of this effort.

Identify your U.S. friends and foes The reality of being a Canadian company is that you cannot protect your interests in the U.S. without good American friends. The most obvious are the businesses that benefit from your product, service or operations.

But there are other constituencies that can be equally as powerful politically — American unions, employees, environmentalists or even community-based organizations. The more important the U.S. is to your profitability, the more politically engaged you must be at all levels —  locally, statewide and in Washington, D.C. Don't be surprised if friendships are fleeting. In American politics, alliances are made and dissolved depending on the issue…..

Increase awareness in the United States about your security commitment
     

Security, not the economy, is the top priority of Americans. Bringing attention to your efforts to improve the security of your operations will not be considered in bad taste.

On the contrary, Americans will see it as a sign that you understand their situation and that you know what is required to continue doing business in the United States. It's what they want to hear. Leave references to the "greatest trade relationship" and "longest undefended border" to the textbooks. When Canadians are seen to understand the importance of security, then Canadian businesses will be seen as natural suppliers of goods and services….

Fortunately, Canadians came to accept that a fenceless economy was not a threat to their sovereignty. It is now up to Canadian businesses to convince Americans that a fenceless
economy is not a threat to their security.

Only then will things be "back to normal".