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Jane Harman
Director, President, and CEO
Frederic V. Malek
Chairman of the Board of Trustees
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3 19 things to watch:
CANADA
1
The Weakening U.S. Alliance
The new U.S. policy of unilateralism in econom- of the relationship remain as strong as ever –
ic and foreign relations is threatening to break especially technical cooperation at the working
or significantly reconfigure traditional alliances. level and military and security relationships
One of the first casualties is the U.S.-Canada – Canadians are feeling increasingly alienated
relationship. Some of the major challenges of from the United States. They are looking to fill
the past two years include the public campaign the gap with alliances in Europe, Asia, and the
against NAFTA, national security tariffs levied Americas. As the largest buyer of U.S. exports,
against Canada, and most recently, Canada’s and the primary buffer against military attacks
arrest of a Huawei official at the request of across the Arctic, the loss of Canada could sig-
U.S. law enforcement (which the White House nificantly affect U.S. prosperity and well-being.
subsequently disavowed). While some aspects
With the United States-Mexico-Canada Agreement, oil is sold to the United States (at a significant
or USMCA, in crucial ratification stages, there are discount). Reliable, low-cost energy is a source
numerous dynamics – foreign and domestic, polit- of strength for both countries, but secure supply
ical and economic – that could derail the process. chains are affected by myriad regulatory, infrastruc-
The Canada-U.S. energy relationship, similar to the ture, and security issues. These concerns will be a
trade relationship, is characterized by a high degree focus of attention in 2019 and beyond.
of integration. Canada is the United States’ largest
source of imported oil and 99% of Canadian export
The 5,500-mile U.S.-Canadian border is not fortified ranked by number of U.S. passengers, is, in fact,
with barbed wire and bricks, but neither is it “unde- Toronto’s Pearson Airport. Beyond cooperative
fended,” as some believe. Rather, the U.S. northern border security, the U.S. and Canada have shared
border exemplifies a global best practice of coop- interests in the defense of the North America, from
erative border management. Changing threats and synergies in law enforcement and cybersecurity
technologies demand constant upgrades to border to modernization of the 60-year-old NORAD joint
security. At the same time, more than a million command. What will the new year have in store for
dollars in two-way trade crosses the border every cooperation across the dividing line?
minute, and the fourth-largest U.S. airport, when