Global Policy Forum

By Darren Yourk

Canadian companies will be eligible to bid on the second round of Iraq reconstruction contracts, U.S. President George W. Bush said Tuesday, shifting a policy that had originally drawn the ire of Prime Minister Paul Martin.

The two leaders released the details and spoke of a commitment to forge stronger ties between the two countries following a 45-minute breakfast meeting at the Summit of the Americas in Monterrey, Mexico. "They (Canada) want Iraq to succeed, they want Iraq to be free and they understand the stakes with having a free country..." Mr. Bush said. "Right now, they're eligible for sub-contracting bids in the first round of construction projects. In the second round, Canada will be eligible to bid."

In December, the United States said it would forbid Canada and other countries that did not send troops to help the U.S.-led war effort in Iraq from bidding on $18.6-billion (U.S.) worth of infrastructure rebuilding contracts. At the time, Mr. Martin called the policy "very difficult to fathom" and noted that Canada had pledged $300-million for Iraqi reconstruction and sent soldiers to work alongside U.S. forces in Afghanistan.

The Prime Minister seemed much happier with the new U.S. position on Tuesday. "I think that the breakthrough that was made was really quite significant," Mr. Martin told reporters. "... I very very much believe Canadian companies will bid and that they will be successful bidders." The policy shift was lauded by Canadian Manufacturers & Exporters (CME) -- the country's biggest trade association. "Tremendous is the best way to describe today's announcement because the real worry was that Canadian companies would be shut out of the bidding process entirely," said CME President and CEO, Perrin Beatty.

"There's no disputing that one of the most important bilateral relationships on the globe, the Canada-US relationship, has been going through a rocky period, but this sends a strong signal that Bush and Martin are committed to making the relationship work and that's good news for both Canadians and Americans."

The two leaders also promised Tuesday to work together on the shared problem of mad-cow disease. "This is an issue that is going to require close co-ordination between our two countries," Mr. Bush said. "We've got a lot of beef going across our border. You've got beef on the hoof and beef in the box and the cattle industry is very important to respective provinces and states.

"The best way to make sure that we're able to satisfy the consumers in our countries and around the world is very close co-ordination on regulation, on information and on the science."

"I'm confident we'll be able to assure those who buy Canadian and American beef that the product is safe." Agriculture Minister Bob Speller will meet with U.S. Agriculture Secretary Ann Veneman in Washington on Jan. 16 to continue to work on the mad-cow file.

There was an overall tone of co-operation and goodwill during the brief news conference Tuesday, with Mr. Bush calling the U.S.—Canada relationship "vital." "It is a relationship that is important for a lot of reasons," Mr. Bush said. "We share the same values: freedom and human dignity and treating people decently. I really look forward to working with the Prime Minister."

Mr. Martin echoed those sentiments, saying he felt very good about the first official meeting between the two men. "We share a continent, we share values and we share a perspective on what is the best thing for our people," he said. "Working together is really the way we're going to do the best things for our people." "I think we made a lot of progress. I feel good about the meeting and I feel very good about the relationship."

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