[Weekly Compilation of Presidential Documents Volume 43, Number 34 (Monday, August 27, 2007)]
[Pages 1085-1097]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's News Conference With Prime Minister Stephen Harper of 
Canada and President Felipe de Jesus Calderon Hinojosa of Mexico in 
Montebello, Canada

August 21, 2007

    Prime Minister Harper. Might I, first and foremost, thank all the 
people here and the citizens of Montebello for giving such a warm Quebec 
welcome. You are quite right to be proud of your beautiful Montebello 
manoir and the area.
    As the leaders of the three countries, between--and our discussions 
between President Bush and myself were very cordial, constructive. Our 
three countries maintain peaceful, productive relations and give great 
contributions to our people. It is part and parcel of our commitment to 
democracy, free market, NAFTA, and the equality of chances to all 
citizens.
    This is a unique moment to look at the individual aspects that we 
could look at and the challenges that we have to face. We agreed to 
discuss the protection of the consumer and looking at the nonsecure 
products entering the nations, in particular those going to our 
children.
    We also recognize the fact that to find practical, pragmatic 
solutions to our mutual environmental challenges, our countries are 
working to find our own sustainable energy and to find national 
standards on energy efficiency.
    Finally--and this is particularly important for Canada--we realize 
that border security must not threaten the friendly relations that we 
have. We undertook agreements on cooperation, standards, regulations, 
pandemia, intellectual property, and research in the energy field. In 
the framework of this summit, we met the North American Competitiveness 
Council. Their leaders provided us with valuable information on how we 
could exploit our partnership in the field of security and prosperity to 
strengthen our economies and to create good jobs here in North America.
    Our discussions did not merely deal with North America. We also 
discussed a number of other international and hemispheric questions: 
climate change and to the next meeting of the Middle East discussions, 
where our countries are defending democracy and freedom and protecting 
the have-nots.
    This summit enabled us to discuss our singular bilateral 
discussions. President Bush and myself met yesterday afternoon. We 
discussed a number of subjects, in particular our joint commitment to 
have a secure border that shall remain open to goods and services and to 
the interaction between our respective citizens.
    President Calderon and myself also had a meeting yesterday evening, 
and I would like to thank President Calderon and his wife,

[[Page 1086]]

Margarita, and their children, Maria, Felipe, for having passed a 
wonderful time with us last weekend. We understand that you have had to 
shorten your stay due to the consequences of Hurricane Dean on your 
country. I sincerely regret the terrible aspect of this Hurricane Dean 
on Mexico, but I understand the concern, that the Mexican authorities 
have assisted in evacuating a Canadian citizen.
    We have also been able to arrange our agenda yesterday to discuss 
important matters for our respective nations. We were able to discuss a 
number of different matters and the flourishing development of trade 
between our two countries and that we shall pursue in the future, 
Canada, United States, and Mexico, our good neighbors and good friends.
    As sovereign nations in our modern world, we are not merely 
independent but also interdependent. And we are determined to cooperate 
for our mutual security, our continued economic growth, and the 
improvement of our North American relations are unique in the world.

[At this point, Prime Minister Harper continued in English.]

    ----the staff here and the people of Montebello for their warm 
Quebecois hospitality. You have every reason to be proud of this 
magnificent resort and this beautiful region.
    As host of this year's North American leaders summit, it's my 
responsibility and pleasure to report that the discussions between 
Presidents Bush and Calderon and myself were as cordial as they were 
constructive. Our three countries share peaceful and productive 
relations that are of considerable benefit to the people of our 
respective nations. These relations are rooted in our common commitment 
to democracy, free and open markets through NAFTA, and equal opportunity 
for all of our citizens. This week's summit has provided an opportunity 
to share individual perspectives and to take stock of the challenges 
that we face together.
    We agreed to work together on consumer protection. We have to 
identify and stop unsafe goods from entering our country, especially 
those designed for our children. We also agreed on the need for 
practical solutions to our mutual environmental challenges. Our 
countries are already working together to develop clean and sustainable 
energy, and we're cooperating on national fuel efficiency standards.
    Finally--and this is especially important for Canada--we agreed that 
border security measures, critical as they are, cannot threaten the 
bonds of friendship or commerce between us.
    Over the past year, we've achieved agreements on regulatory 
cooperation, pandemics, intellectual property, and research in energy. 
As part of our summit, we also met with the North American 
Competitiveness Council. The Council's business leaders have provided us 
with good, practical advice on how we can build our Security and 
Prosperity Partnership to strengthen our economies and create good jobs 
right here in North America.
    But our discussions were not focused exclusively on North America. 
We also discussed a range of international and hemispheric issues, from 
climate change to the upcoming APEC meetings, from the Middle East to 
Haiti, where all three of our countries are working to advance freedom, 
democracy, and development for the most impoverished people.
    Moreover, the summit provided opportunities for one-on-one 
discussions about our unique bilateral relationships. President Bush and 
I met yesterday afternoon. We discussed several matters, including our 
joint commitment to a secure border that remains open to the exchange of 
goods and services and the interaction of our people.
    President Calderon and I met last night. First, let me take the 
opportunity to thank the President, his wife, Margarita, and their 
children, Maria, Felipe, and Juan Pablo, for spending some time this 
past weekend with our family. I understand you're cutting your visit 
short, given the impact of Hurricane Dean on your country. I regret the 
cost of this terrible natural disaster. At the same time, we appreciate 
the efforts of the Mexican authorities to secure the evacuation of 
Canadian citizens.
    I'm grateful we were able to arrange our schedules yesterday to meet 
and discuss matters formally before your departure. We had

[[Page 1087]]

the opportunity to discuss many issues related to the growing 
relationship between Canada and Mexico that we're going to lead forward 
together.
    Canada, the United States, and Mexico are good neighbors and good 
friends. As sovereign countries in the modern world, we are both 
independent and interdependent. And we're committed to working together 
on mutual security, continued economic growth, and expanding our unique 
North American relationship.
    President Bush.
    President Bush. Thank you, Prime Minister. Thanks for having us 
here. I too want to thank the good folks of Montebello for their 
wonderful hospitality. The food was good; the hospitality was warm. You 
picked a great place to come.
    I express my country's concerns for the citizens whose lives will be 
affected by Hurricane Dean. I respect the fact that President Calderon 
has decided to get back to Mexico as quickly as possible in a safe way. 
I want you to know that U.S. Agencies are in close touch with the proper 
Mexican authorities, and if you so desire help, we stand ready to help. 
The American people care a lot about the human condition in our 
neighborhood, and when we see human suffering, we want to do what we can 
to help alleviate that. So we wish you all the--[inaudible].
    These meetings are--I'm not going to try to reiterate what Stephen 
said. He went through the list of the meetings. And he's a--he's right, 
that we talked about a lot of issues. I just want to give you the spirit 
of the discussions and why I think they're important.
    It's in our people's interests that Canada and Mexico work closely 
together. In other words, there's a good reason why our leaders should 
come together on a regular basis. First reason why is to figure out ways 
to continue to enhance prosperity. It's in our interests that the 
Canadian lifestyle be as strong as it is, and it's in our interests that 
prosperity spread to Mexico. If you're a U.S. citizen, you want people 
that live close to you to be prosperous. The more prosperity there is in 
your neighborhood, the more hopeful your neighborhood is.
    NAFTA, which has created a lot of political controversy in our 
respective countries, has yielded prosperity. Since NAFTA came to be, 
trade between our respective countries has grown from $293 billion a 
year to $883 billion a year. Now, for some, those are just numbers, but 
for many, it's improved wages and a better lifestyle and more hope. And 
the question that we're faced with is, how do we continue to enhance 
prosperity so the average citizen understands the benefits of three 
countries working together? And I think we made some good progress 
toward eliminating barriers and toward harmonizing regulations to a 
point where more prosperity will come to be.
    And we discussed a lot of other issues. We discussed bilateral 
issues. Stephen and I talked about border issues. Of course, Felipe 
Calderon and I talked about border issues and migration. These are 
complicated issues, but they're issues that we can work out in good 
spirit as friends.
    One reason one meets is to reconfirm friendships, is to make sure 
that not only at the leaders' level is there conversations taking place 
that are friendly but that that spirit translates throughout our 
governments. And I think we've accomplished that objective today.
    We also talked, as Stephen mentioned, about international issues, 
issues of--concerning South America or the Middle East. These are 
meaningful discussions. I'm glad I came, and I'm looking forward to 
hosting them next year. Matter of fact, it's in the interests of our 
countries that we have these meetings on an annual basis and then have 
working groups follow through on the discussion items that--during our 
meetings with the business leaders or our own Cabinet Secretaries.
    And so thanks for having me. It's been worthwhile. I appreciate it.
    Prime Minister Harper. Senor Calderon.
    President Calderon. Gracias. Thank you, Prime Minister Harper and 
President Bush. In the first place, I would like to thank very 
specifically--I would like to thank you for the solidarity, the 
understanding, and the support that I have received from you in order 
to, well, adjust my schedule to exhaust pending matters and allow me to 
return in

[[Page 1088]]

good time in order to personally tend to the emergency situation that we 
have to face in the Yucatan Peninsula.
    Your understanding and support is also accompanied by the offers of 
help and solidarity to the victims of this national disaster. So far--
well, it would be too early to assess the scope of the damages. So far 
there have been no fatal victims. We can't be sure yet, but we are 
monitoring the situation every minute, monitoring the hurricane. And as 
a matter of fact, I'm returning to Yucatan right away, as soon as my 
aircraft can land, and supervise the rescue missions.
    I would also like to thank very sincerely--thank you for the 
hospitality and for the human warmth, for the very welcoming attitude of 
Mr. Harper's family. And I do value this. It was a marvelous weekend for 
my family, such a typically Canadian place--typically, Canadian places 
are amongst the most beautiful in the world. And I would like to thank 
your wife, Laureen, and your children for your offer to spend this time 
with my family, with my wife and with my children. And I hope I'll be 
able to return your very nice present in Mexico.
    Now, this meeting allows me to reenforce the conviction that North 
America as a region still has not developed the enormous potential it 
has. And I'm more convinced about this today than ever before, that it 
has to be developed. There's no doubt that the globalization process 
that we are currently experiencing is definitely pressuring throughout 
competitiveness of our countries--and not only countries but the 
competitiveness of the countries that have joined into regions.
    Now, Canada, U.S., and Mexico have to act together in order not only 
to improve the quality of life of our people but also to prevent the 
vast integration process that we've seen in other parts of the world--
Asia, Europe, very specifically. We don't want this to displace our 
producers and displace opportunities for our consumers.
    Now, through working groups that we've established through the 
opinions of the businessmen of all three countries and their 
recommendations to our respective governments, it's clear to me that 
there's an enormous agenda that has to be developed, carried out. So I 
believe that we must relaunch in a stronger way the strength of the 
relationship between the three countries of North America. That is to 
say that each country, each government is facing within their own public 
opinion--now particularly in Mexico, maybe in the U.S.--they're 
encountering resistance in relation to one or another aspect--
investments, immigration, border crossings, and regulatory aspects.
    And all these matters, which most of them are covered by the 
recommendations of the businessmen that we met, they've come to stand 
still. And this is a result of the concerns in each country, obstacles 
to the economic integration of our region. I believe we should reassess, 
or we should have our people reassess what all this means to the common 
citizen, the region; what it means to the consumers to have better 
prices and better quality in the products they consume; also, in what it 
represents for companies to have access to commodities that are more 
efficient, more productive, better quality, and better priced; also, 
what it represents to our workers to have available work, thanks to the 
fact that North America can be a fully integrated region.
    Now, at the same time, there are complementary characteristics 
between the three countries. And this has got to be very specifically 
addressed in order to leverage the situation in this new century of 
globalization.
    And we agreed also to prioritize certain issues that have been 
followed up on. For example, when it comes to regional competitiveness, 
it's quite clear that this is a very important priority. Also, the 
border area issue--we all want secure and also efficient borders, 
borders that will allow the border crossing of those who build, who 
contribute, and of course, prevent border crossings to those that damage 
our societies: organized crime; drug trafficking; all the trade in 
illegal goods.
    Also, we talked about sustainable development and the challenges 
faced by countries, by our region, and by humanity as a whole. And so we 
talked about our common purpose to find reliable alternatives that will 
allow us, on the one hand, to preserve the environment, and at the same 
time, they will not force us to detain or stop our development

[[Page 1089]]

and thereby have an impact on the prosperity of our people.
    We also talked about security. This is a topic that concerns us all, 
but as President Bush said, we talked about prosperity. And I believe 
that this meeting--in my case, it's my first meeting, the first meeting 
I'm participating in--I think this meeting could be the beginning of a 
new age in the framework of the relationship of the three countries, 
and--particularly if we relaunch the trade exchange and also if we are 
able to take advantage of our potential.
    I also thank President Bush for his invitation to come to Texas next 
year in order to continue with these talks. And also, Mexico is 
interested in hosting the meeting in 2009 in my beloved, dear, beautiful 
country.
    Therefore, the issues were multifarious, and we took advantage of 
the time we had, although it was reduced because of this emergency 
situation that we're facing. I'm very happy that the environment within 
which we worked was very positive, very constructive on the part of 
everyone in attendance. And we hope that we'll be able to follow up on 
all the commitments, on the priorities that we've established, and on 
the recommendations that we've received from the business sector.
    Thank you very much, Prime Minister Harper, for your hospitality. 
Thank you to the Canadian people and the people of Quebec for your 
hospitality and to the staff of this wonderful place in Montebello that 
treated us so generously. And well, we will be at your disposal when you 
come to us.
    Moderator. [Inaudible]--the press, good afternoon. We'll begin with 
the press conference. And just a reminder, it's one question per 
reporter. We will start with Ben Feller, Associated Press.

Progress in Iraq/Hurricane Dean

    Q. Thank you all. Mr. President, yesterday, Senator Levin, chairman 
of the Armed Services Committee, said that the Iraqi Parliament ought to 
oust Prime Minister Maliki and his Government for being politically 
unable to deliver political unity there, for utterly failing on that 
point. I'm wondering what your reaction is to Senator Levin's comment 
and whether you think Maliki has lost credibility.
    And if I may, President Calderon----
    Moderator. I just ask that you limit yourself to one question, 
please.
    Q. I'm just wondering the assessment of the damage in your country, 
the hurricane damage.
    President Bush. The way I view Iraq is from the security perspective 
and a political perspective. I made a decision to send more troops into 
Iraq to provide enough security for reconciliation to have a time to 
take place. It appears to me--and I certainly don't want to prejudge 
General David Petraeus's report back home--but there is some progress 
being made. In other words, one aspect of my decision is working.
    There are two types of political reconciliation that can take place 
in a new democracy. One is from the top down, and one is from the bottom 
up. Clearly, the Iraqi Government has got to do more through its 
Parliament to help heal the wounds of years of--having lived years under 
a tyrant, see. It's not easy to go from a tyrannical society where the 
tyrant brutalized his people and created deep suspicions into one in 
which people are willing to work more closely together.
    The Iraqi people made a great step toward reconciliation when they 
passed the most modern Constitution in the Middle East, and now their 
Government has got to perform. And I think there's a certain level of 
frustration with the leadership in general, inability to work--to come 
together to get, for example, an oil revenue law passed or Provincial 
elections.
    On the other hand, I do want to point out that the Iraqi Parliament 
has met and passed 60 different pieces of legislation. They do have a 
budgeting process that is in the process of distributing a significant 
amount of money from the central Government to the Provincial 
governments, and the money they're distributing is oil revenues. So 
there may not be an oil revenue distribution law, but there's oil 
revenues being distributed.
    There's a bottom-up reconciliation taking place. It's noticeable and 
tangible and real, where people at the grassroots level are sick and 
tired of the violence, sick and tired of the radicalism, and they want a 
better life.

[[Page 1090]]

And they're beginning to reject the extremists that have the desire to 
have a safe haven, for example, from which to launch further attacks on 
America. In other words, there's a process taking place. And the 
fundamental question is, will the Government respond to the demands of 
the people? And if the Government doesn't demand--respond to the demands 
of the people, they will replace the Government. That's up to the Iraqis 
to make that decision, not American politicians. The Iraqis will decide. 
They have decided they want a constitution; they have elected members to 
their Parliament; and they will make the decisions, just like 
democracies do.
    And the question that we have to face in America is, is it worth it? 
Does it matter whether or not this young democracy survives? Is it in 
our national interests that this difficult experiment with democracy in 
the Middle East work? And I've come to the conclusion that it is. It's 
in our interests because a failed Iraq could easily yield a safe haven 
from which the extremists and radicals who once attacked us could attack 
us again. A failed Iraq would become a recruiting tool for the very same 
people that still want to attack America. And so it's in our interests.
    I told you the other day at a press conference--I don't know if you 
were there or not--but if you don't believe it's in American interests 
to be there, you won't find any political reconciliation that is worth 
defending. If you do think it's in our interests, our security 
interests, then you'll be able to see political reconciliation taking 
place, some at the top and some at the bottom.
    Now, Ambassador Crocker and General Petraeus will be coming back to 
brief the Congress in about a month's time, and I'm looking forward to 
hearing their briefing. And I would hope that Members of Congress from 
both political parties listen very carefully to the report they bring 
back, as we all make decisions about what's best for our national 
security in regards to this one theater in the war against the 
extremists and radicals.
    President Calderon. What I can tell you, as you are well aware, 
Hurricane Dean touched down in Mexico north of Chetumal, which is the 
State of Quintana Roo, which is on the borders with Belize, with winds 
of 250 and gusts of winds beyond 350 k. It was a category 5 hurricane; 
that is the most dangerous. And the initial reports I have, the most 
important is, until today, but I've not discarded it, but there has been 
no loss of human life. We still have to know what happened in the more 
isolated communities in that area.
    Our authorities are all over that area, the civil protection area. 
People are there who are experts in dealing with hurricane matters. 
There was a power outage to Chetumal, but we have checked with the 
energy authorities of the Federal level, that power outage will be 
repaired in the coming hours, and possibly it is.
    The hurricane, fortunately, did not go through the main tourist 
areas--Cancun, Riviera Maya. And the daily routine activities in those 
cities are being reestablished. And they had major flooding or incoming 
tidal waves, shall we say. But everything has recovered.
    I went over the more poor Mayan areas, and I have a great deal of 
concern for the housing and the lack of services in that general area 
for the indigenous people there. And that will be the main area of 
concern for us and activities.
    It is now going to Campeche, and we have other concerns, insofar as 
that is concerned. We have logistical support of the resistance or the 
maintenance of electrical lines that provide energy throughout the 
Yucatan Peninsula. We have--in Merida, we have hydroelectric plants that 
can come in on an emergency.
    The layout of the Campeche State, which is a very low level--it is 
almost at sea level. And there could be a wave increase in height in the 
tide that may bring about some flooding and might create more 
difficulties that will be more difficult to resolve.
    We are then awaiting that Hurricane Dean will enter the Campeche 
area, where the main oil production occurs in Mexico. We have ordered 
the suspension of oil production. Almost 20,000 workers have been taken 
away from the platforms, and there's about two and a half million oil 
barrels have been lost until now. But we have been able to save lives. 
And later again, the Hurricane Dean

[[Page 1091]]

will go into Veracruz, and this will create different problems to those 
of the Yucatan Peninsula, that is, the increase of the tidal bore up the 
rivers and other aspects to the north of Veracruz. Fortunately, 
Hurricane Dean was a category 5 but is now a category 3 and is about to 
drop into category 2. Our fear is that it will regain strength once it 
enters the Gulf of Mexico after Campeche.
    But we are ready. The teams are ready. The hydroelectric power is 
being restored. And there has not been major material damage in the 
major touristic areas that have been hit by other hurricanes. That is 
what I know today.
    Moderator. I'd like to remind you one more time that it's one 
question per reporter.

Northwest Passage

    Q. President Bush and Mr. Harper, we know the differences between 
the two countries insofar as the Northwest Passage is concerned. We 
heard the former Ambassador, Paul Cellucci, that it would be in the best 
interests of security for the United States to recognize this passage as 
a Canadian waterway. So I would like to hear your comments, from both of 
you. Failing which, there is if not a way--could we consider to hear to 
what extent you would be willing to consider the Northwest Passage to 
become an international waterway.
    Prime Minister Harper. I shall reply, to start off with. I did hear 
the comments of the former Ambassador Paul Cellucci. We also know that 
there are certain differences of opinion vis-a-vis this passage between 
our two nations. But quite honestly, Canada's position is that we intend 
to strengthen our sovereignty in the Arctic area, not only military but 
economic, social, environmental, and others.
    The former agreements of President Reagan and Prime Minister 
Mulroney in the eighties--Canada and the United States did resolve their 
differences in this area.

[Prime Minister Harper continued in English.]

    ----the statement by former Ambassador Cellucci. Canada, as you 
know, is fully committed to strengthening its Arctic sovereignty on 
every level, not just military but economic, social, environmental, any 
other method, any other means.
    Canada and the U.S. do have differences on certain aspects of the 
Northwest Passage. At the same time, since the agreements of Prime 
Minister Mulroney and former President Reagan in the late 1980s, Canada 
and the United States have been able to manage these differences, and we 
think we'll be able to continue to do that.
    President Bush. Yes, we'll manage the differences--because there are 
differences on the Northwest Passage. We believe it's an international 
passageway. Having said that, the United States does not question 
Canadian sovereignty over its Arctic islands, and the United States 
supports Canadian investments that have been made to exercise its 
sovereignty.
    Moderator. We will continue with Roberto Gonzalez, diario Uno Mas 
Uno.

Stock Markets/National Economies

    Q. Good afternoon. This question is to the three leaders. The stock 
exchange markets--the stock markets have gone through a severe crisis in 
recent weeks. How close are we to a stock exchange crash, and what 
measures have you taken so that it does not affect the real economy?
    So when you will be presenting your first report, there's an 
opposition party that wants to prevent this--what is the outlook in your 
view? What's the outlook? And do you trust--do you believe that the 
opposition will accept your invitation for a dialog?
    President Calderon. Well, to answer the first question, there's the 
financial problem, which is quite delicate in several markets. What I 
can tell you in relation to the case of Mexico, fortunately, our 
financial system has been solid enough to resist these critical times. I 
know that many central banks in several parts of the world, the European 
Union, the Federal Reserve in the U.S., and other central banks, have 
applied considerable resources in order to bring liquidity to their 
financial and banking systems.
    Now, fortunately, in the case of Mexico, this has not been 
necessary. The financial system and the banking system is very solid. It 
took a lot of work, a lot of money to have

[[Page 1092]]

such a solid system that would resist situations like this, but 
fortunately, it has not required the support of liquidity from the 
Central Bank of Mexico.
    Currently, the Mexican stock exchange has adjusted fixed income 
values. This is the case throughout the world. However, the Mexican 
stock exchange was one of the five that actually had an increase in its 
value throughout the world last year, over 50 percent. And obviously, 
the reduction that we're seeing is somehow or another a form of a 
correction which will actually improve the health of the financial 
markets in Mexico.
    Could it have an impact in the real economy? Well, that depends on 
the scope of the situation, how it affects the markets, particularly the 
North American markets, which affects us most. My belief is that the 
situation is beginning to stabilize. And it will depend on the impact 
that it might have on the growth of the U.S., which, as you know, Mexico 
depends on this growth, on the U.S. growth.
    Now, in relation to the second subject, the second issue, I have 
invited legislators. I'm a democrat that believes in the basic ideas and 
that believes in constructing dialog, and this is what I'm seeking in 
Congress, constructive dialog. Unfortunately, I still haven't received a 
positive answer from this--in relation to this invitation, but I 
believe, I trust that in the future, there will be greater willingness 
to talk about issues of concern for all Mexicans.
    I know it's another system, Canada is, but Prime Minister Harper has 
to talk to his Parliament just about every day, every week. And I 
think--I would say that we would--I would very much like to have an 
institutional way in Mexico so that we're able to work and to talk about 
what we agree with and what we don't agree with in our country. I'll be 
willing to talk to anybody that wants to talk to me, particularly within 
Congress.
    Now, in relation to the attitude of the PRD or other members of that 
party, I respect them, and of course, I appeal to the sense of 
responsibility towards the country. And I hope that maturity will 
prevail and common sense too. So the only thing that will be lost with 
this is that anybody that breaks the basic laws of our institutional 
life--let's say that citizens know very well and recognize the maturity 
and the responsibility of political parties, and the people of our 
country are able to punish these attitudes too.
    Prime Minister Harper. Our monetary and financial systems that 
monitor it are following it closely. But naturally, there are certain 
differences in their assets and liabilities, and some of the major 
corporations will have drops in their stocks. That is the normal course. 
But I can assure you that the capital situation of our major 
corporations, our financial institutions, of our individual persons are 
very strong.

[Prime Minister Harper continued in English.]

    Our economic and financial institutions that are responsible for 
watching these markets are monitoring them closely. At the same time, 
just to remind people, it's normal for the price of assets of various 
securities or companies or whatever to go up and down in the 
marketplace. It's not unusual. I can assure you that the position of 
Canadian financial sector, in particular our banks, Canadian companies 
in general, and the household sector, our capital positions are very 
strong.
    President Bush. The fundamentals of the U.S. economy are strong. 
Inflation is down; interest rates are low; the employment picture is 
strong; exports are up. We grew at over 3 percent in the second quarter. 
The fundamental question is, is there enough liquidity in our system as 
people readjust risk? And the answer is, yes, there is.
    Moderator. Bret Baier, FOX News.

Canada-Mexico-U.S. Trade Relations

    Q. Thank you. As you three leaders meet here, there are a growing 
number of people in each of your countries who have expressed concern 
about the Security and Prosperity Partnership. This is addressed to all 
three of you. Can you say today that this is not a prelude to a North 
American union, similar to a European Union? Are there plans to build 
some kind of superhighway connecting all three countries? And do you 
believe all of these theories about a possible erosion of national 
identity stem from a lack of transparency from this partnership?

[[Page 1093]]

    Prime Minister Harper. Thank you for--well, let me begin. And I 
guess I've read some things from my opposition in Canada--I'm not sure 
these are generally expressed concerns, but a couple of my opposition 
leaders have speculated on massive water diversions and superhighways to 
the continent--maybe interplanetary, I'm not sure, as well. [Laughter] I 
even--there were reports of a former Prime Minister lurking in the 
hallways. I have yet to see him.
    Look, we have an enormous trading commercial relationship. It's 
important that the leaders of that trading relationship get together 
periodically, have discussions, just as it's important at every level--
ministerial level, official level--that they're getting together and 
talking and making sure they're working out problems.
    You know, we had some business leaders in front of us today. One in 
particular said, you know, the rules for jelly beans--he manufactures 
jelly beans--the rules for jelly bean contents are different in Canada 
and the United States. They have to maintain two separate inventories. 
Is the sovereignty of Canada going to fall apart if we standardize the 
jelly bean? I don't think so. Maybe Mr. Dion thinks so, but I don't 
think so.
    So these are pragmatic, practical discussions. In fact, it was my 
predecessor in the Liberal Party who initiated them. And ultimately, of 
course, for the decisions, we're responsible to our respective 
populations. We're a democratic system and, as President Calderon 
mentioned, I have to listen to that practical input every single day in 
Parliament.
    President Calderon. Well, in fact, I'll be happy with one step in 
Mexicali and one in Tijuana. In actual fact, there are several myths 
about this meeting, some more jovial, funnier than others. But what we 
are trying to do is simply to meet, talk about our common problems, and 
see what we can do in practical terms in order to improve the lives of 
our people. Whether it's to standardize the parameters for chocolates or 
medicines, I think these are commonsense things. And moreover, I think--
and I'll tell you this very clearly--I think that as a region, we are 
losing competitiveness in comparison with other regions in the world.
    And it's not a question of customs unions, let alone having an 
integration that would actually encroach on the sovereignty and culture 
and resources of each country. We simply have to take advantage of this 
opportunity of being neighbors and allies in order to generate 
prosperity and security for our people. And that is the purpose of these 
meetings.
    Now let me tell you that, at times, I would even like to work 
faster, review more issues, but we have to be very patient. And 
something that we did talk about also, which is part of my 
responsibility or our responsibilities as leaders, is to talk to the 
people and tell them why it's important to have better trading rules; 
why it's important not to have so many barriers between ourselves; why 
is it important to resolve issues such as immigration, investment, 
because that could actually improve the quality of life for our people. 
It could mean the Mexican consumers could have better products, Canadian 
products, U.S. products and--well, Mexican products also--because there 
would be more investment in our country, which requires thousands and 
thousands of jobs in order to resolve the problems of the people. And 
that happens when there's investment, and there's only investment when 
there is competitiveness. And we do have a way to go in that regard.
    President Bush. We represent three great nations. We each respect 
each other's sovereignty. You know, there are some who would like to 
frighten our fellow citizens into believing that relations between us 
are harmful for our respective peoples. I just believe they're wrong. I 
believe it's in our interest to trade; I believe it's in our interest to 
dialog; I believe it's in our interest to work out common problems for 
the good of our people.
    And I'm amused by some of the speculation, some of the old--you can 
call them political scare tactics. If you've been in politics as long as 
I have, you get used to that kind of technique, where you lay out a 
conspiracy and then force people to try to prove it doesn't exist. And 
that's just the way some people operate. I'm here representing my 
nation. I feel strongly that the United States is a force for good, and 
that I feel strongly that by working with our neighbors, we can be a 
stronger force for good.

[[Page 1094]]

    And so I appreciate that question. I'm amused by the difference 
between what actually takes place in the meetings and what some are 
trying to say takes place. It's quite comical, actually, when you 
realize the difference between reality and what some people are talking 
on TV about.
    Prime Minister Harper. Might I add, in French, I did not know that 
there were these major plots that were mentioned by the head of the 
opposition, Mr. Martin, a Liberal Prime Minister, who initiated these 
discussions, I believe, for Mr. Dion. It is a rather regressive step 
backwards to this whole question of our NAFTA discussions and SPP.

Canada's Role in Afghanistan

    Q. My question is for President Bush. Mr. President, it's become 
increasingly likely that Canada will withdraw from its current combat 
role in southern Afghanistan in February of 2009. Many Canadians, 
including politicians of different political stripes, have suggested 
that Canada's military has done its job in the country, that it's played 
its part, and it would be time to go home then. I'd like to ask you if 
you believe that Canada has done its job and has fulfilled its duties.
    President Bush. I believe Canada has done a fabulous job in 
Afghanistan. And I thank the people of Canada, but more importantly, the 
people of Afghanistan thank the people of Canada.
    Canadian--the Canadian people sent some of your finest into harm's 
way to enable a young democracy to not only survive but thrive. And it's 
been an important contribution in this global struggle against 
extremists. We're in an ideological struggle against people who use 
murder and death to achieve political objectives, and the fundamental 
question is, will free nations help young democracies survive in the 
face of this threat? And Canada has performed brilliantly. And I thank 
the mothers and fathers or sons and daughters of those who lost their 
life in this--for the sake of freedom and peace for the ultimate 
sacrifice they paid.
    Secondly, the Canadian contribution is more than just combat. The 
Canadian contribution is to help build institutions for a democracy to 
survive. So the contribution has been vast, and it's been robust. And 
this Government, along with its Parliament, will make decisions what's 
best for the Canadian people and the people of Afghanistan.
    The United States is firmly committed to Afghanistan. We view this 
as a part of the war against the extremists and radicals. We view this 
as a significant portion of the ideological struggle, and we believe 
that when democracy prevails in Afghanistan, it will be a major blow 
toward those who want to impose a totalitarian view on others.
    We believe, for example, it's important for Afghan girls to get a 
good education. I know the Canadian people feel the same way. We believe 
that it's important for women to have rights and to serve in the 
Parliament. We believe peace is achieved when forms of government give 
people an opportunity to express themselves in a peaceful way in 
society. That's what we believe. And one reason we have that strong 
belief is, we believe in the universality of liberty. We don't believe 
freedom is just confined to our neighborhood; we believe freedom is 
universal in its application. That's what we believe. We believe people 
want to be free, and if given a chance, they will exercise what is 
necessary to be free, and that freedom yields peace.
    I'm giving a speech tomorrow where I'm going to talk about our 
engagement in Asia and how Asia has been transformed because of liberty. 
A place where Canadians and U.S. soldiers died in large numbers is now a 
place of peace and prosperity, where governments evolve in their own--
representing their own traditions and history, but nevertheless evolved 
in a way with liberty as its basis.
    And the question we're all confronted with--who live in comfortable 
societies--is it worth it for our own security to help others realize 
the blessings of freedom? And my decision is, absolutely, it is. I think 
it's the calling of the 21st century. I think it's the calling of 
history. And I appreciate the strong commitment that this Government and 
the Canadian people have made toward writing the first chapter of what 
will be laying the foundation of peace throughout the 21st century.
    Prime Minister Harper. Might I say that our troops are there. 
Parliament will make its own decision on the extension of this mission. 
But at the same time, you the Canadians can be extremely proud of the 
work

[[Page 1095]]

done by our troops, our soldiers, our diplomats, our agents that are 
there working to develop the country, working for one of the peoples 
that are the poorest in the world. In Kandahar, we have given the 
possibility to men, women, and children to have some freedom and some 
safety and security that we have here in Canada.
    I note the passing away--the dying of the soldier Longtin. And his 
brethren, his comrades are there to uphold those same values and carry 
on--[inaudible]--life to help their brothers and sisters in countries 
abroad.

[Prime Minister Harper continued in English.]

    To repeat that, I think we can all be very proud of the work that 
Canadian troops are doing in Afghanistan. Parliament will make its 
decision in due course whether it wants to prolong the mission. But I 
think our difference there--our position there, our presence there has 
made a real difference in giving just a tiny bit of the freedom, the 
opportunity, and the security that we have as Canadians, that we take 
for granted as Canadians.
    I note the death of, obviously, of a Canadian soldier--Longtin I 
think was the name. We are very fortunate we have a volunteer army, very 
fortunate to have men and women who put on the uniform willing to defend 
our values and also improve the lives of their fellow human beings and 
do so at tremendous personal risk for themselves. And I think we should 
all appreciate that.
    Moderator. We have time for one last question--[inaudible].

Narcotics and Drug Trafficking

    Q. Good afternoon, President Bush and Prime Minister. And I thought 
that this summit would be the--would--actually Plan Mexico would come 
out of this, the combination of three governments to combat the effects 
of drug trafficking. What is the obstacle? What is causing the delay? 
Why don't the societies of each country know what this plan is about? 
And can you actually confirm the support of the United States to Mexico? 
Apparently it will increase tenfold, and the levels will be similar to 
Colombia. We hear very often that the United States wants to take part 
in this situation against drugs, this war on drugs, and we see it very 
clearly in Mexico. Now, what is it all about? Could you tell us?
    President Bush. Man! [Laughter] Hombre! [Laughter] We discussed a 
common strategy to deal with a common problem, and that is 
narcotrafficking and violence on our border. First, let me say that in 
order to develop an effective, common strategy, there needs to be 
serious consultations between our respective governments. It's one thing 
to say, we're interested in working together; it's another thing to 
develop a package on both sides of the border that will be effective in 
dealing with the problem. That's what our people expect us to do. They 
expect us to see a problem and to develop an effective strategy to deal 
with that problem.
    President Calderon and I met in Mexico, and we had a serious 
discussion to get this initiative on the table. This is an interim 
meeting, a meeting for us to make sure that the strategy that's being 
developed is--will be effective. And so we reviewed where we are in the 
process.
    The United States is committed to this joint strategy to deal with a 
joint problem. I would not be committed to dealing with this if I wasn't 
convinced that President Calderon had the will and the desire to protect 
his people from narcotraffickers. He has shown great leadership and 
great strength of character, which gives me good confidence that the 
plan we'll develop will be effective. And the fundamental question is, 
what can we do together to make sure that the common strategy works? And 
that's where we are in the discussions right now.
    There's all kinds of speculation about the size of the package, 
this, that, and the other. All I can tell you is, the package, when it's 
developed, will be robust enough to achieve a common objective, which is 
less violence on both sides of the border and to deal with 
narcotrafficking. And we both have responsibilities. And that's what the 
package is entailed to develop. It's to develop how do we share our 
joint responsibilities.
    It's in our interests that this program go forward. You mentioned 
Plan Colombia; this is not like Plan Colombia. This is different from 
Plan Colombia. This is a plan that says, we've got an issue on our own 
border. We

[[Page 1096]]

share a border, and therefore, it's a joint program that will mean--that 
won't mean U.S. armed presence in your country. Mexico is plenty capable 
of handling the problem. And the question is, is there any way for us to 
help strengthen the effort? And so that's what we're studying.
    And I can't give you a definitive moment when the plan will be 
ready, but we're working hard to get a plan ready. And it's a plan that, 
once it's proposed and out there, I strongly urge the United States 
Congress to support. It's in our interests, it's in the U.S. interests 
that we get this issue solved.
    President Calderon. Thank you, President Bush, for your comments and 
also for the question, because this allows us to emphasize the fact 
that--well, the President has already said it's a common strategy to 
combat, in a coordinated way, a common problem. Drug trafficking and 
violence that's associated to drug trafficking, which is particularly 
evidenced on the border between the U.S. and Mexico, cannot be dealt 
with in an isolated way. It has to be confronted by, dealt with by the 
people and by the governments that are directly affected by this 
scourge. And it requires a variety, multiplicity of actions carried out 
by society, by governments, in other words, enforcement activities 
against criminals, preventive activities, protective activities, 
prevention and treatment of addictions with the young.
    Now, I agree with President Bush; it's very important to reduce--
well, to have clear policies to reduce the consumption patterns in terms 
of drugs, including Mexico, because this is a main cause of the problem 
that we're facing.
    Now, last week, for example, last week, three Federal policemen were 
murdered in Mexico--Mexican policemen, that is--and they were tortured 
in a very cowardly way. And those Mexican policemen are fully committed 
towards the Government to free the young Mexicans from drugs and to free 
Mexican society from slavery on the part of organized crime based on 
money and technology. And I don't want any--not one single Mexican 
policeman to have a logistical disadvantage when facing these criminals. 
I don't want my Government to be responsible for any omission, any legal 
omission within a legal framework that would have been directed towards 
defeating these criminals.
    So this is a common strategy because it means that the U.S. will do 
its part and Mexico will do its part. Now, what do we want the U.S. to 
do--to carry out--have greater surveillance along the border. We are 
seeing high-powered weapons into Mexico, and we know that we can do much 
more than we're doing at this point in time. I know that drugs go from 
Mexico to the U.S. Both of us have to agree so that there is 
surveillance, efficient surveillance, that is, on both sides of the 
border. We are facing mafias that are working on both sides of the 
border. That is quite clear to us. And I think that we will not be 
acting in an efficient way as long as they have a coordinated strategy 
and we don't. In other words, they're coordinated on both sides of the 
border; we are not.
    So I would like to introduce into the--well, we have to be 
respectful of our legislation, our respective legislations. I would want 
to create a strategy in order to defeat this scourge. And that requires 
a variety of instruments, strategies, exchange of intelligence, exchange 
of technology. It also means that we have to keep in mind issues of 
sovereignty. I told President Bush, though, we did not want to have U.S. 
soldiers working in our country, as has happened in other countries. I 
know that that's typical, of course. But we've said this very clearly, 
we put forth this very clearly, and in the framework of our own 
legislations, we will find a way out.
    And I would also wonder what the men and women are thinking, now 
those who are suffering from crime, how scared are they, what's the 
degree of their fear that has led these groups to be so powerful, to 
grow so much. And they've essentially taken power in their area of 
operation. We have developed an aggressive policy to combat organized 
crime, and I haven't hesitated to use our forces to recover the areas. 
We've taken about 10,000 drug traffickers to jail, many weapons, 50-
millimeter cannons, grenades capable of bringing down aircraft.
    And I think--so I cannot send the Mexican policemen to combat this 
situation with their hands tied. So I have to answer to the Mexican 
people in order to preserve their security,

[[Page 1097]]

and I will do so without abusing human rights and without distorting 
Mexican legislation. I will respect Mexican legislation fully. But I am 
calling upon my neighbor in order to act in a coordinated way, because 
it's a situation we both have to face. It's a problem that affects two 
countries, and only together will we be able to solve it.
    There are several causes. It involves several joint 
responsibilities. And the action, therefore, has to be shared, within 
the legal framework. What's the scope of this strategy? I cannot tell 
you now; we cannot tell you now. We're just exchanging assessments, 
needs, assessing the situation and making it clear what the rules are 
for each country.
    We will have a strategy--I think it's possible, but we will not be 
able to come up with it until we finish our discussions and 
negotiations, which, by nature, are very complex. But in the end, that 
is what we're trying to combat. And it's a problem that's affecting 
Mexican citizens as well as U.S. nationals.
    Prime Minister Harper. This is an example. We are all sovereign 
nations, that is quite true, but we are not isolated problems according 
to our own sovereignty. We have shared problems--for example, drug 
trafficking. This is a good example. It begins in a country in the 
Americas or in the Caribbean, but the consequences are seen in the 
streets in Canada. And we have to discuss these problems. We have to 
compare our strategies, and sometimes we have to work hand in hand.

[Prime Minister Harper continued in English.]

    Once again, this is a perfect example of why we meet. We're 
sovereign countries, but problems are not--problems don't limit 
themselves to the boundaries of our countries. Drug trafficking is a 
perfect example. These problems may originate in some of the countries 
of Latin America or the Caribbean, but the problems are felt on the 
streets and the communities of Canada. And that's why we meet to 
discuss; that's why we meet to compare strategies; that's why we, from 
time to time, have to engage in shared action.
    Let me just say one other thing, if I can, about the drug trade, 
because indirect reference was made to Colombia. Canada has undertaken 
negotiations of a trade agreement with Colombia. We have a Government in 
Colombia that wants to share in the benefits of free and open markets. 
We don't need to have a trade agreement to have a drug trade with 
Colombia. The drug traffickers aren't going to wait for our Parliaments 
or our Congresses to pass a trade agreement in order to have a drug 
trade. But if we want to have other opportunities for the people of 
Colombia and mutual development and shared prosperity, we've got to move 
forward on these kinds of initiatives. And that's why the Government of 
Canada is committed to working with Colombia and getting a trade deal.
    Moderator. Thank you very much. This brings an end to the press 
conference.

Note: The President's news conference began at 11:57 a.m. at the 
Fairmont Le Chateau Montebello. In his remarks, he referred to Gen. 
David H. Petraeus, USA, commanding general, Multi-National Force--Iraq. 
Prime Minister Harper referred to former Prime Ministers M. Brian 
Mulroney and Paul Martin of Canada; Stephane Dion, leader, Liberal Party 
of Canada; and Pvt. Simon Longtin, Canadian Forces, who was killed in 
Afghanistan on August 19. A reporter referred to Prime Minister Nuri al-
Maliki of Iraq. Portions of Prime Minister Harper's remarks were in 
French, and an English translation was provided. President Calderon 
spoke in Spanish, and his remarks were translated by an interpreter. 
Some reporters spoke in French and Spanish, and their remarks were 
translated by interpreters.