Let me now turn from trade in goods and services to other issues related to economic integration, or what the Europeans call, the creation of a “single market.” These issues largely relate to the harmonization of regulatory regimes, not only with respect to the market for goods and services, but also the markets for capital and labour.
There are efficiency gains to be made from moving to common regulatory standards in North America. Not only would common standards reduce the costs of compliance; they would also allow our entrepreneurs to compete with the Americans on a more level playing field. But, as the European experience demonstrates, achieving such common standards is a long, painstaking, and difficult process.