Jean Charest interviewed in Savannah about Nafta and the Free Trade Area of the Americas. Click for the full interview: PART 1, PART 2.

The Canadian province of Quebec’s premier, Jean Charest, is busy these days with a series of events celebrating the 400th anniversary of the founding of Quebec City.

But at the Southeastern United States-Canadian Provinces Alliance conference held in Savannah June 16-17, he was preoccupied with Quebec’s economic relations to the south.

During an interview with GlobalAtlanta, he underscored his support for Nafta and spoke of the future potential of Latin American countries for U.S. and Canadian goods.

Saying he was disappointed the Free Trade Area of the Americas had been stalled by the political polarization that is taking place in Latin America, he nevertheless considers opportunities in Brazil, Mexico and other countries in the Americas as “the next big market.”

Although the development of vibrant economies throughout the hemisphere requires “a leap of faith,” Mr. Charest was adamant that such a course is “where all of our interests lie.”

He cited especially the 100 million-plus population of Mexico and the 180 million-plus population of Brazil, saying that the increased prosperity of the entire region would alleviate poverty and help sustain democracy.

Meanwhile, he is a primary backer of the Southeast U.S.-Canada alliance bringing seven Canadian provinces and six southeastern U.S. states into more formal commercial relations.

“We should not ignore the fact that we are each other’s most important customers,” he added and decried the use of Nafta as a political football in the U.S. presidential election.

The Canada-U.S. trade agreement of 1988, which led eventually to Nafta in 1994, has “produced thousands and thousands of jobs on both sides,” he said, adding that the U.S. presidential elections are being followed closely in Canada.

“Fifty percent of our gross domestic product (in Quebec) is based on exports and 85 percent goes to the U.S.,” he said. “We pay a lot of attention because our vital interests are at stake.”

On the other hand, he said that few Americans are aware that 7 million U.S. jobs are dependent on Canada.

While the U.S. economy falters, he said Canada’s remains fairly robust despite its dependence on the U.S.

“We have a good story to tell,” he added. “We are not running a deficit – neither the federal government nor the provincial governments have much of a deficit. We have trade surpluses and our debt to gross domestic product is in good shape.”

He also said that Quebec’s aeronautics, biotech, mining and hydroelectric power sectors were providing opportunities for new cross-border collaborations.  At the same time, his province’s forestry sector was hurting primarily because of the slowing U.S. economy.

Canadians continue to be concerned about the “thickening of the border,” he said, which he defined as a broad range of trade and security measures that is hindering closer economic ties.

“The security imperative is a key test of our relations,” he said, adding that many of the issues could be resolved through bilateral discussions.

The alliance binding the Southeast and Canada’s eastern provinces could play an important role in further joining the economies if it succeeds, he said.

To be successful, he added, the alliance will have to attract the participation of both companies in the Southeast and in the provinces.  It also needs support for the alliance conference next year to be held in Newfoundland and Labrador.  More on next year’s conference…

The participating states and provinces are Alabama, Georgia, Mississippi, North Carolina, South Carolina and Tennessee and Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Quebec.