Stephen Harper on 'FNS'

" world leaders gather in London for the G twenty summit discussing how best to fight the global financial crisis. Joining us now is one of those later the prime minister of Canada Stephen Harper and prime minister welcome to Fox News Sunday thanks for having me Chris before we get to the G twenty let's discuss. Afghanistan Canada which has 2800 troops there and has unfortunately lost more than -- on bread. Plans to wrap up its combat mission by the end of 2811. Now. If you said recently that if President Obama had a clear strategy. For success and Ford departure you might rethink that. You've heard the president's plan might you consider keeping Canadian troops in Afghanistan and -- I don't think that's quite what I said."

" Were operating on a parliamentary resolution we got consensus of the two major parties to pass that resolution. We're very clear in our objectives we're in Kandahar the most difficult province our objective now. Is to train the Afghan forces so they can take over day to -- responsibility. For their security by the end at 111. That's what we're working on we are its secretary gates. Said we are in Canada ramping up our civilian presence in our civilian commitments in Afghanistan. In preparation for the end of military mission but we're going to continue to be there and continue to assist with governments. And development challenge that you did not hear anything from President Obama that would make you change your mind and say you know what we should keep. Canadian troops combat troops in catfish in Afghanistan along we're not planning to do that in fairness when I met with President Obama he didn't make that request that President Obama did recognize the significant very large and significant and robust. Contribution that Canada has been making him in in Afghanistan in Kandahar in particular you said."

" Recently that Afghanistan has had an insurgency. For most of its history and then you out of deaths. Quite frankly we are not. Going to ever defeat the insurgency. Prime minister does not mean that we're going to have to learn to live. With -- al-Qaeda and the Taliban and that part of the world know I wouldn't."

" I would put it that way I think what secretary gates said is correct that first -- we absolutely have to see the elimination of any kind of threat. To the wider world to North America. Obviously the al-Qaeda insurgency in the al-Qaeda element of this has to be. Has to be eliminated I think we agree with that. It in terms of the rest of that you know I don't think it's a case. That we we've we've got to see progress on the insurgency we've got to see it a state where the Afghan government can handle its own database security. I just think it would be unrealistic it's just we're going to eliminate every last domestic insurgency in Afghanistan. Certainly in the history of the country would indicate that's not a very realistic objective I think we have that realistic objective."

" But but but it forgive me sir right in your statement was a little brought -- not use that we're not going to ever defeat. The insurgency not eliminate every single. Bad guy out there that seems to indicate you think that we're not going to be able to defeat al-Qaeda I think of the injection look at my comments in context this is what I was saying. I do believe you'll see some kind of insurgency. In Afghanistan for some time to comments in the nature of that country unfortunately. But we certainly want to see a situation where the Afghan government can handle. That this security situation on a day to day basis where they can take care of their own responsibility and obviously -- the insurgency. Is on the nature that it doesn't threaten the wider global community. Let's turn to the world's economic situation. Starting. With Canada. You were the last industrial nation. To go into recession and one of the great joys of this job is to study up on things and I learned that in fact in 2000 Sutton -- started cutting. Taxes. And your corporate tax rate is ten points lower. Than it is here in the in the US -- answer. I I forget what the relevant American greatest but I can tell you that our goal is to have a combined federal provincial. Corporate tax rate of no more than 25% we're on target to do that by 32. We will have significantly. By a significant margin the lowest corporate tax rates in the G seven and that's our government's. Which is even before of this recession the United States was running a significant budgetary deficit. Canada. Is in budgetary deficit now only because of the recession only because of stimulus measures we will. Come out of that we will go back into surplus position. When the economy recovers so there is no need in Canada to raise taxes -- as a conservative -- tend to oppose raising taxes that the best of times but. We have not got the structural budgetary deficit. That exists in the United States and obviously limits the administration's options Ted Kennedy is also the only western nation that has had no. Bank bailouts of banks tend to hold on. To mortgages they don't act is then send them sell them to other. Investors. You have strong activist regulation. Is the Obama administration you think right now to get more involved in police -- the financial."

" Market well with without getting into detail I I think that the what I read of the Obama administration's moves. Certainly paralleled what kind of recommendations were making G twenty Canada along with India. Is co chairing that he twenties working group on reform of financial regulations. And broadly speaking what we are suggesting certainly isn't line. With where the American administration is going this is a problem that absolutely has to be fixed we have to fix. The -- in the American global financial sector we cannot have recovery until we fix. And we've got to have good systems of national regulation was some kind of with some kind of international peer review in the long term that's. That's our judgment I think it's moving in the in the right direction but obviously that's a domestic and now you're conservative a lot of conservatives in this country say he if you get the government to involved is squeeze out all the innovation all of the risk taking. That is so important to a free market system well and that that's a risk and you know I think we have got a pretty decent balance in Canada where we have good macro prudential regulation. But we don't trying to micromanage financial systems but I I would say this is a conservative right -- can be frank. It's great to say let's have less regulation in principle and less intervention in the marketplace where has that let us Chris in many countries it's lettuce to a situation. Where the government is in fact intervening massively as a consequence of under regulation. And where we now have effectively in many countries nationalization of financial system. I know in Canada there'd been some criticisms in the past that we were perhaps. A two activists the intervening too much what we're emerging from this would probably the only truly free market financial system in the world so I think that. You know a a a a happy medium or regulations the way to go."

" As you head to the G twenty summit this week there has been quite a dispute. -- President Obama are urging some of our European allies. And and and hit and they're disagreeing especially France and Germany to pass big stimulus packages of around Canada has about the stimulus package. But sure our European allies to pass those kinds of packages to help. Draw the entire world economy out of recession where what do you expect from the G twenty on that for well look."

" I'm hoping very strongly that first of all the G twenty meetings will be focused on fixing today's financial problems. I think that's really important we don't get distracted by a whole lot of other issues. And I also hope they'll be some consensus now mighty negotiators for the people working on these various summit declarations. Tell me there's a lot less difference of opinion and you would that you would understand in the media that everybody understands. We have got to fix the financial system we're going to turn the corner on the global economy. And I do hope also that all countries will understand the necessity of doing at least what the IMF -- set with just 2%. Fiscal stimulus and not just for our own economy. We have rumor -- in the global economy the purpose of fiscal stimulus is not simply. The sustained activity in our national economies. But to help the global economy as well and that's why it's so critical measures in those packages avoid anything that smacks of protection."

" I've got a couple of minutes left I have two questions I want to ask you first of all on -- President Obama will announce plans tomorrow. To give more money to GM and Chrysler -- along with strict deadlines on concessions from both the auto workers and also the bondholders. You've given. Bailouts that GM and Chrysler in Canada how confident argue that these -- that. One we can and -- we should keep these two companies out of bankrupt well."

" let me be clear that we're we're engaged in this exercise because the United States -- we're not it's an integrated industry if we don't do our share. North of the border the industry will simply shift that a candidate and it's too important an industry to have collapsed in Canada as it is in the United States. Are we're working very closely with the Obama administration on this everything I have seen indicates. That the Obama administration is determined to impose the tough conditions necessary. To make this -- work in other words to make sure that at the end of that we have viable companies the last thing we want to do in Canada should the last thing. United States wants to do was to a bailout that fails in any case -- if we're going to put taxpayer money in this. We have to make sure it works and I think given the scope of the -- industry. We have no --"

" Finally. Briefly if -- nicer. Candidate Obama talked a lot last year about we opening NAFTA renegotiating our trade agreements. Now that he is President Obama. Has -- been any serious move in that direction well what what President Obama said to me is silly he's concerned about the labor and environmental aspects. Those were side agreements in the original NAFTA agreement he'd like to see in ways that those are more. More comprehensively. Incorporated into the main body of NAFTA. We're not close to doing that provided we don't open the whole package because I think. It'd be hard to ever put. Forget the cat -- back in the bag if we try to renegotiate the prime minister harper thank you thank you for coming in and talking with us -- safe travel sort of the G twenty summit -- thanks for having Chris. Coming up our Sunday group --"