Northern Neighbor Says No

" In the meantime from -- don't watch and go from gitmo. Welcome everybody I'm Neil Cavuto -- seven down 232 to go the president making good on his pledge to start shutting down Guantanamo Bay. Transferring detainees to New York Iraq and -- even Bermuda. And this despite a report also to -- Some military intelligence offices here are advising against the transfer of up to sixty detainees including -- highly dangerous. And while the island of Palau is more than willing to take these guess my next guest was not it is not. Canadian Prime Minister Stephen Harper joins -- right now in this exclusive chat. Mr. prime minister very good that -- thank you for joining us. You know thanks for having -- let me ask you sir there's a lot of countries now coming forward and saying we'll take these guys. With more willing to take them. Are you."

" Well we certainly. We certainly have left it to the government the United States to deal with this particular issue there is -- Canadian in Guantanamo who's charged. We're obviously waiting to see what president Obama's administration down. Particular case. But this government has a very strong record in opposing terrorism and we're not offering Canada's a safe haven for. Any one of the United States considers to be a terrorist."

" On what do you think mr. prime minister of his wanting to eventually shut gitmo down I know as you say it's a US concern but. It is a Canadian concern well I guess."

" Well -- it it's you know this ultimately really is a decision in the United States is as you know there has been. Although our our government has been I think more understanding -- some. There's been a lot of international concern about the process there. And ultimately. The administration's. Going to have to find balance between addressing some of those concerns but maintaining. Strong. Defenses so that we all share against the potential activity of terrorists -- is a very difficult problem and I. I think I'll leave it for President Obama to try and resolve rather than obviously try and resolve it ourselves but we work very closely. With his administration as we did with the previous administration on identifying. Any terrorist suspects and and trying to thwart their activities."

" I'm just speaking of which mr. prime minister as you know are we sent up 700 more agents sides who are Canadian American border. To deal with this kind of issue and about the types of folks who might try to make their way in the United States from Canada. It's cause some concern among. Many Canadians who. Boo. Seem to think that we are targeting Canadians. What what what did you make of that."

" Look I think the concern on the Canadian side we we as Canadians have no concern tall. -- the fact that. The United States is obviously concerned about the movement of terrorists is like I've been very clear our government. Shares all of these concerns have been very clear with President Obama and with the American people that we view any threat to the United States as a threat to Canada. And we cooperate. -- Absolutely fully. With the United States in in this international effort the concern I think that Canadians have a particularly Canadian business. Is the effects this could have on relatively. Free movement of trade between our countries we have very integrated economies and we want to ensure. That the systems we put in place. Press process we put in place to deal with security threats to not become barriers. Two to trade or his social interaction that are so deep between our two countries. We work with two administrations on that I think we're making some progress but this remains a challenge."

" What about the challenges that came posted parliamentary elections last week. Where a lot of moderate to conservative candidates. Seem to win out over establish liberal governments in France Germany and Italy Britain. Hungry I could go on and on. But but we are seeing more of that and is it in -- view. A repudiation of what we've been -- globally to big standing by big government's globally and and voters are telling. Leaders to slow down or how would you answer."

" Yeah I wouldn't generally interpret what's been going on the world politically in the United States actually being an exception. I would I would interpret. Generally that the population has been. Supporting incumbent governments that are seen to be focusing on the economy. And that. Quite frankly populations have not been willing to experiment. With parties that are unproven in government or who have economic agendas that are very unclear at this time. Obviously the United States civil was massively for change. You know we. Before for different reasons -- part of the reason was many economic problems -- to emanate from the United States but. Our government in Canada -- conservative government as you know was actually reelected with a stronger position. And during the during the -- you know that the crash of the stock market and the significant economic decline we have last fall. But I -- our are experiencing candidate is actually more typical of what happened in the United States. "

" I'm I don't know that's more typical level in all due respect mr. prime minister and figure it -- I've tried stimulus and and and obviously are. I've been doing a lot to try to get the Canadian economy going. But limited government -- intervention. So almost the reverse of what president -- is trying to do. And and now that the liberal parties and more liberal parties and the three opposition parties who have -- will join hands together could could -- Our art our seeming to use a vote next Friday on on some of these economic initiatives -- planning. As a test case to bring it down. What's going on."

" Well we don't know that yet I think we'll all watch and see this the Canadian people are very clear that they. Don't want to see the opposition form another coalition and they certainly. Nobody wants to see an election right now. Just as we're beginning to see some of the effects of the recession -- and we still have a lot of work to do. On our economic action plan there are actually out to be fair -- I think there are a lot of similarities between what. That we're doing Canada -- stimulus -- president Obama's doing what many other governments are doing the big difference in Canada. Is -- we start from a completely different position our government. Had eight surplus budget going into this recession we were lowering taxes. Permanently lowering taxes and -- it was affordable. And so now we have they even though we have the smallest. Deficit GDP ratio was smallest debt GDP ratio and the smallest deficit in relative terms of the G-7. We're actually have -- able to have the biggest stimulus package and were actually in the best position to return to surplus when the recession is over so. The difference here is not so much. Our actions there are some differences there I think ours are little more focused. On long term investments and in the longer term but the big difference is. Our debt and deficit positions here our overall fiscal position is fundamentally sound. We all know that there is a deep structural deficit that exists in the United States that existed even before. The recession took hold true."

" but our fiscal condition is not sound right now in fact -- Betting on -- you talk to -- the conservative or liberal in this country it is out of control in this country. And -- argument seems to be that we are in black Jack -- doubling down taking a deficit -- doubling in the hope that maybe we'll let spending going to. You know reignite that -- think it won't."

" Look I I sympathize with the with the perspective of the administration I was asked. In an interview a little while back in the United States was I worried. That all this deficit spending the United States could cause. Awfully big problems later you call -- doubling down. My answer was as an economist yes I would be concerned about that but the problem is when houses on fire. The first thing you have to do is you have to bring up -- hoses and and and spray water all over you can't worry about whether your flooding the basement."

" Inevitably slow rate hasn't model that we strains of minority water you know that's the argument."

" Yeah well you know as they say what you don't normally worry about that in the middle of a raging inferno. You normally just get as much water on as you can the reality is this. You know -- I I think the the fiscal situation United States is very worrisome that set. President Obama came into office with the United States in a deep structural deficit position. At a time when fiscal stimulus when deficit spending is actually required economically and say. We Canada were very different the different position and -- were able to borrow and stimulate the economy now when we need to but we didn't have. This condition beef."

" War and I know that does sound like you're you're very level that's not a problem I know you -- diplomatic leader but but the fact that matters I could not in teasing you. Maybe a more conservative roots. Standing your way. A morass but but you know I know we like you say when times are -- everyone does different things but when you have done. The degree is standing that this president and this congress have done."

" Well the the deficit in Canada. Is one quarter of the size in relative terms of the deficit the United States. But as they say Neal to be fair once they gain to the presidents of the congress and we assume -- big differences especially. Where we see some some of these by American and the protectionist policies that were concerned about but that set. The fact of the matter is we need stimulus spending now and I say that as a conservative the IMF says that every country in the world is doing that. The difficulty for president Obama's administration is the budget was in deficit. And structural deficit prior to the recession that's not his fault and it's certainly not our situation but -- is a reality."

" another reality. Mr. prime minister's that your in the car business like our president. You only a big chunk out of the of the remade General Motors I think -- 12% stake between. Canadian government -- and Ontario. On what you expect. From that chunk."

" Well look the reason we're in this is. The United States government decided -- once again it was under the previous administration decided that they would. Politically restructure the auto sector and we have 20% of the North American auto sector in Canada so. -- in relative terms it is an even bigger part of our economy than it is of your economy once the United States decided to do that we concluded that we had no alternative. But to participate in that process and we worked very closely with both governments. You know what we hope to do obviously this this the sector is being downsized dramatically. Is our strong belief that what will emerge will be -- smaller but viable auto sector. This you know our anticipation to be quite frank is that we will sell. Our stake as soon as we can in the not too distant future and and not make a great deal of money on this."

" But would you use isn't and we think this is better that night but I guess what I'm -- just -- this is better for us. This is better for us than simply allowing the sector to move the United States which would have been the -- are -- are sir."

" It would would you -- that state that 12% stake as leverage because I know many of your countrymen are concerned that. This by American mantra is is is going to come to Canadians detriment. And and that it could adversely affect your economy as we buy anything and everything American. Again at your expense and and would you use that 12% -- To force that issue that don't even think of doing that."

" No I would not let me be very clear about this because I think the great risk. In getting into the car -- as unfortunately governments have is that we start using car business for political means. And set up for economic means that I would not want to do that. I think the -- you know -- of the obvious risks we have with the protectionist measures the by America's we see now state and municipal governments in the United States beginning to. Engaged in very protectionist behavior we have a significant -- in Canada now that our provinces and our municipalities. Will do the same thing. And quite frankly the biggest risk we have the global economic recovery is an increase -- protectionism and the worst possible signal. That we could send of the world right now would be an increase of protectionism and particularly. Procurement trade war between Canada the United States I can't think. The worst signal to send of the world economy right now so I hope we will find some ways of not going in that direction it. Look all we do for our taxpayers as we force. Governments. Forced them to make choices in this these spending programs that will be more expensive. In order to do local -- procurement and that is not useful."

" Prime minister I like many many other Americans go to Canada a great deal so beautiful country beautiful -- Have been all over -- your -- country. And now I guess and I'm required to bring a passport with me on. And for a lot of Americans frankly so that's a pain in the butt and and I know we're doing -- on this side of the border business. To keep things safe. But are you worried about what that means and longer term what it could mean for relations."

" I am -- first -- I would absolutely agree most Canadians would agree with you and your response to this. And how you see it. What we have done over the last few years to prepare for this is we've we've made sure that. As many Canadians as possible have -- equivalent documents we now something like 80%. Of adult Canadians possessed passports or equivalent documents. I would love to see obviously. You know as much free interaction and free cross that you of our borders we -- Well at the same time as they say working to make sure we identify. Anybody who is who is genuinely dangerous I expressed during the period of President Bush. -- expressed in particular my concern that we just have. Countless social interactions of baseball teams of social organizations families. Who cross the border every single day. And make our -- is quite frankly the two best friends and in history and I would hate to see anything new in danger that the Bush Administration made a very positive change where that when they exempted. You know large groups of youth -- work requirements for things like baseball tournaments. But you know I would really hope that. We would focus I think the important thing to do was to risk -- security threats rather than. You know basically try and -- down every single citizen with paperwork what we need to do is be. More effective at identifying the people who are risky and moving on those people early rather than burdening the entire population and the economy."

" Prime minister -- you have to -- gonna very much appreciate your time but a final question on what has been a trend in our country. Establishing czar -- task force is accountable only to the president in this case. And not -- our congress and to know announced so have a lot of stars we have sixteen of them. Czar is task force manages whatever you want to call -- it do anything like that in Canada. And and -- If if you did would you call -- arts."

" I've had I've appointed a couple of task forces in the past. My major files and -- and our government we have a different system of government. In our government. My cabinet ministers come from parliament they come from the elected branch of government. Unlike in the United States were cabinet secretaries are who you are you are appointed outside the elected system Mars are almost. Exclusively elected people and generally speaking it's my cabinet ministers -- major files but as they say. This is these are the differences between our our two governments -- And I wouldn't want to comment too much on -- the -- the American government may take. Mr. prime minister pleasure thank you very much -- having. But thanks for having are at the."