Their supplementary report, titled, "Creating a North American Community," was released at a news conference in Washington ahead of the March 23 tri-national summit between President George W. Bush, Canadian Prime Minister Paul Martin and Mexican President Vicente Fox in Texas.

Former Canadian Deputy Prime Minister and Independent Task Force on the Future of North America co-chair John Manley said the report was designed to prompt leaders to "boldly" confront shared economic challenges and post-9-11 security threats that loom large in the continent's future. Manley downplayed Martin's rejection of the U.S. ballistic missile defense program last month, insisting that differences on select policy matters should not obscure the bigger picture.

"There are two rules I abide by. First, never get too close to the U.S. And second, never get too far from the U.S.," Manley said. "On broad issues of democracy and human rights, we converge closely. Canada's future in North America is ... irrevocably tied ... to the U.S."

Featured in the report was a recommendation for a unified security perimeter that would mandate equal visa and asylum regulations, joint inspection of port traffic, and the integrated screening of people in and out of the three countries under "watch" lists.

"(The governments) should strive toward a situation in which a terrorist trying to penetrate our borders will have an equally hard time doing so no matter which country he elects to enter first," the report said.

The establishment of a tri-national intelligence center and joint training for law enforcement officials were advised to further reinforce counterterrorism efforts.

The Task Force also proposed a border pass with biometric indicators to allow for speedy passage through customs and airport security. They said borders between Canada, Mexico and the United States will be crossed almost 400 million times in 2005.

"The (three) governments should commit themselves to the long-term goal of dramatically reducing the need for physical scrutiny of traffic, travel and trade within North America," Manley said.

On the economic front, a common external trade tariff, implemented on a sector-by-sector basis, was proposed to enhance North American competitiveness against surging markets in China, India and the European Union.

By beginning with goods on which current tariffs are closest, then proceeding to close larger gaps, the task force said the need for "complex and costly" rules of origin would be eliminated.

"Unwieldy rules of origin, increasing congestion at ports of entry, and regulatory differences ... raise our costs instead of reducing them," their report said.

Pedro Aspe, former finance minister of Mexico and task force co-chair, noted that Canada and Mexico are currently the two largest exporters of oil to the Unites States.

He said the concept of a North American energy strategy that "expands" and "protects" energy infrastructure while reducing emissions - as recommended by the delegation - could be a North American alternative to the controversial Kyoto protocol.

At present, Mexico boasts the largest oil reserves in North America and exports 90 percent of its oil to the United States. Some experts say this level could be doubled over the next five years, reducing U.S. demands for Mideast oil and providing the Mexican government with economic leverage to finance development projects.

To help this process, Aspe said the establishment of a North American Investment Fund - designed to steer resources to connect the poor south to markets in the north - would raise physical and human capital throughout Mexico and abridge the socio-economic gap that persists. He argued this would ultimately stem the tide of immigrants to the United States.

About 300,000 Mexicans emigrate to the United States each year, half of whom do so illegally. Of these people, the vast majority come from the south, Aspe said.

The task force report affirmed that "low wages and lack of economic opportunity in parts of Mexico stimulate undocumented immigration, and contribute to human suffering, which sometimes translates into violence."

Co-chair William Weld, former Assistant U.S. attorney general, held that the creation of such a fund was "not a handout" to Mexico but a "prudential step all countries need to take in their own best interests."

The task force will release its complete report later this spring, which will assess the results of the upcoming Texas summit.

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