No. H 069/07
For release April 26, 2007

Canada and United States Agree to Work Together to Improve Vehicle Fuel Efficiency

TUCSON, ARIZONA — The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, and United States Secretary of Transportation, Mary E. Peters, today announced that the two countries have signed a Memorandum of Cooperation aimed at improving motor vehicle fuel efficiency. The Memorandum of Cooperation will help the Government of Canada in its efforts to develop motor vehicle fuel efficiency regulations.

"Regulating vehicle fuel efficiency is an important element of Canada's environmental agenda aimed at protecting the health of Canadians and the environment," said Minister Cannon. "Our government intends to work towards establishing an environmentally ambitious North American regulatory standard for cars and light trucks."

"Increasing fuel economy standards through sound science is the most effective way to reduce fuel consumption, preserve vehicle safety and support the development of the kind of technology needed to make our automobiles as efficient as possible," said Secretary Peters. "Today's announcement puts both our countries on a track to developing the kind of standards we need to secure our energy independence while protecting the economy, the environment and vehicle safety."

The Memorandum of Cooperation provides opportunities for the two governments to meet periodically to share respective strategies and regulatory practices governing motor vehicle fuel efficiency; exchange research, modeling and analysis related to fuel efficiency standards; and exchange information on motor vehicle fuel efficiency developments and initiatives within the two countries.

The Memorandum of Cooperation specifically refers to exchanging information on:

• the assessment of technological changes to improve the fuel efficiency of vehicles;
• potential options for fuel economy standards;
• assessment of auto industry impacts of proposed standards;
• developments related to potential credit trading systems; and
• experiences relating to the use of economic instruments and sharing of work plans.

The Memorandum of Cooperation will allow the two countries to benefit from their knowledge and experience in the area of motor vehicle fuel efficiency.

The Memorandum of Cooperation is attached.

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MEMORANDUM OF COOPERATION BETWEEN THE DEPARTMENT OF TRANSPORT OF CANADA AND THE DEPARTMENT OF TRANSPORTATION OF THE UNITED STATES OF AMERICA

The Department of Transport of Canada (Transport Canada) and the Department of Transportation of the United States of America (United States Department of Transportation), hereinafter referred to collectively as the "Participants",

Recognizing the interest of the Participants in improving motor vehicle fuel efficiency; and

Desiring to enhance communication in matters relating to improving motor vehicle fuel efficiency without compromising each Participant's ability to carry out its responsibilities;

Intend to cooperate as follows:

1. PURPOSE
   

   The purpose of this Memorandum of Cooperation (hereinafter referred to as "Memorandum") is to enhance communication between Transport Canada and the United States Department of Transportation, through its National Highway Traffic Safety Administration, concerning motor vehicle fuel efficiency, and to promote the exchange of information in the area of motor vehicle fuel efficiency.

2. AREAS OF COOPERATION

   The Participants intend to communicate and exchange information under this Memorandum in the following areas:

   1. Research, modeling and analysis, related to fuel efficiency standards; and
   2. Developments and initiatives related to motor vehicle fuel efficiency.
3. FORMS OF COOPERATION
   

   (a) The Participants intend to maintain an open and continuing dialogue relating to motor vehicle fuel efficiency.

   1. The Participants may meet periodically to share their respective strategies and regulatory practices governing motor vehicle fuel efficiency.
      
   2. The Participants may exchange research on modeling and analysis related to fuel efficiency standards. For example, subject to applicable restrictions on the distribution of proprietary or other confidential data, the Participants may share and discuss information, such as fuel economy models, assessment of technological changes to improve the fuel efficiency of motor vehicles, potential options for fuel economy standards, assessment of auto industry impacts of proposed standards, and developments related to potential credit trading systems.
      
   3. The Participants may exchange information on motor vehicle fuel efficiency developments and initiatives in the two countries. For example, subject to applicable restrictions on the distribution of proprietary or other confidential data, the Participants may share and discuss information, such as work plans and experiences relating to the use of economic instruments to promote the production and purchase of environmentally friendly motor vehicles and initiatives to retire older vehicles.
      

   (b) The Participants mutually understand that efforts under this Memorandum may depend on the respective internal circumstances in Canada and the United States and may be affected by factors, such as differences or divergences in regulatory priorities, availability of funds, and any difficulties that could arise during the course of this cooperation.
   

4. FUNDING

   Pursuits of activities under this Memorandum are subject to the statutory authority of each Participant and the availability of appropriated funds to each Participant for these purposes. The Participants do not intend to transfer funds between them pursuant to this Memorandum.
   

5. LIMITATION

   Activities carried out under this Memorandum, including exchange of information, are subject to the applicable laws, regulations, policies and procedures of each of the Participants.
   

6. DISCLAIMER

   Each Participant intends to make every effort to seek the accuracy of all data and information exchanged pursuant to this Memorandum. However, the accuracy of such data and information is not guaranteed. Therefore, each Participant uses the other's data at its own risk.
   

7. DURATION

   The activities under this Memorandum may commence upon the date of the signature below of both Participants. The Memorandum may be modified in writing by both Participants and may be discontinued upon written notice by either Participant.

Signed in duplicate, at        , this       day of       , 2007, in the English and French languages.