A LIFE WELL LIVED — SIMON REISMAN

Michael Hart and Bill Dymond

In the annals of Canadian trade policy, Simon Reisman was a giant. Present at the creation of the General Agreement on Tariffs and Trade in 1947, he went on to negotiate the -US Autopact in 1965 and the Canada-US Free Trade Agreement in 1987. Renowned for his public temper, he was equally known for his private courtesies and for mentoring bright young officials, such as the authors, who worked for him in the Trade Negotiations Office during the FTA talks. Hart and Dymond offer this fond appreciation of a legendary mandarin, and of a full life, well lived.

Dans les annales de la politique commerciale du Canada, Simon Reisman fait figure de géant. Il a assisté à la création du GATT en 1947 pour ensuite négocier le Pacte de l’automobile Canada–États-Unis en 1965 et l’Accord de libre-échange en 1987. Réputé pour son tempérament parfois coléreux, il était tout aussi reconnu pour sa gentillesse et le soutien qu’il apportait aux jeunes et brillants fonctionnaires qui travaillaient à ses côtés (comme les deux auteurs) au Bureau des négociations commerciales pendant les pourpalers de l’ALE. Michael Hart et Bill Dymond rendent hommage à ce mandarin légendaire qui a pleinement vécu chaque instant de sa vie.

imon Reisman, a giant of postwar Canadian public poli- enjoyed throwing stones at each other! Unlike Trudeau, cy, passed away in on March 9, after a brief illness. Simon attended a public high school, Baron Byng, and then S We had the privilege of working with Simon in crafting went on to McGill to take both a BA and an MA in econom- one of his greatest achievements, the 1988 Canada-United ics. His passion for hands-on learning was evident in his early States Free Trade Agreement (FTA). During that time we learned choice of economics, the most practical of the social sciences. not only about his famous temper and spirited language, but What he learned at McGill became the basis for a life- also about the workings of his prodigious mind, his skill and long appreciation of the limits of government and the craft as a negotiator and his loyalty to his staff and collaborators. importance of markets. But not immediately. As he never The public persona he presented during those negotiations was tired of telling us, anyone who is not a socialist during his always colourful and sometimes controversial, but in and youth lacks a heart. Anyone who is still a socialist as a man around the Trade Negotiations Office (TNO), he inspired us to lacks a brain. While at McGill, he dabbled in the kind of reach high and pursue our goal boldly and determinedly. socialism that was common on university campuses. We have fond memories of Simon and will miss him. We will particularly miss his incomparable skill as a racon- ife at McGill may not have prepared him for the rigours teur. Our generation of trade policy practitioners learned L of war, but his advanced degree assured Simon of a post- much of our craft listening to the stories of our elders and ing as an officer when he volunteered for the army. As an betters, and none more so than Simon. In addition to nego- artillery officer, he distinguished himself during the cam- tiating the FTA, staffers at the TNO attended a master class paigns in Italy and Holland. He survived four years of dep- in trade policy and negotiations. This memorial of Simon rivation and trial to become a battle-hardened veteran with reflects some of the lighter moments in our graduate educa- a strong commitment to his country and to public service. tion at the TNO and later, over lunch, at the Rideau Club. He also lost the hearing in one ear. From then on, there was Simon was born in the of Duddy Kravitz. Prime a right side and a wrong side if you wanted to get Simon’s Minister Pierre Trudeau — who was also born in Montreal in attention. At the TNO, not everyone learned to work with 1919 — noted in Simon’s citation for the 1974 Distinguished this reality. Sitting across from him was a lot smarter than Public Service Award that they had grown up in neighbour- sitting down the table at the wrong end. His partial deafness hoods not far from each other. Geographically, yes, but cer- also explains why Simon never whispered. He spoke with tainly not socially or economically. Trudeau also noted that, conviction, clearly, loudly and often. There was never a dull as signs of esteem, boys from these two neighbourhoods moment with Simon in the room.

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Simon was in London when he was by one of the senior members of the early rounds of negotiations in Annecy demobilized and took the opportunity to department, a stern-looking Winnipeg- and Torquay and later in the Dillon and spend some time at the London School ger named Mitchell Sharp. Simon was Kennedy rounds. From 1955 to 1957 he of Economics (LSE), the famed school offered the job, but at a lower rate of pay took a detour from trade policy by established by the Fabians at the turn of than he was earning at the Department accepting a position as assistant director the century and over its first half-century of Labour. When he pointed this out to of research for the Gordon Royal host to some of the most influential Sharp, he was told that was all that he Commission. As such, he demonstrated political, social and economic thinkers of was worth and that Finance offered other his prowess as an accomplished eco- the 20th century, ranging from Harold advantages. Simon swallowed his pride nomic analyst, joining with Irving Laski to Friedrich Hayek. Under the lead- but ever after harboured reservations Brecher from McGill to produce a research volume on Canada- As an artillery officer, he distinguished himself during the United States economic rela- campaigns in Italy and Holland. He survived four years of tions and directing work on deprivation and trial to become a battle-hardened veteran two other research volumes by Jack Young and Roger with a strong commitment to his country and to public Anderson. The Young vol- service. He also lost the hearing in one ear. From then on, ume, Canadian Commercial there was a right side and a wrong side if you wanted to get Policy, which demonstrated Simon’s attention. the negative impact of the Canadian tariff on Canada’s ership of William Beveridge, the future about Sharp, attributing his flinty atti- economic development, proved particu- father of the British welfare state, the LSE tude to his Presbyterianism. larly controversial with the chairman. redefined the study of economics as a Simon never made it to Harvard. Gordon did not want it published. It “science that studies human behaviour Instead, he furthered his education as a took all of Simon’s powers of persuasion as a relationship between ends and scarce Finance man. At the start, he joined to change his mind, and then it means that have alternative uses.” As the International Economics Division, appeared only with a note that the com- such, the LSE became a pioneer in mod- working with John Deutsch, another missioners did “not accept responsibili- ern economic studies. Simon was much giant of Canadian public policy and ty for or necessarily approve the impressed by people like Niki Kaldor and one of Simon’s most important men- statements and opinions which it con- James Meade, men with whom he would tors as an economist and a public ser- tains.” Time has been much kinder to later joust as a senior official, and deter- vant. He joined Deutsch, Dana the analysis prepared by Young than to mined to pursue a career as an academic Wilgress, Hector McKinnon and other that espoused by Gordon. Simon was economist. But first he had to return to veterans of the small Canadian trade right to insist on its publication. Montreal to be reunited with his bride, policy community in pursuing the Early in his career, Simon decided Connie. heady new postwar venture in multi- he needed to brush up on his French. While at the LSE, he made a small, lateral trade negotiations, first in As a Montrealer, he was comfortable prescient purchase. Walking up the London, then in Geneva and finally in with street French, but the public ser- Aldwych one day, he stopped to Havana, Cuba. He was part of the vice demanded more. He worked dili- browse in a government bookstore and Canadian delegation to the Second gently but found the subjunctive in saw a copy of the British Printing Preparatory Committee for the World particular a tough slog. When his Office version of the 1945 US Proposals Trade and Employment Conference in teacher explained he needed it in order for Expansion of World Trade and Geneva in 1947, out of which emerged to express fear, anxiety or uncertainty, Employment. He bought it, never realiz- the General Agreement on Tariffs and he brought the lessons to an end. ing what a momentous role he would Trade (GATT), and joined Wilgress as Expressions of fear, anxiety or uncer- soon play in pursuit of these proposals. his right-hand man in Havana in the tainty were not part of his experience. negotiations that resulted in the ill- He returned to Finance in 1957 just ack in Canada, Simon planned to fated International Trade Organization. in time to deal with such challenges as B further his academic studies at Har- His expertise on the GATT became the Commonwealth Economic vard, but first he needed to earn some the mainstay of much of his career in Conference hosted by his minister, money and start a family. He went to Finance: he formed part of the Donald Fleming, and Prime Minister Ottawa and took a position as an econo- Canadian delegation to GATT meetings John Diefenbaker’s desire to shift 15 per- mist at the Department of Labour. Sever- throughout the 1950s and again in the cent of Canadian trade from the United al months later he learned of an opening 1960s as he rose through the ranks first States to Britain. Simon’s analysis helped at the more prestigious Department of as a director and then as an assistant to bury this quixotic impulse. By the end Finance, and applied. He was interviewed deputy minister. He participated in the of the Diefenbaker years he had become

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firmly established as one of the leading the border to become more integrated Simon angrily stubbed his cigar on the mandarins in Ottawa, known for his and to trade parts and vehicles freely Secretary’s desk. Not true. Simon liked tough talk and sound policy instincts. across the border. It allowed the indus- the story, but also insisted that he would His no-nonsense style had already try to rationalize production on a never have behaved in such an uncouth become legend. As Tom Kent recounts in North American basis with full manner. Nevertheless, the story added his memoirs, Reisman was part of a Canadian participation. As a result, the wonderfully to his feisty reputation. group of senior officials who met with auto industry thrived and soon became Simon presided over the making of him and other members of Lester the mainstay of the economy. four budgets, with first Edgar Benson and Pearson’s transition team and expressed then John Turner. Two of these budgets serious reservations about some of the n 1968, Simon moved to the coincided with the minority Liberal gov- ideas Kent and Pearson were advancing. I Treasury Board as its secretary, i.e. ernment of 1972-74, with the Liberals deputy minister. It proved a challenging depending on the NDP to stay in power. hether Simon was abrasive or portfolio. Treasury Board manages the The first four years of the Trudeau gov- W not, Pearson also had confi- government’s spending, and by the end ernment had already expanded the role dence in him and appointed him in of the 1960s, government spending was of the federal government considerably, 1964 to take over as deputy of the newly reaching new heights with the prolifer- but the minority government threw all restraint out the window, The solution was the Autopact, an ingenious set of severely straining Simon’s asymmetric obligations that allowed automotive parts and orthodox economic instincts. assembly plants on both sides of the border to become more His legendary temper and integrated and trade parts and vehicles freely across the penchant for lecturing minis- ters were on full display. His border. It allowed the industry to rationalize production on a disagreements with the direc- North American basis with full Canadian participation. As a tion of government policy result, the auto industry thrived and soon became the were exacerbated by the mainstay of the Ontario economy. appointment of Michael Pitfield to succeed Gordon organized Department of Industry. One ation of social and other programs, as Robertson as clerk of the Privy Council. of the biggest files was what to do about well as new federal-provincial revenue- They had never gotten along and Simon the auto industry and the problems of sharing programs. Prime Minister considered Pitfield too inexperienced for the small Canadian market. Based on Trudeau and the clerk of the Privy the job. By the end of 1974, Simon con- the recommendations of the Bladen Council, Gordon Robertson, felt that cluded that he had had enough. Under Commission, various industrial policy Simon was the right person to bring pension rules he had helped to devise, he gimmicks soon landed the industry order to Canada’s spending habits: he was able to include his military years as with the threat of a US countervailing was direct, tough as nails, smart as a pensionable time and had thus become duty suit. Wiser heads prevailed and whip and highly informed, so no one eligible for a full pension when he turned Simon found himself at the head of a would pull any wool over Simon’s eyes. 55 in June of 1974. He exercised his right senior delegation of officials — includ- Two years later, Simon reached the at the end of the year, together with his ing Jake Warren from Trade and pinnacle of his public service career, suc- friend and long-time colleague Jim Commerce, Jim Grandy from Finance ceeding the legendary Bob Bryce as Grande, and opened a consulting prac- and Allan Gotlieb from External — deputy minister of finance. Simon had tice. While there was much public con- butting heads with an American delega- by this time built a formidable reputa- troversy about the ability of senior public tion headed by Phil Tresize and report- tion for toughness, tenacity and intellec- servants to move directly from their gov- ing to George Ball. President Lyndon tual brilliance, and as finance deputy, he ernment offices to a consultancy focused Johnson and Prime Minister Pearson was well placed to play a pivotal role in on public policy, Simon and Jim had had committed their two governments every aspect of the government’s agen- acted fully within the rules. to finding a constructive solution. That da, from trade and industry to health was helpful, but it was up to Simon and and welfare policy. In August 1971, for ver the next 10 years Simon pur- his colleagues to find one that would example, he led a delegation to meet O sued a new career as an adviser to pass congressional muster and fit within with US Treasury Secretary John corporate Canada: as a consultant, the rules of the GATT. Connally to seek relief from the punitive board member and participant in vari- The solution was the Autopact, an import measures adopted by President ous business groups. One of the proj- ingenious set of asymmetric obliga- Richard Nixon to address the growing ects on which he provided advice was tions that allowed automotive parts US balance of payments problem. the Grand Canal project championed and assembly plants on both sides of Legend has it that during the discussion, by Newfoundland visionary

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CP Photo Simon Reisman in full rhetorical flight at a news conference during a difficult moment in the 1986-87 Canada-US free trade talks. His American counterpart, Peter Murphy, was relatively inexperienced and somewhat overmatched, but always good-humoured.

Thomas Kierans. He also mused that at new challenges as a result of rapid would organize and pursue the negotia- some point it might be advantageous inroads into North America by the tion of a free trade agreement with the for Canada to use its vast freshwater Japanese manufacturers, particularly United States. Simon had long been resources as negotiating coin in any after the first energy crisis in 1974. actively engaged in public discussion of future trade negotiations. Nothing ever Simon recommended that the govern- the benefits of such an agreement. His came of either idea, but Simon was ment use such industrial policy tools as views had been increasingly acceptable from then on identified as promoting duty remissions to encourage Japanese to Canadian business leaders and provin- bulk water exports to the United States, — and European — companies to invest cial politicians and, in September, had a major bugaboo of Canadian national- in North America and thus expand been recommended by the Macdonald ists and conspiracy theorists. opportunities for domestic parts manu- Royal Commission. The government had While this new career proved finan- facturers and other suppliers. In 1983 he accepted that recommendation and, cially and intellectually rewarding, accepted an assignment as chief negotia- encouraged by Simon’s memo, Mulroney Simon missed the opportunity to forge tor for Aboriginal land claims in the appointed him ambassador and chief public policy and serve broader public Western Arctic and succeeded in becom- trade negotiator for Canada, responsible interests. On two occasions, therefore, ing the first, and for many years to come, for not only the Canada-US negotiations he accepted assignments to serve the the only such negotiator to settle but also impending multilateral negotia- government. The first was an offer in Aboriginal land claims to the satisfaction tions at the GATT in Geneva. Simon 1978 to head a royal commission to of both the federal government and the could not have wished for a more chal- investigate the prospects of the affected Aboriginal tribes. lenging and potentially rewarding assign- Canadian auto industry. The industry In the fall of 1985, Prime Minister ment. Nearly 40 years of thinking, had expanded considerably as a result of approached Simon and researching and writing about and then the 1965 Autopact, but it was now facing asked him to advise him on how he negotiating and implementing trade

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arrangements with the United States had concluding an agreement in principle, more outward-oriented, more competi- prepared him as well as any Canadian to and two months later, he was able to tive economy, providing Canadians tackle the potentially biggest and most deliver the final, complete agreement with greater prosperity and more difficult negotiation any Canadian gov- to the Prime Minister. The controversy, choice and more opportunity. For ernment had ever undertaken. however, was not over. Having con- someone who had been ready more Simon immediately set about build- cluded the agreement, Simon the chief than 40 years earlier to embark on a ing a team, finding appropriate quarters negotiator now became Simon the career as an academic economist, this for them and preparing a mandate. For chief advocate. He resigned his posi- was some achievement. the next two years he devoted his consid- tion as chief negotiator and spent the The FTA entered into force on January 1, 1989, allowing He lived a full and rewarding life, serving his country with Simon to return to a private great panache and distinction and leaving a remarkable life of corporate boards, con- sulting contracts, lunch at legacy: soldier, economist, author, analyst, negotiator, public the Rideau Club with the servant, husband, father, grandfather and friend. Roundtable and more time for his wife, Connie, a suc- erable energy, experience, insight and next year tirelessly crisscrossing the cession of dogs and his grandchildren. tenacity to serving the country and build- country, speaking to audiences large He also developed a close relationship ing the legacy of his dreams. It was not an and small, appearing on radio and tele- with Carleton University. He had earlier easy task. Free trade was as controversial vision, granting interviews and pen- served on its board of governors, but was an issue as the country had ever faced. ning op-eds, explaining to all and now principally interested in the work of The government, while politically com- sundry that Canada had negotiated a the Centre for Trade Policy and Law. One mitted, was at times skittish. The media good agreement, one that would bene- of its associates, Laura Dawson, worked often proved uninformed and mischie- fit the country and lead to a stronger, closely with him in producing her Ph.D. vous. His former minister and long-time more competitive economy. dissertation focused on his negotiation friend, John Turner, now leader of the of the Autopact and the FTA. He was sup- opposition Liberal Party, had decided that anadians agreed. The 1988 cam- portive of the analytical and historical opposing free trade would provide his C paign focused almost exclusively work produced by other associates of the defining moment in Canadian history. on the FTA and the government was centre. In 1998, Carleton honoured him Provincial support was often fickle, as returned, albeit with a reduced majority. with an honorary degree, and in 2000 it provincial ministers and officials saw the The Liberals and the NDP, joined by a established the Simon Reisman Chair in negotiations as coin to be used in the chorus of opposing voices drawn from Trade Policy and the Simon Reisman never-ending game of federal-provincial nationalist, activist and populist camps, Lecture to ensure a continued focus on relations. Most challenging of all, howev- pulled out all the rhetorical stops in an the work that had defined his career. er, was the obdurate attitude of the effort to convince Canadians that free One of us last spoke to him a few Americans. Starting with the appoint- trade would spell the end of everything weeks before his death to remind him ment of the much younger and relatively from medicare to culture. Business that the next lecture would be delivered inexperienced Peter Murphy as his oppo- groups, on the other hand, joined the by Tom d’Aquino on March 27. As it site number, Simon found that the government in putting forth a more turned out, Simon would miss that lec- American commitment to free trade was a realistic picture, and both could be for- ture. After a brief illness, he died quietly in mile wide and an inch deep. President given for promising more jobs. Simon his sleep early on the morning of March Ronald Reagan may have enthusiastically stayed on a more economically ortho- 9. He lived a full and rewarding life, serv- welcomed Prime Minister Mulroney’s dox road. As he had never tired of ing his country with great panache and proposal, but working with the highly telling us, trade agreements are about distinction and leaving a remarkable lega- decentralized American negotiating team not more jobs, but better jobs, more cy: soldier, economist, author, analyst, and interpreting the many mixed signals competitive industries and more and negotiator, public servant, husband, coming out of the US capital ensured very better economic opportunities. father, grandfather, and friend. trying negotiations. And so it turned out. Similarly to We have described the drama and Simon’s first venture into bilateral free Michael Hart is Simon Reisman Chair in the detail of the negotiations elsewhere trade with the United States, the Trade Policy at Carleton University’s (Decision at Midnight, UBC Press, 1994). Autopact, the FTA goaded industry into School of International Affairs. Bill Suffice it to say that Simon persevered adjusting and adapting to more open Dymond is senior executive fellow at and achieved his vision. In October of and competitive conditions. The Carleton’s Centre for Trade Policy and 1987 he was able to report to the Prime process was at times painful but the Law. Both worked with Simon Reisman Minister that Canada had succeeded in results lasting and clear: a stronger, at the Trade Negotiations Office.

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