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(The Montreal Gazette posted the following article by Don MacDonald on its website on April 4.)

MONTREAL — Paul Tellier, CEO of Bombardier Inc., says he’s deeply concerned about the deterioration in Canada-U.S. relations over the Iraq war. There’s an urgent need for fence-mending, he insisted yesterday.

“I think that if we’re not careful the standard of living of all Canadians could take quite a beating as a result of this,” Tellier said during a press conference where he discussed a plan to relaunch Bombardier.

Relations between the countries have soured lately over Ottawa’s decision not to participate in the war in Iraq.

Last week, U.S. ambassador Paul Cellucci publicly expressed disappointment over Canada’s refusal to support the war and said many Americans are upset by Canada’s position.

Tellier said there’s room for an honest disagreement, but the U.S. economy is just too important to Canada to let things get out of hand.

“It’s a question of being able to get along together,” he said. “We can agree to disagree. … But when the relationship is as important as it is, very significant efforts have to be made (so) that this is done in the proper fashion.”

He noted 87 per cent of Canadian exports go to the U.S. and 44 per cent of Canadian GDP depends on exports. Both Bombardier and Tellier’s former company, Canadian National Railway Co., have large business interests in the United States.

He said he regrets that business matters will prevent him from accompanying other Canadian CEOs who are scheduled to travel to Washington next week on a fence-mending mission.

Tom Donohue, president of the U.S. Chamber of Commerce, said in an address to about 200 business leaders in Toronto yesterday that the U.S.-Canada relationship (is) hitting a few bumps in the road.”

But he added: “They will not stop the journey that we are making together to forge a truly integrated North American economy.”

(The Canadian Press contributed to this report.)