The victory of Barack Obama in this week’s U.S. presidential election presents a significant opportunity for Canada to create a stronger bilateral relationship with the United States, a panel of Canadian and American politicians said on Friday.

At a post-U.S. election briefing held by the Conference Board of Canada in Toronto, the panel discussed the issues within the Canada-U.S. relationship, and the direction it will take under the new administration.

An encouraging message throughout Obama’s campaign was the importance of rebuilding relationships with the friends and allies of the United States on the international stage, said Gordon Giffin, former U.S. Ambassador to Canada.

“That statement of priority is encouraging to the world,” he said. “No where is that more relevant or is that more important than for our neighbour to the north.”

On the issue of the North American Free Trade Agreement and a potential renegotiation that could impact trade between the two countries, Canada should not be worried, according to Giffin. He pointed out that Obama’s concerns about the trade agreement involved labour and environmental standards — issues that pertain to Mexico more than Canada.

“I wouldn’t be concerned about protectionism in the United States,” he said.

Under the current challenging economic conditions, American trade policy could change slightly going forward, according to Raymond Chretien, former ambassador of Canada to the United States. Still, as one of the United States’ most important trading partners, he said Canada should not be concerned about changes to the trade agreement. He pointed to the fact that 23% of U.S. oil imports come from Canada.

“We have a tremendous advantage in the years to come,” he said.

Paul Cellucci, former U.S. ambassador to Canada, said he expects progress in economic integration between the U.S. and Canada to come slowly. “We will continue to do things incrementally,” he said, adding that he does not expect to see a common currency adopted in the near future. “But I hope we will address things like free trade for individuals and labour mobility.”

The panel applauded the news that Rahm Emanuel has been appointed chief of staff in the new administration, calling this good news for Canada. Emanuel led the effort to organize the passage of NAFTA under the Clinton administration and is a proponent of free trade, according to Giffin. He added that Emanuel is knowledgeable about Canada, and a fan of this country.

“That’s a great step and a very positive one for the Canada-U.S. relationship,” he said.

The panel also noted that the election of Obama presents a promising opportunity for the establishment of a continental carbon trading market to combat climate change. They commended the fact that Obama has acknowledged continental energy requirements and climate change as part of his agenda right away.

“If there’s going to be an approach to climate change, it can’t be one that’s made in Canada, it has to be made in North America,” said John Manley, former deputy prime minister of Canada.

It’s also crucial for the two countries to continue making progress on the Security and Prosperity Partnership, according to Cellucci. He expects the progress made so far to continue under the new governments of both countries, particularly with improvements in efficiencies at the border.

Despite the opportunity that the new administration presents, the panelists warned that it will be difficult for Canada to get the attention of the United States in the next couple years, given the slew of domestic and international issues that it currently faces.

“The U.S. domestic agenda always tops everything in Washington,” Manley said. “And the international agenda is one in which we compete with however many countries are members of the United Nations to try to get on to the agenda.”

The panelists also noted that Canada could face challenges related to higher levels of regulation in the United States going forward, particularly following the financial crisis.

Manley noted that Sarbanes Oxley had a considerable affect on Canadian enterprises, and said the addition of new, stringent regulations south of the border could have a similar spillover effect on business in Canada.

“There’s going to be a huge appetite after the bailout bill for re-regulation of the financial sector and other sectors,” he said. “For Canadians, we have to watch what effect that will have on us.”