Following the re-election of United States President George W. Bush, people around the world are asking how "four more years" will affect them. For groups like the Taliban, it means digging deeper into caves; for the United Nations, it means either a call to reform or another four years of irrelevance. For Canada - and Canadian taxpayers - however, the outlook is considerably more pleasant.

Despite the efforts of some parliamentarians to sour Canada-U.S. affairs, Washington still considers Ottawa an ally and friend. But this relationship cannot be taken for granted by either government. While President Bush's focus will continue to be the war on terror and domestic policy reforms, the end of the long U.S. election cycle marks an opportunity for Prime Minister Paul Martin to mend fences and build bridges.

It will not do to lecture the President or tell Canadians "[Mr. Bush] will become more mainstream" in a second term, as Foreign Affairs Minister Pierre Pettigrew did. The U.S. government will not pass the Kyoto Protocol because of its high economic cost (a smart policy decision) or sign on to the International Criminal Court, so get over it Mr. Pettigrew.

This is not to suggest MPs must go cap in hand to Washington. Rather, Ottawa must show that it understands border security is a pressing concern of the Bush administration. By tackling security issues, Ottawa will be well-placed to ensure its goal of ensuring goods and people flowing freely across our borders is part of any deal. The proposed Canada-U.S. "Smart Border" being advanced by deputy Prime Minster Anne McLellan is a good start. If Canada hopes to move up on the White House priority list, our lawmakers will need to work with their American counterparts.

By now Prime Minister Martin must understand American lawmakers do not consider a slap in the face with a wet fish any better than a poke in the eye with a sharp stick. Demonstrating an open mind towards American policy concerns will go a long way towards resolving trade disputes over softwood lumber and ending the U.S. ban of Canadian live cattle.

Mr. Bush has had an unsteady record on liberalizing trade. He imposed steel tariffs to protect the domestic industry and did little to liberalize world trade in any meaningful way. But his policy default is that of a free trader. Moving ahead, Mr. Bush will press ahead to expand free trade to the American hemisphere and improve the North American Free Trade Agreement. As a trading nation, Canada should encourage and support these initiatives.

Government spending has increased at an alarming pace under Mr. Bush. Washington's decision to run deficits as far as the eye can see will likely mean our loonie will continue to soar. In addition, Ottawa's seven consecutive balanced budgets will make the Liberal government look like fiscal wizards next to U.S. lawmakers. But this is hardly adequate when our taxes are the highest of the three NAFTA nations, our living standard is declining vis-à-vis the Americans, and our productivity lags.

Under President Bush, U.S. taxes will remain where they are or decline further. As a result the Canada-U.S. tax gap will widen. When liberals tell voters they want "competitive taxes" taxpayers know it is code for doing nothing. Yet when President Bush says he will reform an outdated tax system - as he did on Wednesday - we know the U.S. tax burden will go down and not up. Ottawa will need to cut personal and corporate taxes in the next budget if we hope to remain competitive with our biggest trading partners.

Mr. Bush will, of course, need to make overtures to win back international allies if he hopes to advance his country's interests abroad. Similarly, Ottawa will need to add water to its wine to further our national objectives.