"I am very, very concerned and I think that if we are not careful, the standard of living of all Canadians could take quite a beating as a result of this," Paul Tellier said, noting that 87 percent of Canadian exports are destined for the United States.

Tellier is one of a handful of Canadian executives who have spoken out about the possible repercussions of strained US-Canadian relations.

A group of Canadian business leaders plans to go to Washington for talks, however.

"I am deeply, deeply concerned about the deterioration of the US-Canada relationship," Tellier told reporters here while discussing Bombardier's announcement to sell its recreational products business.

Last week, US Ambassador to Canada Paul Cellucci blasted Ottawa for not supporting the United States in its effort to "liberate" Iraq, saying it could cause short-term damage to its trade relationship.

The United States and Canada have the world's largest trading partnership, with some 1.3 billion dollars (884 million US dollars) in goods traded daily across the border.

Although border crossings have not reported any major disruptions since the beginning of the war, Tellier cautioned that any increased security threat to the United States and subsequent clampdown could hurt bilateral trade.

"When the relationship is as important as it is, very significant efforts have to be made to ensure that when we agree to disagree that this is done in the proper fashion," he added.

SPACE.WIRE