A former U.S. ambassador to Canada says it's an "important statement" that president-elect Barack Obama will make his first foreign visit to Canada after his inauguration.

Obama is reviving the longstanding tradition after it was broken by President George Bush, who chose to visit Mexico instead.

Speaking Sunday on CTV's Question Period, Gordon Giffin said the move is an effort by Obama to reach out to his country's biggest trading partner and forge a new relationship that is based on working together both on North American issues and on the world stage.

"It's a significant indication of the level of importance that the Obama team places in our friendship with Canada, our alliance with Canada and our neighbourhood with Canada," Giffin said. "So I think this is an important statement."

Giffin speculated that Obama won't meet with Prime Minister Stephen Harper armed with a list of objectives.

However, the two are expected to discuss a wide range of issues, including the economy, the struggling auto industry, the environment and energy initiatives.

The two may also agree to work together on an Afghanistan policy, as Obama attempts to move forward an expanded U.S. military role in the country as Canada's mission winds down.

Whatever the topics of discussion, Giffin said the visit will lay the groundwork for a new relationship between the U.S. government and its allies.

"I think this is the beginning of an initiative by the president, to be followed up around the world by our new secretary of state, to evidence to our friends and allies around the world that we're back in the mode of listening to our friends, and talking with our friends, and co-ordinating with our friends, as opposed to sitting in Washington and instructing our friends," Giffin said.

He also speculated that Obama would meet with Liberal Leader Michael Ignatieff if the two men's schedules allowed for it.

While on the campaign trail, Obama often spoke about the possibility of re-negotiating the North American Free Trade Agreement.

However, Liberal MP Bob Rae said that neither the U.S. nor Canada should seek to alter their trade policies.

"I don't think either one of us can afford to go off on protectionist tangents," Rae told Question Period. "We have created this integrated marketplace over several decades and there's no going back."

Both Conservative MP Peter Kent, minister of state for foreign affairs, and NDP foreign affairs critic Paul Dewar, said that the two leaders should focus discussions on the ongoing economic crisis.

The two countries' economies are so highly integrated that Obama and Harper must work together on investment, trade and manufacturing issues, they said.

"We need to get down to the hard work of getting our economies straightened out and the only way we do that is working with the Obama administration to ensure that we have fair trade, but also that we re-organize key areas, like the manufacturing area," Dewar told Question Period. "Otherwise they're not going to be doing well and Canada's going to be hurting because we so desperately rely on their economy."