Premier Shaw Graham says New Brunswick needs new trade agreements with neighbouring Maine to reduce the province's reliance on financial handouts from the Canadian government.

Graham, in a speech Tuesday to the Maine legislature, said his government's goal of achieving self-sufficiency will call for new partnerships with Maine in tourism, trade, transportation and especially energy.

"Of course, we are building on a very long tradition of friendship between our provinces — a friendship that extends back centuries and generations," Graham said. "By sharing our experiences and our knowledge and looking for new opportunities for co-operation, each of our jurisdictions can benefit."

Energy issues dominated a news conference that followed Graham's formal remarks at the legislature in Augusta.

"New Brunswick has surplus energy, electricity and energy markets to tap into, but access to those markets is critical," Graham told reporters.

Maine "is a key player in the development of our policies," he said.

The premier noted that a second nuclear reactor at Point Lepreau is being considered, new natural gas production will put 30 million cubic metres per day into the pipeline, and Irving Oil is looking at the feasibility of a second refinery that would double its production in Saint John.

Maine Gov. John Baldacci said rising energy and transportation costs impede business expansion more than any other factor.

"The goal from our perspective is, we want lower rates," the governor said.

"If we are able to join forces with the transmission capabilities we can benefit."

Last year, Graham and Baldacci signed a memorandum of understanding to increase co-operation on electrical interconnections. Maine is also considering a plan to form closer ties with Atlantic Canada to generate and distribute power.

A recent report from the Public Utilities Commission in Maine said the organization of the region's grid is flawed and that Maine could benefit from a new partnership.

Common border, common issues

Earlier, Graham said the two governments can work together to promote tourism and deal with common border security issues, such as passport requirements.

The premier talked about creating enhanced driver's licences for New Brunswick and Maine. He said such licences would also identify citizenship.

Tourism groups in both Canada and the United States have warned that new passport requirements at the border will have a serious impact on cross-border travel.

Graham also mentioned a "two nation vacation" initiative that would encourage people who visit Maine to extend their vacations to New Brunswick.

The premier praised his close friendship with Baldacci.

The two men have agreed to spend time together this summer climbing Mount Katahdin in Maine and Mount Carleton in New Brunswick — the two highest peaks in the area.