< back to the May 1997 Conference

Margaret Bloodworth,
Deputy Minister Transport Canada

*Conveyed Minister Anderson's interest as a great proponent, encourager and supporter of the Can/Am BTA.
*Stated that issues are becoming more and more inter-connected making the Can/Am BTA organization more important. Can/Am BTA is an excellent forum to develop ideas for improvement.
*Stated Transport Canada encourages International Trade especially with the U.S. (80; of Canadian exports go to the U.S. and 70. of Canadian imports purchased from the U.S.). International Trade key to job growth.
* Provided excellent summary highlighting 3 general areas: 1995 Border Accord; Progress in Transport Modes; Safety and Security.
The Accord harmonizes Trade practices / is intended to be "Hassle Free" for honest travelers and a "Brick Wall" for those who break the law / integrates border crossing policies/procedures and provides mutual enforcement on each others soil / implements Commercial Vehicle Processing Centers (CVPC) off road truck processing.
Transport Mode Progress: AIR - airport pre-clearance expanded (Ottawa 7/97) / In Transit pre-clearance Vancouver Pilot grants limited enforcement to U.S. Customs on site. MARINE -assess performance based regulations and philosophy / revamp Canadian Shipping Act / Seaway bi-national harmonization and reciprocity i.e. joint inspections. HIGHWAY - Trade Corridor concept / importance of Border Crossing gateways / Intelligible Transportation System technology / introduce low risk traveler Border Crossing procedure. RAIL - cross border rail volume has doubled since 1985 / develop short line system / encourage alliances and upgrading of infrastructure. SAFETY and SECURITY - harmonize commercial regulations / dangerous goods trio-lingual land transport standards.
In summary Transportation is engine of growth and better ways must continue to be found / facilitate Cross Border Trade /Canadian Federal Government involvement in highways beyond 2000 is yet to be determined / Provinces are worked with in Canada as equal partners / to date relatively little bi-national coordination in infrastructure design and placement has occurred / Business will decide Trade Corridor routes / strategic view of Trade Corridor logistics is needed / need remains to address Ports and Federal role in highways.

Michael Kergin,
Assistant Deputy Minister U.S. Branch, Department of Foreign Affairs and International Trade
TRADE
*  Stated "I am pleased to join with such a distinguished group of leaders from the private and public sectors to discuss policies and issues pertaining to Canada-U.S. Trade. The Can/Am Border Trade Alliance has played a significant role in the development of Canadian policy and I welcome this opportunity to continue our dialogue."
Stated Canada/U.S. have a long standing mature economic relationship / Free Trade with U.S. first proposed although defeated in 1911 / successful 1941 shared defense production arrangement / 1965 Autopact / 1989 Canada-U.S. Free Trade Agreement / 1994 NAFTA. 1996 U.S. / Canada two-way merchandise trade alone was C$380 BILLION / equates to C$50 Million   each hour, the largest BI-lateral trading relationship in the world, / U.S./Canada bilateral trade doubled since 1989 and increased 40% since 1993 / in addition commercial service volume increased an average of 10% per year since 1991 (50% is intra-firm between affiliated firms with operations in both countries) / U.S.  is number one foreign investor in Canada and Canada is number four foreign investor in the U.S. / Canada/U.S. trade relationship success reflects in agreed state-of-the-art trade arrangements, sophistication of our dispute settlement mechanisms and volume and quality of individual and commercial cross-border relationships.
*  Discussed the few but highly publicized "exceptions" to the usually dispute-free flow of trade / culture is unique and differences must be resolved in a mutually beneficial manner / Agriculture specifically grain/ Helms/Burton extra-territorial measure which invites retaliatory measures / while these honest differences occur both countries have taken strides to ensure disputes do not detract from the close ties between our two countries allowing us to work through our differences in an orderly manner.
*  Discussed concepts of North American economic space / removal of Trade Remedy, Antidumping and Countervail laws within free trade area / accessing emerging markets in Latin America.
*  Stated "governments must eliminate impediments to an efficient movement of commerce across the Border.  The initiatives under the Canadian/U.S. Shared Border Accord are the building blocks toward facilities, a reduction in the number of in-transit inspections, stationing of customs facilities and officers where it makes sense and the streamlining of services (while retaining necessary control mechanisms) through the adoption of transparent, predictable and common customs and immigration procedures.  For me personally, it was quite an experience to be sitting at the White House Cabinet table and hearing Mr. Chretien and Mr. Clinton discussing issues initiated and long championed by the Can/Am BTA.  In many ways, the April summit meeting consisted in the alliance agenda.  Much credit is due to the Can/Am BTA for having placed those issues on the table.

Terry Collins-Williams,
Director International Trade Policy Division Ministry of Finance
*  Provided meaningful insight and understanding of Ministry of Finance responsibility for the Tariff and Trade Remedy Act and recent initiatives and improvements.  Ministry restructuring and downsizing successfully completed/reorganized to one division with four sections:  Trade Remedies; Investment and Services;  Trade and Goods Issues;  Domestic Tariffs.

* Highlighted Tariff Simplification / the Customs Tariff Act rewrite tabled / introduces single schedule with 8,000 versus 11,000 lines eliminates not made in Canada conditions / eliminates Tariffs under 2 percent and rounds to half percents / implementation 1/1/98.
* Review of Special Imports Measures Act and Anti-Dumping and Countervailing Act / balance interests of domestic producers versus import users / identify factors of public interest / 15 of 16 recommendations were agreed. Changes to Duty Deferral Program allows up front relief for goods subsequently exported.

Thomas G. Weston,
Charge d'Affairs U.S. Embassy

* Stated U. S. /Canada relationship better than any two countries have ever enjoyed in human history.
* Summarized the growth and importance of U.S./Canadian Trade citing Canada trade with Arkansas exceeds total Canada trade with France. Canada Trade crossing just the Ambassador Bridge exceeds the total trade value of the U.S. with Japan.
* Provided excellent insight into opportunities remaining yet to achieve agreement on current restrictions in Trade / 3 areas reflect major limitations: Financial Services; Tele-communications (cultural issue); Agriculture (next round 1999 should resolve Canadian dairy supply management and U.S. peanuts and sugar current limitations).  Softwood lumber reflects differing respective systems and is currently covered by a 5 year interim agreement / Grains have different respective systems / Pacific Salmon is a shared resource issue that must be mutually resolved / Helms/Burton needs an international regime / In spite of the volumes of media attention there are really three cultural case Split magazine is in dispute settlement; country music and Borders books which was settled by investment means.
* Reiterated U.S. and Canada were together on increasing Trade, Free Trade in this hemisphere (needs fast track to add Chile) and a sectoral/functional free trade approach to APEC. / Highlighted the recent very successful Canada state visit to Washington which brought closure to the Accord elements of Truck In Transit, In Transit Pre-clearance, CVPC at the Peace Bridge, Remote Entry and Joint Facilities. 

CANADIAN FOOD INSPECTION ISSUES
Oryst Dydynsky,
General Manager Release Policies and Customs Relations

Canadian Food Inspection Agency Presented in detail the paradigm shifting reorganization for efficiency of the Canadian Food Inspection Agency which eliminates limited hours of service, introduces paperless transactions, advance release, cross designation with Canada.
Customs and incorporates Agriculture, Health Canada and Fisheries under oiie umbrella. Rightfully labeled "Safer for C.consumption" while being / Quicker / Better / Faster / Cheaper.
*Embodies computer interface with Canada Customs ACROSS / CFIA developed software package for users (interactive questions with required data elements) / Pre-registered and approved Frequent Importer Release system (FIRST) / Brokers apply to participate / Pilot Projects at Ft. Erie, Niagara Falls, Windsor and Sarnia for fresh and processed fruits and vegetables and live animals (horses) / Initiates 3 Import Service Centers (B.C. Ont., Que.) Spring to Fall 1997 / providing initially 7 day/24 hour electronic data reception and 7 day/21 hour service / 6 to 9 month pilot will add tracking and result in national roll up (1/1/98) / Full array of products including meat. Includes option to release at Border for inspection at destination.
THIS ACHIEVEMENT IS A MAJOR MUCH NEEDED ACCOMPLISHMENT. DETAILED BROCHURES / INSTRUCTIONS / WERE PROVIDED. CONTACT ORYST DYDYNSKY TO PARTICIPATE IF YOUR COMPANY IS ACTIVE IN THIS SECTOR.

PROVINCIAL TRANSPORTATION PANEL
Alberta - Vic Hamm: Director Freight, Transportation & Trade Manitoba -
Don Norquay, Assistant Deputy Minister Transportation
Jim Phillips presented - British Columbia - comprehensive transportation plan,
Going Places provided by Transportation/Highway Minister, Lois Boone
Ontario - Facts and perspectives provided by, Rob Bergevin, Director Transportation Policy Branch Ontario Ministry of Transportation
* J. Phillips - Presented transcontinental overview of U.S. - Canada Highway Trade Corridor / Gateway / Gateway Connections including those for the portion of Trade with Mexico. Can/Am BTA held first meeting ever of the major North/South Highway Trade Corridor Coalitions and East/West Connectors.
* V. Hamm - Described Alberta's dependency on Trade and substantial distances it deals with / long standing interest in Trade corridors and facilitation / proponent of Free Trade Agreement / Open Skies / Inter-provincial Trade / global and regional market. Noted Alberta provides 40% of export trade through the Port of Vancouver / 77% of Alberta exports go to U.S. / 80% of Alberta's imports are from U.S. / Cited Alberta's strategic link between producer and consumer / The Accord designates Coutts/Sweetgrass as the first joint Border facility (a very complex issue which Alberta has worked to accomplish since 1989)/ Alberta-Montana truck weights and dimensions agreement to eliminate institutional barriers / CANAMEX Highway Corridor MOU signed by AB/MT/UT/AZ / working with PNWER.
IN SUMMARY:
Provinces have sole jurisdiction over highways / need to eliminate bureaucracy / supports joint planning and NEXTEA initiatives as Trade Corridors (rail and highway) are vital / supports practical and proactive complementary involvement with U.S. initiatives.
*D. Norquay - Described Manitoba's interest and high priority on Trade / cited importance of operations of the 12 major trucking companies (6 of which are headquartered in the Province) and the major rail center's / two-way trade Manitoba/U.S. has increased 250% 1990 to 1996 / stated importance of the Mid Continent Trade Corridor and well developed infrastructure and distribution capabilities / commitment to regional approach citing MN, ND, IL, and WI as key trade partners / stated priority of developing value added products for Trade / Mission is to optimize transportation efficiency and elimination of impediments / stated importance of polar air routes from Winnipeg airport / new Border Crossing facilities at Pembina/Emerson (2nd busiest Western Border Crossing) are important and should be joint even though separate projects have been initiated / supports NATAP / cited joint truck inspection effort MB/ND.
IN SUMMARY:
National Highway transportation strategy in Canada would be a plus / Coordinated Trade Corridor Development Strategy with inter-jurisdictional and bi-national government cooperation and private/public sector involvement is a need / regional harmonized transportation regulations are an absolute essential / technical solutions in transportation must have inter-operability.
*British Columbia - GOING PLACES: TRANSPORTATION FOR BRITISH COLUMBIAN'S is B.C.'s plan to put all the pieces together in a way that contributes to economic growth while minimizing environmental impacts.  It efficiently links transit, ferries, roads, railroads, seaports and airports.  It manages traffic better, replaces again facilities and will meet new growth needs.
Transportation intensive resource industries are facing increasing international competition / must reduce costs to remain competitive.
The solutions will not be easy.  A "BUSINESS AS USUAL" approach (isolated stop-start investment programs, little integration among the different transportation modes or between transportation and land use, and little coordination among different levels of government) will not suffice.  Financial limitations facing all governments, particularly in rapid growth regions, demand new, more imaginative strategies.
Emphasized maintaining a competitive environment for AIR, RAIL, PORT AND OTHER COMMERCIAL TRANSPORTATION SERVICES, and more effectively promote B.C. as Canada's trade gateway to the Pacific Rim.  Provide efficient access for industry to goods, resources and markets, of which the U.S. is an essential component, is a priority.
*Ontario - Canada and U.S. are vital economic partners / Mdse exports as a proportion of Ontario's GDP have risen from 25% (1988) to 40% today as dollar volume has doubled / Ontario's exports to U.S. are $111 Billion Cdn (89% of its total) and are 35% of its GDP and imports are $108 Billion Cdn from the U.S. /64% of Ontario's exports (22% of GDP) go to 4 states MI, NY, OH, IL, in that order while 44% of it's imports come from those 4 states / Transportation links with those four states are vital / Trucks transport 60% and rail 26% of Ontario exports / Trucks transport 85% of imports / Ontario is the gateway for 58% of Canada's total exports / 90% of Ontario's trade (over 50% of Canada's total trade) pass through 4 gateways:  Ambassador Bridge, Peace Bridge, Blue Water Bridge and Lewiston Queenston Bridge.
IN SUMMARY:
Imperative that transportation policy enhance rather than impede Trade with the U.S. / Policy affects physical infrastructure, ports, gateways, bridges and tunnels, regulatory regimes, warehousing logistics and business travel - all important components of Trade.   Ontario welcomes transportation initiatives in the U.S. enhancing Trade and linking two way efficient access to markets and connecting producers and  consumers.
OVERALL:
Canada needs strategic planning direction, coordination of technology compatibility and Gateway strategic plan by Transport Canada.  Importance of Trade needs to be supported and the case made at the Federal level for redirecting to support Trade by making a major cultural change in the universal view of Transportation.

CAN/AM BTA PANEL-NEED AND SUPPORT FOR FORMALIZED JOINT CANADA/US BI-NATIONAL PLANNING PROCESS FOR BORDER AREA TRANSPORTATION, INFRASTRUCTURE, TRADE CORRIDOR/ROUTES AND GATEWAYS
CAN/AM BTA EXECUTIVE BOARD MEMBERS:
Jim Horsman, Jerry Nagel, Jim Phillips
*J. Horsman - Need coordination of Canada National Policy development in transportation of Canadian budgets eaten up by social programs / Trade and transportation earn dollars for the economy but are having their budget support. reduced / Need standard highway policy / PNWER (BC, AB, WA, OR, AK, MT, ID) are working jointly on Border. Business Plan, Trade, Transportation, Tourism / a regional bi-national process with a signed MOU / Need harmonized regulations in the region / bi-national port authorities (unite versus unilateral) / plan Border as a system.
*J. Nagel - Believe in economic regionalism transcending national borders / Bi-national and regional planning (MB, MN, ND, SD now doing) / strategic versus reactive / 10 years out where trade will be not only where it is now / solely individual government focus leads to duplication and negative competition versus cooperative regional approach / world food Trade is a $250 billion business and region must shift to value added food products versus historical export of basic commodity crops / the term corridor implies move through must include economic development within / strategic view focus must be Trade with transportation as a facilitating component rather than the current other way around / think continental and global / focus regionally / multi-jurisdictional and bi-national government. cooperative planning and communication is essential.
J. Phillips - Provided examples of effective bi-national multi-jurisdictional cooperative planning and joint action activity / NY/QUEBEC cooperation on border crossings / NY/ONTARIO Transportation In8rastructure Program and Planning Bi-National Study / Cascadia Discovery Project. / Red River Trade Corridor / PNWER initiatives are all examples of effective cooperative/joint initiatives.

THE CANADA/UNITED STATES OF AMERICA ACCORD ON OUR SHARED BORDER
Fifteen Canadian and U.S. expert members of the various Accord Work Groups held round table dialogues with attendees at the Monday and Tuesday breakfasts (a total of 3 hours).
Allan Cocksedge,
Assistant Deputy Minister Revenue Canada Customs Border Services Branch
*Described evolution of the Accord and the maturing of relationships between the involved parties stating we have come a long way in changing mind sets / The Border is a significant element in defining the strong U.S./Canada relationship.
*Congratulated the Can/Am BTA on its work and involvement on the Accord.
Accord Action Plan Status:
*Discussed In Transit Vancouver Airport pilot which enhances U.S. Customs enforcement capability authority on Canadian soil overcoming sovereignty problems by arranging a solution within Canadian law / zone concept / commercial and passenger information exchange / political momentum to do practical improvements / NATAP 6 months concept. introduction strategy / Joint Commercial Compliance / Peace Bridge CVPC to control U.S. bound commercial traffic in Canada and addition of other sites on both sides as local conditions dictate / remote entry at 22 pairs of crossing sites by year 2000 using LPR, voice and interactive video surveillance technology / first Joint Facility "Coutts/Sweetgrass" (construction start 1998/99 completion 2001 (template for all future other sites) / Truck In Transit Ontario pilot national by fall 1997 reduces stops from 4 to 2 / Immigration MOU with U.S. dealing with refugee protection and joint asylum being pursued / developing technology and procedures to move low risk travelers changing paradigm of land border primary/secondary / system to be integrated to apply in both directions / technology is expensive so system needs to cover significant portion of low risk travelers. Stated appreciation for Can/Am BTA's involvement and pressure on Accord progress, as it is desirable and welcome to give credence and keep it honest.

Bridge and Tunnel Operators and Border Trade Corridor Panel:
Allen Gandell, Niagara Falls Bridge Commission, Moderator  Dan Elash, Blue Water Bridge, Ron Lampman, Peace Bridge, Remo Mancini, Ambassador Bridge, Chuck O'Brien, Detroit Canada Tunnel, Bob Frazier, Rocky Mountain West Trade Corridor Jim Horsman, Cascadia Project (Cascadia Pacific Region)
* Voiced appreciation of the efforts of the border agencies commending movement in the right direction with the right attitude.
* Need to focus on interim period and needs until the Accord is implemented. UNANIMOUS CONCERN STATING CURRENT SHORTAGE IN U.S. CUSTOMS STAFF IS CAUSING CONGESTION. This in spite of herculean efforts by Port Directors to do the best with the staff they have. Short term additions to U.S. Customs staff are critically needed.
* NATAP is critical and as line release has been saviour to handling increased commercial volume, NATAP once pilots are successfully completed should be installed all along the border and include autos as soon as possible.
* All crossings involved in Trade, Tourism and Technology and are making capital expansions of capacity to service increasing demands / consensus building is key / efficiency of crossing is key need of the user.
* Corridor needs include / infrastructure support / harmonized regulations / business travelers access / current Pembina/Emerson facility projects should be re-looked at to convert to a joint facility / bi-national joint rail review should be initiated to increase efficiency / remote entry is a key need.