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May 3-5, 1998  Ottawa Conference Speakers

Bob Perkins, CAN/AM BTA Executive Board member
The Honourable Lloyd Axworthy, Minister of Foreign Affairs
Rob Wright, Deputy Minister of National Revenue Canada
The Honourable David Collenette, Minister of Transport
The United States Ambassador to Canada, the Honourable Gordon Giffin
Kris Stolarik, Director Regulatory Affairs; Oryst Dydynsky, General Manager
Andrea Spry, Director Sys. Design/ Development Div., Revenue Canada
Andrea Prosper, Manager, OGD Single Window Interface
Garry Douglas, President/CEO Plattsburgh - North County Chamber
Jim Phillips, Executive Director CAN/AM Border Trade Alliance
Earle Warren Director General Major Project Design and Development Revenue Canada Customs and Trade Administration Branch
Julian Reed MP, Parliamentary secretary to the minister of Intn'l Trade
Bridge and Tunnel Operations and Border Trade Corridor Panel

CAN/AM BORDER TRADE ALLIANCE
OTTAWA CONFERENCE SUMMARY

May 3 - 5, 1998

CAN/AM BTA IS AN ORGANIZATION WITH A FAR REACHING
BENEFICIAL IMPACT ON THE IMPORTANT ISSUES OF TRADE, TRAVEL
AND BUSINESS BETWEEN CANADA AND THE UNITED STATES.

1998 CAN/AM BTA OTTAWA CONFERENCE HIGHLIGHTS

Senior U.S. end Canadian Government officials articulated the status end planned initiatives by candid dialogue with CAN/AM members on issues of TRANSPORTATION, TRADE, and BORDER MANAGEMENT.

Conference Speakers acknowledged CAN/AM BTA:

"... the Leadership role CAN/AM BTA has taken on in amending Section 110 of IIRIRA should be congratulated." (Minister Axworthy)

* "...One of the objectives of CAN/AM BTA is to provide a forum to mobilize an effective and responsive bi-national partnership to work on issues related to Canada - U.S. Border and the Border Crossings (expedite the processing of passengers and cargo while maintaining enforcement capabilities.)  Another is to maximize Cross-Border Trade. I'd say the Alliance has done an excellent job in delivering on these objectives. " (Minister Collenette)

' "CAN/AM BTA 's important role in ensuring an ongoing dialogue regarding the operation of the Border is so vital to the economic health of Canada and the United States." (Deputy Minister Wright)

CAN/AM 's continued interest, enthusiasm and involvement in re-engineeringour shared Border is both appreciated and necessary." (Earle Warren, Director General Revenue Canada)

CAN/AM BTA has earned our compliments once again for effecting this annual conference and providing the arena for resolution of irritants and discussion of opportunities." (Julian Reed, M.P. Parliamentary Secretary for International Trade)

The number of Canadian Cabinet ministers at this Conference demonstrates the importance my Government places on this aspect of our relationship." (Julian Reed, Member of Parliament)

CHALLENGES TO CAN/AM BTA

'We need your vision of the kind of Border you want and your views on where to strike the balance between the different roles you require it to play." (Minister Axworthy)

"My challenge to you, the experts in Trade is to share with us Your visions for the operation/management of the Border for the twenty-first century. Your experiences and ideas are invaluable to the economic health of both Canada and the United States." (U.S. Ambassador to Canada - Ambassador Giffin)

'With much at stake, it is critical that we establish working partnerships with groups like your Alliance. ("Deputy Minister Wright

CONFERENCE SPEAKERS AND THEIR MESSAGES
Bob Perklns, CAM/AM BTA Executive Board Member - Opened Conference
*Welcomed Conference participants to the Conference - urged attendees to ask questions and participate in the dialogue as interaction is the essence of working together on the U.S. /Canada Border. CANIAM BTA leads us to explore and devise better ways.

FOREIGN AFFAIRS
The Honorable Lloyd Axworthy, Minister of Foreign Affairs.
*Provided an insightful summary of the History of U.S./Canada Border activity. and current status with a vision of what we want our shared Border to be.
*Described the continued need for the Border to define and protect separate sovereign identities while becoming increasingly seamless in a profitable and predictable way (a user friendly Border represents a political reality but not a commercial impediment).
*This will involve revisiting a broad range of policy issues nationally, bi-laterally and multi-laterally to co-ordinate policy and planning, harmonize regulations and requirements eliminate re-inspection of goods and develop immigration policies to provide necessary labour mobility.to provide necessary labour mobility
*Outlined his own and that of U.S. Secretary of State Albright's planned initiative to develop a U.s./Canada Border that is "MORE LIKE A GARDEN FENCE BETWEEN GOOD NEIGHBORS THAN A CHAIN LINK SECURITY BARRIER".
*Overviewed the demands for increased economic integration, trans-boundry cooperation, policies on Cuba and exception to the Helms Burton Act, and the serious concern of the Canadian Government on the implementation of IIRIRA Section 110 in it current form.

NATIONAL REVENUE

Rob Wright, Deputy Minister of National Revenue Canada
*Outlined the role of Revenue Canada in developing Customs and Trade Administration systems to make Trade Agreements run smoothly and efficiently.
*Highlighted the cooperation and understanding developed between Canada and the U.s. regarding the world's most important Trading relations.

In Canada:   TRADE accounts for 1 in 3 JOBS in Canada. TOURISM results in ½ million directly related JOBS

*Overviewed the Shared Border Accord and the focusing of resources where they will do the most good. Cooperation between Canada and the U.S. is the BEST way to combat illegal activities.

*Discussed the "Customs and Trade Administration Blueprint" to be released in the fall.

*Described the restructuring initiative of the new planned Canada Customs and Revenue Agency to provide for: service options to Businesses and Travelers; Customs processes to accommodate the way Businesses operate; Importers and Exporters need for faster release; voluntary compliance maximized.

*Revenue Canada must take a leading role in promoting the adoption of simplified and harmonized International Trade Rules and Customs Processes

TRANSPORTATION

The Honorable David Collenette, Minister of Transport
*Discussed Canada's strategic direction for Transportation policy and the view that intelligent Transportation Systems are a key component for the future of Transportation.
*The inclusion n the new U.S. ISTEA Legislation of some form of Trade Corridor and Border Gateway Planning and Development program could have direct consequences in Canada for the allocation of Canadian resources.
*Transport Canada is developing a proposal on how U.S. and Canada can work together. Goal of Transport Canada is SAFE EFFICIENT INTERMODAL TRANSPORTATION. Railroads are working closely with U.S. counterparts to provide seamless service.
*Safety and protection of the environment is fundamental to Transport Canada. Examination of the concept of Public-Private Partnerships for the use of Tolling and its possible application in Canada to the National Highway System using electronic "SMART" Technology advances in highway areas
*Transport Canada is studying existing infrastructure at the Canada I U.S. Border Crossings with a view to develop a deployment strategy for automated Border Crossings
*The Year 2000 preparedness is a critical short-term priority.

The United States Ambassador to Canada, the Honorable Gordon Giffin

*Provided insightful view of the America perspective on the U.S./Canada Trade relationship. Highlighted the economic benefits a d the remarkable opportunities.

*Open Skies has increased 2- way passenger traffic 37% and increased non - stop service points 45%.   Urged support of the pre-clearance of passenger's initiative.

*Voiced continued support of and commitment to the U.S./Canada Shared Border Accord and summarized its accomplishments to date. Stated CVPC's and joint facilities should be built on the most suitable side of the Border for each respective crossing.

*Discussed the unique realities of the U. S. /Canada Border: long standing personal relationships; highly integrated Cross-Border Communities; preponderance of legal Trade and Crossing activity.

*Reported that of the 129 million people who crossed the Border from Canada to the U.S. in 1997 only .008 of one percent (103,393) were found inadmissible by the U. S. Immigration Services. Our challenges are to maintain our Congressionally mandated Border Controls even as increase Border facilitation to make it easier for the lawful to Trade and Travel back and forth while making it harder for violators and criminals involved in smuggling and other illicit activities."

*The challenge: To make sure that Congress realizes that One Size of Border Policy Does Not Always Fit All and that Parliament recognizes the unique legal demands imposed by the needs of innovative border management.

CANADIAN FOOD INSPECTION AGENCY (CFIA) ISSUES

Kris Stolarik, Director Regulatory Affairs;
Oryst Dydynsky, General Manager

*Provided update of actual results of the paradigm shifting re-organization for responsive and efficient service by the CFIA.
*The three service centers are operational and provide 7-day/21 hour coverage 24-hour coverage to be achieved.
*Frequent Importer Release System (FIRST) was outlined Cross designation and elimination of duplicate inspection.
*CD-ROM AND WINOOWS 95 Select Program Manager disk and Automated Import System (AIS) were provided as handouts.
*CAN/AM BTA SALUTES THIS IMPORTANT AND MUCH NEEDED BREAKTHROUGH

ACROSS/OGD SINGLE WINDOW INTERFACE

Andrea Spry, Director Sys. Design/Development Div., Revenue Canada
Andrea Prosper, Manager, OGD Single Window Interface

*Revenue Canada administers over 70 acts for 13 various Government Departments who heretofore had separate non-integrated databases often requiring separate duplicate document submissions.
*Presented the integrated database 7 day / 24 hour EDI national release re-engineering process interfacing (ACROSS) with all other Government Departments involved in Importation's (Handouts provided0.

CANADIAN CONNECTION-ECONOMIC IMPACT OF CANADA ON CLINTON COUNTY

Garry Douglas, President/ CEO Plattsburgh- North County Chamber

*Discussed the Champlain Trade Corridor and Gateway Coalition.
*Detailed innovation on evaluations of the economic impact by Canadians in Clinton County, N.Y. (Handouts provided).
*The Economic Analysis Model (Professionally Documented) as utilized for both years 1994 and 1996. This Economic Impact on this one County in N.Y.S. was $785 million in1994 and increased to $1.278 million in1996
*This Model lends itself to any area along the U.S./Canada Border to provide Canadian and U.S. locations with the economic impact of activities of both Canadians and Americans. Interested parties are invited to contact G. Douglas for counsel if they wish to undertake a like approach.

CANADA/U.S. TRADE CORRIDOR/GATEWAY COOPERATION

Jim Phillips, Executive Director CANIAM Border Trade Alliance

*A map with the major Highway I Trade Corridors I Gateways was provided to aII Conference participants. The U.S. North/South Routes and all Gateways with a Canadian counter-part were identified indicating the need for increased cooperation, co-ordination and joint efforts indicated.  The status of the various U.S. Transportation legislation proposals were cited calling for the increased need for objective, consistent, shared, balanced framework for both present and future TRADE CORRIDOR POLICY DEVELOPMENT.
*Participation of Rail, Truck, Air and Marine Providers, Shippers, Users and Gateway Crossing Operators is essential.
*A Shared Border Accord "type agreement" between the U.S. and Canada on Gateways and Trade Corridors is needed with an overall Border - wide Strategy that includes regionally tailored tactical approaches.

CAN/AM BTA with its collective CANADIAN/ U.S. BORDER-WIDE PROVEN EXPERTISE, EXPERIENCE, TRACK RECORD AND CONTACTS ispositioned to participate when requested by either Government "

Realities at the U.S./Mexican Border and the U.S./Canadian Border are distinctly different. Therefore, the different approaches necessary to meet their respective needs are not discriminatory. The state TO AMEND Section 110 (IIRIRA) as updated.. with a discussion of House Bills HR 2920 and HR 2755.Senate Bill S 1360 as passed n Committee with 32 cosponsors as of May. Senate action is anticipated by Sept. 30, 1998.

In late 1997, CAN/AM BTA as requested to initiate efforts to increase U.S. Customs and INS staff/resources on the U.S. Canada Border. We are interacting with Senator Gramm's proposal on Border protection specifying 375 new U.S. Customs inspectors for the Northern Border and a like number of INS inspectors. We are also interacting with Senator Abraham's and Congressman LaFalce's initiatives. The additional specified staff I resources for the NorthernBorder are being included in the current committee approved S 1360 and proposed HR 2955 legislation. Senator Gramm's Bill S 1787 also continues to proceed.

Discussed 3 key initiatives that the CANIAM BTA has undertaken in conjunction with its work on the ACCORD and also with U.S. Customs:

1) Implementation of a joint low risk traveller technology system in both directions which results in dedicated primary lanes controlled without individual staffing.

2) Development and implementation of Joint Border Processing Zones, essentially the perimeter of each Border Crossing's processing area to allow simultaneous enforcement of both countries' laws by representatives of both countries' agencies.

3) Increase U.S. Customs staffing on the Northern Border until the ACCORD is fully implemented and new technologies are operational.

POLICIES AND INITIATIVES TO INCREASE CANADA/U.S. TWO-WAY TRADE

Julian Reed MP, Parliamentary Secretary to the Minister of Intn'l Trade

My remarks will focus on the programs the Canadian government has created to maintain and expand the $1.4 billion Cdn. Two-way commerce which happens every day between Canada and the U.S.

*In 1996, U.S. direct foreign investment in Canada was $125 billion. Canadian investment in the U.S. reached $92.9 billion. *97% of the trade activity is dispute free. Unresolved issues involve wheat, barley, beer and wool suites.
*The 90% of small and medium-sized businesses who currently do not sell outside of Canada are being encouraged to expand their markets.
*Encourage development of U.S./Canada cooperation and strategic alliance partnering in the pursuit of opportunities in third country markets.
*Stress the information technology sector (animation, 3-D simulation, photo technology, computer telephony) and biotechnology (medical, agriculture, environment, aquaculture).

THE CANADA/UNITED STATES ACCORD ON OUR SHARED BORDER

Earle Warren, Director General Major Project Design and Development
Customs and Trade Administration Branch

*Highlighted the importance of the Accord on Our Shared Border for the design of a modern and well-managed border.  It is instrumental in focusing our collective efforts on developing border processes that facilitate legitimate Trade Travelers and protect the health, safety and security of our citizens.

The progress and achievements of the ACCORD involve:

• NATAP pilots operational at 6 locations;
• Joint informed compliance program achieved
• CVPC at Peace Bridge planned for 1999;
• Accord Processing Zones involve concepts being developed which envisions a reciprocal agreement between Canada and the U.S. allowing the administrations of each country to carry out its inspection in the other's country;
• Both Custom's administrations have been tasked to develop a conceptual Canada/U.S. pre-clearance model with supporting and reciprocal Legislation;
• Low risk traveler pre-approved dedicated crossing lanes;
• At the Whirlpool Bridge; harmonized private boat system;
• CANPASS/INPASS operational at Vancouver airport with additions planned at Miami, L.A., N.Y., Newark and Toronto;
• Remote entry alternative inspection services being tested at 4 locations with a plan to expand to 22 pairs of crossings by the yr. 2000;
• Joint Border Facilities - Coutts/Sweetgrass to begin construction in yr. 2000;
• 4 other locations are under construction.
   

Bridge and tunnel operations and border trade corridor panel

Dan Elash, Blue Water Bridge; Bob Frazier, Rocky Mtn. Trade Corridor; Allen Gandell, Niagara Falls Bridge Commission; Ron Lampman, Peace Bridge; Don Vuchetich, Detroit Canada Tunnel

The panel described current activity volumes and planned improvements with new construction projects on the U.S./Canada Borders. They provided excellent insight into critical needs.

*Unanimous #1 problems current understaffing of Northern Border U.S. Customs Inspectors and INS Inspectors (to a slightly lesser degree). Shortage causing congestion / delays and preventing use of existing crossing capability. Shortage also precludes ability to utilize new expanded facilities at border crossings being brought on line.

*Serious need for effective communication with crossing users.

*Trade and Tourism are critical to the economy. Both are growing annually in double digits while inspection agency capability is capped and in some cases declining leaving the crossing operators to "deal with it".

*Trade Corridor / Transportation enhancements funnel activity to the Border with the current Federal stance on limiting inspection resources, therefore, the crossing unnecessarily becomes the constraint.

*A Canadian Federal policy is needed for the Canadian Highway Trade Corridor and Gateway Development.

THE CAN/AM BORDER TRADE ALLIANE ACKNOWLEDGES AND APPRECIATES THE OTTAWA CONFERENCE SPONSORS:

A.N. DERINGER, INC.
BLUE WATER BRIDGE AUTHORITY

Also, thanks to Sear Brown Group for their meaningful assistance.

MEMBER ACTION ALERT

**URGENT **

THE CURRENT WORDING OF IIRIRA LEGISLATION SECTION 110 NEEDS TO BE AMENDED BY THE SENATE AND THE HOUSE BEFORE SEPTEMBER 30, 1998.

PLEASE RE-CONTACT YOUR REPRESENTATIVES IN THE HOUSE AND SENATE TO URGE PASSAGE OF BOTH S1360 (SENATOR ABRAHAM'S - (R ) BILL) AND HR 2955 (CONGRESSMAN LAFALCE'S (D) BILL).

REMINDER

THE 1998 CAN/AM BTA WASHINGTON CONFERENCE WILL BE HELD SEPTEMBER 20 -22, 1998 AT THE WASHINGTON COURT HOTEL. For more information call or fax 716-754-8824.

The CAN/AM BTA depends on the participation and funding provided by members to accelerate momentum and achieve results.

Jim Phillips
Executive Director