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CANADIAN ASSOCIATION OF IMPORTERS AND EXPORTERS
69th ANNUAL CONFERENCE, TORONTO
NOVEMBER 28, 2000
"THE IMPACT OF THE 49th PARALLEL ON CANADA/U.S. TRADE"
BY JAMES D. PHILLIPS, PRESIDENT AND CEO
CANADIAN/AMERICAN BORDER TRADE ALLIANCE (CAN/AM BTA)
P.O. BOX 929 LEWISTON, NEW YORK 14092
TELEPHONE/FAX (716) 754-8824
EMAIL: CANAMBTA@AOL.COM
WEB SITE: WWW.CANAMBTA.ORG
The CANADIAN/AMERICAN BORDER TRADE ALLIANCE (Can/Am BTA) is a
transcontinental/ bi-national broad based organization with participation from all 22 states on or near the U.S./Canada Border (Washington to Maine including Alaska) plus the Canadian Provinces with a combined
network which involves over 60,000 companies and organizations in their individual memberships.
Can/Am BTA participants include members from border trade, border
crossing and transportation segments including producers, shippers, brokers, mode providers, bridge and tunnel operators, chambers of commerce, business and trade corridor associations, economic development and
government agencies.
TRADE - (TRIUMPHS and TRIBULATIONS)
Trade and movement of goods is the lifeblood of our economies. High
level Canadian and U.S. Government officials have expressed to me that:
* U.S./Canada economic fundamentals are excellent;
* U.S./Canada trade flows are strong and vigorous;
* U.S./Canada relations are mature and solid.
The following facts are offered to quantify the magnitude and the
benefits of the Canada/U.S. Trading relationship:
* U.S. Trade with Canada exceeds trade with the entire European Union;
* U.S. Trade with Ontario is essentially equal to U.S. trade with Japan;
* 40 states Trade with Canada more than with any other country in the World;
* Ohio Trade with Canada exceeds the total U.S. trade with China and;
* Georgia sells more to Canada than the entire U.S. sells to Italy or France.
85% of Canada exports are to the U.S. 40% of Canada GDP is
dependent on export sales. Thus 1/3 of Canada economy is dependent solely on sales to the U.S. of Canada/U.S. trade is auto industry related. 98+% U.S./Canada trade is. Disagreements are increasingly handled
through consultation rather
confrontation. U.S./Canada two-way trade is one of the fastest growing major segments of economic activity in the World, having doubled from 1989 to 1998 and is expected to double again by 2005.
A majority of this trade (70+%) is carried by the truck mode
utilizing Land Border Crossing Gateways and Highway Corridor infrastructure. Rail, also a major factor, is growing substantially. Of total U.S./Canada activity, 65% of goods and 50% of people, cross the Border via
Michigan and New York accessing the Toronto area.
THE 49th PARALLEL BORDER MANAGEMENT AND CONDITIONS
INDELIBLE IMPACTS CANNOT BE IGNORED
In the time we have together today I will reflect on the specifics
of what remains to be accomplished. Tremendous progress and cooperation has been achieved the numerous involved parties through their dedication and extensive efforts related to the 1995 Shared Border Accord /
the 1997 Border Vision / the 1999 Canada U.S. Partnership (CUSP) / and the Open Skies agreement, all of which are important. However, in spite of these tremendous breakthroughs and initiatives the fact remains
that the current border crossing processes for "legal" goods and people continue to impede rather than facilitate. SPECIFICALLY:
1) At any given time routinely half of the existing processing
lanes in total, on the U.S./Canada Border remain closed due solely to understaffing of U.S. Customs and INS primary Inspectors. This is due to spending priority choices by the U.S. Congress and will need concerted
action by the U.S. to change. Additional resources for CCRA and CIC are also required.
2) While much has been done to harmonize activities between Canadian and U.S.
Agencies resulting in improved parallel activities, what is needed is to integrate, make joint and in some cases combine the activities of these Agencies while acknowledging and protecting sovereignty.
3) The agreement to proclaim the Canadian Airport Pre-Clearance legislation must be finalized and implemented (it has dragged on for over a year). This is the basis for then implementing Accord Processing
Zones at the land border crossings (essentially the very small geographical areas within the perimeter of each border crossing processing area). These zones will allow simultaneous enforcement of both countries'
laws by representatives of both countries' Agencies regardless if located on the Canadian or U.S. side (as space dictates at each individual location). The Accord Processing Zone implementation at the land border
will also result in true joint facility operations becoming a reality voiding the current limitation of having to have the actual border line run through the building which currently locates the buildings in the
wrong place. The Accord Processing Zone implementation would also provide the effective operation of all Commercial Vehicle Processing Centers.
4) Implementation is needed of a joint single
U.S./Canada "low risk" traveler technology system for registered U.S. and Canadian citizens to enter either country via dedicated primary lanes. Related background checks designating "low risk" participants actually
enhances enforcement not lessens it.
NEXUS is the pilot at the Blue Water Bridge. We need to implement a joint system Border wide by January 1, 2002.
5) Deal with immigration at the source, offshore (perimeter approach), so that only admissible individuals can actually physically land on U.S. or Canadian soil and develop joint asylum policy to eliminate
"asylum shopping". These issues are actually underway under the INS/CIC Border Vision initiative and their effective approach and progress should be applauded.
6) Physical reality and constraints at the border
crossings must be dealt with. Customs Self Assessment (CSA) and NCAP, Line Release, Pre Arrival processing and handling of "empties" are currently impeded by the physical inability to reach the primary lane to
be processed. The current reality is that the least prepared
cargo carrier in each line dictates the waiting and delay time of all of the pre-cleared carriers in line behind it. Translation - 45 minute delay "waiting time" to reach the primary booth to be processed in 30 seconds is ridiculous. It is extremely costly to the shipper and the carrier, wasteful of fuel and unnecessarily negatively impacts the environment. We need to "stream" trucks so that all those prepared and/or pre-cleared or ultimately CSA are processed in tandem without waiting in a line for those in the same line ahead of them who are not and require additional time at the primary booth to be processed for clearance. This involves traffic management on the approach roads and CVPC's to divert unprepared vehicles before they clog the primary processing lanes.
7) We need a seamless border for "legal/low risk" activity. We need a technically smart border and intelligence to handle other/unknown activity. We need to look at what doesn't need to be done at the
49th PARALLEL and that which could be done better and more efficiently at the perimeter or offshore. We need a common sense cooperative joint initiative by the Agencies, the users, elected officials (Parliament and U. S. Congress and local) to distill and finalize solutions to the questions:
"WHAT DO WE NEED?", "HOW WILL WE DO IT?"
BUT MOST IMPORTANT WE MUST ESTABLISH AN
ATTITUDE OF "HOW CAN WE" INSTEAD OF "WHY WE CAN'T".
Thank you.
I would be happy to take questions.
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