The Border Challenge

TBDTBDBTABTA

October 26, 2007October 26, 2007

Montreal, QuebecMontreal, QuebecCanadaCanada

OutlineOutline• About the BTAAbout the BTA• Before and After 9/11Before and After 9/11• Crossing the borderCrossing the border• Economic Development along the border Economic Development along the border • TransportationTransportation• The role of WashingtonThe role of Washington• What can we do to influenceWhat can we do to influence

About the BTAAbout the BTAAdvocate for trade between US, Canada Advocate for trade between US, Canada

and Mexico for over 20 years.and Mexico for over 20 years. Three-prong approachThree-prong approach Represent over 1.8 million peopleRepresent over 1.8 million people CredibilityCredibility Participation in Secure Borders and Open Participation in Secure Borders and Open

Doors Advisory committee to DHS and DOSDoors Advisory committee to DHS and DOS Provide testimony at Congressional Provide testimony at Congressional

hearings.hearings.

Before and After 9/11Before and After 9/11 Personnel, resources and expectationsPersonnel, resources and expectations Different relationship among the three Different relationship among the three

countriescountries Change of expectationsChange of expectations Challenge: security vs. economic Challenge: security vs. economic

competitivenesscompetitiveness Risk assessmentRisk assessment

Crossing the borderCrossing the border DocumentsDocuments Programs: FAST, ACE/emanifest, Programs: FAST, ACE/emanifest,

SENTRI/NEXUS, WHTI, US VISIT, etc.SENTRI/NEXUS, WHTI, US VISIT, etc. InfrastructureInfrastructure InspectionsInspections Border FenceBorder Fence Next...Next...

NogalesNogales E-manifest system went downE-manifest system went down

BIG Parking LotBIG Parking Lot

““Just-in-time” delivery?Just-in-time” delivery?

CommunicationCommunication

Thousands of dollars wastedThousands of dollars wasted

NAFTA TruckingNAFTA Trucking Pilot ProjectPilot Project Safety, Security and documentsSafety, Security and documents Mexican government has to provide Mexican government has to provide

requirementsrequirements ImmigrationImmigration The debateThe debate

Importance of TradeImportance of Trade Trade using surface transportation between the Trade using surface transportation between the

United States and its North American Free Trade United States and its North American Free Trade Agreement (NAFTA) partners Canada and Mexico Agreement (NAFTA) partners Canada and Mexico was 8.9 percent higher in 2006 than in 2005, was 8.9 percent higher in 2006 than in 2005, reaching $760 billion.reaching $760 billion.

In 2006, over 6.6 million trucks and over 30 million In 2006, over 6.6 million trucks and over 30 million personal vehicles crossed the U.S.-Canada border.personal vehicles crossed the U.S.-Canada border.

Source: Bureau of Transportation StatisticsSource: Bureau of Transportation Statisticshttp://www.http://www.transtatstranstats..btsbts..gov/bordercrossinggov/bordercrossing..aspxaspx

Importance of TradeImportance of Trade•Canada is the largest market for U.S. goods exported from U.S. Canada is the largest market for U.S. goods exported from U.S. states contiguous to the northern border.states contiguous to the northern border.

•Canada remains the largest trading partner with the United States. Canada remains the largest trading partner with the United States. Trade with Canada accounts for more than 18 percent of total U.S. Trade with Canada accounts for more than 18 percent of total U.S. trade (exports and imports) globally.trade (exports and imports) globally.

•As of Aug. 07, Canada has a year-to-date trade surplus of more than As of Aug. 07, Canada has a year-to-date trade surplus of more than $45 billion on exports of more than $206 billion with the U.S.$45 billion on exports of more than $206 billion with the U.S.

Source: Foreign Trade Statistics - U.S. Census BureauSource: Foreign Trade Statistics - U.S. Census Bureauhttp://www.census.gov/foreign-trade/top/index.html#top_partnershttp://www.census.gov/foreign-trade/top/index.html#top_partners

H.R. 3610H.R. 3610Food & Drug Import Safety ActFood & Drug Import Safety Act

Introduced by Rep. Dingell (D-MI), Chairman of the Introduced by Rep. Dingell (D-MI), Chairman of the House Energy & Commerce CommitteeHouse Energy & Commerce Committee

Establishes fees on imports of food and drugs to Establishes fees on imports of food and drugs to support FDA inspection activities;support FDA inspection activities;

Limits food imports to only 13 U.S. ports of entry - Limits food imports to only 13 U.S. ports of entry - only Detroit on U.S. - CA border, no ports on U.S-MX only Detroit on U.S. - CA border, no ports on U.S-MX border.border.

BTA is working with other organizations and BTA is working with other organizations and Congressional offices to advocate against this Congressional offices to advocate against this legislation and to promote more realistic alternatives - legislation and to promote more realistic alternatives - additional funds for FDA, mobile inspection labs, etc.additional funds for FDA, mobile inspection labs, etc.

Travel pre-WHTITravel pre-WHTI•4 million U.S. citizens traveled to Canada and 4 million U.S. citizens traveled to Canada and Mexico by air or sea;Mexico by air or sea;•2 million traveled to the Caribbean;2 million traveled to the Caribbean;•Small number of U.S. citizens are repeat, Small number of U.S. citizens are repeat, daily crossers; 18 percent of the crossings;daily crossers; 18 percent of the crossings;•2 percent of border travelers = 48 percent of 2 percent of border travelers = 48 percent of the total annual crossings.the total annual crossings.Source: Bearing Point Inc. survey for U.S. Dept. of StateSource: Bearing Point Inc. survey for U.S. Dept. of State

Travel pre-WHTITravel pre-WHTI•23 million U.S. citizens cross nearly 130 23 million U.S. citizens cross nearly 130 million times each year by land into Canada million times each year by land into Canada and Mexicoand Mexico•One-half are frequent crossers, making the One-half are frequent crossers, making the trip at least once a year. trip at least once a year. Source: Bearing Point Inc. survey for U.S. Dept. of StateSource: Bearing Point Inc. survey for U.S. Dept. of State

ImpactImpact““Looking at these 23 million land border Looking at these 23 million land border crossers from a document perspective, only crossers from a document perspective, only 40 percent report that they possess a U.S. 40 percent report that they possess a U.S. passport. Nearly 33 percent, or a little over 8 passport. Nearly 33 percent, or a little over 8 million of them, reported that they would seek million of them, reported that they would seek a U.S. passport within a year to fulfill WHTI a U.S. passport within a year to fulfill WHTI documentary requirements.”documentary requirements.”Testimony of Mr. Frank Moss, Deputy Assistant Secretary, U.S. Department of Testimony of Mr. Frank Moss, Deputy Assistant Secretary, U.S. Department of State to U.S. Senate Judiciary CommitteeState to U.S. Senate Judiciary Committee

December 2, 2005 December 2, 2005

ImpactImpactCurrent backlog of two or more months for Current backlog of two or more months for 500,000 passport applications500,000 passport applicationsImplementation of WHTI at land crossing will Implementation of WHTI at land crossing will add at least 8 million additional applications add at least 8 million additional applications to the current backlogto the current backlogDOS survey: 6 million U.S. citizens who DOS survey: 6 million U.S. citizens who currently travel to Canada or Mexico currently travel to Canada or Mexico would would notnot apply for passports within a year of apply for passports within a year of implementing WHTI at land ports of entry.implementing WHTI at land ports of entry.

The role of WashingtonThe role of Washington

CongressCongress Federal AgenciesFederal Agencies ExpectationsExpectations Program assessmentProgram assessment The role of border statesThe role of border states

Latest challengesLatest challenges

Manual entry of driver’s license by CBP Manual entry of driver’s license by CBP officersofficers

Increased wait times at the ports of entryIncreased wait times at the ports of entry Starting January 30, 2008 US citizens have Starting January 30, 2008 US citizens have

to show two forms of ID: driver’s license and to show two forms of ID: driver’s license and birth certificatebirth certificate

Advocacy in ActionAdvocacy in ActionBTA letter to Secretary ChertoffBTA letter to Secretary Chertoff

Driver’s licenses not secure, do not prove Driver’s licenses not secure, do not prove citizenshipcitizenship

Recommendations:Recommendations:•End practice and focus on communicating document End practice and focus on communicating document requirements;requirements;

•Evaluate secure traveler programs, leverage best Evaluate secure traveler programs, leverage best practices.practices.

What can be done?What can be done?

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