Examining the Canada-U.S. border

 

Caption: According to Statistics Canada, travel between Canada and the United States fell in both directions in February 2007, possibly the result of new passport requirements for air travel into the United States that came into effect on January 23, 2007.

 

As Ambassador to the United States, I have the privilege of representing Canadian interests in this large and dynamic nation. But I have learned that advocating those interests is really advocating cross-border interests. We enjoy highly integrated economies, shared values and goals. We share a border that facilitates $1.6 billion a day in cross-border commerce and 300,000 people crossing back and forth. But over recent years, many in both countries worry that the border is at risk of turning into a checkpoint.

Canada attaches a high priority to protecting the security of our common border. We have allocated $10 billion in resources to border security and infrastructure.  We have focused, risk-based and highly professional policing, intelligence and immigration teams working effectively behind our borders.

 

Our economic and social relationship is also of great importance and we must guard against policies in each country that would have adverse effects on North American supply chains, tourism and border communities. So, while our economies are working well, Canada is concerned that the tariff reductions and job creating committments under the NAFTA are being eroded by new border transaction costs.

 

The automotive sector is just one example of industries that have been adversely affected by a ‘thickening' effect of regulations and legislation in recent years. For this sector, any consideration of new border measures or new inspection fees should take into account that the Big Three, as well as Honda and Toyota, are tightly integrated within our respective markets. Every additional hour of inventory to cover the risk of shipment disruptions of Canadian parts to U.S. plants costs $432,000.  For U.S. parts flowing into Canada, the impact of delays equates to $800,000 per hour of inventory charges.

 

Our companies have done their part. Thousands of Canadian and American firms have made the voluntary investments to secure their cargo supply chains against tampering. But border agencies also have a role to play. If industry has made the investments to reduce the need for intrusive inspections and delays at the border, then they deserve to know why they still face the myriad of inspection fees and regulations that undermine their competitiveness.

The new APHIS fee alone will be an $80 million "tax" on our border in just the first year.

There is a balance between economic and security objectives. They are not mutually exclusive. We need to ensure a balance of these objectives so that the border we share remains a gateway, not a checkpoint that chokes our potential.