The Border Challenge TBDBTA October 26, 2007 Montreal, Quebec Canada

Outline About the BTA About the BTA Before and After 9/11 Before and After 9/11 Crossing the border Crossing the border Economic Development along the border Economic Development along the border Transportation Transportation The role of Washington The role of Washington What can we do to influence What can we do to influence

About the BTA Advocate for trade between US, Canada and Mexico for over 20 years. Three-prong approach Three-prong approach Represent over 1.8 million people Represent over 1.8 million people Credibility Credibility Participation in Secure Borders and Open Doors Advisory committee to DHS and DOS Participation in Secure Borders and Open Doors Advisory committee to DHS and DOS Provide testimony at Congressional hearings. Provide testimony at Congressional hearings.

Before and After 9/11 Personnel, resources and expectations Personnel, resources and expectations Different relationship among the three countries Different relationship among the three countries Change of expectations Change of expectations Challenge: security vs. economic competitiveness Challenge: security vs. economic competitiveness Risk assessment Risk assessment

Crossing the border Documents Documents Programs: FAST, ACE/emanifest, SENTRI/NEXUS, WHTI, US VISIT, etc. Programs: FAST, ACE/emanifest, SENTRI/NEXUS, WHTI, US VISIT, etc. Infrastructure Infrastructure Inspections Inspections Border Fence Border Fence Next... Next...

Nogales E-manifest system went down E-manifest system went down BIG Parking Lot BIG Parking Lot “Just-in-time” delivery? Communication Communication Thousands of dollars wasted Thousands of dollars wasted

NAFTA Trucking Pilot Project Pilot Project Safety, Security and documents Safety, Security and documents Mexican government has to provide requirements Mexican government has to provide requirements Immigration Immigration The debate The debate

Importance of Trade Trade using surface transportation between the United States and its North American Free Trade Agreement (NAFTA) partners Canada and Mexico was 8.9 percent higher in 2006 than in 2005, reaching $760 billion. Trade using surface transportation between the United States and its North American Free Trade Agreement (NAFTA) partners Canada and Mexico was 8.9 percent higher in 2006 than in 2005, reaching $760 billion. In 2006, over 6.6 million trucks and over 30 million personal vehicles crossed the U.S.-Canada border. Source: Bureau of Transportation Statistics

Importance of Trade Canada is the largest market for U.S. goods exported from U.S. states contiguous to the northern border. Canada is the largest market for U.S. goods exported from U.S. states contiguous to the northern border. Canada remains the largest trading partner with the United States. Trade with Canada accounts for more than 18 percent of total U.S. trade (exports and imports) globally. Canada remains the largest trading partner with the United States. Trade with Canada accounts for more than 18 percent of total U.S. trade (exports and imports) globally. 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. 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. Source: Foreign Trade Statistics - U.S. Census Bureau

H.R Food & Drug Import Safety Act Introduced by Rep. Dingell (D-MI), Chairman of the House Energy & Commerce Committee Introduced by Rep. Dingell (D-MI), Chairman of the House Energy & Commerce Committee Establishes fees on imports of food and drugs to support FDA inspection activities; Establishes fees on imports of food and drugs to support FDA inspection activities; Limits food imports to only 13 U.S. ports of entry - only Detroit on U.S. - CA border, no ports on U.S-MX border. Limits food imports to only 13 U.S. ports of entry - only Detroit on U.S. - CA border, no ports on U.S-MX border. BTA is working with other organizations and Congressional offices to advocate against this legislation and to promote more realistic alternatives - additional funds for FDA, mobile inspection labs, etc.

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

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

Impact “Looking at these 23 million land border crossers from a document perspective, only 40 percent report that they possess a U.S. passport. Nearly 33 percent, or a little over 8 million of them, reported that they would seek a U.S. passport within a year to fulfill WHTI documentary requirements.” Testimony of Mr. Frank Moss, Deputy Assistant Secretary, U.S. Department of State to U.S. Senate Judiciary Committee December 2, 2005

Impact Current backlog of two or more months for 500,000 passport applications Implementation of WHTI at land crossing will add at least 8 million additional applications to the current backlog DOS survey: 6 million U.S. citizens who currently travel to Canada or Mexico would not apply for passports within a year of implementing WHTI at land ports of entry.

The role of Washington Congress Congress Federal Agencies Federal Agencies Expectations Expectations Program assessment Program assessment The role of border states The role of border states

Latest challenges Manual entry of driver’s license by CBP officers Manual entry of driver’s license by CBP officers Increased wait times at the ports of entry Increased wait times at the ports of entry Starting January 30, 2008 US citizens have to show two forms of ID: driver’s license and birth certificate Starting January 30, 2008 US citizens have to show two forms of ID: driver’s license and birth certificate

Advocacy in Action BTA letter to Secretary Chertoff Driver’s licenses not secure, do not prove citizenship Recommendations: End practice and focus on communicating document requirements; End practice and focus on communicating document requirements; Evaluate secure traveler programs, leverage best practices. Evaluate secure traveler programs, leverage best practices.

What can be done? Stay informed Stay informed Write to your representative Write to your representative