Annual C-TPAT Conference Closes

Unified Global Security: The Challenge Ahead U.S. Customs and Border Protection (CBP) hosted the annual Customs-Trade Partnership Against Terrorism (C-TPAT) conference last week to discuss the unified approach to securing the global supply chain and best practices to address challenges ahead. More than 1,200 participants from the private sector joined the conference which was held [...]

Unified Global Security: The Challenge Ahead

U.S. Customs and Border Protection (CBP) hosted the annual Customs-Trade Partnership Against Terrorism (C-TPAT) conference last week to discuss the unified approach to securing the global supply chain and best practices to address challenges ahead. More than 1,200 participants from the private sector joined the conference which was held in National Harbor, Md.
C TPAT Logo 2013 Annual C TPAT Conference Closes
“C-TPAT is really at the heart of where we are going with the country’s national effort on global supply chain security,” said CBP Acting Chief Operating Officer Thomas S. Winkowski. “The program allows us to work together to address risk at the earliest point of the supply chain process while expediting trade. It keeps our nation safe and promotes economic competitiveness.”

Richard Reed, deputy assistant to the president for Homeland Security, also shared his thoughts on the value of programs like C-TPAT for both government and industry to enhance not only the security of critical infrastructure, but also resiliency and response. Reed cited Hurricane Sandy as an example of the private/public partnership working hand-in-hand to re-constitute trade and travel at our ports of entry. Additional keynote speakers at the conference included CBP Acting Assistant Commissioner for the Office of Field Operations, Kevin K. McAleenan, who announced the selection of Ms. Lauren M. Kaufer as the new C-TPAT director.

After the 9/11 tragedy, the biggest challenge CBP faced was securing imports from terrorist infiltration via smuggling of weapons, terrorists, or weapons of mass effect. C-TPAT is a voluntary government-business initiative to build cooperative relationships that strengthen and improve overall international supply chain and U.S. border security. C-TPAT recognized that U.S. Customs and Border Protection can provide the highest level of cargo security only through close cooperation with the ultimate owners of the international supply chain such as importers, carriers, consolidators, licensed customs brokers, and manufacturers. The C-TPAT program is one layer in CBP’s multi-layered cargo enforcement strategy. Today, the program has nearly 10,500 members, 700 of which joined this past year.

Source: U.S. Customs & Border Protection Agency

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Canada and United States Report Progress on Perimeter Security and Economic Competitiveness

First annual progress reports issued on the Beyond the Border and Regulatory Cooperation Council Action Plans Prime Minister Stephen Harper and Barack Obama, President of the United States, today welcomed the release of the first annual Beyond the Border Action Plan Implementation Report and the Canada-United States Regulatory Cooperation Council (RCC) Joint Action Plan Progress [...]

First annual progress reports issued on the Beyond the Border and Regulatory Cooperation Council Action Plans

Prime Minister Stephen Harper and Barack Obama, President of the United States, today welcomed the release of the first annual Beyond the Border Action Plan Implementation Report and the Canada-United States Regulatory Cooperation Council (RCC) Joint Action Plan Progress Report, which demonstrate progress made by Canada and the United States on perimeter security and economic competitiveness.

“Today’s reports demonstrate real and substantive progress on improving the management of our shared border and improving regulatory cooperation, both of which will improve the flow of people and goods between our countries,” said the Prime Minister. “The Beyond the Border and the Regulatory Cooperation Council Action Plans are laying the foundation for more jobs and growth in Canada and the United States by making it easier for firms in both countries to do business.”

The Beyond the Border and RCC Action Plans, announced by both leaders on December 7, 2011, set out ambitious milestones designed to advance economic opportunity, improve regulatory cooperation and enhance security between our two countries. Since then, significant progress has been made, including modernizing our joint border management, the development of the first joint Border Infrastructure Investment Plan, the release of a joint Cybersecurity Action Plan, improvements to the NEXUS trusted traveller program, mutual recognition of our air cargo security programs, and the development of joint standards and greater alignment of regulatory systems.

As the action plans continue to be implemented, the Government of Canada will keep Canadians informed of progress, including through the issuing of progress reports.

Both reports are available here.
 

Canada Launches Pilot Test to Speed Clearance at U.S Border for Trusted Traders

The Canada Border Services Agency announced Dec. 7 the launch of a pilot program at the Blue Water Bridge in Sarnia, Ontario, that aims to further speed the clearance of cargo at the U.S.-Canada border for trusted traders. Under this six-month test companies will be able to use the Free and Secure Trade (FAST) lanes [...]

The Canada Border Services Agency announced Dec. 7 the launch of a pilot program at the Blue Water Bridge in Sarnia, Ontario, that aims to further speed the clearance of cargo at the U.S.-Canada border for trusted traders. Under this six-month test companies will be able to use the Free and Secure Trade (FAST) lanes and booths at this bridge if they are members of either the Partners in Protection or Customs Self-Assessment program, not both as previously required. The CBSA states that if this pilot is successful the change may be permanently implemented at all three ports where FAST is currently available.

Source: STR Trade Report

Click here to read the complete press release from the Canadian Government.

 

Trouble at the Border: The Top 10 Customs-Related Issues Facing Canadian Importers

In today’s global economy, the transportation of goods could have significant customs implications. Moreover, customs duties can have a direct impact on the bottom line. Unfortunately, importers often overlook or mismanage duties and customs compliance, which can result in significant and unnecessary duty costs. Below, we’ve outlined the top 10 customs-related issues facing Canadian importers. [...]

In today’s global economy, the transportation of goods could have significant customs implications. Moreover, customs duties can have a direct impact on the bottom line. Unfortunately, importers often overlook or mismanage duties and customs compliance, which can result in significant and unnecessary duty costs.

Below, we’ve outlined the top 10 customs-related issues facing Canadian importers.

1. Origin preferences Although imported goods can be subject to customs duties, preferential origin treatments such as the North American Free Trade Agreement (NAFTA) can provide significant duty relief to importers.

Canada has numerous multilateral, bilateral and unilateral origin-based relief mechanisms in place. Importers should be aware of and take advantage of any applicable origin-based duty relief opportunities. Otherwise, they can face significant unnecessary duty outlays that have a clear impact on the bottom line.

Importers who do take advantage of origin-based duty relief opportunities need to ensure that they manage them appropriately. This includes having valid and complete documentation and the respective rules of origin need to be followed. Failure to properly apply and document preferential origin-based duty treatments could result in significant duty costs and, in some cases, duty relief could be revoked.

Importers can leave significant duties on the table and be subject to significant compliance-related costs if they do not manage matters appropriately.

Read the complete article here.

Source: Ernst & Young  |  Financial Post

 

DHS Announces New U.S.-Canada Border Security Blueprint

Department of Homeland Security (DHS) Secretary Janet Napolitano announced earlier this week the release of the DHS Northern Border Strategy (NBS). The NBS is the first unified DHS strategy to guide the Department’s policies and operations along the U.S.-Canada border -  providing a framework for enhancing security and resiliency while expediting lawful travel and trade throughout the Northern border [...]

Department of Homeland Security (DHS) Secretary Janet Napolitano announced earlier this week the release of the DHS Northern Border Strategy (NBS). The NBS is the first unified DHS strategy to guide the Department’s policies and operations along the U.S.-Canada border -  providing a framework for enhancing security and resiliency while expediting lawful travel and trade throughout the Northern border region.

“The U.S.-Canada border is the world’s longest common border. With communities and businesses that reach both sides of the border, the economies and security of the United States and Canada are inextricably linked,” said Secretary Napolitano. “The Northern Border Strategy provides a unifying framework for the Department’s work focused on enhancing the security and resiliency along our northern border while expediting legitimate travel and trade with Canada.”

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GHY Video Series: CBSA & CBP Shift In Focus

On June 5, 2012, in Canadian Customs Issues, Compliance, U.S. Customs Issues, by Martin Rayner

Reynold Martens, Executive VP of GHY International and author of a white paper series on Integrated Trade Compliance Strategies discusses the changes at Customs and Border Protection (CBP) in the United States and the Canada Border Services Agency (CBSA) that international traders need to be aware of and highlight the need for an Integrated Trade [...]

Reynold Martens, Executive VP of GHY International and author of a white paper series on Integrated Trade Compliance Strategies discusses the changes at Customs and Border Protection (CBP) in the United States and the Canada Border Services Agency (CBSA) that international traders need to be aware of and highlight the need for an Integrated Trade Compliance Strategy.

“It’s always been about collecting revenue, but in recent years and especially after 9/11, national security and regulatory interests have been morphed together to create a new approach to managing imports and exports. Not that this wasn’t in place to some extent before 9/11, but that event really pushed this concept forward and accelerated the growth of all the various programs U.S. and Canadian Customs now have in place to detect non-compliance.

There are two major tracks our cross-border customs agencies take to look at compliance verification: one is a transactional review and that takes places as the shipments are entering or exiting the country; the second one is the audit stream where they’re coming in and doing regular audits looking for tariff, value, origin, other government department compliance and business systems linkages.

What it’s really done is shifted the onus for compliance onto the importer and the trader to be diligent and take measures to ensure that all the practices that they have in place for their imports and exports are compliant with all the global regulations which are now much more intensive and have fairly severe consequences attached to them in terms of fines and penalties. Additionally, there are all kinds of other commercial repercussions involved such as lost profitability of a particular shipment or even loss of reputation because this is a legal requirement as well, so companies tend to look at compliance as something that can be a benefit to their brand.”

CBP: A Year of Merging Security and Prosperity

Following is the feature article from the CBP FY 2011 Report on Import Trade Trends Say the words, “September 11, 2001,” and images of death and destruction come immediately to mind. With nearly 3,000 people killed in those terrorist attacks, on that day “the highest priority became preventing terrorists and terrorist weapons from entering our [...]

Following is the feature article from the CBP FY 2011 Report on Import Trade Trends

Say the words, “September 11, 2001,” and images of death and destruction come immediately to mind. With nearly 3,000 people killed in those terrorist attacks, on that day “the highest priority became preventing terrorists and terrorist weapons from entering our country,” then-U.S. Customs Service Commissioner Robert C. Bonner said.

Less visible, but with longer-term effects, was the attacks’ crippling impact on the U.S. economy. By driving two passenger planes into the twin towers — targeting the financial capital of the U.S.—al-Qaida symbolically targeted not only Americans, but the American way of life, specifically travel and trade. A 2002 Congressional Research Service report noted that the long-term costs of increased security would likely be “greater impediments to the free movement of goods, services, and capital….(which) have contributed immeasurably to the integration of the world economy and its efficient functioning.”
Money Security CBP: A Year of Merging Security and Prosperity
After the founding of U.S. Customs and Border Protection in 2003, responding to terrorism effectively became a thorny challenge for the agency charged with defending America’s borders. On the one hand, total vigilance would seem to demand virtually closing down the borders for a total inspection of every person, package and container coming through. As one CBP officer remarked, “I don’t want to be the one responsible for letting someone in [who would go on to commit an attack].”

Yet if nothing and no one can enter the country without a full, hands-on inspection, the terrorists would win a shattering victory of another kind. The dual imperatives to keep dangerous people and things out while allowing legitimate travel and trade to flow in led agency officials to adopt the phrase, “a balanced approach to security and facilitation.” It became almost axiomatic that these two goals were opposed, in a sense, and that managing them was a delicate dance. Leaders of the agency tried to reassure the trade in particular that security would not trump competitiveness. In 2006, then-Commissioner W. Ralph Basham articulated a CBP theme of increasing importance, that security could be a win for industry.

In his words, “Companies are realizing collateral benefits from improved security…and are moving more goods across international borders faster and more efficiently.”

Intuitively, the mission of revenue collection does not exactly mesh with the enforcement of border security. When CBP Commissioner Alan D. Bersin assumed leadership in 2010, the contradiction dissolved completely. As he stated to the U.S. Chamber of Commerce in 2011, “At CBP, we believe security and facilitation of international travel and trade are actually the same phenomenon.”

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CBP Report Outlines Costs, Savings Associated with C-TPAT Program

On March 12, 2012, in Compliance, Logistics & Supply Chain Management, by Martin Rayner

U.S. Customs and Border Protection posted to its Web site recently its 2011 C-TPAT Costs & Savings Survey.  CBP concludes from the review that C-TPAT “has become a vital part of supply chain security in the post-9/11 world” and that the program membership “continues to be a critical source of feedback and recommendations for improvement.” CBP [...]

U.S. Customs and Border Protection posted to its Web site recently its 2011 C-TPAT Costs & Savings Survey.  CBP concludes from the review that C-TPAT “has become a vital part of supply chain security in the post-9/11 world” and that the program membership “continues to be a critical source of feedback and recommendations for improvement.”

CBP states that the “overarching theme” of this survey is that “the value of C-TPAT membership cannot be measured adequately in terms of dollars and cents.” On the one hand, there are indeed implementation costs and maintenance costs, which are offset by savings in only a minority of cases.
Cost Savings CBP Report Outlines Costs, Savings Associated with C TPAT Program
In addition, a “non-ignorable minority of respondents” said they have not seen the expected improvements in processes that impact their profitability, such as faster border crossings, front-of-the-line programs and less-frequent inspections. At the same time, CBP said, “it is clear that C-TPAT members take pride in their membership, see it as an industry best practice and value it for reasons that go beyond a purely monetary frame of reference.” These reasons include a best-practice approach to security issues that creates a business culture of more secure operations for all and constant improvements in security, the assurance that shipments will move predictably, reduced exposure to legal or financial risk, and the indirect benefits of efficiency and safety resulting from security activities that reveal equipment or personnel issues that do not directly impact security.

Other information revealed through this survey includes the following.

• Small numbers of importers and carriers reported their estimates of the costs of border delays in four different modes of transport. The median costs were $200 for land delays, $500 for air delays, $1,000 for rail delays and $1,500 for sea delays.

• CBP asked what percentage of contracts for supply chain relationships these days require bidders to be C-TPAT certified. Eight percent of respondents said all of them while 9% said none. About 40% of respondents put the figure between 1% and 45% and about 30% said it was between 50% and 99%.

• For the 75% of respondents who reported a dollar value for implementation costs related to C-TPAT membership, those costs ranged from $280 to $4 million, with a median of $17,370. For the 62% who reported a dollar value for maintenance costs, those costs ranged from $45 to $815,000, with a median of $9,000.

• For the 26% of respondents who reported a number of person-hours for time savings related to C-TPAT membership, those savings ranged from 25 to 48,000 person-hours annually with a median of 373. For the 24% who reported a dollar value for cost savings, those savings ranged from $50 to $52 million, with a median of $5,350.

• Asked to summarize the financial costs and savings related to C-TPAT membership as net positive, neutral or net negative, respondents fell about equally into each category.

Source: STR Trade Report
 

CBP and Canada Border Services Hold ‘Beyond the Border’ Stakeholder Meetings

Last week, U.S. Customs and Border Protection and Canada Border Services Agency hosted a Bi-National Commercial Town Hall with stakeholders to discuss the joint U.S.-Canada declaration of a shared approach to security, the Beyond the Border Action Plan. Officials from both sides of the border were present alongside Customs and Border Protection’s (CBP) Deputy Commissioner [...]

Last week, U.S. Customs and Border Protection and Canada Border Services Agency hosted a Bi-National Commercial Town Hall with stakeholders to discuss the joint U.S.-Canada declaration of a shared approach to security, the Beyond the Border Action Plan. Officials from both sides of the border were present alongside Customs and Border Protection’s (CBP) Deputy Commissioner Winkowski and Canada Border Services Agency President Luc Portelance.

The stakeholder meetings on Feb. 28 and 29 in Niagara Falls gathered input regarding trade and commercial cross-border activity. Topics covered included the Integrated Cargo Security Strategy (ICCS); Advanced Data Requirement and Perimeter Screening of Cargo; the Single Window Initiative; Harmonizing Low Value Shipment processes; and the Advance Trade Data (eManifest) initiatives.
CBSA CBP CBP and Canada Border Services Hold ‘Beyond the Border’ Stakeholder Meetings
“The Beyond the Border agreement forged by President Obama and Prime Minister Harper is about strengthening and expediting trade and travel between our countries,” said U.S. Customs and Border Protection Acting Deputy Commissioner, Thomas Winkowski. “It’s about finding common-sense solutions to our most complicated problems. And it’s about extending national security for both of our nations, well away from the border.”

“As these joint meetings with stakeholders indicate, we are committed to working with our U.S. partners to bring about greater consistency, efficiency and predictability in the management of our shared border,” said CBSA President Portelance. “We understand that business operates in a world where time is money, and where deadlines are vital to integrated, cross-border supply chains. That is why we continue to involve our stakeholders in the implementation of the Beyond the Border Action Plan initiatives to keep the border open to lawful travel and trade.”

As a key player in discussions on any border-related changes, the Canadian Trucking Alliance (CTA) participated in the Border Commercial Consultative Committee (BCCC) along with members of Canada’s trade community. “I am encouraged by the discussions held this week on the implementation of the Border Action Plan,” said Jennifer Fox, CTA’s vice-president of Customs and compliance.

The Beyond the Border Action Plan consists of 32 separate initiatives. It calls for enhancements to the benefits of programs that help trusted businesses and travelers move efficiently across the border; introduces new measures to facilitate movement and trade across the border while reducing the administrative burden for business; and invests in improvements to our shared border infrastructure and technology. By expediting lawful trade and commerce into and across our shared border, the U.S. and Canada seek to enhance their economic competitiveness, create jobs and support economic growth.

C-TPAT Budget-Saving Plans

On February 29, 2012, in Compliance, Logistics & Supply Chain Management, by Martin Rayner

Extending the re-validation cycle for companies in the Customs-Trade Partnership Against Terrorism by a year will not adversely impact supply chain security, according to Shawn Beddows, the U.S. Customs official directly in charge of the program. The Obama administration’s budget plan for fiscal year 2013 calls for a $5 million reduction in C-TPAT spending, with [...]

Extending the re-validation cycle for companies in the Customs-Trade Partnership Against Terrorism by a year will not adversely impact supply chain security, according to Shawn Beddows, the U.S. Customs official directly in charge of the program.

The Obama administration’s budget plan for fiscal year 2013 calls for a $5 million reduction in C-TPAT spending, with the money diverted instead to pay for frontline inspection operations. Most of the savings are to be achieved by scheduling follow-on verifications of trusted shippers’ supply chain security practices every four years, instead of three. […]
C TPAT Logo C TPAT Budget Saving Plans
Another possible change to C-TPAT is the addition of an export component. CBP officials, acquiescing to private sector demands for a program that would make it easier to comply with the cargo security programs of foreign governments, in recent months have said they are contemplating a security program for exporters.

Customs is expected to consider several approaches for export verification, including flipping the C-TPAT import criteria to exports or using a security checklist that is equivalent to ones used by European Union governments for their Authorized Economic Operator programs. Read more here (subscription required).

Source: Eric KulischAmerican Shipper Magazine

Obama’s 2013 Budget: Agency Highlights

On February 13, 2012, in International Trade, U.S. Customs Issues, by Martin Rayner

The blueprint for the fiscal 2013 budget released today by the Obama administration provides $39.5 billion for the Department of Homeland Security, a decrease of 5.4 percent or $191 million to be achieved through cuts in administrative costs and the elimination of duplicative programs. Funds and staffing at the northern and southern borders and the [...]

The blueprint for the fiscal 2013 budget released today by the Obama administration provides $39.5 billion for the Department of Homeland Security, a decrease of 5.4 percent or $191 million to be achieved through cuts in administrative costs and the elimination of duplicative programs.
rsz seal Obama’s 2013 Budget: Agency Highlights
Funds and staffing at the northern and southern borders and the ports of entries would remain the same under the budget, however proposed outlays for the CBP’s Automation Modernization account – which includes the Automated Commercial Environment (ACE) and Critical Operations Protection and Processing Support (COPPS) would decrease by $82 million to $309 million.

The proposed budget would fund cyber-security efforts by providing $769 million to improve security of federal civilian information technology networks while enhancing outreach to state and local governments and critical infrastructure sectors. It slated $650 million to fund research and development advances in cyber-security, explosives detection, and chemical/biological response systems.

As part of a 15.6 percent increase to the Department of Commerce budget, the president is calling for spending $517 million on the International Trade Administration to promote U.S. exports in key markets abroad and to improve trade enforcement. The administration would also increase funds for the U.S. Patent and Trademark Office to accelerate patent processing and improve patent quality.

The administration is proposing a $100 departure fee for airlines, business jets and other aircraft to help cover the costs of federal air traffic control. The new fee would raise $7.4 billion over 10 years, the administration estimates. The budget also proposes to cut guaranteed grant funding for medium and large airports by $926 million in 2013 to $2.4 billion. Instead, airports would be permitted flexibility to increase certain ticket charges to raise revenue on their own for airport construction projects.

Obama’s proposed transportation budget includes a six-year, $476-billion surface transportation bill, a significant reduction from the bill the president proposed last year, but an amount still far exceeding the spending called for under transportation bills in the House and Senate, where lawmakers have struggled to find money to pay for highway and transit projects. The House bill would spend $260 billion over 4½ years; the Senate $109 billion over less than two years.

Detailed financial information on individual programs and appropriation accounts from the Office of Management and Budget can be obtained here.

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David Jacobson: Obama’s Man in Ottawa

David Jacobson, the U.S. Ambassador to Canada sat down recently with TVO’s Steve Paikin to discuss his role as Ambassador and the new border agreement between Canada and the United States. Source: Television Ontario  

David Jacobson, the U.S. Ambassador to Canada sat down recently with TVO’s Steve Paikin to discuss his role as Ambassador and the new border agreement between Canada and the United States.

Source: Television Ontario

 

The Future of the Canada-US Partnership

Jason Myers, President and CEO of Canadian Manufacturers & Exporters When Prime Minister Stephen Harper and President Barack Obama announced their shared vision for perimeter security and economic competitiveness in February, many people immediately wrote off the exercise as another in a long line of attempts to “fix” border irritants between our countries. This was [...]

Jason Myers, President and CEO of Canadian Manufacturers & Exporters

When Prime Minister Stephen Harper and President Barack Obama announced their shared vision for perimeter security and economic competitiveness in February, many people immediately wrote off the exercise as another in a long line of attempts to “fix” border irritants between our countries.
Jayson Myers CME CEO2  The Future of the Canada US Partnership
This was the fifth similar effort in the past dozen years, starting with the shared border declarations in the late 1990s, the 32-point action plan in 2001, the Security and Prosperity Partnership of 2005 and the North American Competitiveness Council of 2007. To be blunt, these efforts produced some results, but didn’t succeed in solving the real challenges businesses on both sides of the border face in their day-to-day operations.

The costs of bad regulatory and antiquated border policies are too significant to ignore. They cost Canada five per cent of GDP every year – that’s more than $50 billion out of the pockets of consumers. Furthermore, they reduce corporate investment in employees, productive capacity, and innovation.

Why are the costs so extreme? Canadian and US manufacturers don’t simply trade with each other; we build things together. Cars, food products, telecommunications equipment, steel and metal products, are just some of the goods that Canadian and Americans manufacture together and use to compete together in global markets.

That’s the good news.

These component parts however cross our border multiple times before a finished product is ready for retail.

While integration has increased substantially since the signing of 1988 FTA, the regulatory system has not kept up with the business realities. Product regulations and border processes today are often rooted in an economic reality from 50 years ago. Despite integrated manufacturing, many products cannot be designed, tested and built for sale in both countries all as a result of slight differences in regulatory standards.

That’s the bad news.

Over the past decade, Ottawa and Washington have demanded more information about every component of products crossing our border, a demand that is often multiple, repetitive and costly. At the same time, foreign produced goods – our competition both in this marketplace and globally – face no such hurdles. Goods are typically manufactured within a single jurisdiction where finished products are imported into Canada or the US with a single customs compliance and security process, dramatically reducing costs for production and ultimately, the price for consumers.

On February 4, the leaders set out a very ambitious, yet straightforward objective – improve “perimeter” security against third-country threats while accelerating the legitimate flow of people, goods and services between our two countries. Improvements were to be measured through real, bottom-line results for companies and less congestion at our border.

Throughout this process, and based on the feedback from our member companies, we have worked in both capitals to define what we believe is the way forward.

Agility and time are the currency of today’s new normal, and businesses need regulations that allow companies to invest and grow, not whither and die.

We don’t need smart regulation – we need common-sense harmonization that includes a single electronic window to report necessary information; a system where business travellers cross our border with minimum hassle and a system where border agencies put the word “trust” back into trusted trader programs.

Past efforts on our border have simply not been enough. The challenges our members face in continental North America are now greater than ever. Free trade agreements will bring even more competition for our products.

Our members can compete on product quality and reliability, but we cannot compete when archaic rules and misinformed border policies are a competitive disadvantage and stifle the successes of our integration.

It’s time we manufactured our future together. It’s time we move forward and bring the Canada-US partnership into the 21st century. Jobs on both sides of the 49th parallel depend on it. The clock is ticking.

Jayson Myers is the president and CEO of Canadian Manufacturers & Exporters – the country’s largest industry and trade association.

Beyond The Border: Harper, Obama Sign Deal to Bolster Security, Reduce Trade Barriers

Canada’s new border deal with the United States could lead to fewer missed connections at the airport, more American law-enforcement officials working on Canadian soil, harmonized U.S. standards for prescription drugs, new names for cuts of meat and fewer inspections of food cargo as both governments strive to ensure better information sharing and less red [...]

Canada’s new border deal with the United States could lead to fewer missed connections at the airport, more American law-enforcement officials working on Canadian soil, harmonized U.S. standards for prescription drugs, new names for cuts of meat and fewer inspections of food cargo as both governments strive to ensure better information sharing and less red tape for companies trying to get their goods and people across the largest land border in the world.

The wide-ranging Perimeter Security and Economic Competitiveness Action Plan was described by Prime Minister Stephen Harper Wednesday as the most significant step forward in Canada-U.S. co-operation since the North American Free Trade Agreement.

For cargo from overseas, the U.S and Canadian governments hope to de-clutter the border by screening goods only once — when they first arrive.

Two pilot projects in Prince Rupert and Montreal will be launched in 2012. Shipments coming from overseas will only be screened on arrival and won’t be inspected on subsequent border crossings unless absolutely necessary. If the pilot projects work, single screening will become the new norm.

For businesses, other pilot projects are being developed, such as a pre-inspection of cargo carried on trains, which will begin in September. Another year-long project will involve issuing advance clearance for trucks carrying fresh meat.

The governments will also move to eliminate red tape. For example, an American firm wanting to import fridges currently has to file paperwork with nine government departments, in the future all those applications will be filed through one website.

The trade compliance implications of the new border deal for importers and exporters will doubtless be many and varied as aspects of the sweeping initiative are progressively implemented in future. A number of key features of the 29-point deal — including an accord on regulatory reform — are estimated to still be three to four years away from practical realization.

Related Information:

Perimeter Security and Economic Competitiveness Action Plan
Fact sheet from the White House
 

Canada-U.S. Border Agreement Faces Uphill Battle

On September 23, 2011, in Compliance, International Trade, North American Security Perimeter, Strategy, by Martin Rayner

Beyond the Border initiative mired by complexities in both countries In a paper released yesterday by The School of Public Policy at the University of Calgary, policy advisor and international lawyer Brian Flemming examines Canada-U.S. efforts to create a more porous border between the two countries. He finds that despite the best of intentions on [...]

Beyond the Border initiative mired by complexities in both countries

In a paper released yesterday by The School of Public Policy at the University of Calgary, policy advisor and international lawyer Brian Flemming examines Canada-U.S. efforts to create a more porous border between the two countries. He finds that despite the best of intentions on both sides, real change will prove difficult to achieve.

Flemming examines the many border issues that the Beyond the Border agreement – signed in February 2011 by Prime Minister Stephen Harper and President Barack Obama – is intended to address. These include an integrated Canada-U.S. entry-exit system, harmonization of regulations on Canadian or American products, the protection of citizens’ privacy, and border installations.

While these issues are considered important by political leaders, there are other factors at play. “Overarching all issues and all packages in the Beyond the Border negotiation will be the twin hydras of trust and timing,” Flemming writes.

Citizens of both countries must trust that politicians are serving national interests with any international agreements. Flemming argues that “Trust in the abilities of politicians to solve problems of any kind is at an all-time low in both Canada and the United States.” As an example, the author refers to the current debt problem in the U.S. and the public’s perception that Congress has failed them.

As for timing, President Obama is unlikely to make striking trade and security deals a priority given the run up to the 2012 election, with voters most concerned about his action on the U.S. economy.

Flemming also argues that the results of the U.S. election could make progress on border issues even tougher. “If too many members of Congress with erroneous opinions get elected, no agreements of any kind may be possible,” he writes.

The paper can be downloaded here.
 

U.S., Canada Reach New Security Deal

(John Ibbitson — The Globe and Mail) U.S. and Canadian negotiators have successfully concluded talks on a new deal to integrate continental security and erase obstacles to cross-border trade. Negotiators have reached agreement on almost all of the three dozen separate initiatives in the Beyond the Border action plan, said sources who cannot be named [...]

GHY ITCS Harper Obama Oval Office U.S., Canada Reach New Security Deal

(John Ibbitson — The Globe and Mail)

U.S. and Canadian negotiators have successfully concluded talks on a new deal to integrate continental security and erase obstacles to cross-border trade.

Negotiators have reached agreement on almost all of the three dozen separate initiatives in the Beyond the Border action plan, said sources who cannot be named because they are not authorized to speak publicly on the matter. The few remaining items mostly involve questions of wording and should be settled in time for an announcement in late September.

The most crucial phase then lies ahead, as both the Canadian and U.S. governments try to sell the proposals to their respective publics. A new poll suggests that in Canada, at least, that could be harder than it would have been a few years ago, although with a majority government, the Conservatives can pass any legislation that may be required, barring massive public opposition.

The stakes are high on the initiative, which Prime Minister Stephen Harper and U.S. President Barack Obama announced together in Washington last winter. Mr. Harper has told individuals in private meetings that he sees the Beyond the Border talks as the most ambitious advance in Canada-U.S. relations since the Free Trade Agreement of 1988.

Without an agreement, the non-tariff barriers that have increasingly obstructed the border since the Sept. 11 terrorist attacks could remain in place and worsen. Read more here.
 

Upcoming Harper-Obama Talks Last, Best Hope to Slow Post-9/11 Border Chokehold

On August 31, 2011, in Announcements & News, by Nigel Fortlage

(The Toronto Star – Les Whittington) Ontario’s economic health and millions of jobs will be on the table this fall when Prime Minister Stephen Harper sits down with U.S. President Barack Obama to talk about unclogging the United States-Canada border. Many see the expected high-level talks as the last, best hope to protect the world’s [...]

(The Toronto Star – Les Whittington)

Ontario’s economic health and millions of jobs will be on the table this fall when Prime Minister Stephen Harper sits down with U.S. President Barack Obama to talk about unclogging the United States-Canada border.

Many see the expected high-level talks as the last, best hope to protect the world’s biggest two-way trading relationship from being slowly strangled by security measures that have been multiplying ever since the terrorist incidents on Sept. 11, 2001.

The Harper-Obama meeting will follow up on a session at the White House in February in which the two leaders agreed to open negotiations on improving joint security and trade operations. The far-reaching pact — entitled Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness — conjured up radical changes in Canada-U.S. relations.

It envisioned a security perimeter encircling Canada and the U.S. anchored by jointly managed border facilities, shared intelligence and an integrated Canada-U.S. entry-exit system. And it called for measures to speed the flow of legitimate travellers and commercial goods.

While information from the secret bilateral negotiations has been limited, observers on the Canadian side of the border are not anticipating the kind of major, historic breakthrough in Canada-U.S. dealings envisioned in the marching orders negotiators were handed in February. Read more here.

FDR’s Advice for Managing the U.S.-Canadian Border Resonates Today

On August 25, 2011, in Announcements & News, by Nigel Fortlage

(Seattle Times – Michael A. Meighen) As Canada and the United States continue to refine joint stewardship of our border in the post 9/11 world, it will help decision makers in both countries if they reread twin speeches delivered on the subject on Aug. 18, 1938. Students of Canadian-American relations know that it was on [...]

GHY Tradelines FDR King ThousandIslandsBridge FDRs Advice for Managing the U.S. Canadian Border Resonates Today (Seattle Times – Michael A. Meighen)

As Canada and the United States continue to refine joint stewardship of our border in the post 9/11 world, it will help decision makers in both countries if they reread twin speeches delivered on the subject on Aug. 18, 1938.

Students of Canadian-American relations know that it was on this date President Franklin D. Roosevelt, arguably the greatest U.S. chief executive of the 20th century, visited Canada to accept a degree from a Canadian university.

After leaving Kingston, Ontario, he traveled to the border community of Clayton, N.Y., and officially opened the international bridge that unites our two countries at the Thousand Islands region.

At the crossing between us, FDR spoke of the need for “common sense” to guide both nations as they administer the border. All these years later, any objective analysis reveals there is a real need for Roosevelt-style common sense at our border today. Read more here.

Sen. Michael A. Meighen of St. Mary’s, Ontario, is a Canadian delegate to the Roosevelt-Campobello International Park Commission, established by Canada and the United States to preserve Franklin Roosevelt’s home on Campobello Island, New Brunswick.

 

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U.S. Border Chief Says Terror Threat Greater From Canada Than Mexico

On May 19, 2011, in Announcements & News, by Nigel Fortlage

When it comes to the threat of terrorism, the Canadian border is a bigger problem than the Mexican one, a U.S. security official says.

(Colin Freeze — Globe & Mail)

When it comes to the threat of terrorism, the Canadian border is a bigger problem than the Mexican one, a U.S. security official says.

Customs and Border Protection Commissioner Alan Bersin said he is concerned that potential terrorists are exploiting Canadian loopholes to gain entry to the United States.

“We have had more cases where people who are suspected of alliances with terrorist organizations, or have had a terrorist suspicion in their background – we see more people crossing over from Canada than we have from Mexico,” he said during in his testimony to the U.S. Senate this week.

The remarks will grate on Ottawa officials, who frequently try to persuade U.S. counterparts that the terrorist threat emanating from north of the border is not that bad. Read more here.

Related: U.S.-Canada Border Not Secure: U.S. Official (Toronto Sun)
 

President Obama and Prime Minister Harper Press Conference

On February 7, 2011, in Announcements & News, Videos, by Nigel Fortlage

Does your Trade Strategy prepare you for these upcoming changes?

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(Whitehouse.gov)

President Obama and Canadian Prime Minister Stephen Harper hold a joint press conference and take questions from the media on various subjects, including trade and the current situation on Egypt. February 4, 2011.

Related: Breaking Down Borders: Canada-U.S. Trade and Security (Globe & Mail)

pixel President Obama and Prime Minister Harper Press Conference