CANADA - U.S. Border Relationship 

The Windsor & District Chamber of Commerce is please to present a resolution, “The Canada-U.S. Border Relationship,” which has been submitted for debate by more than 700 planned attendees at the Canadian Chamber of Commerce Annual General Meeting in September 2001.

With input from relevant Chairs of Chamber Policy Committees and other representatives within our membership, Chairman Mike Robinson will represent the best interests of our members on this and over 40 additional submissions from Chambers across the country on issues ranging from Fiscal Policy and Improving Competitiveness of Business Taxation to Labelling of Genetically-Modified Foods and Call for Recognition of the Shortage of Medical Practitioners and Proposals to Address Same.

THE CANADA-U.S. BORDER RELATIONSHIP  

Canada’s relationship with the United States has long been—and will remain for the foreseeable future— Canada’s top priority in foreign and trade policy. Eighty-four percent of Canada’s exports go to the United States. The Canada-United States border remains the longest undefended border in the world. Some 200 million people and over half a trillion dollars in goods and services cross that border each year, the largest bilateral trading relationship in the world.

It is commendable that, following the 2000 U.S. Presidential election and the subsequent transfer of power, the Canadian and U.S. governments quickly went forward in a businesslike matter to deal with pressing bilateral issues. The relationship is too important to do anything else.

The relationship has been affected by certain bilateral trade irritants. Recent notable examples have included softwood lumber, pharmaceutical patents, potatoes and dairy products. Issues such as these should not be papered over when they arise—both governments should deal with all such disputes in a serious and efficient manner.

However, it is important to consider these disputes in their proper context. Canada and the United States have a mature trading relationship which totals over $1.5 billion per day, the vast majority of which is conducted free of problems and noticeable disputes. the disputes which do arise are not examples of how the system does not work. Rather, they are the exceptions that prove the rule. It is therefore important that the Government of Canada strike the appropriate balance between defending Canada’s specific interest in any given trade dispute, and protecting Canada’s overall interest in a smoothly functioning relationship with the United States.

On a more specific level, the enormous economic link between our two countries, as well as our close social and political relations, makes the smooth and expeditious operation of the Canada-U.S. border extremely important. Increasingly, companies on both sides of the border are integrating their operations and management. For them, a border processing system that works well is essential, especially in light of “just in time” production systems. However, traffic congestion at many border crossings across the country has become a serious concern. Constant improvements to border and transportation infrastructure are vital to ensuring the continued expansion of Canada-US trade and the efficient movement of tourists and business people across the border.

A recent improvement in transportation infrastructure is the construction at Sarnia-Port Huron of a second span at the Bluewater Bridge, and of a new rail tunnel capable of carrying double-stack traffic. Innovative strategies such as the "Commercial Vehicle Processing Centre" at the Fort Erie-Buffalo border crossing and the CanPass system also enhance efficiency, reduce waiting times and increase border traffic capacity. In addition, the federal government has also targeted a number of border crossings across Canada for automation, where individuals who cross the border regularly will be issued entry cards to travel into the United States and to gain entry back into Canada.

These kinds of improvements, provided that they are well-conceived and implemented in the most cost-efficient manner possible, are of considerable benefit to the Canada-US bilateral relationship. However, new initiatives and systems must be user-friendly and reliable, and should not be conceived in such a way as to create new obstacles to border traffic.

The border is a strategic issue for Canada, since this country is heavily dependent on inbound foreign investment. If Canada is to attract investments which will use Canada as a base for accessing the NAFTA market, products and services originating in Canada must be able to cross NAFTA borders easily. If they cannot, our competitiveness and desirability as a destination for investment will be diminished.

Efficient border operations also extend to the movement of people. The growth in the service sector means that more people must be able to move freely. Yet, it is likely that the free movement of persons has become more difficult since NAFTA, not less. It is incumbent on governments to ensure that people movement is facilitated not frustrated. Moreover, Canada must remain vigilant, and ensure that it is not caught up again in proposals such as Section 110 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996. 

A wide range of public and private sector groups are currently engaged in discussions and projects that seek to improve border infrastructure and the transportation systems which supply them. The recent establishment of the Canada-US Partnership (CUSP), a forum which examines border cooperation among other issues, is a positive step forward in discussing and resolving common border concerns. The CUSP discussions are focused not only on congestion at specific border crossings, but on the larger issue of shared border management. The continuing growth in the volume of Canada-US trade and traffic requires a shared vision and strategic approach to border management that will allow both countries to work together in a coordinated fashion. There are significant benefits for both Canada and the US to a longer-term strategy developed by governments and business so that border management actions facilitate business, and do not hamper it.

Border management is a crucial part of the Canada-US relationship but, ultimately, the relationship is about more than simply a border. Economic integration and the changes that come with it require Canadians to examine their country’s broader relationship with the United States, where the relationship is headed and the issues that lie ahead. It is critical that Canada not be hesitant to consider current and future border management ideas (such as a customs union) in the context of the larger Canada-US relationship

Recommendations

That the federal government:

1.      Make it a priority to work with provincial governments to provide necessary road and other infrastructure  
       improvements at border crossings.

2.      Increase the staff available at border crossings during peak travel hours, and encourage its US
       counterparts to do the same.

3.      Seek automation and other border crossing streamlining initiatives in a manner which facilitates the
       movement of goods and services in the most efficient and effective manner while ensuring adequate
       security at the border.

4.      With the input and assistance of the business community, continue to work with its US counterparts,
       through initiatives such as the Canada-US Partnership, to facilitate continuing short-term improvements
       on both sides of the Canada-United States border but also to develop a longer term, coordinated
       strategy for border management including the consideration of perimeter clearance.

5.      Seek the advice and expertise of the business community in the larger debate on the overall
       Canada-U.S. relationship.