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Border a mess: business
Study says 'micromanaged' trade costing billions, doing little for security

Paul Vieira
National Post


July 26, 2005


OTTAWA - The Canada-U.S. border is "micromanaged" by a bureaucratic monster that impedes cross-border trade, adds billions to the cost of goods and threatens North America's ability to attract investment, a business coalition warns in a study to be released today.

The two countries' efforts to strengthen North American security should focus on protecting the continent's perimeter, says the Coalition for Secure and Trade-Efficient Borders, comprised of major business organizations and Canadian companies, in a 12-page report obtained by the National Post.

Currently, 44 government departments in Canada and the United States, in the name of security, have added myriad regulations governing border crossings that hurt the economy.

The most telling example, according to the report, is in the auto industry. The coalition estimates that costs related to border delays, and auto makers' reporting and compliance requirements, have added $800 to the price of a North American-made car.

"Simply hardening the border, simply layering further layers of costly bureaucracy on the border, does not make you safer. What it does do is drive up cost," said Perrin Beatty, president of Canadian Manufacturers & Exporters.

"It damages your economy, and you are misallocating your security resources."

Nancy Hughes Anthony, president of the Canadian Chamber of Commerce, said the Canada-U.S. border threatens to become the "greatest non-tariff barrier the world has ever seen" unless the two governments refocus their security efforts.

"We are spending a lot of time micromanaging the Canada-U.S. border when I think it's really in our collective interest to look more at our external border," she said.

It is unclear whether the call by the coalition -- established in the aftermath of the Sept. 11, 2001, terrorist attacks -- will make much headway with politicians, particularly given the recent attacks on London's subway system.

Ms. Hughes Anthony said she recognizes there are overarching security concerns about the border. Regardless, "if our collective goal is to make the North American continent secure, we will never have enough resources to check every girls' soccer team to go across the border in New Brunswick.

"If you admit to that, then let's get maximum use from technology, make maximum use of harmonizing the resources between the two countries, and focus more on external threats."

The 12-page coalition report, Rethinking Our Borders, notes the Canadian and American governments have made "impressive strides" to ensure the physical security of North America. But the security buildup has led to a rapid rise in regulatory initiatives.

Since 2001, the coalition report suggests processing times for U.S.-bound truck shipments have increased 300%, from 45 seconds to two minutes and 15 seconds, due to bureaucratic meddling.

"The coalition ... is issuing an alert to both the Canadian and U.S. governments," the report says. "It is time to shift our focus to securing the external Canada-U.S. perimeter and achieving the goal of a seamless Canada-U.S. border for known low-security-risk goods and people."

Close to 200 million people cross the 7,200-kilometre-long Canada-U.S. border each year and two-way trade amounts to more than $2-billion per day.

Just over a week ago, the Canada Border Services Agency said it planned to hire 270 more guards over the next five years to patrol crossings. Anne McLellan, the Public Safety Minister, said the move was critical to both ensure security at the border and ease the flow of legitimate trade and traffic.

There has also been criticism of the role Canada's border agents play. The chairman of the Senate defence committee, Colin Kenny, has said border agents are spending too much time checking for goods purchased in the United States and not enough on security.

Securing the continent via airports and seaports makes more sense, the business coalition argues, because it is easier to detect the people and goods entering the country there. This is part of the agenda pursued by the leaders of the United States, Mexico and Canada through the security and prosperity partnership, or NAFTA-plus.

The coalition also issued a number of recommendations in its report. Among them is an expansion of the NEXUS program, which allows for so-called speed lanes for low-risk and business travellers. It is currently in limited use at Canada-U.S. border crossings, and is available at one Canadian airport, Vancouver.