Archive for the ‘Canada-US Border’ Category

Monday, February 7th, 2011

The following is a 4 February 2011 news release by the Prime Minister of Canada.

Prime Minister Stephen Harper and U.S. President Barack Obama today issued a Declaration on a Shared Vision for Perimeter Security and Economic Competitiveness. The Declaration establishes a new long-term partnership that will accelerate the legitimate flows of people and goods between both countries, while strengthening security and economic competitiveness. The two leaders also announced the creation of a U.S.-Canada Regulatory Cooperation Council (RCC) and received the Second Report to Leaders on the U.S.-Canada Clean Energy Dialogue (CED).

“This Declaration demonstrates the continued commitment of Canada and the United States to ensuring our common security, while supporting economic competitiveness, job creation and prosperity within a secure environment,” said the Prime Minister. “It builds on the remarkable security partnership between Canada and the United States that has helped keep our borders open to legitimate trade and travellers, and closed to criminal and terrorist elements.”

The Declaration will focus on four areas of co-operation: addressing threats early; trade facilitation, economic growth and jobs; integrated cross-border law enforcement; and critical infrastructure and cyber-security.

Canada and the U.S. will develop a joint action plan on perimeter security and economic competitiveness that will set out a range of initiatives in the four key areas to improve both countries’ ability to manage security risks, while facilitating the flow of people, goods and services.

A “Beyond the Border Working Group” composed of representatives from both governments will be established to implement and oversee work on the action plan.

“The Canada-U.S. partnership on security and economic competitiveness must evolve continually if we are to stay strong and address future security and commercial concerns,” added the Prime Minister. “This declaration sets the stage for more effective, long-term collaboration in these areas. It also respects the sovereignty of both countries and the privacy of our citizens.”

In addition to the Declaration, the two leaders also announced the creation of a United States-Canada Regulatory Cooperation Council (RCC) that will reduce red tape by making regulations in a range of sectors more compatible and less burdensome in both countries – which is especially important for small businesses.

“The review of these rules is an exceptional opportunity to break down regulatory barriers and prevent new ones from being introduced,” added the Prime Minister. “The main goal is to make it easier for Canadian and American firms to do business on both sides of our shared border, leading to more jobs and growth in both Canada and the U.S.“

Increased regulatory co-operation between Canada and the U.S. is expected to generate economic opportunities on both sides of the border, while improving the ability of regulatory agencies in both countries to achieve their objectives.

Prime Minister Harper and President Obama also received the Second Report to Leaders on the Clean Energy Dialogue (CED) which lays out progress achieved in 20 joint projects in such areas as solar energy, advanced biofuels, and carbon capture and storage. The purpose of the CED, which was announced in February 2009 by the two leaders, is to enhance collaboration between Canada and the U.S. on the development of clean energy technologies aimed at reducing greenhouse gases and combating climate change.

Links to Related Items are available here:
http://www.pm.gc.ca/eng/media.asp?category=1&featureId=6&pageId=26&id=3931

Friday, February 4th, 2011

The following is excerpted from the 4 February 2011 edition of “The Canadian Business Journal”.

As the country awaits an announcement from the Harper/Obama governments on sweeping changes to border regulations, designed to improve trade and the movement of people between Canada and its southern neighbours, CBJ looks at the vital trading relationship between the two countries. Read on for a spotlight on the Canadian American Business Council, an exclusive with an expert on North American trade, and Canada’s Agriculture Minister Gerry Ritz.

Spotlight: Canadian American Business Council

The United States and Canada are inherently linked as trading partners. The mutual dependency on each other is increasingly becoming a focus beyond the boardroom doors. The Canadian American Business Council (CABC) is the representative voice of the Canadian-American business community in Washington, focused on the private sector issues that affect the business communities of both nations.

As an established voice of the business community, the CABC has successfully garnered a place with policy makers on both sides of the border, frequently acting as a liaison between critical people and parties.

This month, The Canadian Business Journal delves further into the CABC in the special section Canada on the World Stage. CBJ speaks with Executive Director Jane Moffat and hears her engaging insights into the crucial relationship of private sector business in the U.S. and Canada. CBJ is convinced of the CABC’s critical role—and delighted that the Canadian business community has such a great forum for discourse in Washington…

This article is available in its entirety on the Canadian Business Journal website at:
http://www.canadianbusinessjournal.ca/features/febraury_11_features/canada_on_the_world_stage.html

Thursday, February 3rd, 2011

The following is from the 3 February 2011 edition of “globeandmail.com”.

Why it’s happening

Barack Obama and Stephen Harper will sign an action plan Friday ordering bureaucrats to draft agreements that would tighten continental security and the flow of trade.

Borders aren’t flowing as easily as they did in the years before Sept. 11, or in trade parlance, they are thickening. Friday’s declaration aims to break the logjams while also deterring possible terrorist attacks.

If the agreements live up to expectations, the two countries would integrate efforts to clear goods and people crossing the border, to improve infrastructure, to harmonize safety standards for consumer products and to share information about who and what is setting foot on the other’s shores…

This article is available in its entirety at:
http://www.theglobeandmail.com/news/politics/breaking-down-borders-canada-us-trade-and-security/article1893932/

Thursday, November 4th, 2010

The following is from today’s edition of the “Ottawa Citizen”.

The power shift in the U.S. Congress has killed the prospect of a North American carbon cap-and-trade system and will require Canada to be more vigilant than ever against American economic and political pressures — and myths — that threaten open cross-border trade, Canadian politicians and analysts said Wednesday.

Liberal leader Michael Ignatieff and others said the Republican victory in the House of Representatives — which U.S. President Barack Obama conceded spelled the end of his party’s cap-and-trade effort — puts the onus now on Canada to move alone and stop using the Americans as an “excuse for not doing anything on the environment.”

Prime Minister Stephen Harper dismissed Ignatieff’s remark, saying his government is moving on domestic, continental and global fronts on climate change. The Tories had been waiting for the outcome of the U.S. legislative process rather than proceeding with a Canada-only cap-and-trade plan for buying and selling industrial carbon emissions.

Harper defended that in the House of Commons, saying a North American approach was necessary because some industries are integrated across the continent.

Experts noted Obama’s signal that the administration’s battle against carbon now will shift from the legislative to the regulatory front where Democrats are waging battle with Republicans over the U.S. Environmental Protection Agency’s powers over industrial polluters.

“What they can’t do through legislation, the administration will try to do through regulation,” said Colin Robertson, a former Canadian diplomat who specializes in Canada-U.S. affairs.

While the record suggests Republicans are less protectionist than Democrats in terms of traditional trade barriers, Canada has faced a decade of border management issues with the United State that are in some cases, such as clogged border crossings, tantamount to trade barriers.

“For us, the border stuff won’t get any easier as the GOP (Republicans) puts big emphasis on ’security’ and enforcement — it’s a basic piece in the Pledge to America,” said Robertson, citing the frequently resurgent myth, resurrected during the midterm election campaign, that terrorists travel to the U.S. via a porous Canadian border.

Liberal foreign affairs critic Bob Rae says Canada has to guard against more of what was heard during the midterm election campaign, such as “completely ignorant” comments about Canada’s health care system and “completely false” statements about terrorist travel via Canada.

NDP leader Jack Layton said he suspects trade relations will continue to dog the Canada-U.S. relationship. “There is no question across the United States there is a real worry about job loss and about trade deals that produce job loss,” Layton said in an interview. “And NAFTA (North American Free Trade Agreement) has produced considerable challenges in terms of job loss in several key sectors here in Canada.”

He predicted Canada-U.S. trade will emerge as an issue in the run up to the presidential election in 2012, as it did during the campaign that ended with Obama’s election two years ago, and that it also will play a role in the next federal election in Canada.

Thursday, September 9th, 2010

The following is excerpted from the 4 September 2010 edition of “montrealgazette.com”.

Opposition is growing to the Canadian Border Security Agency’s (CBSA’s) recent decision to close two Canadian border stations south of Montreal next spring.

The mayor of Franklin, Suzanne Blair, will be holding a news conference next week to launch a petition drive. And the largest employer in the region, Les Vergers Leahy, has written federal authorities a strong letter of protest.

News of the proposed closings has also been greeted negatively south of the border.

Gary Douglas, president of the Plattsburgh-North Country Chamber of Commerce, told Plattsburgh’s Press-Republican that the unilateral decision by Canada to close the two border stations violates the 2002 U.S.-Canada Smart Border Accord.

“The failure of the Canadian government to co-ordinate with the U.S. government is absolutely mind-boggling,” he said.

The two border stations south of Montreal are among three nationally that were tagged last month by the CBSA for closing next April, because of budget cuts.

The Franklin Centre and Jamieson’s Line border stations are situated south of the towns of Franklin and Huntingdon, respectively. The third station slated for closing next spring is on the Saskatchewan-Montana border…

U.S. Customs and Border Protection (CBP) officials have asked to meet with their CBSA counterparts to explore ways of maintaining two-way traffic. The Americans don’t like the idea of one-way border crossings where you can get into the U.S. from Canada but can’t get into Canada from the U.S…

Contacted yesterday by The Gazette, Department of Homeland Security spokesman Raphael Lemaitre said the CBP has suspended renovations at the Franklin Centre/ Churubasco crossing, and the Saskatchewan/Montana one, because of the CBSA’s proposed port closures. He said American officials want to “develop a joint solution that ensures the continued security interests of both countries. During this time, CBP will also explore alternatives with CBSA to enable the continued facilitation of two-way traffic.”…

Tuesday, March 2nd, 2010

The following is excerpted from the 26 February 2010 edition of “globeandmail.com”.

Canada and U.S. authorities are talking about extending cross-border security measures that were implemented for the 2010 Olympics in Vancouver and were to end with the closing of the Winter Games.

The RCMP and the U.S. Coast Guard have jointly patrolled the waters off Vancouver since the beginning of the month, boarding nearly 200 vessels and interviewing about 500 people in their efforts to maintain security, RCMP Sergeant Duncan Pound of the border integrity program said in an interview….

The joint patrols will end with the Paralympics but spokesmen from the two agencies said yesterday legislation that would allow joint maritime policing on a permanent basis is on the agenda of both the U.S. and Canadian governments.

Also, U.S. Senator Patty Murray of Washington state has asked Secretary of Homeland Security Janet Napolitano to continue funding for the 2010 Olympic Co-ordination Centre in Bellingham, Wash., which was opened specifically to co-ordinate the U.S. response to any terrorist attack or domestic emergency during the Winter Games.

Ms. Napolitano… said earlier this week she has heard “great reports” about the centre and would talk to people this weekend on whether more funding makes sense.

The centre, located 30 kilometres south of the Canada-U.S. border, brought together 40 U.S. federal, state and local agencies, including military intelligence groups, the navy, national guard, air force, coast guard and several groups involved in responding to emergencies from snowstorms to highway pileups.

Several federal and provincial government agencies from Canada were also involved, monitoring activities at the centre and establishing procedures to facilitate joint responses to cross-border events….

The joint RCMP/USCG maritime patrols, known as Siderider, have in effect erased the border on the water, enabling armed officers from either country to cross the border and play a role in enforcing the law. Each RCMP vessel has a U.S. Coast Guard member as well as two or three Mounties, while each USCG boat has a Mountie. The RCMP takes the lead when dealing with Canadians while the U.S. Coast Guard does the same with Americans….

The Olympics is the third pilot project on joint maritime patrolling that the two countries have participated in, officials said. The patrols, with both RCMP officers and USCG members, are free to cross the border in pursuit of any vessel.

Under normal conditions, the U.S. Coast Guard would not enter Canadian waters and the RCMP would stop at the U.S. border. “It is just a quick getaway for criminal adversaries who try to evade law enforcement,” U.S. Coast Guard Commander Peter Martin said yesterday. “This addresses the problem so we can maintain continuous pursuit, while simultaneously respect the sovereignty of both countries,” he said.

Thursday, January 28th, 2010

The following was reported on in today’s edition of “WorldTrade Interactive”.

The Export Control Practitioners Group recently submitted to the Obama administration a number of recommendations for reform of the U.S. export control system, an issue the White House is currently reviewing. The ECPG’s recommendations were drafted by export controls professionals from industry, associations and law firms… They were submitted just ahead of several high-level meetings on export control reform issues that were held in Washington, D.C., this week.

“Many of these recommendations, if enacted, would have a favorable impact on our firm’s clients that produce products subject to the USML and EAR,” Jacobson said. “In particular, reform of the commodity jurisdiction process would be of significant benefit to exporters since it is often difficult for exporters to know with certainty whether their products are subject to the ITAR or EAR. In addition, the EPCG’s recommendations relating to revamping the process and structure for the imposition of penalties for violating export control laws and regulations would be welcome news.”

The group’s recommendations focus on process and policy changes as well as a number of substantive and practical ways to modernize and improve the current system. They include many similarities to, but some substantive differences from, the reforms being advocated by the Coalition for Security and Competitiveness. Among the group’s specific proposals are the following.

Agency Structure

- maintain the overall interagency export control structure but attempt to ensure more cooperation, including physical collocation where possible

- do not add more layers of bureaucracy, including a single point of entry at the front end of the process or an overarching supervisory structure as some have advocated

Commodity Jurisdiction

- establish the national security advisor as the final decision maker to resolve conflicting CJ claims by different agencies

- move items that do not belong on the USML to the Commerce Control List at an
appropriate level of control so that Wassenaar Arrangement Munitions List items are placed on the USML, multilaterally controlled dual-use items are placed on the CCL, and items not controlled by a multilateral regime or treaty are subject to the Export Administration Regulations

- quickly implement a uniform, common sense and objective definition of defense article that focuses on core military functionality

Control List Review and Reduction

- conduct regular annual reviews of export control lists with a “default to decontrol” provision that would require items to be removed in the absence of a timely, documented, genuine review and justification for retaining controls

- create a special mechanism to automatically decontrol certain items based on their anticipated life cycle and the forecast arrival of the next generation

Foreign Availability

- base analyses of foreign availability on controllability; i.e., whether the item is available in sufficient quantity and comparable quality so as to render attempts to control ineffective in achieving their intended purpose

- if foreign availability is determined to exist for an item but the president decides to maintain an export control, that control should clearly be labeled as a unilateral control and the president should have to renew his/her determination pursuant to an automatic foreign availability review every year

Licensing

- with respect to the ITAR: simplify the use of exemptions by locating all of them in one section of the ITAR, combine similar exemptions for transactions with parties in destinations that pose the least risk to national security, allow all exemptions to apply to defense articles, technical data and defense services, and create an exemption for re-exports with less than 10% U.S.-origin ITAR controlled content to relieve pressure to design out U.S.-content

- with respect to the EAR: expand the validated end-user program to include additional countries and end users, implement the long-awaited intra-company transfer rule, eliminate licensing requirements for NATO and other allied countries, consider preferential treatment for trusted exporters, and broaden exemptions for mail and telephone communication to include instant communication technologies, personal communications software and Web services

Enforcement

- establish a civil penalty structure that (a) draws meaningful distinctions among violations resulting from willful or knowing conduct, gross negligence, negligence or strict liability and (b) includes tiers of penalties with caps on the amounts that may be assessed based on levels of culpability as well as significant mitigation for voluntary self-disclosures

- conduct periodic agency review, update and enhancement of enforcement policies and guidelines to establish uniformity in their application, particularly with respect to agency handling of VSDs

- encourage enforcement agencies to improve procedures for sharing information to facilitate global settlements of prosecution and penalty cases

Deemed Exports

- limit deemed export licensing requirements to sensitive, multilaterally controlled technology

Intracompany Transfers

- provide trusted party license exceptions for dual-use intra-company transfers to and among non-embargoed destinations

- grant two distinct intra-enterprise license exceptions for (a) exports, re-exports and retransfers of software and technology, including deemed exports and (b) production and test equipment, parts and products that will be placed in inventory

Encryption

- remove encryption controls on products that do not have cryptography as their core function

- remove review requirements from mass-market and other commodity products and components

- ensure mass-market treatment for components that are designed for use in mass-market products or are otherwise widely available

- eliminate post-export reporting requirements

- eliminate controls on products utilizing only publicly available software

End-User and End-Use Screening

• link end-use/end-user controls and screening requirements (e.g., expectations of due diligence) imposed by OFAC, BIS and DDTC to specific control levels and transaction categories

• consolidate the various end-user lists maintained by the various agencies into one centralized list, including names and data in the end users’ native languages, to afford easier access by exporters and other interested parties

Friday, May 8th, 2009

The following appeared in today’s edition of “American Shipper”.

The Obama administration on Thursday said it is seeking $55 billion to fund the activities of the Department of Homeland Security during fiscal year 2010, up $2.5 billion from the amount appropriated by Congress for the current year.

U.S. Customs and Border Protection would receive $11.4 billion under the budget request, including $9.3 million more for import safety and trade enforcement personnel. Congress appropriated $11.3 billion for CBP in fiscal year 2009.

The Transportation Security Administration budget request is for $7.8 billion, up from the $6.9 billion enacted for this year.

The Coast Guard budget is $9.95 billion, up from $9.6 billion for the current fiscal year.

DHS also seeks an extra $24.7 million to $120.8 million for research into explosives detection technologies to protect civil aviation, mass transit and critical infrastructure.

An increase of $64 million would be used for modernizing background check programs for transportation workers and others. Improvements are expected to coordinate programs and reduce duplicative background checks.

DHS also requested a $10 million increase for the Intermodal Security Coordination Office to support coordinated planning with the Department of Transportation in the development of a plan for funding critical intermodal freight infrastructure needs.

The department also requested an additional $26 million to support its initiative for combating outbound smuggling of cash and firearms to Mexico, including 65 more Customs and Border Protection officers and 44 Border Patrol agents. Another $70 million in new funding is targeted at hiring 349 Immigration and Customs Enforcement agents, analysts and investigators.

The Coast Guard would get a boost of five cutters and two patrol aircraft if the budget is approved.

Thursday, May 7th, 2009

The following is excerpted from today’s edition of the “Journal of Commerce”.

Regulator and regulated would take a step closer to partnership if Customs and Border Protection adopts principles endorsed by the Advisory Committee on Commercial Operations at its quarterly meeting on Wednesday.

COAC members, including representatives from manufacturing, retailing and the high technology sector as well as transportation and logistics, recommended that Customs revive an importer account program that was first noted in the Modernization Act of 1993. In its new form, account-based management would help Customs achieve its strategic goals of modernizing trade processes and facilitating trade and compliance, said COAC member Bradley Shorser, director of trade compliance for Sears Holdings.

Customs has had an account management system since 1997. Importers were encouraged to develop relationships with a designated Customs officer, who acted as a single point of contact with the agency for all transaction business. The term lately has fallen out of favor with Customs, so COAC endorsed “account-based management” as the new paradigm.

Shorser said that in recent years Customs had not given account management the same kind of attention that had been given to such programs as the Customs-Trade Partnership Against Terrorism. As a result, account management had not grown. There were only about 50 Customs officers, mostly assigned to the largest importers….

Shorser said account-based management should be open to importers of all sizes. The program could incorporate import safety and security programs, and reduce the amount of redundant information that importers provide. It could promote the “one face at the border” idea by encouraging participation by other government agencies.

Account-based management, with the use of the Automated Commercial Environment, also could create a paperless entry system that would also be a source of business and trade analysis for importers, Shorser said.

Shorser said that companies also could benefit from the system by making quarterly instead of monthly duty payments, but COAC members questioned what Customs would require for bonds to cover a three-month interval.

Brenda Smith, Customs’ executive director of trade policy and programs, said that account-based management could provide opportunities to change the way Customs does business with the trade.

Tuesday, May 5th, 2009

The following is an excerpt from Derek Burney’s speech to the Canadian Airports Council at the Hilton Lac-Leamy in Gatineau, Que., on April 28., published in today’s “National Post”. Derek Burney is senior strategic advisor, Ogilvy Renault LLP.

We face some major challenges in our bilateral relationship with the U.S. They call for a strong combination of vigilance and dexterity. Let me illustrate the need to match initiatives with changing realities with a bit of history — from my own involvement with air policy during my time in Washington as ambassador to the United States. In 1989, the Canada-U.S. Free Trade Agreement had just come into effect and was aimed at transforming the Canadian economy through increasing North American economic integration.

If the FTA was to succeed fully, we also had to rethink the management of things like transportation links with the U.S., especially those in the aviation sector. Dating from 1966, the Canada-U.S. Air Agreement was stuck in a time warp, reflecting tight, cautious micro-management. It had been amended only modestly and its limited cross-border routes, along with other restrictions, impeded many rewards from the FTA. Deregulation, meanwhile, had transformed the U.S. aviation market into a network of hubs and spokes. Increased competition was leading to rationalization, code-sharing and some consolidation of the industry. The North American aviation environment was changing, but the policy framework was stagnant.

So we in the embassy tried to persuade those in Ottawa to relegate the old agreement to the museum of relics. But we faced entrenched resistance from a bureaucratic mindset in which the unerring instinct is to defend the status quo long after the quo has lost its status. Some carriers were enthusiastic. Others much less so and their apprehension prevailed.

Five years later, however, the two governments signed the Open Skies Agreement, which swept away the restrictions on cities served, the number of airlines permitted to operate and the fares that could be charged. I don’t need to tell this audience about the enormous benefits this agreement provided for Canadian travellers, shippers and airports.

My point is not to claim credit for a success in which many hands, notably the emerging local airport authorities, played a part, but to underline how important it is that all parts in a complex, modern economy adapt together to match the dynamics of change.

Today, Canada must, first and foremost, be “on guard” against protectionist impulses from the U.S. Congress. The Buy American provisions of the original House and Senate stimulus bills showed the dangerous streak of nativist fever emerging in Washington. And there are still teeth with the potential to bite Canada in the current stimulus legislation.

We need to be particularly wary of the potential for “green protectionism,” like carbon import taxes. These are measures intended ostensibly to “protect” the environment but which in fact are designed to hobble imports. There can be no more lethal mix than morality wrapped in nationalism.

In mounting our defences, we should assert the plain fact that Canada is the largest export market for the U.S. Our manufacturing and agricultural sectors are integrated. In many sectors — from beef, to autos, to steel — it is no longer possible to talk about Canadian and American products as if they were separate. As others have observed, Canada and the U.S. don’t trade things with each other, they make things together. Upwards of 70% of cross border trade is intra-firm trade.

Much of the congestion at our border is in fact protectionism disguised as security measures. Constantly changing and increasingly onerous procedures, inspection fees and more rigorous but often nonsensical labelling requirements on health and product standards threaten to erode the benefits of free trade.

During President Obama’s visit in February, the Prime Minister set the right tone on this subject. We share American concerns about threats to security. But we need to strike a healthier balance between genuine threats to security and our mutual need for smooth, efficient access across our border for people, goods and services.

The President’s comments may have indicated an openness to look at new answers but his Secretary of Homeland Security’s more recent remarks, equating the U.S.’s northern border with its southern border, and exaggerating the threat, fly in the face of history and reality. Some remedial education is called for on that front. Our ambassador to the U.S. characterized these comments as “misconceptions.” That, by the way, is diplomatese for “flat wrong.”

We should be looking at a Canada-U.S. perimeter approach on security, making more intelligent use of technology on our external border while relieving congestion on our internal border. By perimeter, I mean extending NORAD to land and sea as well as air, allowing the two countries to move many border functions, such as product safety inspection and risk assessments, away from the border. Canadian and American personnel already work side-by-side in five major seaports targeting North American shipments from third countries. We need more of that.

For cross border travel, one size should not fit all. The greater the number of companies and citizens that become trusted shippers and travellers, the greater our mutual security. I am sure there are also ways we could relieve customs congestion at airports like Pearson.

A sharper focus is also warranted on the nexus of energy security and the environment. Canada is, significantly, the largest and most reliable supplier of oil, gas and electricity to the United States. That is a key point and that is why a dialogue on clean energy, launched during President’s Obama’s February visit to Canada, makes sense. That is why efforts by our two governments to chart a common path toward effective reductions in greenhouse gas emissions — bilaterally and globally — makes sense. If we each go our own way — with a spaghetti bowl of separate initiatives at national, state and provincial levels — we will do precious little for our shared environment, and, most likely, undermine our economies along the way.