Transportation Border Working Group « Towards a More Secure and Efficient Border: « Facilitation and Security in « North American Trade and Transportation « Washington, DC « April 30, 2004
NAFTA Trade «U. S. -Canada Trade l 1993 = $211 billion l 2003 = $393 billion «U. S. -Mexico Trade l 1993 = $81 billion l 2003 = $235 billion «Role of Trucks in NAFTA l U. S. -Mexico Trade = 81% trade value l U. S. -Canada Trade = 69% trade value l Sources: International Trade Administration, U. S. Dept. of Commerce and Bureau of Transportation Statistics
Billions NAFTA Surface Trade 73% Total CA MX Source: Bureau of Transportation Statistics Includes exports & imports for all surface modes, value 52% 126%
Mexican Surface Trade Billions 118% Truck 157% Rail Other Source: Bureau of Transportation Statistics Includes exports & imports for all surface modes, value 28%
Canadian Surface Trade Billions 40% Truck 38% Rail Other Source: Bureau of Transportation Statistics Includes exports & imports for all surface modes, value 304%
Congestion and Infrastructure «Truck crossings: l Over 14 million N. border, 8 million S. border «Congestion at borders l Hard on drivers and equipment l Environmental impact l Increase cost of goods on consumers «Infrastructure Development l TEA-21: $700 million for border infrastructure l New Reauthorization: Border vs. Corridors l Borders: $1 billion House, $1. 13 Senate l Corridors: $ 3. 3 billion House, $1 billion Senate l Physical infrastructure & technology needs
Aftermath of 9/11 «Legislative initiatives: l USA PATRIOT Act (2001) l Aviation and Transportation Security Act (2001) l Enhanced Border Security Act (2002) l Maritime Transportation Security Act (2002) l Bioterrorism Act l Safe Explosives Act (2001) l Homeland Security Act (2002) «Regulatory Initiatives
Enforcement & Facilitation «Customs l U. S. : ACE/ITDS, CTPAT/FAST l Canada: PIP/FAST l Mexico: FAST «Immigration l Entry/Exit Control System (U. S. VISIT) «Transportation Security Agency l Functional, Cross Modal Planning l Container Security (International) Rules l Worker Credentialing
Free and Secure Trade (FAST) «FAST = Facilitate trade + secure supply chain «FAST – N. Border (12/02) l C-TPAT/PIP cargo (importer) l Highway carrier agreement l FAST driver registration ($50) «FAST – S. Border (9/03) l C-TPAT cargo (importer & manufacturer) l Highway carrier agreement (even if N. border approved) l FAST driver registration l Seals requirements
Automated Commercial Environment/ International Trade Data System «Critical process for Motor Carriers: l Increment 1, Release 2 will result in creation of electronic truck manifest (Spring ‘ 04) l Finalize truck manifest for motor carriers by March/April for the Customs/e. CP by mid-May «ITDS now part of e. Customs Partnership l Part of ITDS: Census, FDA, INS, Customs l 20 -30 other agencies expected to sign on
Trade Act of 2002 Section 343(a) «Final Rule implementing Trade Act of 2002: «Inbound l 30 minutes (FAST) 1 hour (non-FAST) l No communication back to MC l PAPS and FAST(NCAP) Release mechanisms l Implement at POE 90 days after FR notice l LTL/Expedited FAST carriers expedite secondary «Outbound: l Automated Export System’s (AES) Shipper Export Declaration (SED) l USPPI to submit data l Carrier ID (SCAC), Carrier name, Destination carrier identifier l Timeframe: 1 hour prior to departure
Background Checks «Patriot Act: CDL-HME «Safe Explosives Act of 2002 l Effective Jan. 24 th, 2003 prohibits certain persons from possessing explosives: includes aliens, i. e. Canadian and Mexican drivers «TSA & DOT: Retain exclusive jurisdiction of Hazmats (Patriot Act). «Transportation Worker ID Card (TWIC) «Need for harmonization of checks
U. S. VISIT «Entry/Exit Immigration Control System l Air/Seaports Dec. 2003; Land Ports Dec. 2004 «ATA Focus l Must take known entities, FAST/CTPAT into consideration l Aggressively implement Border Accords with Canada and Mexico l Provide greater resources at POEs for human, technology and infrastructure needs l Border Infrastructure costs «DMIA out, CWG back in
Conclusion «Trucking essential to NAFTA Trade «Uniformity and Interoperability «Must balance enforcement and trade facilitation «Closer cooperation among: l Government agencies and trade community: information and possible intelligence sharing l U. S. government agencies: better database interconnectivity and information/data exchange l North American government agencies: Canada, Mexico & U. S. develop better information/data exchange mechanisms for tracking entry/exit of cargo and people
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