Shippers to U.S., Canada: Fix Border Problems Now

The Chambers of Commerce in the United States and Canada sharply criticized border crossing procedures in the two countries in a report released Tuesday.

An example from the stricken auto industry stands out so baldly — one shipload of foreign-manufactured cars needs one customs clearance to enter North America; yet 4,000 cars built in the integrated U.S.-Canada auto market need 28,000 customs and security clearances as they cross the border as much as seven times in being put together.

The blows to competitiveness by "costly and duplicative border procedures" are among a host of examples and arguments for the two countries to work urgently at fixing accumulated border problems, presented by the U.S. and Canadian Chambers of Commerce.

Long and expensive border delays will come back as the United States and Canadian economies emerge from recession, and the present "false sense of security" about the state of the border will be shredded, says Perrin Beatty, president of the Canadian chamber.

A report of the joint chambers — Finding The Balance: Shared Border Of The Future — says wait times at U.S.-Canada crossings are down, though still "significant," only because trade across the border is sharply reduced in the recession. For instance, in January this year, two-way trade was $29 billion, down 31% from a year earlier.

"We have got some false sense of security here, where the problem doesn’t seem as serious as in fact it may be," Beatty said as the chambers presented their report in Washington Tuesday. "When we see the economy starting to grow again, and when volume starts to increase, we’ll be seeing pressures growing at key border crossings as well."

For Tom Donohue, president of the U.S. chamber, the United States and Canada must streamline wait times and truly implement trusted shipper programs without, as now, subjecting members of such security programs to extra inspections anyway.

Companies can spend more than $100,000 and take two years to qualify for such programs as C-TPAT in the United States and counterpart PIP in Canada, on the promise of getting expedited treatment at the border, the report notes. But Robert Kee, managing director of Casco, a 101-year-old Canadian food-ingredient firm which has trusted shipper status, said Casco’s exports to the United States "are subject to 100 percent reviews despite our unblemished record."

The joint chambers make many recommendations, in particular urging expansion and aggressive marketing of trusted shipper and trusted traveler programs.