U.S. Export Study Calls for More Flexibility on Border Policies

(Buffalo News – Matt Glynn)

A new study of export activity along the U.S.-Canadian border suggests using more regional flexibility in continent-wide policies designed to protect the border and keep traffic flowing.

The findings are part of a “Border Brief” prepared by the University at Buffalo’s Regional Institute and the Border Policy Research Institute of Western Washington University.

Discussions about the border have typically focused on a choice between security and commerce, said Kathryn Bryk Friedman, deputy director of the UB Regional Institute. “In my view, this research demonstrates this is a false dichotomy.”

The study focused on export activity in October 2007 at two border points: Buffalo Niagara and Blaine, Wash., which is between Seattle and Vancouver, B. C. October is commonly the peak month for trade due to pre-holiday stockpiling, the report said. During that month, nearly 20% of all U. S.-to-Canada surface exports crossed via bridges in Buffalo and Niagara Falls, compared to more than 5% at Blaine.

Ensuring a smooth flow of traffic is vital because Canada is by far the United States’ largest trading partner, the brief said. U.S. exports to Canada in October 2007 were valued at $23.5 billion, compared to $12.4 billion for Mexico and $5.5 billion to China.

Federal agencies on both sides of the border have implemented prescreening programs that enable participating shippers and drivers to cross the border more quickly, while taking into account heightened security concerns stemming from the 2001 terrorist attacks.

The report suggests that programs such as FAST – short for Free and Secure Trade – work better at some crossings than others along the 5,000-mile-long border, based on the type of shipments and the companies hauling the goods. For instance, about 44% of trucks crossing the Detroit-Windsor border used FAST lanes, compared to 23% in Buffalo Niagara and only 5% at Blaine.

The study said that participation in FAST at Detroit-Windsor is high because so much of the freight is related to automotive manufacturing, an industry with large, sophisticated companies and a small number of shippers.

In Blaine, Wash., FAST participation was low because much of its truck traffic is related to agricultural products, which can be more difficult to screen due to their complex supply chain, the brief said.

“Rather than look to policy solutions at the continental level, policies that allow for some flexibility in regional implementation could improve border efficiencies without compromising border security,” said Peter Lombardi, a UB institute policy analyst and co-author of the brief, in a statement.

The UB Regional Institute and the Border Policy Research Institute of Western Washington University are developing a “border barometer” that will measure a number of factors at the border crossings in the Buffalo area and the Pacific Northwest. It is possible other border points will be included in the barometer, Friedman said.

The barometer will include the movement of goods and people over the border from 1995 to 2007, and also look at factors such as infrastructure, security agreements between officials on opposite sides of the border, and security performance.

“The whole idea is to get these objective measures in place so that we’re all speaking the same language,” Friedman said.

The two institutes have received $11,500 from the Northern Border Research Consortium to develop the barometer. UB, Western Washington University and four other universities belong to the consortium. The barometer results are expected to be released at a conference scheduled for February 2009 in Washington, D.C.