Tuesday, May 18, 2010
US Business Chief Calls for End of Customs ‘Hassle Factor’
A senior US business leader has renewed calls for improvements at US customs to cut waiting times for arriving visitors to no more than 30 minutes.
Tom Donohue, president of the US Chamber of Commerce, said it was essential to “reduce the hassle factor” at welcoming points and said more improvements needed to be made.
Speaking at the International Pow Wow trade show in Orlando, Donohue admitted that the trauma of 9/11 had “left us less than hospitable to our foreign visitors” but insisted “we are working to fix it.” Read more here.
Wednesday, March 10, 2010
Canada-U.S. Border Crossing Faster Than Before 9/11: Ambassador
Security may be tighter, but getting across the Canada-U.S. border today is faster than it was before the terrorist strikes of 2001, U.S. Ambassador David Jacobson says.
Jacobson, in his first major public remarks on Canada-U.S. border concerns, told an Ottawa audience Tuesday that for all the worries about “thickening” of the border between the two countries, the reality is that things are getting better. “We’re already making progress. Border wait times today are, on the average, less than they were prior to Sept. 11,” Jacobson told a sold-out crowd of politicos, lobbyists and business people at the Chateau Laurier. “In fact, since 2007, average border wait times for passengers have been cut by almost a third and during that same period of time for goods, wait times have been cut in half.”
This progress has come despite concerns about all the extra security measures and passport requirements, Jacobson noted, as well as a perceived rise in U.S. protectionism since the economic crash of 2008. Some Canada-U.S. experts have suggested that wait times are down because overall trade traffic is also on the decline since the downturn. Read more here.
Thursday, February 4, 2010
As Olympics Approach, Expect Delays in BC
Efforts in place to mitigate congestion, but deliveries will take longer
The Vancouver 2010 Olympic and Paralympic Games will take over Vancouver and Whistler, British Columbia, from February 12 to March 21. There will be a massive influx of people and a corresponding spike in demand for goods, not to mention an array of unique items to be moved – bobsleighs, anyone? Plus, many roadways, particularly in downtown areas, will be closed to traffic.
The streets and highways feeding the Games will certainly be more congested than normal, but there are plans in place to ensure that the supply chains supporting the Games run smoothly. The City of Vancouver and other agencies have issued plenty of information about what shippers and carriers should expect. Read more here.
Tuesday, November 10, 2009
Immigration, Border Rules Hurting Our Community, State [Washington]
A show of hands please. How many of you once drove the hour north to Vancouver on a whim every so often, but have given up doing so because of the hassles you’re almost certain to face in coming back home?
If so, you’re in good company. Border and immigration rules are supposed to keep out those not permitted into the country while welcoming the rest with a minimum of delay. Instead, U.S. policy has become fixated only on keeping the wrong people out, at a time when the rest of the world is also thinking about how to let the right people in. Washington state is among many places paying too high a price for that imbalance.
Start with Microsoft, which must attract the most talented information technology engineers in the world to stay on the cutting edge of innovation. Most Microsoft employees are Americans, but some are Chinese or Indians or Russians eager to work in the United States. Yet quota restrictions keep many of those out; others who are permitted to work here must often wait a decade or more before they can get green cards. In the interim, they live a second-class existence in which their spouses are not permitted to work, travel across borders is difficult, and switching jobs is usually impossible.
Those with choices, not surprisingly, are opting for other countries. Microsoft recently decided to open its new research facility in Vancouver rather than in Redmond because U.S. immigration rules had become too great a barrier. “The Canadian government is more welcoming of getting the best and the brightest from around the world than the U.S. government,” chief executive Steve Ballmer put it bluntly last month. Read more here.
Friday, August 7, 2009
Highway 402 Single Lane Mitigation Plan
August 6, 2009 meeting with Blue Water Bridge Canada, U.S. Customs and Border Protection, Ontario Provincial Police Blue Water Bridge Canada (BWBC) together with its partners U.S. Customs and Border Protection (CBP) and the Ontario Provincial Police (OPP) met today (Thursday, August 6th) in an effort to work together to help mitigate, as much as possible any delays and safety issues as it relates to traffic approaching the Blue Water Bridge. Due to Sarnia City Council’s decision not to grant a noise exemption to the Ministry of Transportation for night work, the Highway will at times be single lane to allow construction of the Highway 402 Phase One Improvements.
“Blue Water Bridge Canada and the Michigan Department of Transportation are fortunate to have an excellent relationship with the local O.P.P., and U.S. Customs and Border Protection at the local, regional and national level” states Stan Korosec Vice President of Operations for Blue Water Bridge Canada. “Today we came up with a plan to help mitigate the type of delays experienced on Tuesday August 4th due to the single lane of traffic.
In addition to the constant communication that occurs daily between BWBC and CBP, new protocols were developed with respect to lane allocations and traffic management that we feel will help to ensure the safe and efficient flow of both cars and trucks at this vital trade link between Canada and the United States. Although these steps will assist in the safe and efficient flow of traffic, there will still be periods where extensive queues of traffic will exist.”
Monday, June 8, 2009
Border Crossing at Aldergrove Faces Commercial Traffic Closure
(Abbotsford News – Al Irwin)
A commercial traffic closure at the Aldergrove/Lynden border crossing would be “devastating” to the local economy, says Langley Township Mayor Rick Green. Green recently outlined what Lower Mainland mayors, chambers of commerce and MPs and MLAs have been doing concerning a proposal by the Canadian Border Service Agency to eliminate truck crossings at Aldergrove.
Meanwhile, chambers of commerce across the province have called for the federal government to take immediate action to balance the need for border security with the need to facilitate trade, commerce, and tourism opportunities in British Columbia. […]
The CBSA says that the Aldergrove border crossing was built originally for passenger vehicle processing only. The facility does not allow adequate space for officers to thoroughly conduct commercial truck exams. Dedicated ports of entry for commercial vehicles are located a short distance away at Pacific Highway and Huntingdon/Sumas.
CBSA also pointed out, “The recent Canadian budget includes $80 million nationally for border crossings. Pacific Highway and Huntingdon are specifically called out in the budget for improvements to commercial vehicle operations ...” Read more here.
Sunday, May 24, 2009
Border Lineups to U.S. From B.C. Will Only Get Longer
Peace Arch construction project to continue into 2010
British Columbians heading to the U.S. on weekends this spring and summer — especially holiday weekends — should gird themselves for life in the slow lane.
Major construction at the Peace Arch border crossing in Blaine, Wash., has cut its southbound traffic capacity in half, creating bottlenecks also at the nearby Pacific Highway crossing.
Lineups should be shorter for northbound travellers — certainly shorter than the three- to four-hour lineups some faced at the end of the recent Victoria Day weekend.
Faith St. John, speaking for the Canada Border Services Agency, said that a combination of “unique circumstances” created longer than usual lineups at Canadian stations along the Washington State border last Monday. Read more here.
Tuesday, April 7, 2009
Seeing Straight at the Border
Although the border is not making headlines the way it used to a few years ago when long lineups were the norm, the reality is there are some funny things going on. It would be fair to say things are not as they seem. For example, as Robert Murray of MSM Transportation pointed out, the transborder business has been on the decline since about the fourth quarter of 2006. Yet the statistics don’t bear that out. The rising value of energy exports from Western Canada for much of 2007 and 2008 served to mask the consistently declining volumes of exports from the manufacturing sector in Central Canada. While to many politicians an export is an export, the reality for motor carriers, and those based in Central Canada in particular, is that the demise of manufacturing exports is a serious issue that requires addressing.
The other mirage at the border is that more than 7 years after 9/11 and the myriad of security programs that were spawned, it is actually getting easier to cross it. Certainly the extended border delays that frazzled the nerves of transborder truckers for years have eased. But, as the Canadian Trucking Alliance (CTA) pointed out when it recently appeared before the House of Commons Standing Committee on International Trade, this should not be taken as any indication that all is now running smoothly…
Read more here.
Note: Lou Smyrlis is the Editorial Director of Canadian Transportation & Logistics and the Transportation Group of Magazines.
Tuesday, January 13, 2009
Barriers at the Border: The Costs of Impediments to Business Mobility
We are pleased to bring you our latest ITIC report – Barriers at the Border: The Costs of Impediments to Business Mobility – which will be publicly released tomorrow [Wednesday]. This report explains how language differences, the shortage of Canadian foreign offices, and visa processing systems have negatively impacted trade, investment, and visits to Canada.
The analysis suggests that to alleviate the costs due to this lost economic activity, policy makers should reduce wait times for visas, increase the use of multi-entry visas, and expand outsourcing of visa processing. Also, some Canadian overseas offices should be expanded, especially in large, emerging economies where Canada has visa requirements, such as China, Russia, India, and Turkey. The resulting increased trade and investment flows would benefit the Canadian economy directly as well as indirectly, through reduced operating costs, productivity gains, and technology transfers.
To download the full report, go to http://www.conferenceboard.ca/ (registration required).
Friday, December 19, 2008
A “Radical’ in Our Midst: Crossing Borders as Art
Jerilea Zempel got a call from the Financial Times of Finland asking for information about her art. This was followed a day later by a call from the Colbert Report. They wanted to interview her. She knew something was up. She Googled herself to find scores of references to her being delayed for several hours by U.S. Customs as she attempted to return from installing one of her works of art, in this case the blanketing of a rented Hyundai Santa Fe with a form fitting crocheted white cozy at the Cultural Capital Festival in Sackville, New Brunswick.
The delay at the Houlton, Maine crossing irked her. She had a long, long drive home to Keene Valley. She had just finished two arduous weeks finishing and installing her art. She was tired. But more, the customs agents had gone through her laptop computer, her cell phone, her digital camera, her suitcases, her art materials, which included boxes of yarn, crochet tools and her sketchbook. It was invasive. It was creepy. Imagine complete strangers reading all your mail, diaries, checkbook statements and other records right in front of you and there is nothing you can do or say to stop them.
[snip]
“The border used to be open and friendly,” Zempel said. “People on both sides used to cross easily all the time. No more. I became aware of this a year ago returning to the U.S. on a bus from Toronto. They had us stand out in the cold for hours while they went through everyone’s baggage.” Read the complete article here.
Monday, December 8, 2008
New Year’s Border Tie-Ups Possible Unless US Adopts Contingency Plan for Electronic Collection of Border Crossing Fees: CTA
The Canadian Trucking Alliance says the implementation of a new system for renewing the transponder technology used by most truckers to pay US border crossing fees has been so fraught with problems that unless immediate contingencies are put in place, traffic could be snarled at Canada-US border crossings starting on January 1, 2009. Moreover, the Alliance which represents over 4,500 trucking companies from across Canada warns that the Free and Secure Trade (FAST) program, which is heavily relied upon by the automotive manufacturing sector, for example, could be particularly compromised.
Transborder trucking companies are charged a combination of fees each and every time they enter the United States. The fees are collected by the US Customs and Border Protection Agency (CBP) a branch of the US Department of Homeland Security. Trucking companies have two options for paying the fees. They can either pay US$10.75 each time one of their trucks crosses the border; or they can equip their trucks with transponders and pay an annual fee of US$205 per truck. Obviously, for most transborder carriers the transponder option is optimal. However, trucking companies must renew the transponders each year before December 31st.
The root of the problem is that CBP recently changed its process for transponder renewal. The new system, called the Decal and Transponder Online Procurement System (DTOPS), was to have been introduced in September 2008. However, implementation was delayed twice due to problems uncovered during testing and was not introduced until November 17th – a mere seven weeks before the end of the year renewal deadline. Generally, it takes anywhere from 8 to 12 weeks for the application and renewal process to be completed. Moreover, significant problems have been encountered during the transition to the new system creating an enormous backlog. Paper applications for transponder renewal which CBP had been accepting were suspended last month and carriers were told to go to a new online web-based system. But, the website has not been functioning properly. Within a half an hour of going live, it crashed. Technical difficulties persist.
Compounding the problem is that the DTOPS office has a staff of only 30 people to handle the processing of electronic applications, the backlog of paper applications and troubleshooting system errors and technical glitches. Carriers complain that when they call the DTOPS office for assistance, they are put on hold for extended periods, or are asked to send an email or leave a voice mail. Follow-up is slow or non-existent.
In November, the DTOPS office told CTA it would have to process 1,400 applications per day to be able to issue all renewals before the end-of-year expiry date. The current completion rate may actually be as low as 285 per day. Moreover, just last week CBP said there are still almost 90,000 transponder renewals to be processed, which would require a process rate of about 3,100 applications per day.
The inescapable conclusion, according to CTA, is that many transborder trucking companies will not have valid transponders on January 1, 2009 and they will have to pay the border crossing fee every time one of their trucks crosses the border into the United States. US border officials will require additional time to process individual payments and issue thousands of receipts. The FAST program, which works in conjunction with an active and functioning transponder, would be rendered meaningless.
But according to CTA’s CEO, David Bradley, “So far there appears little sense of urgency at CBP; as of last week we were told there had been no internal discussion of possible contingency plans.” CTA and its US counterpart, the American Trucking Associations (ATA), have suggested that CBP could adopt a policy of soft enforcement of transponder renewals on January 1st, 2009 that will allow existing transponders to be used without having to produce proof of renewal. Alternatively, CBP could track cross-border trips using the Automated Customs Environment (ACE) database — all commercial vehicles entering the US are required to file an ACE e-Manifest — and cap the cost to carriers at the same level as the annual cost of a transponder.
“The clock is ticking towards the end of the year; if the potential chaos at the border is going to be averted then we really need action now,” says CTA’s CEO, David Bradley. “It will be very tough to get anything done in a couple of weeks’ time when more people are on Christmas holidays.” CTA is calling upon the Government of Canada to intervene on the matter.
Monday, September 15, 2008
Border Wait Times
Internal documents confirm what union officials have been saying for years – the wait times for travellers that Canada’s border agency posts on the Internet may not be reliable.
The agency claims it meets its target of “10 minutes or less” Monday through Thursday and “20 minutes” Friday through Sunday, at least 90% of the time. But an agency briefing note from April of this year acknowledges there is no standard measurement of wait times, which it says are based on personal judgment.
The document was obtained by The Canadian Press under the Access to Information Act, and says methods of estimating wait times are specific to each of the 22 border stations, and involve only a visual inspection. The note adds the data cannot be used as a predictor of exactly what the real-time wait will be.
A 2004 check of wait times by front-line officers found widespread under-reporting – in some cases by as much as two hours.
A spokeswoman for Canada Border Services Agency says it has launched a project to find a way to produce more reliable numbers.
Border Problems Hurt Trade
The United States-Canada “frontier” is not the world’s longest undefended border any more. Right after 9/11, it was obvious the United States’ borders were shutting tight and that Canada and Mexico should have become part of a three-country perimeter. Under the North American Free Trade Agreement, this is the case involving economic goods. Product origins are checked because they cannot be back-doored through one of the three countries into another.
But the movement of people, tourism and immigration, should also be a jointly-managed affair. It isn’t. And in the absence of that, the Americans have erected fences along portions of the Mexican border and red tape and hassles along the northern border.
Mexico has a huge illegal migration and drug smuggling problem, but Americans are also not convinced Canada is doing a good job patrolling its side of the border. They are partly correct, says John Johnston, a retired Canadian customs official, now a consultant. U. S. security concerns and Canadian border problems should be cause for concern in the business community — a problem he dubs the “thickening border” issue.
Johnston is former regional director of Canada Customs for Southern Ontario and retired from the civil service in 2003. He now helps countries fix their border problems around the world. He says Canadians see the border from a trade and tourism viewpoint while Americans are focused on security. (Americans see Mexico as a criminal issue.)
Most egregious, he said, is the failure of Canada Border Services Agency to develop protocols to deal with terrorist incidents, the failure to investigate immigrants on “expedited import programs” and failure to catch smugglers.
Among the problems:
• There is a high-risk rate of 1.5% of traffic — that is, of the 100 million seeking entry into Canada each year 1.5 million are high-risk individuals;
• About $600-million in drugs are seized at the border annually;
• Poor border enforcement is not stopping the import of handguns;
• Each year there are up to 100 major child-porn seizures at the border.
“The major impediment to achieving an improved flow of people and goods at the border is the casual attitude of senior government officials towards security and protection,” he said. “Few of the agency’s senior executives have relevant experience in the areas for which they are responsible. The head of the Canada Border Services Agency is a meteorologist, not from customs, immigration or law enforcement.
Gun smuggling by criminal gangs in Canada is a huge issue for police but not the CBSA. (The gangs are often immigrants whom Canada has unfortunately allowed into the country or they are smuggling drugs southward.) “It appears that no one is in charge of the store,” he said.
Friday, July 25, 2008
Border Trade Alliance Renews Call for Border Funding
The Border Trade Alliance (BTA) is pushing leaders in Washington to expedite funding earmarked for improving the flow of goods through land ports-of-entry.
The trade organization wrote to the Senate Committee on Homeland Security and Government Affairs to emphasize the importance of funding to upgrade aging infrastructure at U.S. border crossings. It says inadequate infrastructure and increased security is a hindrance to NAFTA trade, which is up 172% since 1993, now totaling US$797 billion.
The group claims millions of dollars are lost each day due to supply chain inefficiencies. U.S. Congress has already committed funds to the Department of Homeland Security and the General Services Administration (GSA) to help upgrade border crossings. The BTA is also urging impending GSA administrator Jim Williams to use any leftover funding to expedite the delivery of port infrastructure projects.
“GSA has made great strides and taken positive steps toward delivering much needed border infrastructure, however we need to continue to stress the importance of land ports of entry to our national economy,” said Maria Luisa O’Connell, president of the BTA.
The U.S. Customs and Border Protection estimated that $500 million per year is needed over the next 10 years to fund much needed border infrastructure improvements. BTA points out the average truck crossing into the U.S. at El Paso now experiences a one hour delay, with delays as long as four hours not uncommon, at the crossing, which costs shippers more than $100 million per year.
Monday, July 14, 2008
Companies Hurt While Inventories Waylaid at Ports by CBSA Rules
Newly expanded rules at the Canada Border Services Agency to test for fumes in containers arriving at ports across the country are putting businesses — and Canadian trade — under threat, business owners say.
The backlog of containers docked at ports across the country has been growing since the CBSA added formaldehyde to the list of fumigants its employees must test for before the marine containers can travel to their final destinations.
Port authorities say many more containers have come up positive since formaldehyde was listed in June, making them too dangerous for examination by inspectors and leaving their cargo stuck at port for weeks, instead of days.
“Sales orders are being cancelled because goods are not being delivered as per the sales contracts. Canadian importers are suffering, Canada’s trade is suffering,” Ruth Snowden, executive director of the Canadian International Freight Forwarders Association, told CBC News.
CBSA regulations dictate that containers that test positive have to be ventilated until fumigants reach an acceptable level. Freight companies, however, are demanding the government agency reconsider the rules in order to get the containers moving again, and to keep their customers in business.
One woman who owns a coffee roasting business in London, Ont., said that if her beans — which were supposed to be delivered from South America three weeks ago — arrive spoiled, they will ruin her business too.
“I can’t sell coffee, I don’t have revenue,” said Maria Fiallos, owner of Las Chicas del Café. “I don’t have revenue for my Canadian business, I don’t have revenue for the coffee growers in Nicaragua.”
Another business owner, Mike Calnan, is still waiting for a shipment of antique vehicles from Britain that were scheduled to appear at the Ottawa air show on Canada Day. He said their absence was an incredible disappointment after he put almost a year’s work into getting them to Canada.
Both Calnan’s and Fiallos’ shipments are sitting idle at the Port of Halifax, where almost every container that has arrived in the last three weeks and has been targeted for testing has come up positive for formaldehyde — a chemical commonly found in glue and used in everything from cars to furniture.
“We’re very concerned about it and we urge the CBSA to work to improve the process to basically minimize the delays,” said the Halifax port’s manager of business development, Patrick Bohan.
The CBSA has said it is looking into new “highly sensitive detection technology” that may make the testing process more efficient, but that the health and safety of its employees is its top priority.
Some experts say formaldehyde could lead to cancer if people are exposed to very small amounts over long periods of time, as evidenced in experiments with animals.
“At no time will the CBSA compromise the health and safety of its employees. CBSA has the appropriate measures in place to protect its employees from any possible exposure to hazardous chemicals,” the CBSA agency said in a statement this week.
Tuesday, June 17, 2008
Custom Officials’ Slowdowns Cause Long Airport Waits
Travellers going through customs at Vancouver International Airport today have faced waits of up to two hours because customs officials are deliberately slowing down lines to highlight a contract dispute, a union president said.
“The officers did tell me today [Friday] that they’re working to the full extent of their work description,” said Sue Neumann, customs excise union president responsible for Vancouver’s airport, sea ports and cruise ships. “This is obviously a reaction, this is not normal.”
The union is currently in a contract dispute with the Canada Border Services Agency, but is not in a legal strike position. Instead, individual customs can choose slow down border crossings by following every detail of their job description. Neumann said that this morning, a plane that would normally be processed in 30 to 45 minutes took 90 to 120 minutes.
But CBSA spokeswoman Tracie LeBlanc said any backups today at YVR are “not a work slowdown” but rather due to a convergence of incoming flights.
And Kate Donegani, a spokeswoman for the airport authority, said although “it’s certainly a busy Friday afternoon here,” there’s no indication the crowds are due to work slowdowns by customs officials.
She said unless the Canada Border Services Agency takes seriously the union’s concerns, “I can see this actually escalating and probably spreading out to other areas” such as cruise ships and sea ports. Vehicle border crossings could also be slowed down this weekend, another union official says.
“The union hasn’t directed anyone to take any job action, but I hear that there are several members that are taking matters into their hands and slowing things down,” Dan Leibel, who represents the customs excise union in southern B.C., said today.
Nevertheless, Leibel said border guards, in order to highlight their grievances, could work “by the book” rather than using their experience – meaning they could take a full four minutes rather than the usual 15 seconds to a minute for processing each car. And commercial vehicle inspections, which often take as little as five minutes, could be dragged on for up to eight hours, he said.
Leibel couldn’t say what is planned at specific crossings. “I’ve heard that some officers in some instances are going to let everyone through without charging them duty,” he said.
Thursday, June 12, 2008
‘Discontented’ Border Guards May Start Slowdown
Canada Customs officers are so disgruntled with the state of contract negotiations, they’re prepared to stage slowdowns that will make for “a long, hot summer” for commuters, vacationers and truckers at Windsor’s border crossings, a union leader said on Wednesday.
“The union is not calling for a work slowdown of any sort — but our members are really upset,” said Marie-Claire Coupal, 4th national vice-president and the former local union president for 550 customs officers in Windsor.
The union has been without a contract for almost a year and the two sides are far apart in negotiations on salary issues and work conditions.
“Our members are discontented enough to start a slowdown,” Coupal said. “We have no control — that’s the problem. They may take some of these things into their own hands.”
On the cusp of being required to carry firearms and with increasingly demanding work conditions in the new security era, their union has been calling for customs officers to be paid salaries comparable to police and correctional officers.
The union has been seeking a 29.3 per cent salary hike over three years, but the latest offer from the Canada Border Services Agency was for under two per cent annually over four years.
“We’ve done a comparison of work between different police agencies and that’s where we end up,” Coupal said. “That’s the market value.
“It sounds like a lot, but if you look at what we are taking on, it’s not out of line.”
Tracie Leblanc, a spokeswoman in Ottawa for the Canada Border Services Agency, would not comment on the state of negotiations, but issued a statement on the potential for a slowdown in Windsor and other border crossings: “The CBSA will respond quickly to any situation in order to maintain the security of our border and ensure that it remains open to legitimate travellers and goods.”
There are no talks scheduled between the two sides. Read the complete article.
Related: Province Editorial — “Pressure Points”
Tuesday, June 10, 2008
Customs Protests Could Mean Long Waits This Summer
Drivers could face long and galling lineups at border crossings this summer as customs officers involved in a contract dispute guarantee their pressure tactics, currently targeting truckers and commercial vehicles, will “get worse,” a union official said.
There are fears that the backlog will increase wait times for vacationers and that the havoc might even extend to airport border crossings.
Customs excise union vice-president Jean-Pierre Fortin says the last offer from the Canada Border Services Agency is a “slap in the face” and “ridiculous.” Fortin says border officers have been applying pressure tactics on commercial traffic at various locations across the country. Border guards have been taking more time to process trucks as they try to clear customs.
“The employer is trying to provoke our people,” Fortin said. “Our people were so shocked by the offer that they’ve already started using pressure tactics, we’re trying to calm things down.
“Truckers have been targeted and (protesting officers) guaranteed it would get worse.”
Pressure tactics have been used on commercial traffic in various large border crossings across the country including Fort Erie, Ont., Niagara Falls, Sarnia, Ont. and in New Brunswick. So far the West has been largely spared, but Fortin said it was likely the movement would extend to major border crossings such as those south of Vancouver.
“I’m sure that’s going to escalate, as the frustrations grow,” said Dan Leibel, who represents the union in southern British Columbia. “I’m feeling frustrated myself.”
Leibel said he suspects several guards have probably already started their own personal protests, “some directed at commercial traffic, some at other travellers, daily shoppers.
“My estimation is that it’s going to get very ugly,” he said. “I think you’re going to see small pockets of rebellion from our members, not instructed by the union but taking it upon themselves. Several people will maybe muster together the troops and say ‘let’s do something about this’.” He suspects this would most likely happen in places where they would have the most impact and “would get noticed.”
While the union isn’t currently in a legal strike situation, this would likely follow in the fall, Fortin said. The protest movement could extend to ports and airports as well.
As of June 21 customs officers will have been without a contract for a year, Fortin said. Read the complete article.
Border Paranoia
Keeping Americans safe has become an insidious economic killer
Delays and heightened security have made flying such a hassle that people are apparently going to great lengths to avoid it. Air travellers dodged 41 million trips in the past 12 months, costing the economy $26.5-billion (U.S.), according to a new survey by the U.S. Travel Industry Association. Nearly one in three travellers reported ducking at least one trip.
This hefty toll doesn’t appear in the official reading of gross domestic product. But the cost of avoidance is no less real, calculated in losses to the airlines, hotels, restaurants and government taxes.
A remarkably similar phenomenon is steadily chipping away at Canada-U.S. trade. Businesses have complained bitterly about a gradual “thickening” of the border since the 2001 terrorist attacks. Increased fees, delays, redundancy and inspections have compounded the cost of doing business in the United States.
Even more disquieting is the trade that isn’t happening.
The cost of lost trade is steep, according to new research by Ottawa economist Patrick Grady. Mr. Grady set out to determine how significantly Canadian exports of goods and services had been affected by the thicker, post-9/11 U.S. border.
So he applied econometric tools to estimate what Canadian exports might have been in the absence of tighter U.S. security, based on established trading “relationships.”
Mr. Grady excluded energy exports, which have surged since 2000 and are largely unaffected by border controls. He also hived off softwood lumber exports, which have been subject to U.S. restrictions throughout this decade.Unlike earlier studies, he calculated the impact of tighter security, not just on goods, but on exports of services, including travel, shipping and various other commercial services.
The sobering findings suggest that Canadian goods exports are 12.5% lower than they should be. Services are off 8%. That equates to roughly $30.6-billion (Canadian) in lost goods exports in 2007 and another $3.1-billion in forgone service exports, according to Mr. Grady’s model.
That isn’t just thick. For a substantial amount of trade, the border is apparently impervious. Read the complete article.
Thursday, June 5, 2008
U.S. Department of Transportation Unveils New Program to Fight Border Congestion
The U.S. Department of Transportation seeks innovative ways to fight congestion at some of the nation’s busiest border crossings, U.S. Transportation Secretary Mary E. Peters announced. “It’s time to put an end to the kind of delays that keep families and businesses at a standstill at our borders,” Secretary Peters said.
The Secretary said that the Department is requesting proposals for innovative new approaches to ending traffic tie ups at some of the nation’s most congested border crossings. She added that the Department would select at least two projects each along the Canadian and Mexican borders.
Peters said the effort was needed because, over the last two decades, the value of freight shipments among the U.S., Canada and Mexico has risen by 170%, growing an average of eight percent annually.
She cautioned though that this increasing demand was leading to longer delays at the crossings. In 2007, Secretary Peters noted, U.S.-bound traffic from Canada experienced delays up to three hours at many crossings, costing businesses more than $14 billion annually. On the Mexico side, San Diego County alone loses $271 million in annual revenue due to delays at the border, she added.
“We’re looking for solutions to the congestion at our borders that is frustrating individuals and stifling commerce,” Acting Federal Highway Administrator Jim Ray said.