Investing in our Ability

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Investing in our Ability to Compete in a Global
Economy Erin Ward, Chair Border Trade Alliance
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About The BTA

• Our Mission To initiate, monitor and influence
  public policy and private sector initiatives for
  the facilitation of international trade and
  commerce through advocacy, education, issue
  development, research and analysis, and strategic
  planning.

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About The BTA

• Our Core Value A commitment to improving the
  quality of life in border communities through the
  development of trade and commerce.

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BTA Advocacy Advantage
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Our Borders Critical to National Economy

• Nearly 1/3 of the 14 trillion U.S. Economy is
  DIRECTLY generated by trade
• Source Presidents Export Council

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Our Borders Critical to National Economy

• Jan.-Sep. 2008 U.S. Exports totaled more than 1
  trillion
• Net Exports Contributed 2.9 percentage points to
  GDP growth in second quarter 2008 - Exports were
  the MAIN reason for positive economic growth in
  the 1st half of 2008
• Source U.S. Department of Commerce

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Our Borders Critical to National Economy

• 2007 NAFTA Cross-Border Trade 797 Billion
• 2008 NAFTA Cross-Border Trade 830 billion
• Source U.S. Department of Transportation
  Bureau of Transportation Statistics

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Our Borders Critical to National Economy
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Our Borders Critical to National Economy

• 2008 DIRECT National Economic Contribution of
  Cross-border Trade, Travel at U.S. Land Ports of
  Entry
• 382.2 billion
• More than 2.5 percent of annual GDP

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Our Borders Critical to National Economy

• Canada, Mexico top two export markets for U.S.
  goods
• 34 U.S. states rank Canada, Mexico, both as
• top two export markets
• Source U.S. Department of Commerce U.S. Census
  Bureau and U.S. BEA

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Our Borders Critical to National Economy

• Metro Area 2006 Exports as of GDP
  Export Value ( millions)
• Peoria, IL
  52.4
  9,625.0
• Columbus, IN
  25.3
  910.7
• Wichita, KS
  22.0
  5,263.5
• Davenport/Moline, IA 20.6
  3,407.5
• Decatur, AL
  14.9
  703.0
• Portland/Vancouver, OR 14.9
  14,580.6
• Source Wall Street Journal

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The Border Challenge

• Trade Value Increased 4.1 percent in 2008 over
  2007
• Commercial Crossings Remained Strong in 2008 with
  some decreases at certain POEs
• Private Vehicle Crossings/ Pedestrians Generally
  Down
• Wait-Times Growing
• Investment Gap in Infrastructure and Resources

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The Border Challenge

• Unique Challenges Facing U.S. Trade with Canada
  and Mexico
• Public Safety Security on U.S. Border with
  Mexico
• Potential Trade War with Mexico over Cross-Border
  Trucking
• Thickening of U.S.-Canada Border - U.S. and
  Canadian policies and processes impacting
  facilitation of legitimate trade and travel.

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Our Borders Critical to National Economy

• ...we can also agree that NAFTAs success has
  strained the aging infrastructure of our border
  crossings just as security realities require more
  scrutiny of vehicles, pedestrians, railcars and
  other traffic across our shared borders. In the
  difficult economic circumstances of today and the
  coming months, if not years, efficiency is a
  premium as manufacturers, produce growers and
  service providers strive to make markets in an
  environment of reduced consumption and tightened
  credit.
• Leslie A. Bassett, Acting U.S. Ambassador to
  Mexico at BTA International Conference in Mexico
  City, February 24, 2009.

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The Border Challenge

• Infrastructure Investment Need
• U.S. Customs and Border Protection (CBP) has
  stated that it requires 5 billion over the next
  10 years in infrastructure maintenance and
  upgrades in order to most effectively perform its
  security mission

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The Border Challenge

• Infrastructure Investment Need
• Estimated Infrastructure Shortfall on U.S. -
  Mexico Border
• 10.5 billion on U.S. side 860 million on MX
  side1
• Estimated Infrastructure Shortfall on U.S. -
  Canada Border
• 13.4 billion2
• Source 1) Joint Working Group - U.S. DOT, MX-SCT
• 2) Transportation Border Working Group - U.S.
  DOT, Transport Canada

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The Border Challenge

• Infrastructure Investment Need
• Last NEW U.S. Port of Entry World Trade Bridge
  in Laredo (2000)
• Infrastructure Upgrades at Existing POEs Episodic
  at Best

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The Border Challenge

• Infrastructure Investment Challenges
• Limited Federal Funding
• Lengthy Presidential Permit Process
• Focus on Homeland Security not Economic Security
• Multiple Federal Agencies Involved - Coordination
  Issues
• Differing Funding Mechanisms - Multi-year highway
  vs. annual appropriations

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The Border Challenge

• Border Resource Needs
• Staffing
• Hours of Service
• Technology

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The Border Challenge

• Policies and Processes
• Cost-benefit
• Assessment of Security Programs/Procedures
• Best Practices

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BTA Border Infrastructure Resource Campaign

• What can be done?
• Coordination between Federal Govt and Border
  Stakeholders
• Examine Cross-border system
• Matching Resources with Needs
• Homeland Security Economic Security

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BTA Border Infrastructure Resource Campaign

• Recently passed economic stimulus bill, the
  American Recovery and Reinvestment Act (HR.1)
• The bill included 720 million in total funding,
  300 million will go to GSA for land port of
  entry infrastructure upgrades not less than 300
  million shall be available for border stations
  and land ports of entry and 420 million for CBP
  solely for planning, management, design,
  alteration, and construction of U.S. Customs and
  Border Protection owned land border ports of
  entry.

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BTA Border Infrastructure Resource Campaign

• Port Infrastructure Funding from the American
  Recovery and Reinvestment Act (HR.1)
• GSA's announced plan for spending the 300
  million include funding for the following port
  infrastructure projects (1,000s USD)
• ME, Calais U.S. Land Port of Entry
  (escalation) 6,300
• ME, Madawaska U.S. Land Port of Entry 750
• ME, Van Buren U.S. Land Port of Entry
  39,727
• NM, Columbus U.S. Land Port of Entry
  2,447
• AZ, Nogales, Nogales West U.S. Land Port of
  Entry 199,480
• CA, Otay Mesa U.S. Land Part of Entry
  21,296
• WA, Blaine Peace Arch U.S. Land Port of
  Entry (escalation) 30,000

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BTA Border Infrastructure Resource Campaign

• In order to facilitate legal trade and travel
  between our nations, the Administration has set
  aside 720 million dollars for modernizing border
  crossings. That money will help encourage
  commerce and travel by making the gateways
  between our countries more efficient.
• -U.S. Secretary of State Hillary Rodham Clinton,
  Mar. 25, 2009 Mexico City

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BTA Border Infrastructure Resource Campaign

• BTA Recommendations
• Holistic Approach toward National Security

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BTA Border Infrastructure Resource Campaign

• BTA Recommendations
• Improved Coordination Between Federal Agencies

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BTA Border Infrastructure Resource Campaign

• BTA Recommendations
• Reconcile Federal Security Programs
• Sharing of Best Practices
• Local Solutions

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BTA Border Infrastructure Resource Campaign

• BTA Recommendations
• National Strategy Local Implementation
• Real-world testing of Technology and Processes

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BTA Border Infrastructure Resource Campaign

• BTA Recommendations
• Resources must match Mandates

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BTA Border Infrastructure Resource Campaign

• BTA Supported Legislation
• Ports Act
• Border Wait Times Studies
• Emergency POE/Personnel Act

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BTA Border Infrastructure Resource Campaign

• BTA Supported Legislation
• Ports Act
• H.R. 1655 - Putting Our Resources Towards
  Security Act (PORTS Act)
• Congressman Silvestre Reyes
• Authorization for an increase of 5,000 CBP
  Officers at our land border crossings, an
  increase of 30 percent over five years, which
  will provide adequate personnel to fully staff
  all U.S. land, sea and air ports of entry.
• Authorizes the hiring of 350 support
  personnel and 1,200 agriculture specialists at
  CBP to ensure that the agencys security officers
  can concentrate on their inspection mission
  rather than specialized or administrative duties.
• Authorizes 5 billion over five years for
  the General Services Administration to complete
  port infrastructure upgrades necessary to address
  the over-burdened infrastructure at our nations
  ports.

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BTA Border Infrastructure Resource Campaign

• BTA Supported Legislation
• Border Wait Times Study
• Will be reintroduced in 111th Congress
• Congressman Ciro Rodriguez (H.R. 4309) and
  Senator Kay Bailey Hutchison (S.2425)
• Requires the Departments of Commerce and
  Transportation in consultation with Customs and
  Border Protection to study the scope of border
  crossing times at land ports of entry and to
  report on the economic impact of cross-border
  delays.

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Call to Action Protect Against Protectionism

• First, the global financial crisis has
  reinforced how closely our economies are linked.
  If there was any doubt before, there should be
  none now. We rise and fall together. We know that
  commerce between our nations is and will be a
  crucial part of our economic recovery.
• -U.S. Secretary of State Hillary Rodham Clinton,
  Mar. 25, 2009 Mexico City

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Questions?
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Border Trade Alliance

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• Scottsdale, AZ 85254
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