Transportation Border Working Group Plenary Meeting

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Transportation Border Working Group Plenary
Meeting Emily Barragan Office of NAFTA and
Inter-American Affairs U.S. Department of Commerce
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The NAFTA Trade Perspective

• The U.S.-Canada FTA January 1, 1989
• The NAFTA January 1, 1994, a remarkable success
• The U.S. economy grew by 48
• Canada 49
• Mexico 40
• NAFTA total trade increased over 510 billion
  297 billion in 1993 to 866 billion now
• In 2006, we traded 2.4 billion a day with our
  NAFTA partners -- 1.6 million a minute

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The NAFTA Trade Perspective (contd)

• Our trade with Mexico and Canada exceeds our
  trade with 25 EU member states and Japan combined
• Exports to Mexico Canada account for 364
  billion- roughly 35 of our global
  exports
• 2005 U.S. exports to Mexico 120 billion
• 2005 U.S. exports to Canada 212 billion

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The SPP- What Is It?

• The Goal ensure North America-
• Best and safest place to live, work and do
  business
• By maintaining North American advantage in era of
  global sourcing
• Builds on the NAFTA, P4P, and border initiatives
  to
• Better protect citizens from man-made and natural
  threats
• Promote safe and efficient movement of people and
  goods
• The SPP consists of an economic and a security
  component
• Based on the principle that our common prosperity
  depends on our mutual security
• Expands economic opportunities by reducing
  barriers and making our businesses more
  competitive in the global marketplace

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What it is Not

• The SPP is not a NAFTA renegotiation exercise
• The SPP is not an immigration initiative nor
  forum for dispute resolution
• The SPP is not a new treaty or trade agreement

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Timeline and Implementation

• The Heads of State launched the SPP on March 23,
  2005
• Commerce hosted a series of private sector
  roundtables to engage industry and identify
  deliverables
• Working groups and work plans created
• Ministers reported to Heads of State on progress
  made and released public report on June 27, 2005

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Timeline and Implementation (contd)

• Secretary Gutierrez met with Canadian and Mexican
  colleagues and private sector to discuss creation
  of NACC March 15, 2006
• Heads of State Cancun Summit March 30-31, 2006 to
  discuss North American Competitiveness
• Prosperity Ministerial and Launch of the North
  American Competitiveness Council on June 15, 2006
• Consensus recommendations delivered to SPP
  Ministers at February 2007 meeting
• ACF Prosperity Meeting
• Leaders Meeting in Canada August 2007

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Who Does What?

• SPP is an interagency initiative
• On the U.S. side
• White House/NSC
• Security- DHS
• Prosperity- Commerce Department
• Coordination- State Department

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Security Component Working Groups(DHS)

• Secure North America from External Threats
• Traveler and Cargo Security, and Bio-protection
• Prevent and Respond to Threats within North
  America
• Aviation and maritime security, law enforcement,
  intelligence cooperation, and protection,
  prevention and response
• Further Streamline the Secure Movement of
  Low-Risk Traffic across our Shared Borders
• Develop and implement strategies to combat
  threats, such as terrorism, organized crime,
  migrant smuggling and trafficking

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Economic (Prosperity) Component Working Groups

• Manufactured Goods (DOC)
• Lower production costs for North American
  manufacturers by eliminating unnecessary
  regulatory barriers, ensuring compatibility of
  regulations and by eliminating redundant testing
  requirements
• Provide consumers with cheaper, safer, and more
  diversified and innovative products
• The Other Nine
• E-Commerce and ICT (DOC)
• Energy (DOE)
• Movement of Goods (USTR)
• Transportation (DOT)
• Food and Agriculture (USDA)
• Business Facilitation (DOS)
• Financial Services (Treas)
• Environment (DOS)
• Health (HHS)

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Some Accomplishments to Date

• IPR Strategy for Fake Free North America
• Uniform in-advance electronic exchange of cargo
  manifest data (maritime, railroad and motor
  carriers)
• 50 Reduction of Detroit/Windsor waits
• US-Canada PulseNet MOU
• New FAST Lanes on U.S.-Mexico Border
• Consumer Product Safety Agreements
• Food Safety Coordinating Task Force
• Harmonizing risk assessment mechanisms, and
  establishing protocols to detect fraud and
  smuggling
• Ongoing ROO liberalization- 30 billion in goods
  affected
• NASTC Strategy
• Creation of avian/pandemic influenza coordinating
  body

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2006 Initiatives

• Cancun Five priorities
• Smart, secure borders
• Energy security
• Emergency management
• Avian and Pandemic Influenza
• North American Competitiveness Council

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North American Competitiveness Council(NACC)

• Provides recommendations on North American
  competitiveness that could be addressed through
  the SPP
• Help governments focus their efforts by applying
  a cost-benefit analysis to prioritize the
  priorities

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North American Competitiveness Council

• Membership- 10 private sector representatives
  from each country 30 delegates total
• U.S. Secretariat- Council of the Americas and
  U.S. Chamber of Commerce
• Canadian Secretariat Canadian Council of Chief
  Executives
• Organization varies in each country

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NACC Report

• Enhancing Competitiveness in Canada, Mexico and
  the United States
• Put forward more than 50 recommendations to
  strengthen North American competitiveness in
  global markets while improving safety and
  security
• Report is divided into three priority areas

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The NACC Report

• Border-crossing facilitation 23 recommendations
  for action in emergency management and
  post-incident resumption of commerce expansion
  and improvements to border infrastructure the
  movement of goods the movement of people
• Standards and regulatory cooperation 18
  recommendations to create a trilateral regulatory
  cooperation framework engage in development of
  global technical standards food and agriculture,
  financial services, transportation, intellectual
  property
• Energy supply and distribution improve energy
  supply security by strengthening cross-border
  distribution services, increasing skilled labor
  supply, promoting joint development of clean and
  efficient technologies

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SPP Deliverables

• Leading up to the August meeting in Canada
• Regulatory Cooperation Framework
• Intellectual Property Protection Working Group
• Avian/Pandemic Flu Plan
• Energy Innovation and Efficiency
• Smart, Secure Borders agenda
• Working groups will continue existing projects
  and identify new deliverables

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SPP Conspiracies

• Myth The SPP was an agreement signed by
  Presidents Bush and his Mexican and Canadian
  counterparts in Waco, TX, on March 23, 2005
•  
• Fact The SPP is not an agreement nor is it a
  treaty. The SPP is a trilateral effort to
  increase security and enhance prosperity through
  greater cooperation and information-sharing
•  
• Myth The SPP is a movement to merge the United
  States, Mexico, and Canada into a North American
  Union with super courts, a NAFTA Super Highway
  and a common currency
•  
• Fact The cooperative efforts under the SPP do
  not change our courts or legislative processes
  nor does it consider the creation of a common
  currency or a new Super Highway

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SPP Conspiracies (contd)

• Myth The SPP is being undertaken without the
  knowledge of the U.S. Congress.
•  
• Fact U.S. agencies involved with the SPP
  regularly update and consult with members of
  Congress. 
• Myth The SPP is illegal it violates the
  Constitution and infringes on the sovereignty of
  the U.S.
•  
• Fact Nothing in the SPP undermines the U.S.
  Constitution the cultural and legal framework of
  the three countries are intact. Any regulatory
  changes require conformity with all existing U.S.
  laws and administrative procedures, including
  notice and comment.

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SPP Conspiracies (contd)

• Myth The working groups and SPP documents are
  secret and only businesses can provide input.
•  
• Fact The SPPs initiatives and achievements can
  be found online. Its webpage has a section where
  interested persons can provide input directly to
  the various working groups.
• Myth The SPP seeks to lower U.S. standards with
  the regulatory cooperation framework.
•  
• Fact The framework supports and enhances
  cooperation and encourages compatibility of
  regulations while maintaining high health and
  safety standards. This will provide consumers
  with more affordable, safer, more diversified and
  innovative products.

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Contact Information

• Phone [phone]
• Fax [phone]
• Email Emily.Barragan_at_mail.doc.gov