Border Trade Alliance

Trade Group Offers Specific Recommendations to Border state Nominees in President-elect Obama’s Cabinet

December 2, 2008, Phoenix, AZ - Yesterday, President-elect Barack Obama confirmed the nomination of two border-state elected officials, Senator Hillary Clinton (D-NY) and Governor Janet Napolitano (D-AZ), as the respective nominees for the high-profile and important Cabinet positions of Secretary of State and Secretary of Homeland Security.  The Border Trade Alliance (BTA), as the leading tri-national organization representing border communities and trade, welcomes the nominations of U.S. border based leaders to head the two federal agencies most closely involved in improving trade relations and cross-border security with our NAFTA partners, Canada and Mexico and offers recommendations to enhance secure and efficient border trade policies.

In leading the State Department, Senator Clinton will oversee and manage the administration of the presidential permit process, which governs the construction of new facilities at U.S. land ports of entry.  In her role as the prospective Secretary of Homeland Security, Governor Napolitano will lead federal efforts to balance security and the facilitation of legitimate trade, travel and commerce at and between 166 U.S. border crossings along the U.S.-Canada and U.S.-Mexico border.

“The BTA is encouraged that President-elect Obama, in naming Senator Clinton of New York and Governor Napolitano of Arizona to his cabinet, recognizes the significant importance of enhanced relations and increased cooperation with our largest trading partners in Canada and Mexico and to ensure the continued economic and physical security of cross-border NAFTA trade,” stated Erin Martin Ward, Chair of the BTA.

Last year, U.S. border land ports of entry handled 90 percent of the nearly $800 billion in cross-border trade between the United States, and its two largest export markets, Canada and Mexico. However, growing cross-border delays, overburdened and outdated infrastructure, and inadequate staffing and associated resources threaten to undermine U.S. trade competitiveness, the efficiency of federal border security operations, as well as directly impacting the cost of doing business for manufacturers, transportation firms, and small businesses while raising the cost of U.S. consumer goods and reducing state and local sales tax revenue.

Since September 11, 2001, the federal government’s role in the management of our North American borders has grown increasingly more complex, as has the prominence of border issues in the national political landscape.  For the first time in its brief history, the Department of Homeland Security will serve under new presidential leadership, while the State Department will be increasingly challenged to balance its global diplomacy efforts with the growing list of issues impacting relations with our NAFTA trading partners.

Adding to these challenges along the U.S. - Mexico border are several issues such as the increased violence in northern Mexico communities as a result of Mexico’s war against the drug cartels, which is negatively impacting cross-border commerce and tourism; the construction of a controversial and highly expensive border fence; and the lack of a comprehensive federal approach to address illegal immigration.  Meanwhile, along the northern border, concerns about the unnecessary “thickening” of the border are negatively impacting cross-border businesses and straining U.S. and Canadian relations.  Shared concerns along both borders include increased national concern regarding import safety, institution of non-tariff barriers to trade and the ongoing struggle to balance the physical and economic security of cross-border trade and commerce.

To sustain and improve the conditions for secure and efficient cross-border economic activity along the U.S. borders with Canada and Mexico, the BTA shares the following recommendations to President-elect Obama’s team:

• Red tape at the federal, state and local level currently results in a delay of 7-10 years before a new port of entry can be approved for construction, with similar delays for improving existing infrastructure at many ports of entry. Under President-elect Obama and Senator Clinton’s leadership, the State Department has the opportunity to lead coordination efforts between all stakeholders in order to identify opportunities to shorten this process.
• Federal efforts and investment on projects that alleviate the infrastructure bottlenecks at our ports is crucial to protect the nearly $800 billion in annual cross-border economic activity and the jobs its supports.  Governor Napolitano has the immediate opportunity to make investment in low cost, yet critically important projects such as signage, emergency generators, and lighting, a priority at the Department of Homeland Security (DHS), while committing the agency to requesting that Congress provide the long-term investment in infrastructure and resources.
• Collaboration between DHS, the Departments of State and Transportation, along with the General Services Administration in developing a comprehensive strategy and plan of action to upgrade U.S. land ports of entry is crucial to maintaining North American competitveness in a difficult global economy.
• The various federal security programs and initiatives need to be reconciled to maximize increasingly scarce federal resources while improving security and allowing for legitimate travel and commerce at our borders.
• Sharing of Best Practices must become the Standard Practice among the Federal Agencies tasked with the daily management of port security and trade facilitation.
• Involvement of border communities and local ports is critical toward addressing specific needs at each port of entry, which each face unique challenges.

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