Border Trade Alliance

Federal stimulus funds move towards addressing critical border port upgrades, but more long-term investment is needed to address increasing trade and security demands at the border.

Yesterday, the General Services Administration (GSA) submitted details to the U.S. Congress, on a proposed plan for border land port infrastructure spending, as approved under the recently enacted economic stimulus measure, H.R. 1 the American Recovery and Reinvestment Act.  GSA was appropriated $300 million and the Department of Homeland Security’s (DHS) Customs and Border Protection (CBP) was allotted $420 million toward land port infrastructure upgrades as part of H.R. 1.

Border Trade Alliance (BTA) pressed Congress last year to include federal funding for land border crossing upgrades and resources to support the hundreds of thousands of jobs that depend on the $830 billion in cross-border economic activity conducted at U.S. shared borders with Canada and Mexico.  While the BTA is pleased that the U.S. Congress appropriated $720 million for border ports to GSA and CBP in the economic stimulus, a commitment to sustained investment in upgrading the U.S.’s decades-old, overburdened ports is essential to future economic growth and security.

The majority of U.S. border crossings were not designed to handle the volume of trade that has resulted with the success of the North American Free Trade Agreement or the increased security operations that have been brought online since 2001.  While the economic downturn has reduced the volume of crossings at many U.S. land ports, the value of cross-border North American trade last year rose to a record $830 billion, due largely to growth in U.S. exports to Canada and Mexico.
“The BTA appreciates that Congress and the Administration approved $720 million in the stimulus bill for much-needed border crossing infrastructure upgrades,” notes Erin Martin Ward, Chair of the BTA, “We need continued leadership at the federal level to ensure that the tremendous growth in NAFTA trade and the economic activity it has generated can be sustained.  Canada and Mexico are the U.S.’s largest two export markets and we cannot afford to overlook the additional funding needed to upgrade our land ports to facilitate their critical contribution to our national economy and our security.”

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

“Projects were selected based on the speed at which jobs can be created and how much added energy efficiency can be gained. GSA will award $1 billion dollars in the first 120 days. All contracts will be awarded within the next two years.  Because GSA’s priority is to create or maintain jobs, an emphasis was placed on projects that could be awarded in the shortest amount of time,” GSA stated in a press release on the plans submitted to Congress.

CBP has submitted its plan for border infrastructure spending as part of the economic recovery package to the Office of Management and Budget (OMB) for review and final approval.  No details are yet available regarding which land port projects may receive funding through CBP’s appropriation.

Secretary of Homeland Security Janet Napolitano and Acting General Services Administrator Paul F. Prouty, who lead the two primary federal agencies tasked with overseeing upgrades at U.S. land ports of entry, will address these investments at the BTA International Conference, “New Administration, New Border Policy,” on April 20 & 21, 2009 in Washington, D.C.

Economic Contribution of U.S. Land Ports of Entry - Quick Facts:

• 32.8 mil. travelers from Canada and Mexico visited the U.S. in 2007.  Visitors from our NAFTA partners greatly exceeded the 23.8 mil. combined visitors traveling to the U.S. from the rest of the world during 2007.
• Nearly $830 billion in goods moved across land borders between the U.S. and our NAFTA trading partners in 2008.
• In 2007 land border crossings facilitated more than 11 mil. trucks, over 111 miil. passenger vehicles and nearly 50 mil. pedestrians across our borders with Canada and Mexico.
• Canada and Mexico contributed nearly $22.7 billion directly to the U.S. economy in total tourism and travel receipts. A majority of travelers (75% +) from our NAFTA neighbors arrived at land border crossings.
• Nearly half of the 50 million + foreign visitors to the U.S. in 2007 were Canadian and Mexican travelers arriving via U.S. land ports of entry.

U.S. Land Port of Entry 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. CBP’s stated need only covers that agency’s estimated infrastructure needs within the federal inspection zone at each land port of entry. This does not speak to the broader need at each port of entry nor along the corresponding trade corridors.
• Estimated Infrastructure Shortfall on U.S. - Mexico Border: $10.5 billion on U.S. side; $860 million on MX side - Source: Joint Working Group - U.S. DOT, MX-SCT
• Estimated Infrastructure Shortfall on U.S. - Canada Border: $13.4 billion - Source: Transportation Border Working Group - U.S. DOT, Transport Canada
• Last NEW U.S. Port of Entry: World Trade Bridge in Laredo (2000)

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