Agricolas
Overview:
Securing our borders is a daunting task, and programs like the Customs Trade Partnership Against Terrorism have made great strides to include a diverse cross section of the trade community. Current thinking about terrorist activities indicates these activities are aimed at causing significant constraints in our country’s ability to conduct trade, apparently focusing on both the infrastructure as targets and the conveyances as possible weapons, and using the transport systems capabilities as a means to deliver their weapons and/or profit their enterprises. Any incidence that causes our federal agencies to shut down a port or the border is seen as a significant win for their nefarious cause. Likewise, any methods the US Government and its allies in the war on terrorism implement, must be robust enough to be effective, but applied within the context of a speedy and agile transport system that adds value within an optimal cost structure.
In terms of border security there exists a window of opportunity that is relevant to addressing these concerns within identified constraints. Although larger companies are taking advantage of the C-TPAT program, an imbalance exists in terms of the number of mid-sized and smaller companies that are applying for the C-TPAT program and the program’s benefits. Many larger companies from higher technology industries have already invested in processes and infrastructure within their business and have easily applied and received acceptance in FAST and C-TPAT and therefore already have a competitive advantage. However small and medium sized Mexican “Agricolas” and U.S. produce importers have a significantly lower C-TPAT participation rate. These businesses which rely upon traditional relationships and processes and the application of limited high technology share amongst themselves a perception that C-TPAT is too complex and therefore out of their reach. They feel that any anti terrorism measures that they would need to comply with for C-TPAT membership is beyond their reach. A terrorist is not going to be as discriminating about exploiting a high or low-tech company. They will always follow the path of least resistance. We would like to address this window of opportunity.
As the value of cross border agricultural traffic continues to increase it becomes increasingly important to secure all segments of that trade equally. The successful development of a pilot program to educate and enroll small and medium sized participants in the agricultural industry will serve to enhance these companies’ competitiveness as well their ability to mitigate risks. Aligning a broader cross section of trade to adopt risk mitigation programs like C-TPAT will further protect a vital aspect of combined nations’ economies. In order to best manage a program like this, a general scope and timeline has been considered. In addition, a target or test group has also been considered. This program has outlined one goal with several supporting objectives that will become project milestones. Before initialization of this project, we will undertake a market study to ascertain the nature of the test group in terms of current trade practices with regard to security and the border. At the end of our project we will again measure these areas with the test group in order to understand the benefits of this project and forward looking objectives for key stake holders such as Aduanas, CBP, Trade and Other government agencies for example.
The primary goal and associated objectives of this project can be summarized as follows:
Description:
Goal: Increase awareness, Train and Enroll a defined number of agricultural companies and their business partners in C-TPAT during 2007.
Objective - Work with produce industry (FPAA, AALPUM etc.) to establish a phased approach that is scalable and replicable and acceptable to other companies within this industry or other vertical industries.
Objective – Pre Analysis- Create Baseline Study of project participants, nature of trade, constraints and requirements.
Objective - Coordinate committee efforts with Agribusiness & Fisheries Committee to leverage resources and overall impact.
Objective - The project will consist of three phases:
• Phase 1 – Better define the program as it can apply within this critical segment of international trade by providing awareness and outreach on the program requirements of C-TPAT
• Phase 2 – Create acceptance or “buy in” by facilitating industry participation in the development of their respective Supply Chain Security Profiles for C-TPAT
• Phase 3 – Increase C-TPAT enrollment within the Agricultural Industry ensuring completion and submission of the required elements via the CBP C-TPAT on-line portal.
Objective - Post Analysis – Measure the overall result of the initiative in terms of:
• A – Number of Companies that achieved C-TPAT certification
• B – Improved Border Crossing times as a result of having C-TPAT benefits
• C – Potential financial impact of improved cross border trade flow
• D – Stakeholder takeaways of future state findings
Timeline:
Initialization of this project is planned for the end of the second quarter of this year. It is hoped that the project can be completed before the end of the third quarter of this year.
Border Wait Times Study
Description:
Design and conduct a study that will address the growing concerns over border wait times. Includes the examination of traffic congestion, infrastructure deficiencies and inefficiencies, management procedures and the implementation of technology and programs at our land POE’s.
Location:
Ports of Entry in Texas; Will grow to gradually include ports of entry in CA, AZ and NM.
Partners/Players:
BTA, FHWA
Goals:
Determine the status of the traffic congestion and wait times at our POE’s. Draw attention to the situation at the border for LEGAL crossers, and provide information that will help to decrease traffic congestion and border wait times.
Challenges:
Matching the funds given by the FHWA, defining a study that combines elements of the SANDAG study and traffic congestion.
Timeline:
A period up to but not exceeding 6 months.
C-TPAT Rail
Overview:
Customs and Border Protection (CBP) indicates that by late 2008, the Nogales rail port of entry is predicted to be the second busiest rail crossing on the southern border. With current wait times, delays and stops of rail traffic, the Border Trade Alliance (BTA) is actively participating in the development of a pilot project in Nogales to expedite cross-border rail traffic. The goal of the BTA is to have secure yet efficient trade crossing our borders on a daily basis.
Shipments from Ford and CEMEX account for 70 percent of the rail traffic. CEMEX, on average, crosses 140 rail cars a day. This amount exceeds the capacity of the Nogales route and must be split by directing shipments through Calexico.
Description:
Pre-approved rail shipments that have complied with C-TPAT requirements will be inspected and sealed at their point of origin and expedited across the border without additional required checks. Electronic seals will be tested and used to increase the level of security.
Location:
Ambos Nogales
Partners/Players:
BTA, FHWA, CANAMEX, NTMI, DHS–CBP, USDOT–FRA, US DOT, AZDOT, Aduanas Mexico, SCT, SRE, Union Pacific, Ferromex, Ford, CEMEX
Goals:
Demonstrating increased security, efficiency and throughput in the movement of rail traffic and a corresponding reduction in congestion through the Nogales Port of Entry System.
Challenges:
Successful coordination of multiple roles to fulfill security for CBP, safety for the FRA and efficient enforcement for private-sector partners.
Timeline:
2007 January-May Coordination, Scope Development, Testing and Implementation of Technology, evaluation of process with partners, documentation of “before” condition
2007 May-July: Pilot launching and data collection
2007 August : Final report including of analysis of results
Economic Impact Analysis of the U.S.-Mexico Border Region
Overview:
The Border Trade Alliance (BTA), in partnership with Texas Agricultural Experiment Station (TAES) and New Mexico State University (NMSU), proposes to develop a database for the purpose of estimating economic impacts of trade and commerce at the nation’s southern border with Mexico. The database will be designed to assess the economic impacts on U.S. border communities of changes in the flow of goods, services, and people at the U.S.-Mexico border. The need for such a database is apparent as no single economic research tool currently exists to measure the impact on the region and nation of obstacles and enhancements to border trade.
Description
TAES and NMSU have developed a database of baseline economic activity for the Texas and New Mexico sections of the border. During May, a workshop will be held for BTA staff and board members to highlight the information in the database and explain the appropriate uses of the data for economic impact assessments and policy options. With additional funding, the database may be completed for the entire U.S.-Mexico border and additional input-output factors can be added that will broaden the relevance of the database, allowing the estimation of the economic impacts of changes to the flow of trade and people on a national, regional or border-wide basis. The results of these analyses, in terms of business activity, income, and employment, will be disseminated to local, state and national policy makers, the local business community, and through the media.
Location:
Texas and New Mexico sections of the border
Partners/Players:
Proposed by the Border Trade Alliance in partnership with Texas Agricultural Experiment Station and New Mexico State University
Goals:
The purpose of the project is to provide the BTA with reliable economic impact analyses, allowing the organization to:
- Respond rapidly to media requests for information when changes occur in the flow of trade at U.S-Mexico ports of entry;
- Identify dollar value impacts to changes in trade at the border;
- Answer questions regarding the potential economic impact of a specific policy initiative;
- Develop staff capability and expertise in understanding potential economic impacts from changes to trade; and
- Highlight the BTA as a reliable source of information for economic assessments of the impact of trade and commerce at the U.S.-Mexico border.
Other uses of the data include:
- Introduction of a BTA-sponsored economic newsletter; and
- Documentation of economic trends occurring over time at the border.
Challenges:
Securing funding
