Report

DELEGATION MEMBERS AND STAFF

From 6–8 May 2018, the Co-Chairs of the Canadian Section of the Canada–United States Inter-Parliamentary Group (IPG) – Senator Michael L. MacDonald and the Honourable Wayne Easter, P.C., M.P. – led a delegation to the 2018 spring meeting of the Canadian/American Border Trade Alliance (Can/Am BTA) in Ottawa, Ontario. The other delegates were Mr. Vance Badawey, M.P., Vice-Chair, Mr. Randy Hoback, M.P., Vice-Chair and Ms. Tracey Ramsey, M.P. Senator MacDonald and Mr. Easter spoke to the BTA delegates. The delegation was accompanied by Ms. Miriam Burke, Executive Secretary to the Canadian Section, and Ms. Tanya Dupuis, the Canadian Section’s Advisor.

THE EVENT

The Can/Am BTA, a coalition of businesses, public-sector organizations and individuals with an interest in bilateral trade and tourism, holds two meetings each year: in the spring in Ottawa and in the fall in Washington, D.C. Its mission is to maximize commercial activity and ensure continued growth in cross-border trade, as well as efficient and productive border-crossing capabilities.

Attendees at this event included private-sector representatives involved in a number of tourism, transportation and trade-related activities, as well as employees of a variety of U.S. and Canadian federal departments.

DELEGATION OBJECTIVES FOR THE EVENT

The IPG’s Canadian Section has a long association with the BTA, and members of the Canadian Section sometimes attend both its fall and spring meetings. Given its focus, attendance at the BTA’s meetings provides members with an important opportunity to gain insights about trade- and tourism-related problems being experienced by businesses and individuals, as well as about efforts and actions by governments in both countries to address these problems.

At this meeting, as at other BTA meetings, members of the Canadian Section benefitted from the opportunity to interact with, and learn from, private- and public-sector organizations and individuals who deal with border issues on a daily basis. Attendance at the BTA meetings also provides members with an opportunity to inform others about the range of actions taken by the IPG’s Canadian Section regarding shared Canada–U.S. goals, as well as about differences between the two countries; this goal is partly achieved through the invitation that is typically extended to the Canadian Senate and House of Commons Co-Chairs and/or Vice-Chairs to make remarks about the Canadian Section’s activities and priorities. For example, at this meeting, Mr. Easter spoke about the Canadian Section’s fall 2017 and winter 2018 activities, while Senator MacDonald noted its upcoming spring and summer 2018 activities.

ACTIVITIES DURING THE EVENT

Sessions with the following titles were scheduled to be held at the meeting:

• Strategic Direction of Canada/U.S. Cooperation for a Smart Border and for the Beyond the Border Perimeter Action Plan
• View from the Bridges Discussion
• Pre-clearance – Canadian Regulations Development for Implementation
• Canada/U.S. Relations and Cooperation Activities
• CBSA Border Commercial Consultative Committee Commercial and Operations Committee: Where We Are and Where We Need to Go
• View from Trucking: Overview, Update and Issues Effect at Border
• View from Air – Airports – Air Cargo:  Overview, Update and Issues Effect at Border
• Strategic Direction of Transport Policy – National Highway, Rail, Air, Maritime Infrastructure: Specifics on Gateways, Trade Corridors and Border Crossings
• Proof of Concept Results
• CBSA Overview – Strategy, Priorities, Key Initiatives, etc.
• The American Perspective.

This report summarizes selected presentations at the meeting, including the remarks made by Mr. Easter and Senator MacDonald.

STRATEGIC DIRECTION OF CANADA/U.S. COOPERATION FOR A SMART BORDER AND FOR THE BEYOND THE BORDER PERIMETER ACTION PLAN

Jill Wherrett, Public Safety Canada

• The Canada–U.S. relationship has a solid foundation, and both countries need to continue to maintain a strong and open border.
• Cross-border traffic between Canada and the United States is expected to continue to grow, and to double by 2025.
• The preclearance agreement between the Government of Canada and the Government of the United States is one of the greatest cross-border “success stories”; it will facilitate travel between the two countries, and allow customs and immigration officials from the country of destination to be located in the country of origin in order to clear or deny travellers’ admission to the destination country.

VIEW FROM THE BRIDGES DISCUSSION

Stan Korosec, Canadian Transit Company

• The Ambassador Bridge is under renovation; six new lanes are being added, as well as a Canada Border Services Agency (CBSA) building with 10 inspection docks.

Ken Bieger, Niagara Falls Bridge Commission

• The Rainbow Bridge is under construction; six new inspection stations will be completed in June 2018.
• The Lewiston Bridge is entering phase II of its reconstruction, with a new processing building and the addition of a bus lane; in total, there will be 16 lanes.

Natalie Kinlock, Federal Bridge Corporation

• The arches on both sides of the Sault Ste-Marie International Bridge are being painted and a new CBSA port of entry has been added. 
• The processing area of the Blue Water Bridge has been renovated, with a new turnaround for trucks that will facilitate the flow of traffic.
• The Thousand Islands Bridge’s new CBSA facility opened in May 2018. 
• The Seaway International Bridge will be dismantled and a contingency plan is being prepared; a lookout will be installed on Cornwall Island to commemorate the original bridge.

Ron Rienas, Peace Bridge Authority

• The Peace Bridge is undergoing a total rehabilitation, which is being funded primarily through tolls. 
• Traffic on the Peace Bridge has decreased by 45% in the last 17 years, which is significant for a bridge that is self-funded. 
• “Pre-arrival readiness” is working extremely well by reducing the amount of time required to cross the border between Canada and the United States; it is being conducted by Peace Bridge employees, rather than by U.S. Customs and Border Protection (CBP) officers.
• Technological preclearance radio-frequency identification (RFID) is expected to reduce the processing time by 50%.

CANADA/U.S. RELATIONS AND COOPERATION ACTIVITIES

Honourable Wayne Easter, P.C., M.P., House of Commons and Canada–United States Inter-Parliamentary Group

• Meetings between the Canada–U.S. IPG’s Canadian Section and U.S. counterparts provide useful insights about the bilateral relationship in terms of both areas of difficulty in which mutually beneficial solutions must be found and of cooperation where the countries can work together more closely for joint benefit.
• The first activity for the IPG’s Canadian Section following the BTA’s fall 2017 conference was a meeting in Ottawa with some members of the U.S. House of Representatives’ Committee on Agriculture; the meeting was very beneficial in advancing the IPG’s goals, perhaps most especially because the new U.S. Farm Bill – which can have implications for Canada’s farmers – was being developed.
• In November 2017, the Canadian Section of the IPG travelled to Washington, D.C. for meetings with almost 60 U.S. Senators and members of the House of Representatives; the meetings focused on bilateral trade, especially the North American Free Trade Agreement (NAFTA) negotiations.
• In December 2017, members of the IPG’s Canadian Section travelled to the annual national conference of the Council of State Governments, where they discussed the nature and extent of the trade relationship between Canada and various U.S. states.
• The first activity in 2018 for the Canadian Section of the IPG was the annual winter meeting of the National Governors Association; members of the Canadian Section were able to renew and build relationships with selected U.S. governors.

Senator Michael L. MacDonald, Senate of Canada and Canada–United States Inter-Parliamentary Group

• Since its establishment almost 60 years ago, a main priority of the IPG has been establishing, maintaining and sustaining relationships between federal legislators in Canada and the United States.
• In June 2018, members of the IPG’s Canadian Section will be attending the Southeastern United States–Canadian Provinces Alliance in Alabama; this organization is generally focused on a range of issues that affect the business prosperity that is important to both Canada and the United States.
• Members of the IPG’s Canadian Section will be welcoming U.S. Senators and members of the House of Representatives in Ottawa for the 56^th Annual Meeting of the Canada–U.S. IPG in June 2018; discussions will focus on bilateral economic, security and environmental cooperation.
• During summer 2018, members of the Canadian Section of the IPG will be attending a number of conferences, beginning with the meeting of U.S. western governors in June 2018, as well as the annual summer meeting of the National Governors Association and the annual conference of the New England Governors and Eastern Canadian Premiers.
• In addition to gathering useful public policy information and supporting Canada’s provincial legislators, the various regional conferences for state legislators provide members of the IPG’s Canadian Section with an invaluable opportunity to highlight the nature and scope of the Canada–U.S. relationship, and trade and investment between Canada and particular states.
• During summer 2018, the Pacific NorthWest Economic Region will be hosting its annual summer meeting, which will be attended by members of the IPG’s Canadian Section.

VIEW FROM TRUCKING: OVERVIEW, UPDATE AND ISSUES EFFECT AT BORDER

Lak Shoan, Canadian Trucking Alliance

• Most Canadian truck drivers are aged between 55 and 64 years; when compared to other occupational groups, they are relatively old.
• Electronic logging devices (ELDs) will become mandatory in Canada by 2020; ELDs have already been deployed in the United States.

Kevin Erb, ERB International

• ELD technology will automatically collect a driver’s driving time and ensure that hours of service are being properly recorded.
• Because of aging, both truck driver recruitment and truck driver retention are priorities for Canadian trucking companies.  

PRE-CLEARANCE - CANADIAN REGULATIONS DEVELOPMENT FOR IMPLEMENTATION

Marc Potter, Public Safety Canada

• In Canada, the Preclearance Act, 2016 has received Royal Assent, and its accompanying regulations are being amended, repealed or drafted.
• The Agreement on Land, Rail, Marine, and Air Transport Preclearance between the Government of Canada and the Government of the United States of America will be ratified only after the Preclearance Act, 2016 and its accompanying regulations have been implemented. 
• Implementation of preclearance in the air mode (phase 1), which includes expansion to such locations as Toronto’s Billy Bishop Airport, will be completed in December 2018.

STRATEGIC DIRECTION OF TRANSPORT POLICY – NATIONAL HIGHWAY, RAIL, AIR, MARITIME INFRASTRUCTURE: SPECIFICS ON GATEWAYS, TRADE CORRIDORS AND BORDER CROSSINGS

Honourable Marc Garneau, P.C., M.P., Canadian Minister of Transport

• Since NAFTA was implemented, trade between Canada and the United States has tripled.
• The border between Canada and the United States should be seen as both a facilitator and an opportunity.
• Strategic initiatives are needed to keep the Canada–U.S. border “thin” and secure.
• Preclearance is an excellent example of a strategic Canada–U.S. initiative that seeks to enhance security by addressing threats at the point of departure, rather than at the point of arrival. 
• The secure flow of goods and people across the shared border is vital to the economic prosperity of both Canada and the United States.

PROOF OF CONCEPT RESULTS 

Alicia Duval, GS1 Canada

• The manual entry of information often leads to errors and costly mistakes.
• The Global Trade Item Number (GTIN) technology created by GS1 Canada is similar to a bar code and allows supply chain traceability. 
• Technological initiatives can increase the efficiency of cross-border trade, and Canada is well positioned to embrace such initiatives.

CBSA BORDER COMMERCIAL CONSULTATIVE COMMITTEE COMMERCIAL AND OPERATIONS COMMITTEE: WHERE WE ARE AND WHERE WE NEED TO GO

Jim Phillips, Canadian/American Border Trade Alliance

• The CBSA has initiated commercial transformation in an effort to enhance its effectiveness and to ensure that the Canada–U.S. border is both secure and fluid.
• The Border Commercial Consultative Committees provide a forum for CBSA officials and commercial stakeholders to discuss border-related topics; they are currently studying ways of reducing the costs associated with cross-border business and travel.
• Regarding the land mode of port operations, consideration is being given to driverless trucks and the CBSA’s capacity to implement this type of technology.
• Concerning the rail mode of port operations, the ways in which the CBSA could support the implementation of an imaging inspection process for arriving trains is being studied.
• Regarding the air, air cargo and airport mode of port operations, a concept of operations for air cargo preclearance in Canada and the United States is being developed.
• New technology, such as RFID cards, could replace Canadian passports and possibly save Canadians 400,000 hours of wait time at land border crossings; as well, RFID cards could allow the reassignment of 100 CBSA officers and 100 CBP officers to other duties.
• A 10-year renewal policy for NEXUS is being considered.

CBSA OVERVIEW – STRATEGY, PRIORITIES, KEY INITIATIVES, ETC.

John Ossowski, Canada Border Services Agency

• The operating environment at the Canada–U.S. border continues to evolve; change is continuous, but it can be managed.
• Canada and the United States can work toward mutually beneficial solutions in order to manage the changing environment at the shared border.

Maurice Chenier, Canada Border Services Agency

• The CBSA’s operating environment is rapidly evolving; the CBSA will need to demonstrate that it can adapt to, and control, the pace of change at the Canada–U.S. border.  

Charles Slowey, Canada Border Services Agency

• The development of strong partnerships between the CBSA and commercial stakeholders will help the CBSA to operate more efficiently. 

eCOMMERCE INSIGHT AND PERSPECTIVE

Candace Sider, Livingston International Inc.

• The CBSA and the Customs and Border Protection (CBP) are looking at new and emerging models for e-commerce. 
• With e-commerce becoming more prevalent, there will be a need for additional commercial carriers; recruitment strategies, as well as competitive salaries and compensation packages, will be important moving forward.
• Guidelines should be created with a view to improving compliance with e-commerce rules; at present, the non-compliance rate is 40%.
• There is a need to record the driving time of commercial carriers; mandatory ELDs will help to ensure compliance with the maximum consecutive driving hours that are permitted.

THE AMERICAN PERSPECTIVE

Matt Boyse, U.S. Department of State

• The United States and Canada have an interest in working together to ensure a strong, secure and efficient shared border.
• Countering security threats and fighting transnational crime are priorities that are shared by the United States and Canada. 
• Canadian legislation introduced in 2016 will establish a coordinated entry-exit information system between the United States and Canada. 
• Preclearance between the United States and Canada is an example of “common ground” between the two countries, and of a commitment to keeping the shared border “thin” and “fluid.”

VIEW FROM AIR – AIRPORTS – AIR CARGO: OVERVIEW, UPDATE AND ISSUES EFFECT AT BORDER

Solomon Wong, InterVISTAS 

• In 2038, Canada and the United States collectively will have an estimated shortfall of 38,000 border officers. 

Daniel Gooch, Canadian Airports Council

• The number of trans-border international passengers at Canadian airports is increasing, and is putting a strain on airport resources; therefore, it is important to ensure that people and goods are moving freely and comfortably.

Gerry Bruno, Vancouver Airport Authority

• The Canada–U.S. entry-exit initiative is underway.
• A new vision for the Canada–U.S. border is needed; the free movement of individuals and goods across that border should be a priority.
• A “Beyond the Border Preclearance” white paper should be drafted in relation to the Canada–U.S. border; it should include a review of the current border technology environment and a specific plan of action for implementation of the recommendations made in the white paper.

Tyler Macafee,Winnipeg Airport Authority

• A cargo processing pilot project is underway at Winnipeg’s James Armstrong Richardson International Airport.
• Permanent preclearance at the James Armstrong Richardson International Airport is a very strong possibility. 

Respectfully submitted,