Letter to the Department of Homeland Security Expressing Disappointment Over Border Pre-Clearance Pilot Negotiations

On: Letter to the Department of Homeland Security Expressing Disappointment Over Border Pre-Clearance Pilot Negotiations
To: Secretary Micharl Chertoff, Secretary, U.S. Department of Homeland Security
From: R. Bruce Josten, Executive Vice President of Government Affairs, U.S. Chamber of Commerce
Date: June 4, 2007

June 4, 2007

Dear Secretary Chertoff:

The U.S. Chamber of Commerce, the world's largest business federation representing more than three million businesses and organizations of every size, sector, and region, strongly supports the administration's efforts to keep U.S. borders closed to terrorism yet open to trade. The Chamber is also advancing these goals through its work as part of the Secretariat of the U.S. Section of the North American Competitiveness Council (NACC), providing private sector advice and guidance on the efforts of the Security Prosperity Partnership of North America (SPP).

While the Chamber greatly appreciates your leadership and dedication to the SPP process and the efforts of the NACC, I am writing now to express the Chamber's disappointment with the U.S. Department of Homeland Security's recent decision to terminate negotiations with its Canadian counterparts to implement a Secure Border Management (SBM) pre-clearance pilot program for the Peace Bridge between Buffalo, New York and Fort Erie, Ontario. The Chamber urges both parties to return to the negotiating table and find a workable solution that will allow the pre-clearance pilot to proceed without further delay.

As you know, this pilot program was identified as one of the NACC priorities for 2007 in our report to you, Secretary Gutierrez and Secretary Rice as well as your colleagues from Mexico and Canada at the SPP ministerial meeting in Ottawa in February. The United States and Canada have the largest trading relationship in the world; 23% of U.S. exports go to Canada, while the U.S. purchases 84% of Canadian exported goods. Two-way trade between the United States and Canada surpassed $530 billion last year, more than double pre-NAFTA levels.

However, infrastructure investments have not kept pace with growing trade volumes and increased vehicle traffic. In addition, heightened security measures following 9/11 have led to a 200% increase in vehicle processing times since 2001, resulting in over $4 billion in costs to businesses. These costs increase the threats to NAFTA's ability to continue growth of the North American economy.

The Peace Bridge alone carries $20 billion of trade annually between our two countries. The bridge serves as the second busiest passenger vehicle crossing and the third busiest commercial crossing along our shared border, with nearly 6000 trucks crossing per day. Delays related to heightened security measures at this crossing, in particular, are exacerbated by a lack of space on the U.S. side of the border to expand Customs facilities.

The Peace Bridge Authority has made it clear that for pre-clearance to be included as part of the capacity expansion project, Canada and the United States must reach a final agreement no later than May 2007. If no decision is reached by then, the Peace Bridge Authority will eliminate pre-clearance from their capacity expansion project and proceed to work with the City of Buffalo on a traditional customs plaza on the U.S. side.

The Chamber is committed to and supports the objectives of the SPP to ensure that North America is the safest and most competitive place to do business. Through the SPP, government leaders have recognized that ensuring the safety and prosperity of the citizens of all three countries requires us to work together, and to the greatest extent possible, ensure that decisions about security and about economic policy are mutually reinforcing rather than conflicting. It is, therefore, imperative that the heightened focus on security does not impede the economic efficiencies created by the NAFTA.

In conclusion, the Chamber would welcome a resumption of negotiations with your Canadian counterparts to find a workable solution that would allow the pre-clearance pilot to move forward. Please let the Chamber know what it can do to be part of the solution.

Sincerely,

R. Bruce Josten

Cc: The Honorable Stockwell Day
Minister of Public Safety and Emergency Preparedness
Government of Canada

The Honorable Alfonso Martinez-Fonts, Jr.
Assistant Secretary for the Private Sector
United States Department of Homeland Security