For the past decade, the Canada-U.S. model of economic integration has been deteriorating - - a victim of a border chocked with traffic, an overreaction to the 9/11 attacks, steep fees and erratic regulation. FAST trade has become thick trade. Canada – U.S. trade peaked in 2000 and has stagnated since. Between 2001 and 2010, Canada’s dominant share of U.S. imports has fallen precipitously across a range of products - - from furniture and electrical equipment to printing, paper and plastics.
Market share worth billions of dollars now belongs to China. This reduction in efficiency came during a period of expanding global trade as China in 2009 eclipsed Canada as the leading exporter to the United States.
The new deal that was announced in December 2011 by President Obama and Prime Minister Harper addresses America’s concern with security and Canada’s need to facilitate trade. Rather than publish a comprehensive document as was done with the North American Free Trade Agreement, this new deal basically consists of a press release and a set of good intentions. It has been called the North American Border Security and Trade “Trust Us” Deal. Since the United States is in the midst of an election year and since some of these initiatives will require congressional approval and funding, time will tell as to how many of these good intentions become reality.
The good news is that there seems to be a consensus that a number of these action plans will take effect over the next few years. These are some of the specific programs that will have a direct and positive effect on trade and transportation.
Harmonize and Improve “Trusted Trader” Programs
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