| In the post 9-11 era, it's impossible
to overstate the importance of keeping US and Canadian
borders and ports safe. Yet the US Government's mandate
to inspect 100% of cargo at ports and borders (a significant
increase from the previous target of 3%) poses a serious
challenge to commercial efficiency.
To give you an idea of the magnitude of cross border
commerce in the United States and Canada, commercial
cross border traffic accounts for approximately $1.6
billion in revenue daily - $900 million worth of goods
crosses the Ontario-US border alone. At the same time,
890 million tons of waterborne goods arrive at US ports
annually, representing a value of approximately $800
billion.
Even if it were possible to open and inspect every
container passing into the US, the resulting delays
at the border would have a detrimental effect on the
economy. In fact, lengthy delays at the border can result
in shrinking profit margins for America's major industries
- which can in turn lead to job cuts. As Stephen Flynn,
director of the Independent Task Force on Homeland Security
Imperatives, explains: "Security is a significant
concern up and down the supply chain. Any uncertainty
about the security of a shipment means shutting down
a supply chain, which has economic impact worldwide."
An economically sustainable strategy for tightening
security at US borders and ports needs to focus on 3
areas:
- New technology
- Information sharing and
- Cross-border and international cooperation
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