Transportation Border Working Group Plenary MeetingEmily Barragan

Office of NAFTA and Inter-American AffairsU.S. Department of Commerce

The NAFTA Trade Perspective The U.S.-Canada FTA: January 1, 1989

The NAFTA: January 1, 1994, a remarkable success The U.S. economy grew by 48% Canada: 49% Mexico: 40%

NAFTA total trade increased over $510 billion: $297 billion in 1993 to $866 billion now

In 2006, we traded $2.4 billion a day with our NAFTA partners -- $1.6 million a minute

The NAFTA Trade Perspective (cont’d)

Our trade with Mexico and Canada exceeds our trade with 25 EU member states and Japan combined

Exports to Mexico & Canada account for $364 billion- roughly 35% of our global exports

2005: U.S. exports to Mexico = $120 billion

2005: U.S. exports to Canada = $212 billion

The SPP- What Is It? The Goal: ensure North America-

Best and safest place to live, work and do business By maintaining North American advantage in era of global sourcing

Builds on the NAFTA, P4P, and border initiatives to: Better protect citizens from man-made and natural threats Promote safe and efficient movement of people and goods

The SPP consists of an economic and a security component

Based on the principle that our common prosperity depends on our mutual security

Expands economic opportunities by reducing barriers and making our businesses more competitive in the global marketplace

What it is Not: The SPP is not a NAFTA renegotiation

exercise

The SPP is not an immigration initiative nor forum for dispute resolution

The SPP is not a new treaty or trade agreement

Timeline and Implementation

The Heads of State launched the SPP on March 23, 2005

Commerce hosted a series of private sector roundtables to engage industry and identify deliverables

Working groups and work plans created

Ministers reported to Heads of State on progress made and released public report on June 27, 2005

Timeline and Implementation (cont’d)

Secretary Gutierrez met with Canadian and Mexican colleagues and private sector to discuss creation of NACC March 15, 2006

Heads of State Cancun Summit March 30-31, 2006 to discuss “North American Competitiveness”

Prosperity Ministerial and Launch of the North American Competitiveness Council on June 15, 2006

Consensus recommendations delivered to SPP Ministers at February 2007 meeting

ACF Prosperity Meeting

Leaders Meeting in Canada August 2007

Who Does What?

SPP is an interagency initiative

On the U.S. side:

White House/NSCSecurity- DHSProsperity- Commerce DepartmentCoordination- State Department

Security Component Working Groups(DHS)

Secure North America from External Threats Traveler and Cargo Security, and Bio-protection

Prevent and Respond to Threats within North AmericaAviation and maritime security, law enforcement,

intelligence cooperation, and protection, prevention and response

Further Streamline the Secure Movement of Low-Risk Traffic across our Shared Borders

Develop and implement strategies to combat threats, such as terrorism, organized crime, migrant smuggling and trafficking

Economic (‘Prosperity’) Component Working Groups

Manufactured Goods (DOC) Lower production costs for North American manufacturers by

eliminating unnecessary regulatory barriers, ensuring compatibility of regulations and by eliminating redundant testing requirements

Provide consumers with cheaper, safer, and more diversified and innovative products

The Other Nine: E-Commerce and ICT (DOC) Energy (DOE) Movement of Goods (USTR) Transportation (DOT) Food and Agriculture (USDA) Business Facilitation (DOS) Financial Services (Treas) Environment (DOS) Health (HHS)

Some Accomplishments to Date IPR Strategy for “Fake Free North America” Uniform in-advance electronic exchange of cargo manifest data

(maritime, railroad and motor carriers) 50% Reduction of Detroit/Windsor waits US-Canada PulseNet MOU New FAST Lanes on U.S.-Mexico Border Consumer Product Safety Agreements Food Safety Coordinating Task Force Harmonizing risk assessment mechanisms, and establishing protocols

to detect fraud and smuggling Ongoing ROO liberalization- $30 billion in goods affected NASTC Strategy Creation of avian/pandemic influenza coordinating body

2006 Initiatives“Cancun Five” priorities:

Smart, secure bordersEnergy securityEmergency managementAvian and Pandemic InfluenzaNorth American Competitiveness Council

North American Competitiveness Council(NACC)

Provides recommendations on North American competitiveness that could be addressed through the SPP

Help governments focus their efforts by applying a cost-benefit analysis to “prioritize the priorities”

North American Competitiveness Council

Membership- 10 private sector representatives from each country; 30 delegates total

U.S. Secretariat- Council of the Americas and U.S. Chamber of Commerce

Canadian Secretariat: Canadian Council of Chief Executives

Organization varies in each country

NACC Report

Enhancing Competitiveness in Canada, Mexico and the United States

Put forward more than 50 recommendations to strengthen North American competitiveness in global markets while improving safety and security

Report is divided into three priority areas

The NACC Report

1. Border-crossing facilitation: 23 recommendations for action in emergency management and post-incident resumption of commerce; expansion and improvements to border infrastructure; the movement of goods; the movement of people

2. Standards and regulatory cooperation: 18 recommendations to create a trilateral regulatory cooperation framework; engage in development of global technical standards; food and agriculture, financial services, transportation, intellectual property

3. Energy supply and distribution: improve energy supply security by strengthening cross-border distribution services, increasing skilled labor supply, promoting joint development of clean and efficient technologies

SPP Deliverables

Leading up to the August meeting in Canada:Regulatory Cooperation Framework Intellectual Property Protection Working GroupAvian/Pandemic Flu PlanEnergy Innovation and EfficiencySmart, Secure Borders agenda

Working groups will continue existing projects and identify new deliverables

SPP ConspiraciesMyth: The SPP was an agreement signed by Presidents Bush and his Mexican

and Canadian counterparts in Waco, TX, on March 23, 2005  Fact: The SPP is not an agreement nor is it a treaty. The SPP is a trilateral

effort to increase security and enhance prosperity through greater cooperation and information-sharing

 Myth: The SPP is a movement to merge the United States, Mexico, and

Canada into a North American Union with super courts, a ‘NAFTA Super Highway’ and a common currency

 Fact: The cooperative efforts under the SPP do not change our courts or

legislative processes nor does it consider the creation of a common currency or a new ‘Super Highway’

SPP Conspiracies (cont’d)

Myth: The SPP is being undertaken without the knowledge of the U.S. Congress.

 Fact: U.S. agencies involved with the SPP regularly update and

consult with members of Congress. 

Myth: The SPP is illegal; it violates the Constitution and infringes on the sovereignty of the U.S.

 Fact: Nothing in the SPP undermines the U.S. Constitution; the

cultural and legal framework of the three countries are intact. Any regulatory changes require conformity with all existing U.S. laws and administrative procedures, including notice and comment.

SPP Conspiracies (cont’d)

Myth: The working groups and SPP documents are secret and only businesses can provide input.

 Fact: The SPP’s initiatives and achievements can be found online.

Its webpage has a section where interested persons can provide input directly to the various working groups.

Myth: The SPP seeks to lower U.S. standards with the regulatory cooperation framework.

 Fact: The framework supports and enhances cooperation and

encourages compatibility of regulations while maintaining high health and safety standards. This will provide consumers with more affordable, safer, more diversified and innovative products.

Contact Information

Phone: 202-482-4705

Fax: 202-482-5865

Email: Emily.Barragan@mail.doc.gov