Transportation Border Working Group Plenary Meeting Emily Barragan Office of NAFTA and Inter-American Affairs U.S. Depar

1. Transportation Border Working Group Plenary Meeting Emily Barragan Office of NAFTA and Inter-American Affairs U.S. Department of Commerce

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. Who Does What? • SPP is an interagency initiative • On the U.S. side: • White House/NSC • Security- DHS • Prosperity- Commerce Department • Coordination- State Department

9. 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 America • Aviation 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

10. 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)

11. 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

12. 2006 Initiatives • “Cancun Five” priorities: • Smart, secure borders • Energy security • Emergency management • Avian and Pandemic Influenza • North American Competitiveness Council

13. 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”

14. 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

15. 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

16. The NACC Report • 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 • 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 • 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

17. SPP Deliverables • Leading up to the August meeting in Canada: • Regulatory Cooperation Framework • Intellectual Property Protection Working Group • Avian/Pandemic Flu Plan • Energy Innovation and Efficiency • Smart, Secure Borders agenda • Working groups will continue existing projects and identify new deliverables

18. SPP Conspiracies Myth: 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’

19. 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.

20. 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.

21. Contact Information • Phone: 202-482-4705 • Fax: 202-482-5865 • Email: Emily.Barragan@mail.doc.gov