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NAFTA Partnership Report Outlines Actions on Trade, Security

 

(Sandler and Travis)

On June 27, the U.S., Canada, and Mexico released the first report of the Security and Prosperity Partnership of North America (SPP), which the leaders of the three NAFTA countries launched earlier this year. The SPP initiative is aimed at increasing trilateral cooperation on security matters and improving the region's competitiveness in the global economy. According to a press release from the Department of Homeland Security (DHS), Monday's report identifies initial results, key themes and initiatives, and work plans. Subsequent reports are due semi-annually.

New Initiatives
The report reflects the following commitments by the three NAFTA countries.

Trusted Traveler Program
A single, integrated program for North American trusted travelers will be created by 2008. Individuals applying for trusted traveler status will be able to apply for the program and pay relevant fees in one transaction. Enrolled participants will have access to all established trusted travel lanes at land crossings, airports, and marine programs.

Transportation and Trade Facilitation
Transportation and border facility needs will be reviewed and a plan to prioritize future port-of-entry-related infrastructure investments will be developed.

Programs are being considered to reduce transit times and border congestion by expanding trusted traveler programs to additional ports of entry and partnering with public and private sector stakeholders to establish "low-risk" ports of entry for the exclusive use of those enrolled in trusted trade and traveler programs.

The U.S. and Canada are working to reduce the transit times at the Detroit-Windsor gateway by 25 per cent within six months, and all three countries are exploring ways to expand this program to other North American land border crossings within the next 18 months.

By December, the U.S. and Canada expect to complete an agreement on a pre-clearance pilot program at the Peace Bridge in Buffalo, contingent on Canadian legislative amendments. Within six months, both countries will develop a plan to expand the Vancouver NEXUS-Air pre-clearance pilot program to other sites in Canada and examine the feasibility of extending eligibility for this program to Mexican nationals.

Rules of Origin
A second round of changes to NAFTA rules of origin has been agreed and a commitment has been made to complete negotiations on a third round of changes by May 1, 2006.

Intellectual Property Rights
A coordinated strategy will be developed by 2006 to combat counterfeiting and piracy, focusing on: (a) enhancing detection and deterrence; (b) expanding public awareness and outreach efforts; and (c) developing measurements to assess progress over time and estimate the magnitude of the problem.

Regulations and Standards
A trilateral Regulatory Cooperation Framework will be developed by 2007. The aim of this framework will be to strengthen cooperation among regulators and encourage the compatibility of regulations and the reduction of redundant testing and certification requirements while maintaining high standards of health and safety.

Sectoral Collaboration
A North American Steel Strategy will be put in place by 2006 in order to promote growth and competitiveness. The strategy will be developed and implemented through the North American Steel Trade Committee and will include provisions for policy coordination, improved market monitoring, and trade facilitation measures.

In addition, an Automotive Partnership Council of North America will be established to support the competitiveness of the automotive and auto parts sector. This council will help identify the full spectrum of issues that impact the industry, including regulation, innovation, transportation infrastructure, and border facilitation.

Integrated Screening Procedures
Compatible screening standards for land, sea, and air travel will be established to identify and intercept high-risk travelers and cargo before they depart for North America. Additionally, recommendations will be made on the enhanced use of biometrics in screening travelers destined for North America.

Maritime and Aviation Security
Progress will be made toward comparable standards for hold baggage and passenger screening, implementing no-fly programs throughout North America, and developing new protocols for air cargo inspection. Work will also be done to develop compatible maritime regulatory regimes.

Incident Management
North American preparedness for response to large-scale incidents will be transformed through the establishment of protocols for incident management that impact border operations within 12 months. Protocols will also address maritime incidents, cross-border public health emergencies, and cross-border law enforcement response.

Existing Measures
In addition, a number of measures have already been taken under the SPP, including the following.

Border Infrastructure
The U.S. and Mexican governments have completed the reviews necessary to approve construction of two new commercial lanes at Nogales, AZ. Construction is scheduled to be completed within six months, with an opening by November 2005.

The U.S. and Canada have identified the Thousand Island Bridge as the site for the second land pre-clearance pilot program. All Canadian border operations would be re-located from Lansdowne, Ontario, to Alexandria Bay, NY.

The U.S. and Canada have reached an agreement to increase capacity on the U.S. side of the Blue Water Bridge by 17 per cent.

Canada has completed pilot projects to test Weigh-In-Motion (WIM) technology at Canada-U.S. border crossings and will pursue broader implementation. This initiative will take advantage of state-of-the-art technology to capture, analyze, and exchange traffic flow data without impeding border trade, thus enhancing transportation flexibility and efficiency.

Rules
The rules of origin for household appliances, precious metals, and various machinery have been liberalized, affecting $20 billion in annual trilateral trade. An arrangement was reached to harmonize care symbols on textile and apparel labels; it is expected to be signed in July.

Public Health - The U.S. and Canada signed a memorandum of understanding (MOU) to enhance cooperation on public health and safety protection related to the safety of consumer goods. The U.S. and Mexico are negotiating a similar MOU.

All three countries agreed on a harmonized approach to mad cow disease (bovine spongiform encephalopathy, or BSE) to provide continued protection of human and animal health while also establishing a framework for safe international trade opportunities for cattle and beef products from Canada, Mexico, and the U.S.

 

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JULY . 2005