How the Border Impacts the PNW Region Don Alper Professor and Director Border Policy Research Institute Western Washington University Presented at The Pacific Northwest Gateway to Asia: Trade, Energy and Managing Environmental Challenges Conference Union Club of British Columbia, Victoria, BC October 28, 2014 V

Context: Geography and Flows

North American Corridors

1. Cross border freight and people flows are concentrated in Lower Mainland/NW WA region 2. Large concentration of energy facilities and flows in the region Two Things About Flows in Cascadia

Origin & Destination of Trucked Freight Traversing Cascade Gateway Source: BPRI, 2014 A sub-regional transboundary freight zone Freight Flows--

People Flows – mostly linked to tourism and retail Source: Canadians Shopping in NW Washington, Border Policy Brief, BPRI, Spring 2-13

Energy Facilities/Flows in PNW

Basics on Border and Regional Flows Energy is largest cross border export and import – pipelines, rail and boats less impacted by border – convergence of S/N and E/W energy flows in Cascadia Excluding energy—BC is still main destination of WA exports to Canada, and BC is main source of imports (5.3B and 3.5B respectively) Over 90% of that traffic carried by trucks

Border Effects on Flows Costs – Delays, compliance with regs. Constraints on cross border worker mobility – Outdated worker categories (ie., NAFTA TN) – Inadmissibility policies (ie., DUIs) – Speed & predictability in obtaining worker permits – Complex business relations (short stays, permitted goods, etc.) Border bifurcates “Cascadia” tourism – 9/11 legacy (passport law, intimidating border) – Separate visas for Asian visitors

Overcoming Border Effects De-pressurize the border—inspect/clear away from border – Beyond the Border Initiative, 2011 Provide adequate resources for efficient mobility (most important--personnel, infrastructure)

Regional Opportunities Cross-border regional assets could be marketed more effectively in Asia and globally Location--access to two national markets; major ports Diverse, high skills workforce (inward migration a plus!) Two-nation vacation tourism Foster collaboration; build on existing relationships Region-wide synergistic orgs – Pacific Coast Collaborative – Pacific Northwest Economic Region – Governor-Premier Executive Process Industry associations that cross border – Clean Tech Alliance of Washington – PNW Aerospace Alliance – Washington Technology Industry Association – US and Canada chambers of commerce, numerous travel and trade assoc Cascadia-scale NGOs – EcoTrust – Sightline – Salmon Nation

Thank You.