Smarter & Faster Borders: Are They Really? AAEA Annual Meetings NAFTA at Year Ten: Impacts & Issues for Canada, Mexico, & the United States Parr Rosson & Flynn Adcock Department of Agricultural Economics Texas A&M University

Two Distinct Eras Post CUSTA/NAFTA-Who’s in Charge??Post CUSTA/NAFTA-Who’s in Charge?? –Increased Truck/Rail/Noncommercial Traffic Focus on Drug Interdiction, Expediting Cargo, & Illegal ImmigrationFocus on Drug Interdiction, Expediting Cargo, & Illegal Immigration Post 9/11-Bureau of Customs & Border Protection in Charge!!Post 9/11-Bureau of Customs & Border Protection in Charge!! –Truck/Rail/Noncommercial Traffic Focus on Terrorism, Illegal Immigration, Drugs, Expediting CargoFocus on Terrorism, Illegal Immigration, Drugs, Expediting Cargo US Borders ‘Last Line of Defense’ Not FirstUS Borders ‘Last Line of Defense’ Not First

Smarter, Faster Borders ‘The Task at Hand’ Border InfrastructureBorder Infrastructure –5,252 mile border with Canada –1,989 mile border with Mexico –300 Land Ports of Entry-Exit –95,000 miles Coastline & Waterways –300 U.S. Seaports –429 Commercial Airports

What Was Done? Formed Dept. of Homeland SecurityFormed Dept. of Homeland Security –Customs, APHIS Inspectors, INS Inspectors & Border Patrol –Food & Drug Admin. Still Operates at Border, but Under Dept. of Health & Human Svcs. Improve Coordination, Control, Entry/ExitImprove Coordination, Control, Entry/Exit Many New Programs DevelopedMany New Programs Developed

Effective March 1 st, 2003 Department of Homeland Security Secretary Deputy Secretary Under Secretary Science & Technology Under Secretary Information Analysis & Infrastructure Protection Under Secretary Border & Transportation Security Under Secretary Emergency Preparedness & Response Under Secretary Management Transportation Security Administration U.S. Customs Service Border Security Functions: Immigration & Naturalization Service Animal & Plant Health Inspection Service Federal Law Enforcement Training Center

Selected Wait Times for Commercial Truck Entering the United States, July 25, Min 5-10 Min 15 Min 5-15 Min 10 Min El Paso Laredo Buffalo Detroit Blaine Brownsville Calexico Min 0 Min

Legislation/Regulations Bioterrorism Act 2002 (BTA)Bioterrorism Act 2002 (BTA) 24 Hour Notification Rule-NAFTA Exempt24 Hour Notification Rule-NAFTA Exempt FDA Prior Notice Rule: Noon Day BeforeFDA Prior Notice Rule: Noon Day Before FAST- US/Canada Expedited Cargo ReleaseFAST- US/Canada Expedited Cargo Release Customs-Trade Partnership Act Against Terrorism- Cargo Security (C-TPAT)Customs-Trade Partnership Act Against Terrorism- Cargo Security (C-TPAT) Automated Customs Environment (ACE)Automated Customs Environment (ACE) Container Security Initiative (CSI)Container Security Initiative (CSI)

SMART Border Accords- US/Canada 30 Point Plan PeoplePeople –Biometric Identification –Resident Cards –Visa Issuance Coordination –Air Preclearance –Compatible Data Bases –Joint Staffing by Immigration Officers

SMART Border Accords CargoCargo –Harmonized Processing –Preclearance Away from Borders –Joint Facilities –Share Customs Data –Target Containers at Seaports

SMART Border Accords Infrastructure & SecurityInfrastructure & Security –Intelligent Transport Systems –Protection –Aviation Security –Integrated Enforcement Teams –Fingerprints –Remove Deportees –Freeze Terrorist Assets

Implications Many New Programs at BordersMany New Programs at Borders Central ControlCentral Control Cargo & People Are Moving, ButCargo & People Are Moving, But Inconsistent Rules-FDA Not in DHS LoopInconsistent Rules-FDA Not in DHS Loop Still UnderstaffedStill Understaffed

Implications Concerns About CoordinationConcerns About Coordination Resolution of Prior Notification RuleResolution of Prior Notification Rule –Implications for Supply Chain Efficiency & Just-In-Time Delivery Consequences of Increased Terror ThreatConsequences of Increased Terror Threat Information Systems Compatibility in DHSInformation Systems Compatibility in DHS