1. FORO 2007 Transborder Library Forum Aron Davidson 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  NAFTA total trade increased over $510 billion since 1993 -- now $807 billion  In 2005, we traded $2.2 billion a day with our NAFTA partners -- $1.5 million a minute

3. The NAFTA Trade Perspective  Our trade with Mexico and Canada exceeds our trade with 25 EU member states and Japan COMBINED  Exports to Mexico & Canada account for $332 billion- approx. 37 percent 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. Who Does What?  SPP is an interagency initiative  On the U.S. side:  White House/N.S.C.  Security- D.H.S.  Prosperity- Commerce Department  Coordination- State Department

7. SPP: Myths v Facts 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’

8. 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

9. Timeline and Implementation  Secretary Gutierrez met with Canadian and Mexican colleagues and private sector to discuss creation of N.A.C.C. March 15, 2006  Heads of State Cancun Summit March 30-31, 2006  Prosperity Ministerial and Launch of the North American Competitiveness Council on June 15, 2006  2006 Report to Leaders Sept. 2006

10. 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

11. 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)

12. 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  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 R.O.O. liberalization- $30 bln in goods affected  NASTC Strategy (steel)  US-Canada PulseNet MOU  Creation of avian/pandemic influenza coordinating body  Mexico adoption of low-sulfur fuel standard

13. 2006 Initiatives  Five SPP ‘Cancun’ priorities:  Smart, secure borders  Energy security  Emergency management  Avian and Pandemic Influenza  North American Competitiveness Council

14. North American Competitiveness Council (NACC)  Purpose: provide recommendations on N. American competitiveness that could be addressed through the SPP  Value of high-level private sector input  Recommendations AND solutions to SPP Ministers

15. North American Competitiveness Council  Membership- 10 private sector representatives from each country  U.S. Secretariat- Council of the Americas and U.S. Chamber of Commerce  Organization varies in each country

16. Next Steps  NACC priorities to Ministers  SPP Ministers Meeting February 2007  Working groups to continue existing projects and identify new deliverables

17. The Value of Your Input: Why We Need to Hear From YOU  SPP is a fluid initiative and private sector is the driver  Tell us how the SPP can:  Make your company more competitive globally  Reduce the cost of manufacturing and exporting  Give us your recommendations on:  Cutting red tape and eliminating unnecessary barriers to trade

18. Useful Links  SECURITY & PROSPERITY PARTNERSHIP of NORTH AMERICA– http://www.spp.gov http://www.spp.gov  TRADE COMPLIANCE CENTER – http://www.tcc.mac.doc.gov http://www.tcc.mac.doc.gov http://ita.doc.gov/tradestats http://ita.doc.gov/tradestats  TRADE STATISTICS BY STATE – http://ita.doc.gov/tradestatshttp://ita.doc.gov/tradestats http://www.trade.gov/td/tic/ http://www.trade.gov/td/tic/  TRADE INFORMATION CENTER – http://www.trade.gov/td/tic/http://www.trade.gov/td/tic/ http://www.ustr.gov http://www.ustr.gov  UNITED STATES TRADE REPRESENTATIVE – http://www.ustr.govhttp://www.ustr.gov http://www.export.govhttp://www.export.gov www.buyusa.gov  EXPORT INFORMATION - http://www.export.gov www.buyusa.govwww.buyusa.govhttp://www.export.govwww.buyusa.gov

19. Contact Information  Phone: 202-482-1824  Fax: 202-482-5865  Aron.Davidson@mail.doc.gov Aron.Davidson@mail.doc.gov

20. Questions?