1. Greening the Trade Corridors in North America: Why Corridors and Why Green? Benjamin Teitelbaum CEC, April 22 nd

2. The Background The Emergence of Cross-Border Regions –North American economic integration has focused primarily on national economic & environmental dimensions; –The Mexico-Canada-US trade agreement or NAFTA opened a new era in the way the three countries interact with one another with cross-border regional linkages playing an instrumental role in the process of North American integration. –A cross-border region often finds that key economic activities and clusters cut across borders.

3.  There are a large number of Corridor organizations along the borders of all three countries  These corridor organizations act as facilitators  Corridor organizations provide a mechanism for regional stakeholders to address “regional” as well as “national” issues  Provinces and states recognize that cross-border collaborations are important to their future prosperity  Corridor associations provide forums for building and enhancing NAFTA relationships and discussing issues on a regional basis Cross-Border or Trade Corridor Organizations

4. US, Canada and Mexico have recognized the reality and importance of these Corridors; However, they have not established formal policies that are consistent for developing these gateways across the continent; Example> there is no transportation policy to guide infrastructure developments that would facilitate continental economic integration and ensure environmental challenges are dealt in a NA context Obstacles

5. In 2001, a report prepared for the CEC examined the environmental impact of NAFTA trade on five bi- national segments of three primary trade corridors. The study found that NAFTA trade contributed significantly to air pollution in all the corridors. Greening The Trade Corridors

6. NA transportation routes and hubs are becoming continental and existing capacity is insufficient to accommodate increased trade Increasingly cross border “regional” Corridors are becoming National, Bi-National and Tri-National partnerships TODAY! The NA economy can best be visualized in this 21st Century as a deeply integrated continental system of supply chains structured by networks linking production centers and distribution hubs across the continent What is the situation in 2008 and the future

7. Governmental Response -Establishment of Corridors & Gateways based on National priorities (Canada >Asia Pacific Gateway, Ontario-Quebec Gateway & Trade Corridor; US> Alameda Corridor + Major Transportation capital investment; Mexico>Coast & Inland Ports, new and improved train infrastructures, etc.) -Development of new transportation infrastructures (Churchill > Plains>Kansas> Corpus- Christi > Laredo>Veracruz > Punta Colonet)

8. Green Corridors Need (1) Recognition of the Corridor framework as part of Trade & Environment The US Government under Equity Act for the 21st Century (TEA21) designates “High priority Corridors” > Canada & Mexico have no special designation Recognition of state & provincial cross-border regional focus as means of promoting & establishing National and Tri-national (NA) initiatives

9. Green Corridors Need (2) Recognition of the need for a NA approach to support the development of an integrated approach to resolving transportation & other infrastructural challenges i.e. Canada, US & Mexico could participate together in the establish a NA Intelligent Highway Program Result: safer movement of people & goods + energy efficiency = reduction of environmental and GHG impacts

10. Green Corridors Need (3 -CEC) Trade Corridors provide a unique opportunity for the CEC to pursue trade and environmental cooperation issues, and in the process fulfill the purpose for which the NAFTA side agreement on International Cooperation was drafted The principal action required at this stage in order to facilitate the CEC involvement in Corridor partnerships is for National Governments to designate Corridor and Green Corridor initiatives a priority of the CEC.

11. The Role of the CEC Facilitator: Help coordinate tri-lateral meetings between Corridor Associations and other regional stake-holders Support: Research, scoping & be a clearing- house (transportation & environmental data) Assist: In fostering inter-regional partnerships that include local, regional and national stakeholders

12. By Working directly with regional interlocutors both private sector and/or Corridor associations as well as regional/local governments the CEC would enhance efforts of National Governments in finding solution to NA transportation & environmental challenges