8 May 2008

Prentice launches assault on Canada-U.S. border woes

The following article is excerpted from the 8 May 2008 edition of “globeandmail.com”.

Heavy-handed security is turning the Canada-U.S. border into a "two-headed monster" that isn't making the continent safer or more prosperous, Industry Minister Jim Prentice says.

"We want security and prosperity. Instead, we make it difficult to have either," he told a Council of the Americas conference in Washington yesterday.

Businesses in Canada, the U.S. and Mexico are bearing the burden of lengthier delays, higher inspection rates, additional fees and more layers of security "when they can least afford it," he complained.

Mr. Prentice did not direct his sharply worded remarks specifically at the United States, but the subtext was unmistakable….

And while he vigorously defended Canada's part in reducing border delays and improving border infrastructure, Mr. Prentice cited several recent private sector reports that highlight growing problems at the Canada-U.S. border, mainly involving enhanced U.S. security.

These measures include more thorough food inspections and a variety of new document requirements.

"We are ... clearly misallocating our resources," Mr. Prentice said in his speech….

Letting the border problem fester could leave key industries, including auto making, dangerously exposed to offshore competition from emerging powers, such as China and India, he said. "The costs and delays of an automobile part as it travels across national borders on its way to final assembly adds several hundred dollars to the price of a North American-built vehicle," he added….

Speaking to reporters before his remarks, the minister said North America needs a fully integrated auto industry that can "take on all comers."

He said he chose to raise the border issue at the conference because the economy of the Americas is "built on trade and prosperity."…