The U.S.-Canada partnership has delivered enormous benefits to both countries over many decades. The relationship transcends economic issues; it is rooted in history, shared values, and common security.
The 1988 Canada-U.S. Free Trade Agreement and its successor, the 1993 North American Free Trade Agreement, defined a new era of cooperation between our two countries and with Mexico. In the aftermath of 9/11, U.S. and Canadian officials fashioned the Smart Border Accord to expedite the movement of goods and people in what continues to be the world’s biggest bilateral trading arrangement. We are partners in the North Atlantic Treaty Organization (NATO), and we share responsibility for the defense of the continent through the North American Aerospace Defense Command (NORAD).
Through continued cooperation, we have built an enviable $1 trillion annual trade and investment relationship. But no relationship can afford to stand still. Over the past decade, new security layers, fees, rules, and inspections at the border have hampered two-way trade and reduced the efficiency of North American supply chains. Meanwhile, both of our economies are facing intense pressures from international competitors. To support jobs, strengthen our competitiveness and ensure future growth, it is vital to update our bilateral partnership.
In that spirit, we welcome this week’s announcement by President Barack Obama and Prime Minister Stephen Harper of the “Beyond the Border Action Plan” — a package of joint security measures and economic initiatives aimed at improving border efficiency and further strengthening U.S.-Canada trade and investment.
Why “Beyond the Border”? For the simple reason that the best way to address threats to our common security is before they reach our shores. Improved intelligence and information-sharing will enable U.S. and Canadian officials, working in close cooperation, to respond faster and more effectively to a wide range of risks and hazards — from natural disasters to fraud, pandemics, and terrorist attacks — while facilitating legitimate or low-risk trade.
Coordinated U.S.-Canadian technical standards for the collection, transmission, and matching of biometrics in real time will significantly strengthen our shared ability to identify and counter the small number of travelers who mean harm.
At the same time, the introduction of an integrated Canada-U.S. entry-exit system will improve mobility — and reduce costs to taxpayers — by eliminating the need for separate systems to track the comings and goings of citizens and other travelers.
For importers and exporters, “Beyond the Border” offers the prospect of reduced inspections and fewer delays in transporting goods. One key is a proposed cargo pre-clearance program that would allow admissibility decisions for low-risk traders to be made before rail and truck shipments actually reach the border.
One of the best ways to foster innovation, enhance economic growth and promote job creation is to simplify and better align Canadian and U.S. regulatory approaches. The joint Regulatory Cooperation Action Plan announced this week seeks to lower costs for businesses and consumers, increase trade and investment, and help U.S. and Canadian companies compete more effectively with new, strong rivals in global markets. The Action Plan highlights four initial areas for progress: agriculture and food, transportation, health and consumer products, and environment.
To a large degree, geography is destiny. The United States and Canada are each other’s most important trading partner. Eight million jobs in the United States depend on trade with Canada. Canada is the main export market for 35 U.S. states.
With our integrated supply chains, Canada and the United States do not merely sell goods and services to each other. We build things together and sell our products in global markets.
Our shared goal is to strategically position our two economies so that we can take maximum advantage of new opportunities. The “Beyond the Border” and Regulatory Cooperation action plans promise to create an even more robust economic relationship and strengthen our global competitiveness to the benefit of our citizens on both sides of the border.
Mr. Engler is president of the Business Roundtable, a trade association representing CEOs of major U.S. companies. Mr. Manley is president of the Canadian Council of Chief Executives, which represents CEOs of major Canadian companies.