A Safe and Smart Border

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    F h Aica auhChristopher sands

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    A SAFe AndSmArt Border:The Ongoing Quest in

    U.S.-Canada Relations

    Christopher sands + LaUra dawson

    2One Issuetwo voices

    I s s u e 15 s e p t e m b e r 1 2

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    IntroductIon In the last two decades, theentire system o international trade has changed

    rst with the round o ree-trade agreements, then

    with the growth o g loba l supply chains, and, ater

    September 11, with the ocus on ever-tighter bor-

    der security and regu lation. Te Beyond the Border

    (BB) and the Regulatory Cooperation Council

    (RCC) Action Plans are just the latest steps in the

    negotiations between the United States and Canada

    to strengthen the worlds largest trading relation-

    ship and enhance the security o their people.

    he experts writing the essays here set out theirviews o the radically dierent American and

    Canadian approaches to the new border strategy. Our

    American author, Christopher Sands, senior el low at

    the Hudson Institute, argues that the United States

    has its own agenda in these talksone that is irmly

    rooted in his countrys goals in the global economy

    and in the real ity o the political system at home. He

    examines six issues that always dominate this agenda:

    inclusivity, exclusivity, reciprocity, replicability,

    portability, and expediency. No matter who wins the

    election in November 2012, Barack Obama or MittRomney, these objectives will not change. In its nego-

    tiations with Canada , the United States will continue

    to seek a single North American market or goods

    and services that can compete with a rising China, a

    revived Europe, and other global economies.

    Our Canadian author, Laura Dawson, a special-ist in Canada-U.S. economic relations and president

    o Dawson Strategic, agrees that the United States

    operates rom this international perspective. Canadas

    greatest stumbling block in negotiating with the

    United States, she says, is its nostalgia or an exclusive

    special relationship with its southern neighborone

    that never really existed. Canada would be ar smarter

    to accept that the United States will extend the dea ls it

    makes within North America to other countries and to

    prot by being there rst. It should also set out to win

    needed riends among the congressional representativesand special interests in the northern states and combine

    its goals with theirs or cross-border trade and mutual

    support in Washington. Perhaps Canadas greatest

    challenge is to manage expectations at home: the sae

    and smart border both countries want will come not

    through glamorous summits between our leaders but

    through diligent work by mid-level ocials in drating

    documents and dening strategies.

    Te Canada Institute thank s the authors or their

    incisive perspective on a critical and complex issue in

    the ongoing bilateral dialogue.

    stePHANie MLUHAN

    Pam cnulan (tn)

    canada inu

    spm 2012

    One Issue Two Voices2

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    issue 15 September 12 3

    Te decade o the 1990s was a turning point or the U.S.

    international trade agenda. Te Canada-U.S. Free rade

    Agreement (CUFA, in eect 1989), the North American

    Free rade Agreement (NAFA, 1994), and the Uruguay

    Round Agreement (1996), which transormed the General

    Agreement on aris and rade (GA) into the World

    rade Organization (WO), collectively reduced the

    importance o taris and investment restrictions as barri-

    ers to trade. At roughly the same time, the application o

    inormation technology made possible an advanced and

    global logistics system that ostered the growth o globalsupply chains or industrial and other production. As a

    result, the longstanding model o rms concentrated in a

    single country and trading nished products with one an-

    other was gradually displaced by a new model, one where

    cross-border networks o rms, assisted by transnational

    commercial services, produced things together. A growing

    proportion o international trade ater the 1990s was com-

    posed o intra-industry and even intra-rm trade.

    Tis new structure o international co-production

    was vulnerable in two ways: transaction costs related to

    crossing borders, and regulatory dierences that pre-vented identical components and nished products rom

    being sold in multiple markets. Both border security and

    national and subnational regulation had existed or cen-

    turies, but the removal o taris and investment restric-

    tions, combined with the improvement o global logistics,

    made these venerable unctions o governments signicant

    contributors to costs and competitiveness.

    Over time, governments eared that these restrictions

    could lead rms to alter their investment strategies and

    reallocate productionand with it, jobs and economic

    activity. o a certain extent ater the 1990s, the countriesthat oered the most avorable security and regulatory

    policies to business were in a position to attract more

    investment, jobs, and production. In this sense, countries

    were in competition with one another or a share in the

    global economy and its benets, and the international

    trade agenda ocused on making security and regulatory

    approaches supportive o the new model o international

    trade. Most oten, but not always, the United States took a

    leading role in promoting global norms and standards that

    would allow it to remain the worlds leading economy.

    It is in this context that the current negotiations on

    border security cooperation by the U.S.-Canada Beyond

    the Border working group (BB), along with the current

    bilateral ta lks on streamlining regulatory processes and

    standards by the U.S.-Canada Regulatory Cooperation

    Council (RCC), are properly understood. Both the BBand the RCC are simply the most recent iterations o a

    conversation among the United States, Canada, and the

    other major economies o the world. At stake is the shape

    and extent o continuing participation by our two coun-

    tries in global economic activity.

    Will these talks work to bring the two countries closer

    together, and will they advance the national interests o

    Canadians and Americans? wenty-three years ater

    CUFA and 18 years ater NAFA, the series o attempts

    by the United States to engage Canada and Mexico in

    security and regulatory cooperation has accomplishedvery little. Yet it is signicant that leaders o these

    Christopher Sands

    secUriNg tHe PeriMeter:wHAt it wiLL tAke to Do A DeAL witH tHe UNiteD stAtes

    Bh h BtB a h rCC a

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    One Issue Two Voices4

    countries have persisted in such eorts despite diculties

    and intervening events. Te importance o this agenda

    or the competitiveness o both the U.S. and the North

    American economies is accepted on a bipartisan basis in

    the United States, despite the critics in both parties who

    have been alienated by misperceptions o the various

    structures needed to pursue this agenda.

    It is thereore probable that whether Barack Obama

    is re-elected or replaced by Mitt Romney ater Novem-

    ber 2012, this agenda wil l continue to dominate rela-

    tions between the United States and its neighbors. Giventhe legacy o past eorts, the ultimate success o the

    U.S.-Canada BB and RCC Action Planswhether

    they continue and perhaps make progress where previ-

    ous eorts have ailedwill depend on how well these

    initiatives address six issues that have conronted every

    similar attempt to date: inclusivity, exclusivity, reciproc-

    ity, replicability, portability, and expediency.

    iNcLUsivity

    Te Chrtien government in Canada had the right ideawhen, to balance its campaign against implementation o

    the Section 110 requirement or entry-exit record keep-

    ing contained in the U.S. Illegal Immigration Reform and

    Immigrant Responsibility Act of 1996, it reached out to

    stakeholders in boardrooms and nearby towns on both

    sides o the border and opened up a dialogue with civil

    society groups ranging rom environmentalists to labor

    unions. Tis diplomatic eort resulted in several initia-

    tives: the Shared Border Accord o 1995 (which set out

    mutual commitment to the principles o security coopera-

    tion and trade acilitation) was ollowed by the Border

    Vision Initiative o 1997 (which added a mutual commit-

    ment to inrastructure modernization and new technol-

    ogy), the Cross-Border Crime Forum o 1997 (which

    introduced the concept o Integrated Border Enorcement

    eams, essentially joint law-enorcement task orces othe sort used in the United States to coordinate ederal,

    state, and local police orces but now binational), and the

    Canada-U.S. Partnership o 1999 and 2000 (which was

    intended to rally stakeholders in border communities).

    Te resulta new coalition or change and many new

    ideas or how to improve border operationsormed the

    basis or the U.S.-Canada Smart Border Declaration and

    Action Plan signed in December 2001. It allowed Canada

    to engage the U.S. government constructively to improve

    border security in the atermath o the September 11,

    2001, terrorist attacks.Subsequent eorts to address border and regula-

    tory cooperation have lacked this oundation. As talks

    became urther removed rom border communities and

    citizens, their legitimacy in the eyes o many voters ell

    and progress became more dicult. Tis dynamic atally

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    issue 15 September 12 5

    undermined the Security and Prosperity Partnership

    (SPP), introduced by the George W. Bush administration,

    which was the primary vehicle or security and regulatory

    cooperation in North America rom 2005 to 2009. Over

    time, critics charges about the supposed hidden agendas

    o the SPP became the accepted views or many citizens.

    Regardless, business, civil society, and state govern-

    ments repeatedly expressed interest in the SPP and

    support or some o its objectives. Te BB and the RCC

    have sought to garner this interest through outreach,

    soliciting ideas or uture years, and partnering with com-

    munities on local pilot projects. Customs port directors

    have been instructed to engage with their local communi-

    ties, and regulators have been told to reach out to industry

    groups and interested NGOs. Although these initiatives

    certainly signal an improvement in the BB and RCC

    models over previous eorts, this outreach and engage-ment must be sustained i they are to achieve success, and

    they will soon need to show tangible results.

    excLUsivity

    Te Obama administration has ollowed the Bush ad-

    ministrations policy during the SPP period, excluding

    the Congress rom a ormal role in border and regula-

    tory cooperation talks with Canada and other countries.

    With the Congress wracked by partisan division, there is

    good reason to be pessimistic about the potential or it toparticipate in a constructive manner. Yet this exclusion

    weakens the prospects or these talks and could ultimately

    undermine them completely.

    Te U.S. Congress can aect the BB and the RCC in

    three ways: budget, statute, and oversight. First, Congress

    approves the budget and determines which projects and

    initiatives will receive unding. On a provisional basis,

    the engagement o U.S. civil servants in these talks can

    be unded out o existing resources, but ocials have

    other responsibilities and their time is nite. In addition,

    the U.S. scal situation is terrible, marked by repeatedcongressional votes over the past year to raise the debt

    limit or the U.S. government and an ongoing debate over

    tax cuts. Al l departments and agencies ace the likelihood

    o uture budget cuts, which inevitably will orce choices

    about which activities can be sustained as resources

    shrink. Key to the BB and the RCC are pilot and

    demonstration projects to be undertaken on a small-scale,

    local basis beore those which prove successul are widely

    adopted. Funding or these eorts will become more

    dicult to secure, and the unding or extending them

    to other localities will be even more dicult i they are

    limited to each departments existing resources. Sooner

    or later, the Congress will constrain or empower the U.S.

    executive branch to pursue the BB and the RCC.

    Second, many o the duplicative U.S. regulations and

    security policies that most rustrate Canadians have their

    origins in Congress, rom Section 110 changes to the

    Western Hemisphere ravel Initiative. Congress decides

    which border crossings, a irports, and seaports get inra-

    structure, personnel, and technology upgrades. When it

    comes to regulation, Congress determines whether the

    Food and Drug Administration or the Department oAgriculture inspects certa in products, and whether the

    Department o Energy or the Environmental Protection

    Agency has jurisdiction over renewable energy stan-

    dards. I BB and RCC talks make progress, they will

    inevitably run into problems that are congressional in

    origin and cannot be resolved without Congress. When

    the Oce o the United States rade Representative

    (USR) was established in 1962 to replace the State

    Department as the leading U.S. negotiator or interna-

    tional trade agreements, the transer recognized the act

    that Congress has constitutional authority over tarisand that no treaty negotiated without congressional

    consultation would win Senate ratication. Te USR,

    or an entity like it, should now be authorized to pursue

    border and regulatory cooperation agreementsbut

    until that is done, the BB and the RCC are at risk o

    confict with Congress.

    reciProcity

    In the United States, border security and regulatory re-

    orm are domestic policy topics and have been the subjectso presidential initiatives in most recent administrations.

    Te policymaking dynamics o these talks are relevant

    to the prospects o negotiating changes with a oreign

    partner because they make it more dicult or the United

    States to oer concessions.

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    One Issue Two Voices6

    By constitutional design, the U.S. government is built

    on competition. Within the executive branch, this rivalry

    is expressed by departments that jockey with one another

    over jurisdiction and budget; within each department,

    a similar competition occurs among bureaus, oces,

    and agencies. o an outsider, this system produces odd

    results. Why is the National Oceanic and Atmospheric

    Administration part o the Department o Commerce

    rather than the Department o the Interior? Why is the

    Department o Veterans Aairs running a network o

    hospitals separate rom the Department o Health and

    Human Services? In all such cases, the results stem rom

    policy battles won and lost within a previous administra-

    tion. Tere are no rm rules against overlap, tur swap-

    ping, or encroachment, or even the sudden creation or

    dissolution o an entire department o the U.S. govern-

    ment. I an oce gives up something, another rival mighttake it upalong with the resources previously associated

    with that unction.

    Trough a process economists have labeled regulatory

    capture, the U.S. government departments and agen-

    cies responsible or regulation and inspection both at the

    border and across the U.S. economy have developed close

    relationships with powerul lobby groups and NGOs that

    participate actively in rule making and in shaping govern-

    ment enorcement practices. Attempts to alter the way

    that something is regulated or inspected requently trigger

    countervailing pressures rom these groups.Eventually, the BB and the RCC will run into these

    policy dynamics by requesting the United States to

    stop doing something that is hurt ing trade. Te agency

    responsible or the particular area will have to consider

    whether, i it gives up the activity, it will get anything

    in return. I nothing, or i it loses something, it would

    consider how long it could stall in the hope o being

    rescued by a new president or by Congress. In addition,

    it would weigh whether the aected interest groups, who

    command more campaign donations and votes than or-

    eign interests, would work against the change, seeking toreinstate a rule or practiceperhaps by having respon-

    sibility or this area reassigned to another department or

    agency over which it can have infuence.

    In contrast, any concessions oered by Canada through

    the BB or the RCC will be graciously accepted. Should

    Canada agree to share particular data, or example, the

    U.S. department or agency involved stands to gain in the

    internal competition over policy within the U.S. govern-

    ment because, armed with Canadian data and/or coopera-

    tion, it has something its rivals lack. Tis advantage might

    secure resources or expanded responsibilities; the particular

    department or agency could well be designated as thepolicy lead actor within the U.S. government or a particu-

    lar area. It is only when Canada seeks some concession in

    return that it will encounter reluctance and excuses rom

    the U.S. side. Without greater reciprocity, the BB and the

    RCC could become largely one-way processes that lead to

    Canadian convergence on extant U.S. standards and prac-

    ticesan outcome that may become dicult or Canadian

    governments to sustain politically.

    rePLicAbiLity

    Security ocials are cautious by nature, and U.S. regula-

    tors, nervous about the political support or regulatory

    changes negotiated with oreign partners, have been sim-

    ilarly circumspect since the NAFA ratication debate

    and the outcry over the SPP. Tis attitude has shaped the

    BB and the RCC in two ways: the ocus o both eorts

    on low-hanging ruit agenda items, and the emphasis

    on pilot projects as a prerequisite or larger changes.

    Low-hanging ruit is a avored Washington metaphor

    or gains that can be harvested with little eort. Al-

    though such opportunities may be limited, negotiatorshope that early success will build support and momen-

    tum or progress on objectives that are more dicult

    to reach. Since NAFA, such easy items have lled the

    agendas o the serial eorts at border and regulatory

    cooperation, refecting the diculty o making gains as

    I h Ui Sas, b scuiy

    a gulay a sic

    plicy pics a hav b h

    subjcs psiial iiiaivs i

    s c aiisais.

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    issue 15 September 12 7

    well a s the limited ambitions o the negotiators, particu-

    larly when conronted by public or political resistance.

    I momentum or more dicult issues has not been

    attained beore the current list is accomplished, the BB

    and the RCC could stall.

    Te heavy reliance on smal l-scale demonstrations

    and pilot projects in the BB and the RCC limits the

    impact that either initiative can have without expand-

    ing the best practices derived rom these experiments.

    In a sense, like low-hanging ruit, these trial changes

    can be undertaken with ew la rger consequences until

    the point where the experiment is deemed a success

    and its innovation becomes a standard practice or is

    replicated elsewhere.

    For lack o unding or political support, U.S. govern-

    ment participants in a pilot project have but two options:

    to ask that it be continued to gather more data beoreproceeding, or delayed or scaled back during the imple-

    mentation phase. Despite the already limited ambition

    expended on these objectives and projects, there is always

    the danger that these eorts might succumb even urther

    to caution. Tis nervousness is a key vulnerability or both

    the BB and the RCC, and, moreover, one that is more

    pronounced than in previous negotiations on border and

    regulatory cooperation.

    PortAbiLity

    Notwithstanding the Harper governments preerence

    or re-bilateralization, the United States has viewed

    negotiations with its neighbors in a global context. Even

    NAFA was pursued by the United States in light o the

    progress o European integration and the Uruguay Round

    o the GA talks. Breakthroughs on energy, investment,

    services, and dispute resolution pioneered in CUFA

    were used by U.S. negotiators as models or NAFA

    and the World rade Organization. Ater September 11,

    2001, the U.S. and Canadian governments agreed to pilot

    the Container Security Initiativeto inspect shippingcontainers jointly in each others portsand the United

    States quickly began talks with other major partners in

    Europe and Asia to adopt similar practices. NEXUS, the

    U.S.-Canada trusted traveler program, was replicated or

    Mexico as SENRI and also gave the impetus to Global

    Entry, a program or U.S. citizens and permanent resi-

    dents traveling anywhere in the world.

    Already the United States has linked its negotiations

    with Canada on clean energy, border security, and regula-

    tory cooperation with parallel bilateral talks with Mexico.

    It has also incorporated these themes in the rans-Pacic

    Partnership negotiations, in ransatlantic Partnership talks,

    and in the Pathways to Prosperity in the Americas initiative

    with several Latin American and Caribbean partners.

    o the extent that Canada is seeking not just to resolve

    its U.S.-market access problems through the BB and

    the RCC but also to gain an advantage over other U.S.

    trading partners such as Mexico, the U.S. practice o tak-

    ing ideas that work with one partner and applying them

    to other partners will undercut the exclusiveness o any

    Canadian gains, even as it standardizes U.S. procedures

    and practices with as many oreign partners as possible. Atthe same time, the United States will use concessions by

    other trading partners to pressure Canada to adopt them

    as well. Te bilateral structure o the BB and the RCC

    does not provide any protection rom U.S. promiscuity in

    pursuit o security and regulatory cooperation globally.

    For the United States, these concurrent negotia-

    tions compete with one another to provide benets to

    the national interest, and the portability o any new

    approach is an important consideration. Solving a

    unique local problem is less urgent than setting a new

    global standard or developing a new concept that cantransorm the handling o a larger volume o inspections

    or regulatory transactions. For the U.S. regulators and

    security ocials participating in the BB and the RCC

    with Canada, then, the stakes are high or any potential

    change. Canada is not likely to remain a specia l exemp-

    tion or long, and concessions requested by Canada

    on the grounds o the unique riendship between the

    two countries will not necessarily be viewed as mod-

    est changes by the U.S. side. Even where a proposed

    change is logical and may seem inevitablesuch as the

    development o common orms or a protocol or sharingdata that each country keeps in a similar mannerthe

    portability issue wi ll give U.S. ocials a reason to delay,

    either to orestall the change or to hope that a more

    advantageous arrangement can be achieved with another

    partner and used as a model or Canada later.

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    One Issue Two Voices8

    exPeDieNcy

    An additional challenge or the BB and the RCC in 2012

    is that Washington has been preoccupied with the upcom-

    ing November elections. Tat has meant waning presiden-tial attention and a closing window o opportunity or

    meaningul accomplishment until the election is over.

    Ever since the launch o the BB and the RCC,

    Canada seems to have assumed that the U.S. governmen-

    tal process is undamentally similar to that at home: when

    the chie executive and head o government has commit-

    ted to change in Canada, the bureaucracy is bound to

    ollow, despite any policy objections or institutional reluc-

    tance. But the United States does not operate that way:

    here, dissenting civil servants must be harried by political

    appointees to move orward on issues they object to, andboth time and the electoral cycles o U.S. politics avor

    the tenured civil servant who can delay action in numer-

    ous ways. When an election approaches, much o the U.S.

    presidents time is taken up by campaigning and undrais-

    ing, and many o the most talented political appointees

    in the administration leave government to join in the

    campaign or to take lucrative private sector positions. Tis

    distraction makes progress on domestic or international

    initiatives increasingly dicult.

    In the shadow o the 2012 election, what can the BB

    and the RCC hope to accomplish? At best, they will

    make limited gains on easy goals, gather data on promis-

    ing new ideas being tested in pilot projects, and advance

    discussions on trickier issues. Yet they may also prepare

    the ground or a burst o accomplishment ollowing the

    election i President Obama is re-elected. In the event that

    he is not, the bipartisan consensus avoring border and

    regulatory cooperation with U.S. oreign partners andto promote the competitiveness o the U.S. and North

    American economies will eventua lly bring a Romney

    administration to the table. At that point, the BB and

    the RCC will likely be renamed and relaunched, but the

    substance o the agenda will remain the same. Even tenta-

    tive progress achieved by the BB and the RCC will be

    the basis or gains ater 2012.

    LookiNg ForwArD

    Perhaps the greatest potential accomplishment o theBB and the RCC would be to oer the governments o

    Canada and the United States urther lessons on how to

    structure uture initiatives to promote greater coopera-

    tion toward the larger goal o NAFA: a single North

    American market or goods and services that can com-

    pete with a rising China, a revived Europe, and other

    global economies.

    Tese two bilateral initiatives ace long odds, but they

    are part o a larger agenda o global economic liberaliza-

    tion in the 21st century. As such, Canada and the United

    States will return to discuss their substance, spread theiraccomplishments as best practices with other partners,

    and study why they ailed to achieve morelong ater

    most Canadians and Americans have orgotten what BB

    and RCC stood or and how they came about.

    Alay h Ui Sas has lik is giais wih Caaa

    cla gy, b scuiy, a gulay cpai wih paalll

    bilaal alks wih mxic. I has als icpa hs hs i h

    tas-Pacic Paship giais, i tasalaic Paship alks,

    a i h Pahways Pspiy i h Aicas iiiaiv wih sval

    Lai Aica a Caibba pas.

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    issue 15 September 12 9

    Laura Dawson

    tHe cANADA-U.s. borDer ActioN PLAN:tHis tiMe its For reAL, cHArLie browN

    It has been a long time since Canada-U.S. watchers have

    had a big deal to consider. Te 1989 CanadaUnited

    States Free rade Agreement was one. Te 2012 Beyond

    the Border Action Plan (BB) may be another, but its a

    long shot.1

    In January 2012, a joint stakeholders meeting was

    hosted by the U.S. Chamber o Commerce in Washington

    in the Hall o Flagsthe baronial splendor o the hall was

    tting or the gathering o the clans taking place within.

    Te standing-room-only crowd represented dozens o eco-

    nomic sectors and government departments in both coun-

    tries and hundreds o disparate interests, most searching

    or a ramework or change.

    Te paint is still wet on the border plan, but expecta-

    tions are running high. Te agreement could be torpe-

    doed by many things: the absence o a clearly dened

    legal basis or the agreement, a U.S. domestic crisis that is

    provoking instincts to close markets, economic paralysis

    in the EU, a xation on Asia and emerging markets that

    leave Canada as an aterthought, and a U.S. election thatis ocused exclusively on domestic issues. Despite the

    cards stacked against the BB, both sides are starting to

    see a aint glimmer o hope. Tis idea just might work.

    Te U.S. speakers at the Chamber o Commerce gave

    a strong opening to the 250 assembled stakeholders. Cass

    Sunstein, until recently the White House wunderkind

    and administrator o the Oce o Inormation and

    Regulatory Aairs, assured the audience that political

    attention was being paid at the highest levels. Alan

    Bersin, the assistant secretary o international aairs

    at the Department o Homeland Security, likened theborder plan to a reconciliation o the War o 1812. And

    David Heyman, the assistant secretary or policy at the

    Department o Homeland Security, compared the border

    perimeter approach to NORADa big idea with a huge

    capacity or transormation.

    Te Canadians, as is their nature, were more sanguine

    about prospects or a new border security and prosperity

    agreement with the United States. Still, many at the

    Chamber event were starting to get that Charlie Brown

    lookthe one that says they know Lucy is going to pull

    the ball away, but the chance o one glorious kick is just

    too good not to take a chance.

    wHy Do we NeeD it?When our leaders signed the rst U.S.Canada ree

    trade agreement more than 20 years ago, they imagined

    a hassle-ree border where businesses on both sides could

    take advantage o the best available resources, know-how,

    and markets and generate cost savings through just-in-

    time production. Since then, ramped-up security, eroding

    inrastructure, and too much red tape have orced busi-

    nesses to shit to just-in-case production. Tey routinely

    double order and stockpile expensive inventory to hedge

    against border bottlenecks.Border delays between the United States and Canada

    add about $800 to the price o every new vehicle manu-

    actured in North America. A car manuactured in Korea

    or Japan clears customs only once when it arrives at a

    U.S. port, but a North American car is subject to ees and

    inspections at least seven times as it crosses between the

    United States and Canada (and increasingly Mexico) in

    eciss sia ha up

    10 pc h cs a nhAica puc gs pay

    b a a icicis

    h U.S. b wih Caaa.

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    One Issue Two Voices10

    dierent stages o production. Economists estimate that

    up to 10 percent o the cost o a North American product

    goes to pay or border and trade ineciencies on the U.S.

    border with Canada.2

    Te advantage created in 1994 by integrating U.S.,

    Mexican, and Canadian manuacturing under the North

    American Free rade Agreement (NAFA) has been

    lost to layers o regulatory duplication. For many inthe United States, NAFA is old news and Canada is

    perceived as a sort o a reliable upper Minnesota. People

    know its there, but the absence o crisis means it is out

    o mind. All eyes are turned to China,3 but this xation

    is premature. Even though U.S. exports to China have

    tripled over the past decade, they account or only 7 per-

    cent o Americas total exports. Canada buys nearly three

    times as many U.S. goods as China does. Canada is the

    top export destination or 34 U.S. states,4 and an esti-

    mated 8 million American jobs (4.4 percent o total U.S.

    employment) depend on trade with Canada.5

    wHAt is it?

    Te new U.S.-Canada Beyond the Border Action Plan

    and the related Regulatory Cooperation Council attempt

    to reverse the decline o North American competitiveness

    by creating a border that is not only sae but smart. Te

    plan, released in December 2011, contains dened actions

    tied to specied deadlines, including

    pilot programs that will allow cargo to be pre-

    screened on the actory foor;

    harmonized procedures or data collection andadministration;

    single shipping windows in the United States and

    Canada which are also smart enough to talk to

    each other;

    trusted-trader programs that are accessible to small-

    business exporters;

    aster and more predictable crossings or business

    travelers;

    easier movement or technicians who provide ater-

    sales service;

    better trac management approaching, and at, theborder, including road signs with real-time inorma-

    tion on border wait times; and

    improved inormation-sharing and identity verica-

    tion so that people engaged in legitimate trade and

    travel reach their destinations sooner.

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    Te immediate prospects or the initiative look good.

    Te initial work plan captures irritants that Canadian

    and American ocials have been complaining about or

    years but have lacked the political attention to x. Te

    real challenge is whether the agreement can move beyond

    short-term political deliverables to provide a ramework

    or long-term change. o do so, the two governments will

    have to create new instruments or legal, institutional, and

    political cooperation which have historically been out o

    reach in CanadaU.S. relations because o their potential

    eects on policy, sovereignty, and domestic control.

    Lessons learned rom past history can improve pros-

    pects or success as long as we avoid alling into the same

    traps. But as with any close relationship, the sources o

    our strength can also be the qualities that undermine us.

    Tese double-edged dynamics, discussed below, include

    the legacy o the special relationship, an uneven view heldby Canadians and Americans o the importance o the

    agreement, and the linkage with U.S. allies who are most

    likely to share Canadian interests.

    tHe PitFALLs oF tHe sPeciALreLAtioNsHiP

    For Canada, the concept o the special bilateral relation-

    ship between two like-minded allies is a dening charac-

    teristic o our engagement with the United States. It is a

    dynamic that Canada seeks to replicate whenever possible.Te trilateralism o NAFA was only grudgingly accepted

    as an alternative to being shut out o U.S. bilateral talks

    with Mexico.6 Nostalgia or this relationship undermines

    Canadian interests whenever Canadas desire to be special

    competes with pragmatism and recognition that, as the

    worlds largest economy, the United States oten gets what

    it wants at the bargaining table.

    Trough the BB, Canada gets the one-on-one atten-

    tion it craves. It is also true that Canada can oten prog-

    ress aster with the United States alone than with Mexico

    in the room, when dierent levels o development anddierent border priorities change the tenor o the discus-

    sions. Without the weight Mexico can provide, however,

    Canada lacks the infuence to counter American propos-

    als it does not agree with. Returning to the dynamics

    o Charlie Brown and Lucy, Canada cares ar too much

    about the special relationship. It gives away the leverage

    that its importance to United States should bring precisely

    because it wants too much to be loved. Te United States

    knows that Canada will never walk away rom the table.

    Despite the Canadian impulse to guard the bilateral

    relationship, Canadas interests are not well served by

    keeping its security and prosperity partnership with theUnited States as an exclusive club. Canada has growing

    trade interests around the world. As relevant elements o

    the BB are applied in more economic spheres (North

    America, South and Central America, Asia, and the

    European Union), Canada will increasingly benet as one

    o the architects o the agreement.7

    cULtivAtiNg ALLiANces

    Te Security and Prosperity Partnership o North

    America (SPP) negotiated in 2005 among Canada,Mexico, and the United States is dead, and NAFA,

    while eective in governing traditional trade issues (tar-

    is, rules o origin, customs classication, and the like),

    has reached the limits o its useulness as an instrument

    o North American economic governance or as a platorm

    rom which to build uture competitiveness. NAFA

    lacks an eective mechanism to amend or update the

    agreement because its ramers avoided any commitments

    that would cede domestic economic authority to a supra-

    national decision-making process. As a result, unlike the

    European Union, NAFA is a tool o economic integra-tion that contains ew mechanisms or institutional or

    political integration.

    Te BB may help to provide the ramework to bring

    the out-o-date NAFA provisions into the 21st century.

    I the BB is to avoid a similar short shel lie, however,

    F Caaa, h ccp h

    spcial bilaal laiship bw

    w lik-i allis is a ig

    chaacisic u gag

    wih h Ui Sas.

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    One Issue Two Voices12

    it must make powerul riends in Congress who accept

    that, or North America to be competitive in the global

    economy, it needs to allow additional trading partners

    into the inner circle o U.S. rule making.

    Political support is the rst step to moving the BB

    orward, but commitment at the working levelin

    departments and agencies with trade, economic, and

    security responsibilitiesis key to creating an agreement

    that delivers results or cross-border trade and travel. TeDepartment o Homeland Security (DHS) is the lead

    player in the interagency process in the United States.

    Tis leadership is helpul or Canada because it ties its

    interests to a powerul entity able to mobilize the political

    and scal resources necessary to keep BB afoat within

    the competitive U.S. interagency process. At the same

    time, DHS control skews the content o the agreement

    toward security concerns.

    Canada may be able to hold the ocus on economic

    objectives somewhat by taking advantage o the act

    that U.S. ocials never have enough time or resourcesto devote to policy analysis. I Canada is willing to do

    the sta work required to drat technical proposals that

    are sensitive to the interests o both sides, the result

    might be an agreement that achieves both security and

    prosperity goals.

    In addition to support rom politicians and ocials, it

    is local stakeholder support that determines whether an

    initiative has the momentum to make it across the goal

    line. Phase one o the BB Action Plan makes a com-

    mitment that stakeholders living in border communities

    will be involved in planning access at the various ports.Tat is a good start, but its not enough. Business must

    also be convinced o the benets o the agreement and

    persuaded to remain on board or the long haul. State and

    provincial stakeholders must be brought to the table as

    ull participants.

    Tere are both practical and political imperatives or

    including participants at the regional and local level in

    the negotiations. For instance, regulatory convergence is

    a key component o the BB, and much o the regulatory

    world is under state/provincial and municipal control. In

    Canada, the provinces have a constitutional right to

    participate in the decisions that aect trans-border and

    international trade. Although provincial assent is not

    strictly necessary beore the ederal government canundertake new trade commitments, provincial opposition

    is sure to guarantee their ailure.8 In the United States, in

    contrast, local interests have a preponderant infuence on

    Congressional behavior. In other words, Canada infu-

    ences Washington not rom inside the Beltway but rom

    Bellingham and Bualo.

    MANAgiNg exPectAtioNs

    With a majority since 2011, the Harper government now

    has more to ear rom political opposition (or indier-ence) in the United States than rom criticism at home.

    Te promise o a aster, easier border or tourism and

    trade plays well with most Canadian voters, and the

    challenge or Canada is how to manage expectations. I

    the rst phase o the action plan does not deliver tangible

    improvements, this ailure will lend credence to criticism

    that the agreement lacks substance. It also opens the door

    or critics to play up bogeyman threats o lost sovereignty,

    compromised rights and privacy, and the creeping

    Americanization o Canada.

    Canada is more concerned about how to maintainU.S. political attention through and beyond the presi-

    dential election. In the heat o the campaign, the rhetoric

    about the evils and virtues o oreign trade escalates. It

    is a debate in which Canada has no direct voice and in

    which it can participate only by proxy through interested

    I Caaa is willig h sa wk qui a chical

    ppsals ha a ssiiv h iss bh sis, h sul igh

    b a ag ha achivs bh scuiy a pspiy gals.

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    issue 15 September 12 13

    and like-minded business allies. Canada must thereore

    be ocusing outreach campaigns on U.S. businesses that

    benet rom expedited trade with its northern neighbors.o create an agreement that is durable and provides

    lasting benets, Canadas challenge is one o complex

    event management.

    Canada must overcome its attachment to the bilateral

    special relationship and be prepared to expand the

    agreement to other trading partners whenever and

    wherever that makes sense. With the United States

    as a drawing card, Canada becomes a more attractive

    country to do business with because o the size o the

    North American market. Furthermore, by expandingand constantly updating the BB, it remains a living

    and relevant agreement. As such, it will avoid the

    ossication experienced by NAFA.

    Canada must recognize that DHS leadership is a

    double-edged sword. By taking charge o the sta

    work that DHS lacks the interest or capacity to do,

    Canada can help to keep its economic interests intact,

    even as it must accept that the DHS will always makesecurity interests paramount.

    Canada must be engaged in a sustained and persua-

    sive advocacy campaign with U.S. domestic actors

    with whom it shares commercial or political interests.

    Congressional representatives will give a polite hearing

    to Canadian ocials who make the case or the BB,

    but they are more likely to act when those interests are

    relayed to them through U.S. businesses and voters.

    Finally, while making the agreement appear as

    important as possible south o the border, Canada

    must resist the urge to do the same at home. Al-though it is tempting to get as much traction as

    possible rom Harper-Obama summits, the Canadian

    government must tone down the rhetoric o the big

    deal so that results do not all short o the expecta-

    tions o average Canadians.

    On December 7, 2011, President Barack Obama and Prime Minister Stephen Harper unveiled the the Beyond the Border (BTB)

    Action Plan and the Regulatory Cooperation Council (RCC) Action Plan.

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    coNcLUsioN

    Every child who has ever read aPeanutscomic strip

    can appreciate Charlie Browns problem: Lucy does not

    respect him. She knows that he will all or her blandish-

    ments every single time. With the Beyond the Border

    Action Plan, Canada succeeded in gaining the atten-tion o the United States or one aternoon on Laayette

    Square, but it will not have the respect to ensure that the

    ball stays in place until the kick can be completed.

    Should Canada eign indierence? o play hard to get

    when this agreement clearly oers so much to Canadas

    economic bottom line would not be seen as credible.

    Te American Lucy is smart enough to see through that.

    However, Charlie Browns assets are always strongest in

    a group setting. He is reasonable, likeable, and inspires

    a level o trust in Linus, Snoopy, and Peppermint Patty

    that Lucy could never hope or. I Canada wants to

    level the playing eld with the United States, it should

    immediately extend the size o the BB negotiating eld

    to like-minded states in the hemisphere and expand the

    mandate rom xing the northern border to one o build-

    ing hemispheric competitiveness vis--vis Asia and emerg-

    ing markets. A North American negotiating bloc in the

    rans-Pacic Partnership is an ideal starting point. Yes,

    progress will be slower, but Canadas negotiating power

    will be strengthened, and the results will provide a solid

    oundation or uture growth and expansion.

    Notes

    1. Te name o the initiative is technically Beyond the Border:

    Perimeter Security and E conomic Competitiveness Action Plan,

    but those involved call it either the Border Action Plan or the

    Beyond the Border Action Plan.

    2. Robert A. Pastor, Te North American Idea: A Vision of a Continental

    Future(New York: Oxord University Press, 2011), 136.3. Hilla ry Clinton, Americas Pacic Century, Foreign Policy

    (November 2011), .

    4. Department o Foreign Aairs and International rade Canada,

    .

    5. Laura Baughman and J. Franois, U.S.Canada rade and U.S.

    State-Level Production and Employment, paper prepared or the

    Embassy o Canada, March 2010.

    6. For many Canadians, the real agreement has always been the

    1989 CanadaUnited States Free rade Agreement, and NAFA is

    simply CUFA plus one.

    7. States derive competitiveness gains by being among the creators

    o new trade arrangements rather than having to bea r the costs o

    adapting to new regimes created by others.

    8. Under the ederal-provincial division o powers, the ederal govern-

    ment has constitutional authority over the negotiation o oreign

    trade agreements, but the provinces have authority over numerous

    economic areas covered by trade agreementsnatural resources,

    or example, and banking and other services.

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    Laura Dawson compares the hesitation o Canadians to

    embrace the work o the Beyond the Border (BB) negoti-

    ating group and the U.S.-Canada Regulatory Cooperation

    Council (RCC) to Charlie Brown, wracked with doubt

    as to whether the American Lucy will once again pull the

    ootball away beore he can kick it, leaving him fat on

    his back and eeling oolish. In the Peanutscomic strip,

    Charlie also encounters Lucy at a booth where she oers

    Psychiatric Advice or ve cents. Te Canadian Charlie

    Brown that Dawson described is ull o anxiety about the

    pitalls o the special relationship, the necessity o cultivat-

    ing alliances, and the burden o managing expectations. I

    imagine that the American Lucy would respond (crabbily)

    to each o these complaints in turn.

    PitFALLs oF tHe sPeciALreLAtioNsHiP

    An exclusive bilateral special relationship between Canada

    and the United States is simply not attainable. Te United

    States isnt interested in that kind o relationship. Rather,

    it wants the innovative solutions and breakthroughs on

    security and regulatory cooperation it has developed with

    Canada to be portable, applied across the broad spectrum

    o its international partners, and, where possible, estab-

    lished as global norms or commerce and deense.

    Dawson identies Canadian nostalgia or the special

    relationship o the past, but that relationship has been

    romanticized to the point where many Canadians are

    looking or a past that never existed. Tey have blinded

    themselves to the unreciprocated nature o bilateral

    regulatory cooperation. Canada can make concessions to

    the United States in the context o BB and RCC, but

    U.S. regulators and security ocials nd it hard to make

    unique concessions to Canada.

    It is important or Canadians to be aware that the

    United States is at the center o a series o multilateral

    talks that are intended to reshape the governance o

    trans-boundary commerce and the movement o goods,

    people, and ideas. You have a seat at the table waiting or

    you, Canada, now that you have been welcomed into the

    rans-Pacic Partnership; you could join the ongoing

    U.S. talks with Europe and transorm the bilateral discus-

    sions on border and regulatory cooperation into continen-

    tal talks that include Mexico.

    cULtivAtiNg ALLiANces

    For many Canadians, the U.S. Congress and the tightly

    woven network o special-interest lobbyists in Washington

    are the enemy. No matter what Canadians do to avoid the

    legislative labyrinth, it seems they are always caught up

    in U.S. domestic politics, whether sotwood lumber, the

    Western Hemisphere ravel Initiative, mandatory country-

    o-origin labeling or bee and pork, or Buy American

    provisions in U.S. stimulus-spending legislation.

    Dawson wisely counsels Canadians to steel their

    courage and engage Congress and U.S. special interests

    directly. Forging alliances within the United States and

    aggregating U.S. and Canadian domestic interests in

    order to make greater progress possible at the bargaining

    table is not traditional diplomacy, but Canada has done

    so beoreand perormed well. Rather than avoid these

    entanglements, Canada should see them as an inevitable

    part o doing business with the Americans.

    cHristoPHer sANDs resPoNDs to LAUrA DAwsoN

    A xclusiv bilaal spcial

    laiship bw Caaa

    a h Ui Sas is siply aaiabl. th Ui Sas

    is is i ha ki

    laiship.

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    One Issue Two Voices16

    Canada should also insist that the Obama admin-

    istration give it stronger support. Te U.S. executive

    branch has been even more wary o congressional

    engagement than have Canadian negotiators, who have

    at least reached out to brie congressional committee

    sta and engage congressional oces. While Canadian

    diplomats have ound riends among industry associa-

    tions and community leaders, the outreach rom the

    White House has been nothing short o under whelming.

    MANAgiNg exPectAtioNs

    Oten Canada has been unrealistic in its expectations

    or a special bilateral relationship with the United States,

    and Dawson sees a similar dynamic at work in the BB

    and RCC talks. Te Conservative majority government

    o Prime Minister Stephen Harper is expected to del ivera big deal with the United States, but the prospects or

    a historic breakthrough are hindered by a poor U.S.

    economy and the distractions o the U.S. election cycle.

    Te fat economy has led U.S. negotiators to ocus on

    low-hanging ruitminor regulations and easy xes

    to security policies such as expanding voluntary par-

    ticipation in trusted traveler and shipper programs. Te

    approach o the 2012 U.S. elections has led the two

    governments to keep the ta lks at a low prole or now.

    Soon enough, 2013 will arrive and, regardless o

    the outcome o the U.S. elections, a returned PresidentObama or a newly elected President Romney will provide

    an opportunity to accelerate progress on border secu-

    rity and regulatory cooperation. In this sense, Canadas

    optimism is well ounded: it will have the chance to press

    a more ambitious vision with Washington.

    Will Canada be ready? Dawson advises modesty

    and persistence in the ace o adverse U.S. political and

    economic conditions. Tis caution is valid in the short

    term, but Canadians should remember that the beginning

    o a new presidential mandate is usually the best time to

    pursue big agenda itemsbeore a second-term presidentbecomes a lame duck, or a rst-term president begins to

    worry about re-election. Canada should be careul not to

    tamp down public expectations too low.

    In the end, Laura Dawson encourages Canadians to be

    ambitious and to accept slower progress with the United

    States, in the context o multilateral talks, in exchange

    or the greater scale o potential gains rom having more

    countries at the tablein eect, to join the United States

    in reshaping the global economy rather than trying to

    improve only the North American corner o it. Tat is

    good advice, and worth more than ve cents. o make themost o this opportunity, Canada must ace the world less

    like Charlie Brown and more like Snoopy.

    Caaa shul b caul

    ap w public xpcais

    lw.

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    LAUrA DAwsoN resPoNDs to cHristoPHer sANDs

    Christopher Sandss excellent essay is a warning to Canadi-

    ans (and other U.S. trading partners) about the core di-

    culty in any attempt to build new and ormal cooperative

    arrangements with the United States. Canada has long

    beneted rom strong inormal ties with its southern neigh-

    bor. ypically, one ocial will pick up the phone to speak

    to a counterpart colleague across the border about a matter

    o shared concern. As long as no new laws are required, the

    matter can usually be handled at the ocial level without

    any need or political intervention. Tis scenario happens

    every day. Te deeper economic integration involved in

    the Beyond the Border negotiations and the U.S.-Canada

    Regulatory Cooperation Council, however, requires ormal

    legal mechanisms, and Canada must exercise patience and

    fexibility in order to get what it wants rom the process. As

    the rst step, the government should careully manage do-

    mestic expectations or concrete progress in the short term.

    In terms o the complexity o its rules and regula-

    tions, Canada can well match the United States. Te

    dierence between them comes at the practical level o

    making legislative changes, where the twists and turns o

    Congressional infuence make Canadas parliamentary

    process seem easy. In the United States, in contrast to

    Canada, the support o the executive is no guarantee o

    success. Congress, as Sands points out, will ultimately

    determine whether the regulatory and border deals with

    Canada live or die. With the responsibility or border

    issues ragmented among several dierent departments,

    and no one department, bureau, or agency tasked with

    the role o champion, it is easy or Canadian interests to

    all through the cracks.

    Sands also reminds us that the attention o U.S.

    ocials is being pulled in many directions as the election

    approaches. Te government has ew resources right now

    to devote to amending the status quo with its sae and

    predictable northern neighbor. Canada must set the bar

    low or the short term and ocus, as he says, on creating

    the conditions to promote greater cooperation toward

    the larger goal o NAFA: a single North American

    market or goods and services that can compete with a

    rising China, a revived Europe, and other global econo-

    mies. Even small changes in the worlds largest economy

    can make a big dierence to the prosperity o the trading

    partner next door. With strong domestic support and a

    majority government in Parliament, Canada is the more

    nimble partner in these negotiations. It is also the partner

    or whom the agreement is more important, given that a

    deal will aect a relatively larger share o Canadas eco-

    nomic activities.

    Canada has an incentive to take the lead in researching

    new options, reaching out to stakeholders, developing new

    proposals, and making the case or benets or both sides.

    Although Canadians do not vote in U.S. elections, they are

    skilled at building coalitions with U.S. partners who are

    willing to mobilize votes and infuence when persuaded

    that their interests are shared with those o Canada. Even

    legislators who are suspicious o oreign trade are recogniz-

    ing the need to reduce red tape, along with the act that

    billions o dollars are being wasted on duplicate regulation

    and on regulatory capturethe domination o regulatory

    agencies by special interests or sectors.

    Te U.S. northern border communities are an impor-

    tant source o potential support. Tese regions have not

    Caaa us xcis paic

    a fxibiliy i g

    wha i was h pcss.

    As h s sp, h gvshul caully aag sic

    xpcais cc pgss

    i h sh .

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    One Issue Two Voices18

    only been hardest hit by changes to the manuactur-

    ing industry and by the recent economic downturn but

    stand to benet most rom improved access to Canada

    and rom reduced border transaction costs. Te U.S.

    Department o Commerce estimates in its trade act-

    sheet that only 1 percent o U.S. businesses exports their

    products. For those that do, Canada is their most likely

    rst market. As the U.S. manuacturing and services

    sectors struggle to position themselves in the global

    economy, making trade with Canada easier seems a good

    place to begin. Congressional representatives rom the

    border states must be convinced that long-term prosper-

    ity will be achieved not through narrow protectionism

    but by creating enabling conditions or well-unctioning

    cross-border supply chains.

    Canada is very good at doing the legwork required to

    create new orms o cooperative arrangements. Tis skillhas long helped Canada to punch above its weight in

    international negotiations. During the Canada-U.S. Free

    rade Agreement negotiations, veteran U.S. trade negotia-

    tor Bill Merkin commented that Canada knew the U.S.

    positions better than the Americans did themselves. His

    Canadian counterpart, Simon Reisman, later quipped:

    We ought to, we wrote them. Now, by working to

    provide a range o innovative, orward-looking solutions

    that include a balance o benets and obligations on both

    sides, Canada will be well prepared to take advantage o

    the post-election burst o accomplishment that Sandspredicts may be in the ong.

    Whatever the deal it makes with Canada, the United

    States will, as Sands predicts, certainly repackage the

    results it likes and then oer them to other trading

    partners. On this score, Canada has two choices: it can

    whinge about the erosion o the special relationship it

    thinks it has with the United States or it can anticipate

    this reality and nd ways to exploit its advantage as an

    initiator in the new regime. I the Oce o the United

    States rade Representative wants to use elements o

    the regulatory cooperation deal in the rans-PacicPartnership, thats great. Canada will be ahead o other

    partners because its policies are already aligned with

    those o the United States. Canada is open or business

    while everyone else is scurrying around to make domestic

    reorms and adjustments.

    Canada can a lso promote the results o the new

    U.S.-Canada agreements in its own negotiations with

    third countries such as Japan and the European Union.

    A U.S.-Canada approach has much more appeal than

    a unilateral Canadian proposal to countries that want

    eventually to negotiate their own ree-trade agreements

    with the United States.

    Another chal lenge in writing new rules is thinking

    through the long-term consequences o ormal coopera-

    tion. For example, voluntary inormation sharing means

    that Canada can sidestep any request rom U.S. authori-

    ties with which it is not comortable. Te obligation to

    share inormation means, however, that Canada must

    be aware in advance o any agreement o all the practi-

    cal implications o how the United States could use that

    inormation, and it must ensure that the end use is consis-

    tent with Canadian laws and values.Finally, Canadas orward-looking agil ity behooves

    it to work with Mexico on matters o common interest.

    Right now, the United States is negotiating with Canada

    and Mexico separately on regulatory cooperation and

    border matters.

    In asymmetrical bargaining, when one partner signi-

    icantly outweighs the other, the smaller partner is always

    at a disadvantage unless it can orm a counterweight

    with like-minded allies. In order to counter the dual

    bilateral arrangement that the United States currently

    enjoys, Canada and Mexico need to nd common causeon regulatory and border issues. I the United States is

    getting the same message rom both o its border part-

    ners, the chances o compromise are increased because

    a broader range o U.S. political interests is engaged.

    As well, Canada-Mexico al ignment on key hemispheric

    issues will increase the likelihood o productive trilateral

    discussions when and i they take place.

    Te negotiating conditions or the BB and the

    RCC are ar rom optimal, and the nal results will

    certainly all short o the hype. Sands makes this case

    very well, though the na l agreement should not beseen as a deeat. Rather, it is a blueprint or strategic

    action. Positioning these new arrangements, as part o

    a longer-term national and hemispheric competitiveness

    plan, will provide the best chance o shared prosperity

    and uture growth.

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    About the Authors

    Chritophr sad n fll a h Hudn

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  • 7/27/2019 A Safe and Smart Border

    20/20

    tHe cANADA iNstitUte, an integral program o the Woodrow

    Wilson International Center or Scholars, was ounded in 2001 to

    increase awareness and knowledge about Canada and Canada-U.S.

    relations among U.S. policymakers and opinion leaders. Te Institute

    currently stands as the only nonpartisan public policy orum in

    Washington, D.C., the United Statesand even Canadadedicated

    exclusively to exploring emerging policy issues in one o the most

    successul and unique bilateral relationships in the world.

    cANADA iNstitUte

    wd wln innanal cn f shla

    on wd wln Plaza

    1300 Pnnlana Anu, Nw

    wahnn, Dc 20004-3027

    anada@lnn.

    t (202) 691-4301

    F (202) 691-4001

    www.wiLsoNceNter.org/cANADA

    tHe wooDrow wiLsoN iNterNAtioNAL

    ceNter For scHoLArs provides a strictly

    nonpartisan space or the worlds o policymak-

    ing and scholarship to interact. By conducting

    relevant and timely research and promoting dia-

    logue rom all perspectives, it works to address

    the critical current and emerging challenges

    conronting the United States and the world.

    Ba tuss

    Joseph B. Gildenhorn, Chair

    Sander R. Gerber, Vice Chair

    Jane Harman, Director, President and CEO

    Public Members:James H. Billington, Librarian

    o Congress; Hillary R. Clinton, Secretary, U.S.

    Department o State; G. Wayne Clough, Secretary,

    Smithsonian Institution; Arne Duncan, Secretary,

    U.S. Department o Education; David Ferriero,

    Archivist o the United States; Fred P. Hochberg,

    Chairman and President, Export-Import Bank;

    James Leach, Chairman, National Endowment

    or the Humanities; Kathleen Sebelius, Secretary,

    U.S. Department o Health and Human Services

    Private Citizen Members: imothy Broas, John .

    Casteen III, Charles Cobb, Jr., Telma Duggin, Carlos

    M. Gutierrez, Susan Hutchison, Barry S. Jackson

    Wilson National Cabinet: Eddie & Sylvia Brown,

    Melva Bucksbaum & Raymond Learsy, Ambassadors

    Sue & Chuck Cobb, Lester Crown, Telma Duggin,Judi Flom, Sander R. Gerber, Ambassador Joseph B.

    Gildenhorn & Alma Gildenhorn, Harman Family

    Foundation, Susan Hutchison, Frank F. Islam,

    Willem Kooyker, Linda B. & obia G. Mercuro, Dr.

    Alexander V. Mirtchev, Wayne Rogers, Leo Zickler

    PHotogrAPHs:

    cover: Rigucci, Shutterstock

    p. 2: Champiooto, Shutterstock

    p. 4: Katherine Welles, Shutterstock

    p. 10: Max Lindenthaler, Shutterstockp. 13: Carolyn Kaster, AP Photo

    p. 19: Videowokart, Shutterstock

    p. 20: Glenn Lowson

    2012 wooDrow wiLsoN iNterNAtioNAL

    ceNter For scHoLArs, wAsHiNgtoN, D.c.

    The Beyond the Border Observer

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    Visit beyondtheborderobserver.org.