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GLSR region produces:- $4.6 tr USD in annual economic output- 75% of Canadian manufacturing - 33% of American manufacturing
Changes in the world economy threaten this region’s economic position and the well-being of its future. Part of this problem is the lack of coordination between countries to revitalize this area.
GLSR region risks:- 2 million jobs- 42% of US – Canada two-way merchandising trade- Further continuation of rust-belt communities
Strategic Context
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Our mission for the council is to revive economic development in the region. Our objective is to start with the immediate variables that block the public-private sector coordination needed for robust and sustainable economic growth.
Barriers to short-term integration:- Regulation policies [commerce]- Transportation [physical]Outcomes:- Short-term: reduce barriers to boost trade and align economic
activity- Long-term: provides platform for more lengthy initiatives such
as investment in new sectors and training worker
The role is to remove main trade barriers for private market sector agents to make the region more attractive to current and potential businesses.
Strategic Context
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This requires that the council- be politically favorable and balanced- garner commercial and community support- understand how large businesses and SMEs realistically work
Limitations and boundaries….- ST: cannot create coordinated new industry sectors and
economic diversity without proper infrastructure- can’t get complete consensus
Strategic Context
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Status Quo: Businesses
Costs• Costs due to
transportation/border delays
• Costs due to regulatory dis-alignment
• Costs due to lack of understanding of regulatory framework (ie fines, redundancy, etc...)
Benefits• No administrative costs from
operating a council
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Costs• Threat to competitiveness and trade secrets as a result of
greater transparency• Setting up the secretariat & funding on-going operations• Administrative and HR burden for business to interface with
council• Costs to integrate policies of the council and change operating
practices• Certification costs for the SME-specific trusted trader program• Costs to businesses that currently benefit from protectionist
policies (harmonization costs)
GLPC: Businesses
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Benefits• Increased trade (for SMEs in particular)• More integrated supply chains• Shorter shipping times• Reduced paperwork and internal resources dedicated to
regulatory compliance• Collaborative relationships increase the potential for
innovation• Social capital from networks and connections• More attractive investment environment• Increased business competitiveness
GLPC: Businesses
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Status Quo: Governments
Costs• Lost tax revenue due to
smaller tax base/less growth potential
• Individual communities/ states could be negatively impacted by change in business climate
• Political objections and challenges
Benefits• No administrative burden
associated with implementing new policies
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GLPC: Governments
Costs• Administrative costs and
future uncertainty from interfacing with current free trade agreements
• Transaction costs to change the regulatory framework
Benefits• Decreased administrative
burden with regulatory enforcement
• Increased tax revenue due to larger tax base/greater growth potential
• Increased efficiency and use of manpower at boarder points
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Status Quo: Civil Society
Costs• Higher prices due to higher
business costs• Increased environmental
impact from global trade• Security concerns from reliance
on unstable trading partners• Less stability in trade• Fewer job opportunities and
lower wages due to sub-optimal business competitiveness
Benefits• Familiarity with current
system and relationship
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GLPC: Civil Society
Costs• Impingement on "Made in the US" and other
Pro-American Consumption Movement• Increased ease of crossing the border
increases the potential for security risks
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GLPC: Civil Society
Benefits• Guaranteed, consistent supply of products that rely on Canada-US
Trading• Lower prices as a result of economies of scale and increased
competition• Lower environmental impact from regional focus of trade• Increased trade with a stable trading partner• Diminished fuel and energy consumption from transportation of goods• More job opportunities and higher wages due to increased business
competitiveness• Positive image associated with cross-border trade• Increased understanding of the importance of cross-border
collaboration
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Status Quo: Existing Sectorial Interest Groups and Organizations
Costs• Sectorial focus does foster
regional collaboration
Benefits• No administrative costs
associated with interfacing with a new comission
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GLPC: Existing Sectorial Interest Groups and Organizations
Costs• Costs of participating in a
new council and potential to detract current collaborative effort
• Communications and information costs to foster buy-in
Benefits• Resources for collaboration
and coordination of political priorities across the region
• Resource for advocacy of economic development and political priorities
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Implementation plan
• Approach the existing collaborative organizations to glean support and provide info
SHORT TERM• Establish regulatory inventory and identify
opportunities for harmonization and streamlining• Pilot program in a specific port of trade to
facilitate increased trade and labour mobility• Create an SME-specific trusted program
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Implementation Plan
MEDIUM TERM• Develop mentorship program to help businesses navigate current
and changing regulatory system• Approach government decision-makers to advise on border-
thickening impacts• Utilize lessons learned from pilots and to advocate for regulatory
changeLONG TERM• Expand program region wide to all major ports• Plan to prevent emergence of new regulatory barriers to trade• Conduct ongoing evaluation and review
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Justification – Addressing Risks
• Legitimacy is key • Keep it simple• Focus access and economic recovery• Utilize the geographic advantage of the lakes • Leverage existing collaborative structures• Enhanced entrepreneurialism from cross-
sector and cross-border collaboration
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Organizational Structure
Board of Directors
Stakeholder Steering
Committees
Priority Initiative Steering
Committees
Responsibilities:• Strategic direction and vision• Determine programs to
advance goals• Evaluate performance• Financial oversight
• Governments• Private Sector
• Regulations• Transportation
Membership:• Chairpersons from each
Steering Committee• Representatives from
funders• GLPC Executive Director
(ex officio)
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Accountability
• Defining Objectives– Determined by each Steering Committee
• Monitoring Progress– Measures defined and tracked by Steering Committees
• Reporting Progress– Internal annual scorecards to demonstrate changes
• Activities completed• Changes observed
– External reports to the public every two years• Timeframes and Priority Initiatives
– Defined by strategic planning processes of the Board of Directors– Guided by internal reporting processes
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Communications Strategy
• The first step of our communications strategy is to develop a handful of key messages on the benefits of this initiative and our approach.
• Stakeholder input will play a critical role and we will reach out to a variety of groups, such as small businesses, major industry groups, environmental stakeholders and government officials to gain their perspective.– Individual strategies will be developed for different
types of stakeholders
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Communications Strategy
• Overall message:– This strategy will promote economic growth, cut
costs and streamline overall regulatory efforts. All of these efforts are critical amid ongoing economic difficulties.
• Success will be determined by measuring overall stakeholder support.
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Communications Strategy
FIVE KEY POINTS• Promote economic development and investment
into the region• Will encourage U.S. and Canadian governments to
cut their budget, reduce redundancies• Will allow small and medium-sized businesses to
avoid burdensome regulations• Promote environmental sustainability• Increase cross-border cooperation