The document summarizes an event hosted by three chambers of commerce to discuss cross-border business opportunities in the Buffalo-Niagara region. Polling at the event found that businesses see inconsistencies at border crossings and a lack of advisors knowledgeable about regulations as barriers. The document then provides an overview of US-Canada collaboration initiatives, considerations for doing cross-border business, navigating the border, and trade statistics between the US, Canada, New York and Canada. It concludes by discussing the Buffalo Niagara Partnership's ongoing work to support cross-border business.
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Event Summary
In April 2016, the Buffalo Niagara Partnership, the Hamilton Chamber of Commerce,
and the Greater Niagara Chamber of Commerce hosted Unleashing the Power of the
Mega-Region, an informative and interactive event for over 200 American and
Canadian business leaders.
The afternoon event featured facilitated discussions on cross-border growth, with
companies matched at each table with those looking to do business together. Live
polling also took place throughout the event to help create content for the following
paper offering hard facts, data, and resources to assist companies in tapping into the
power of the Mega-Region.
The Unleashing the Power of the
Mega-Region event helped identify
what many companies view as
barriers when attempting to conduct
cross-border business. Polling
revealed there is often a negative
perception of the border, with
attendees citing inconsistencies
and unpredictability of immigration
officers at crossings on both sides.
Other attendees noted the lack of experienced advisors to provide accurate advice on
cross-border commerce. Such advice and expertise, they pointed out, is necessary to
help businesses understand differences in Canadian and American regulations, tax
information, visa information, and the overall cross-border process. Additional
challenges include establishing brand recognition across the border, finding the right
suppliers, and making connections with other businesses. Such perceived barriers to
cross-border commerce may not appear to be so daunting when companies look at
the big picture view of the world’s two largest trading partners.
The following sections are provided to help businesses better understand what is
happening on the federal level between the U.S. and Canada; to offer some guidance
on doing business between the U.S. and Canada; and to offer advice on how to better
navigate the international border. This is followed by some important statistics on trade
between the two countries.
Answers to first live polling question:
“What one word describes your cross border experience?”
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A. Understanding Current U.S.-Canada Federal
Collaboration
With a relationship that extends far beyond the trade volume between the U.S. and
Canada, it is important to understand how the two countries continue to collaborate to
create an environment that allows seamless travel, commerce, and security. At the
Mega-Region event, attendees expressed a desire to learn more about these
collaborative efforts.
The following information is provided to help explain some of the more prominent
efforts, including the Beyond the Border Agreement, the U.S.-Canada Regulatory
Cooperation Council, the North American Free Trade Agreement (NAFTA), and the
proposed Trans-Pacific Partnership Agreement (TPP).
a. Beyond the Border Agreement
In February 2011, President Obama and Prime Minister Harper announced the U.S.-
Canada joint declaration, Beyond the Border: A Shared Vision for Perimeter Security
and Economic Competitiveness. Beyond the Border articulates a shared approach to
security in which both countries work together to address threats within, at, and away
from our borders, while expediting lawful trade and travel.
In December 2011, President Obama and Prime Minister Harper released the Beyond
the Border Action Plan, which sets out joint priorities and specific initiatives for
achieving this vision.
In December 2012 and December 2013, the White House released the second annual
Beyond the Border Implementation Report and the first Beyond the Border
Implementation Report respectively. The governments of the U.S. and Canada have
worked together in a concerted way to advance their shared interests in perimeter
security and economic competitiveness, achieving results that will improve the lives
of residents, visitors, and businesses in both our countries.
In May 2015, the White House released the third annual Beyond the Border
Implementation Report, which summarizes the significant progress made in the third
year following the release of the Beyond the Border Action Plan, and includes new
and enhanced measures intended to deepen and strengthen the unparalleled bilateral
partnership.
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2016 Accomplishments and Announcements of Beyond the Border
More recent accomplishments and announcements regarding collaboration between the
U.S. and Canada are summarized below. Readers may click on the highlighted titles for
more information, and all accomplishments and announcements can be found here. Also
included in the text box below are a number of links to helpful fact sheets on issues related
to the international border.
i. Department of Homeland Security Launches Known Employer Pilot Program Link
The U.S. Department of Homeland Security announced the launch of a Known
Employer pilot to assess a new process for employers seeking to hire certain workers
through employment-based visa categories.
ii. U.S. and Canada Announce Preclearance Expansion Link
Canada and the U.S. announced their intention to support the legislation necessary to
bring the Agreement on Land, Rail, Marine, and Air Transport Preclearance into force.
In the U.S., the necessary provisions were introduced in the Promoting Travel,
Commerce, and National Security Act of 2016 (S. 2612/H.R. 4657) in March 2016. The
Government of Canada intends to introduce the necessary legislation in mid-2016.
iii. Public Safety Canada Publishes Executive Summary of the Economic Impact of
Border Fees Link
This report was commissioned to conduct an economic impact assessment of border
fees and their effect on the competitive position of three economic sectors in Canada
and the U.S. for which cross-border activity is important.
Detailed below are the 2016 accomplishments and announcements of the Beyond the
Border Agreement in addition to the fact sheets the U.S. has released since its
inception.
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Related Action Plans
December 2011 Joint Action Plan Link
August 2014 Joint Forward Plan Link
Regulatory Cooperation Council Update
In May 2016, the Canadian Food Inspection Agency (CFIA) and the U.S. Food and Drug
Administration (FDA) have signed an arrangement recognizing that each of their food
safety systems provides a similar level of protection. This arrangement is part of the RCC
in which the countries intend to better align their food safety regulatory systems, reduce
unnecessary duplication, enhance information sharing, and to the extent possible,
leverage resources so that agencies can better meet their public health objectives. More
information can be found at the U.S. Food and Drug Administration’s page, here.
Fact Sheets
Beyond the Border Key Questions and Answers Link
Beyond the Border Air Cargo Shipping Simplified Between Canada and the U.S. Link
Beyond the Border Facilitating Trade at the U.S.-Canada Border Link
Beyond the Border Pre-Inspection and Pre-Clearance Link
Beyond the Border Statement of Privacy Principles Link
Beyond the Border U.S.-Canada Economic Relationship Link
Beyond the Border U.S.-Canada Law Enforcement Cooperation Link
b. U.S.-Canada Regulatory Cooperation Council
In February 2011, President Barack Obama and Prime Minister Stephen Harper
announced the creation of the U.S.-Canada Regulatory Cooperation Council (RCC)
to increase regulatory transparency and coordination between the two countries.
The RCC will undertake efforts to better align the regulatory environment between the
U.S. and Canada through a variety of tools such as enhanced technical collaboration,
mutual recognition of standards, and joint work sharing, in an effort to address root
causes of regulatory misalignments, develop lasting solutions, and avoid future
misalignments from developing. Links to the related action plans are provided below.
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c. North American Free Trade Agreement (NAFTA)
The North American Free Trade Agreement (NAFTA) established a free-trade zone in
North America. It was signed in 1992 by Canada, Mexico, and the U.S. and took effect
on January 1, 1994. NAFTA immediately lifted tariffs on the majority of goods
produced by the signatory nations.
The agreement also gradually eliminated most remaining barriers to cross-border
investment and to the movement of goods and services among the three countries.
While details of this agreement are too lengthy to cover in this paper, more information
on NAFTA can be found at the U.S. Customs and Border Protection’s page, here.
d. Trans-Pacific Partnership Agreement (TPP)
Trans-Pacific Partnership Agreement (TPP) negotiations were undertaken by
Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand,
Singapore, the U.S., and Vietnam. These negotiations successfully concluded in
October 2015, but in order for the TPP to become law, each country must vote on the
agreement. The U.S. and Canada have not yet done so. It is worthy to note that there
is bi-partisan opposition to the agreement in the U.S. and there is an uphill battle for
the Obama Administration to pass the agreement.
TPP is a regional free trade agreement that establishes a more seamless trade and
investment environment across 12 countries by setting commonly agreed upon rules
and promoting transparency of laws and regulations.
The International Trade Administration’s Trans-Pacific Partnership Opportunities by
Market Report better explains how this agreement will affect trade between the U.S.
and Canada. The Report can be found here.
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B. Doing Business in Canada and the U.S.
Another prominent theme discussed at the Mega-Region event was how to better do
business in and between the U.S. and Canada. From using customs brokers to
understanding immigration and tax implications, the system can be difficult to
understand. This section looks to answer basic questions and provide additional
resources for businesses looking to expand or do business across the border.
a. Customs Brokerage
Customs brokerage firms facilitate the shipment and delivery of goods across
geographical borders for individuals and organizations. Each country operates under
a different set of rules and regulations regarding the transfer of goods entering or
leaving their borders. Customs regulations and laws concerning import and export of
goods are constantly changing all over the world, sometimes even on a daily basis.
A customs brokerage firm is responsible for knowing all of these rules and regulations
and ensuring that they are followed. The importer is always ultimately responsible for
knowing any requirements and for ensuring their importation complies with all federal
rules and regulations, but using a customs broker can save a company from making
costly mistakes. Anytime goods are imported or exported into a country, a broker can
be utilized.
Where to find a Customs Broker
Canadian Customs Brokers
The Canadian Border Services Agency
list of licensed customs brokers can be
found here.
U.S. Customs Brokers
The U.S. Customs and Border Protection
list of licensed customs brokers can be
found here.
Click on the State in which you will be importing into,
click on the city, below the city information there is
a link for Broker listings.
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b. Immigration
While immigration may not seem like a Northern cross-border business issue, there
are regulations related to temporary permits, work visas, and immigrant status in both
the U.S. and Canada that businesses and professionals should understand.
The following links are provided to assist companies in accessing information on
immigration regulations and how they affect cross-border commerce.
Immigration Resources
Canadian Resources
Government of Canada Travel
Documents Link
Government of Canada Immigration
and Citizenship Link
Embassy of Canada in Washington,
D.C. Link
U.S. Resources
U.S. Department of State Bureau of
Consular Affairs Link
U.S. Department of State Travel Link
Embassy of the U.S. in Ottawa, ON
Link
C. Navigating the U.S.-Canada Border
How to better navigate the border was a top area of concern discussed at the event.
While there have been a number of improvements to decrease wait and processing
times at each crossing, there are additional resources that business people can use
to expedite their border experience. The following section outlines a few such
resources.
a. Trusted Traveler Programs – NEXUS
The NEXUS program allows pre-screened travelers expedited processing when
entering the U.S. and Canada. Program members use dedicated processing lanes at
designated northern border ports of entry, NEXUS kiosks when entering Canada by
air, and Global Entry kiosks when entering the U.S. via Canadian Preclearance
airports. NEXUS members also receive expedited processing at marine reporting
locations.
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NEXUS Benefits:
Avoid long line-ups and save time by:
Using automated self-serve NEXUS kiosks when entering Canada at
nine major international airports and U.S. Global Entry kiosks for entry
into the U.S.;
Receiving expedited clearance through security screening lines at major
and select mid-sized airports in Canada;
Receiving expedited clearance through the U.S. Transportation Security
Administration Pre-Check lines at over 150 participating U.S. airports.
Enjoy a simplified entry process using dedicated vehicle lanes at 21 designated
land border crossings.
When arriving to Canada by boat, call in to a “Telephone Reporting Centre” at
more than 450 marine sites across Canada.
For members of the Buffalo Niagara Partnership, expedited Nexus application
processing is available. For more information, please contact Catherine Muth.
Crossing the Border Additional Resources
U.S. Canada
Find more information on how to
ease your way into the U.S. from
Canada at the following sites:
U.S. Department of Homeland
Security Link
U.S. Customs and Border
Protection Link
American citizens may find NEXUS
application information on the U.S.
Customs and Border Protection
webpage, here.
Canada U.S.
Find more information on how to ease entry
into Canada from the U.S. at the following
sites:
Canadian Border Services Agency Link
Canadian Food Inspection Agency Link
Canadian citizens may find NEXUS
application information on the Canada
Border Services Agency webpage, here.
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D. U.S.-Canada Trade & Business Statistics
Sharing the longest international border in the world, the U.S. and Canada’s unique
proximity has led to a strong bilateral trade relationship. While it is known the two
countries have a robust exchange of goods and services, many attendees at the
Mega-Region event were not clear on the extent of the relationship. This section
reviews basic facts regarding the trade volume between the two countries and
between the State of New York and Canada.
Since the Canada-U.S. Free Trade Agreement came into force in 1989, two-way trade
in goods and services with the U.S. has more than tripled. Canada and the U.S. have
built such a strong relationship, evidenced by the $2.4 billion of goods and services
exchanged each day in 2014.
New York-Canada Trade Facts – 2015
New York exports to Canada: $12.4 billion
New York imports from Canada: $18.0 billion
Bilateral trade: $30.4 billion
New York services exports to Canada: $6.9 billion
E. Moving Forward
As the U.S. and Canada continue to develop their bi-lateral relationship on a
commercial, travel, and security level, the Partnership will continue to inform its
membership base of pertinent developments, while advocating for policies that will
help organizations conduct bi-national business within our region.
Moving forward, the Partnership will work to integrate what is discussed within the
white paper into its programming to address the needs of the business community.
Companies interested in shaping the dialogue between the U.S. and Canada can
contact the Partnership and begin to engage with our governments to explain the
importance of the economic connections throughout the cross-border region.
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Buffalo Niagara Partnership’s CanAm Focus
Throughout the Mega-Region event individuals expressed the desire to attend more
cross-border networking and informational events. The Buffalo Niagara Partnership is
developing sustainable CanAm programming that will fulfill the needs of the business
community. A comprehensive list of Partnership events can be found at our website,
here. Many of the events, while not cross-border specific, focus on connecting
businesses throughout the region.
About the Buffalo Niagara Partnership’s CanAm Council
The Partnership also manages a council dedicated to economic and business
development between Canadian and American companies. The CanAm Council is the
go-to resource for the business community on CanAm issues and works to create
dialogue around the economic opportunities in our bi-national region. The Council
seeks to create value for its members through programs in advocacy, business to
business development, communications, and cross-border best practices. Companies
on both sides of the border can look to the Council to help navigate the numerous
international business opportunities available.
For more information on our CanAm Council, visit our website or contact Catherine
Muth. Join the conversation on our CanAm LinkedIn page.
About the Buffalo Niagara Partnership
The Buffalo Niagara Partnership is the region’s private sector economic development
organization and regional chamber of commerce, representing nearly a quarter of a
million employees in the Buffalo Niagara region. The Partnership’s work has three
main focuses: advocacy, business development and convening. By mobilizing
members and strategic partnerships around common goals, the Partnership grows
private investment and jobs in Buffalo Niagara. To learn more about the Partnership,
visit our website.