Chamber Recommends Ways to Improve U.S.-Mexico Trade

(See ITT's Online Archives or 06/10/11 and 06/08/11 news, 11061021 and 11060823, for BP summaries of recommended actions for the U.S.-Canada joint action plan for perimeter security from the U.S. and Canada Chambers of Commerce and from a bi-national coalition of manufacturing association and companies.)

Gov'ts Should Invest in Security Infrastructure, Engage Private Sector, Etc.

The Chamber states that to create a 21st century border, both governments and their private sectors need to: (i) invest in border security; (ii) reestablish a framework for government-to-government and government-to-business interaction; and (iii) increase funding to modernize infrastructure, such as for nonintrusive inspections (NIIs), training, and infrastructure to minimize damage to products that are inspected by U.S. and Mexican authorities.

Recommends U.S. Expand C-TPAT for All Participants

The Chamber also recommends that the U.S. enhance participant benefits and expand the Customs Trade Partnership against Terrorism (C-TPAT) program for all participants in the supply chain by considering the following actions (partial list):

• SME trusted shippers -- Develop a trusted shipper program for small and medium-size businesses.
• Mexican trusted shippers -- Help the Mexican government develop a trusted shipper program, along the lines of C-TPAT and Canada’s Partners in Protection (PIP).
• Tier III status to all participants -- Provide Tier III status for all participants in the C-TPAT program, not just importers.
• After-hours system -- Create an after-hours appointment system for C-TPAT members to ensure expedited crossing
• Pilots for 3PLs, food importers -- Establish pilot programs for less-than-truck load carriers, non-asset third-party logistics providers (3PLs), and low-risk food importers subject to regulation outside of the regulatory authority of CBP.
• FMC licensed NVOCCs, FFs, Etc. -- Make non-asset-based 3PLs, non-vessel-operating common carriers (NVOCCs), and ocean freight forwarders licensed by the Federal Maritime Commission eligible to voluntarily join the C-TPAT program.

Governments Should Share Information, Collaborate on Inspections, Etc.

To synchronize governmental processes to improve supply chain capacity, the Chamber recommends that the following actions be considered:

• Collaborate on produce inspections -- The Mexican and U.S. Departments of Agriculture (SAGARPA and USDA) should collaborate to inspect and grade fresh produce destined for the U.S. to reduce duplication of efforts and streamline processes at ports of entry.
• Fund ACE/ITDS -- Commit to the full funding and completion of Automated Commercial Environment and the International Trade Data System (ACE/ITDS) as a short-term priority.
• Harmonize customs automation -- Harmonize customs automation with NAFTA partners with ACE/ITDS as the model.
• Pilot for 24 hr crossings -- Establish a pilot program for 24-hour border crossings as a step toward increased commercial access during nonpeak hour
• Secured manufacturing zones -- Develop a pilot with the private sector for secured manufacturing zones with designated routes between the U.S. and Mexico.
• Implement int'l recognized frameworks -- Fully implement internationally recognized cross-border trade facilitation frameworks that promote consistency, efficiency, and confidence, including the World Customs Organization Immediate Release Guidelines, the Revised Kyoto Convention on Customs Clearance, and the SAFE Framework of Standards in both the U.S. and Mexico.
• Avoid redundant inspections -- Dialogue between the countries must continue to coordinate southbound inspection activities so that the same cars, trucks, and pedestrians are not subject to unnecessarily redundant inspections by multiple government agencies at the border.

Long-Term Investment in Infrastructure for FAST Lanes, Access Routes, Etc.

Long-term underinvestment in transportation infrastructure is having an increasingly negative effect on the ability of the U.S. and its industries to compete in the global economy. Therefore, the Chamber recommends that the following actions be considered:

• Create more FAST lanes -- Invest in physical infrastructure by widening access roads and bridges, enhancing government facilities, and creating more designated FAST lanes for partners in trusted shipper programs further away from the border crossing.
• Increase capacity, new access routes -- Develop a National Freight Plan that incorporates the development of increased capacity and new access routes to border crossings and other international gateways.
• Remove barriers to private investment -- Remove barriers to private sector investment in infrastructure.
• Create freight lanes -- Expedite the construction of dedicated freight lanes and invest in viable and tested technology that improves trade facilitation.
• Create U.S., Canada, Mexico transport plan -- Create a long-term transportation plan for the U.S., Mexico and Canada, maximizing security and relieving congestion and bottlenecks

(See ITT's Online Archives or 04/19/11 news, 11041923, for BP summary of Mexico's efforts to develop and pilot its own supply chain security program.)