With more than a billion dollars a day in trade and about 14 million truck trips each year across the U.S.-Canadian border, it's no wonder U.S. and Canadian businesses have been anxious about security since Sept. 11. The two countries enjoy the world's largest trading relationship, and a disruption to the flow of commerce, as nearly happened after the terrorist attacks in September, could have a lasting impact on both economies.

Since then, Canadian and U.S. officials have been meeting constantly to identify ways the two countries could cooperate in the areas of security, immigration control, customs and trade facilitation. Last month, the U.S. and Canadian governments announced two important agreements that are designed to improve security while protecting the flow of goods and services between the neighboring nations.

On Dec. 3, the two governments signed a joint statement of cooperation on border security and migration. That agreement focuses on integrating efforts to prevent illegal immigration and cross-border crime. It will expand the Integrated Border Enforcement Team pilot program from the Maine/New Brunswick border to other border areas, increase technical and operational cooperation between U.S. and Canadian anti-terrorism agencies, and boost Canada's immigration-control resources. That agreement generated some controversy in Canada because it came on the heels of the United States' announcement that it would for the first time deploy the National Guard along the porous northern border.

On Dec. 12, Tom Ridge, director of the U.S. Office of Homeland Security, and Canadian Foreign Affairs Minister John Manley signed a declaration authorizing the creation of a so-called "smart border." That declaration lays out a specific, 30-point plan to tighten border security and facilitate the flow of low-risk travelers and cargo. Highlights of the joint action plan include:

• Development of a secure identification card for permanent residents;
• Reinstitution of pre-clearance programs for low-risk passengers;
• Development of common, secure standards for screening cargo prior to arrival and for processing cargo away from the border;
• The exchange of customs data and information about in-transit ocean containers;
• Establishment of complementary systems for commercial processing, including audit-based programs;
• Establishment of some shared border facilities;
• An initiative to secure resources for coordinated improvements to key border crossings and trade corridors, including dedicated lanes and computer modeling;
• Deployment of technologies such as transponders and electronic container seals; and
• Identification of ways to relieve congestion and speed the flow of legitimate goods while identifying high-risk shipments.

Industry organizations and carriers that had been urging joint action on border security responded positively to the plan. "Today's agreement puts to rest the view that somehow security and trade facilitation were mutually exclusive," says David Bradley, CEO of the Canadian Trucking Alliance. "...Today's announcement signals the start of an era of border bilateralism that will serve both countries well."

Both the United States and Canada will need to enact legislation allowing them to obtain and share information, particularly as it relates to passengers. They also must commit sufficient funds to these initiatives. The Commerce, Justice, State and Judiciary appropriations bill includes funding for 500 additional Immigration and Naturalization Service inspectors, 200 additional border patrol agents, and acquisition of additional space to alleviate overcrowding at Customs, INS and border patrol facilities. The FY2002 Treasury/Postal Appropriations bill includes $28 million to increase the number of U.S. Customs agents at the northern border. Canada, meanwhile, has already initiated funding with the release of its new federal budget on Dec. 10. The budget proposal includes nearly US $4.8 billion for new security, intelligence, immigration and border infrastructure initiatives. Canada has already spent more than US$176 million on improving immigration security, acquiring additional technology and redeploying law-enforcement personnel.

For complete details of the Smart Border Agreement, visit the Canadian Ministry of Foreign Affairs Web site, www.dfait-maeci.gc.ca.