FORO 2007 Transborder Library ForumAron Davidson

Office of NAFTA and Inter-American AffairsU.S. Department of Commerce

The NAFTA Trade Perspective The U.S.-Canada FTA: January 1, 1989

The NAFTA: January 1, 1994, a remarkable success

NAFTA total trade increased over $510 billion since 1993 -- now $807 billion

In 2005, we traded $2.2 billion a day with our NAFTA partners -- $1.5 million a minute

The NAFTA Trade Perspective Our trade with Mexico and Canada exceeds our trade

with 25 EU member states and Japan COMBINED

Exports to Mexico & Canada account for $332 billion- approx. 37 percent of our global exports

2005: U.S. exports to Mexico = $120 billion

2005: U.S. exports to Canada = $212 billion

The SPP- What Is It? The Goal: ensure North America-

Best and safest place to live, work and do business By maintaining NORTH AMERICAN ADVANTAGE in era of global

sourcing

Builds on the NAFTA, P4P, and border initiatives to: Better protect citizens from man-made and natural threats Promote safe and efficient movement of people and goods

The SPP consists of an economic and a security component

Based on the principle that our common prosperity depends on our mutual security

Expands economic opportunities by reducing barriers and making our businesses more competitive in the global marketplace

What It Is Not:

The SPP is not a NAFTA renegotiation exercise

The SPP is not an immigration initiative nor forum for dispute resolution

The SPP is not a new treaty or trade agreement

Who Does What? SPP is an interagency initiative

On the U.S. side:

White House/N.S.C.Security- D.H.S.Prosperity- Commerce DepartmentCoordination- State Department

SPP: Myths v FactsMyth: The SPP was an agreement signed by Presidents Bush and his Mexican

and Canadian counterparts in Waco, TX, on March 23, 2005  Fact: The SPP is not an agreement nor is it a treaty. The SPP is a trilateral

effort to increase security and enhance prosperity through greater cooperation and information-sharing

 Myth: The SPP is a movement to merge the United States, Mexico, and

Canada into a North American Union with super courts, a ‘NAFTA Super Highway’ and a common currency

 Fact: The cooperative efforts under the SPP do not change our courts or

legislative processes nor does it consider the creation of a common currency or a new ‘Super Highway’

Timeline and Implementation

The Heads of State launched the SPP on March 23, 2005

Commerce hosted a series of private sector roundtables to engage industry and identify deliverables

Working groups and work plans created

Ministers reported to Heads of State on progress made and released public report on June 27, 2005

Timeline and Implementation

Secretary Gutierrez met with Canadian and Mexican colleagues and private sector to discuss creation of N.A.C.C. March 15, 2006

Heads of State Cancun Summit March 30-31, 2006

Prosperity Ministerial and Launch of the North American Competitiveness Council on June 15, 2006

2006 Report to Leaders Sept. 2006

Security Component Working Groups(DHS)

Secure North America from External Threats Traveler and Cargo Security, and Bio-protection

Prevent and Respond to Threats within North AmericaAviation and maritime security, law enforcement,

intelligence cooperation, and protection, prevention and response

Further Streamline the Secure Movement of Low-Risk Traffic across our Shared Borders

Develop and implement strategies to combat threats, such as terrorism, organized crime, migrant smuggling and trafficking

Economic (‘Prosperity’) Component Working Groups

Manufactured Goods (DOC) Lower production costs for North American manufacturers by

eliminating unnecessary regulatory barriers, ensuring compatibility of regulations and by eliminating redundant testing requirements

Provide consumers with cheaper, safer, and more diversified and innovative products

The Other Nine: E-Commerce and ICT (DOC) Energy (DOE) Movement of Goods (USTR) Transportation (DOT) Food and Agriculture (USDA) Business Facilitation (DOS) Financial Services (Treas.) Environment (DOS) Health (HHS)

Some Accomplishments to Date IPR Strategy for “Fake Free North America” Uniform in-advance electronic exchange of cargo manifest data (maritime,

railroad and motor carriers) 50% Reduction of Detroit/Windsor waits New FAST Lanes on U.S.-Mexico Border Consumer Product Safety Agreements Food Safety Coordinating Task Force Harmonizing risk assessment mechanisms, and establishing protocols to

detect fraud and smuggling Ongoing R.O.O. liberalization- $30 bln in goods affected NASTC Strategy (steel) US-Canada PulseNet MOU Creation of avian/pandemic influenza coordinating body Mexico adoption of low-sulfur fuel standard

2006 InitiativesFive SPP ‘Cancun’ priorities:

Smart, secure bordersEnergy securityEmergency managementAvian and Pandemic InfluenzaNorth American Competitiveness Council

North American Competitiveness Council(NACC)

Purpose: provide recommendations on N. American competitiveness that could be addressed through the SPP

Value of high-level private sector input

Recommendations AND solutions to SPP Ministers

North American Competitiveness Council

Membership- 10 private sector representatives from each country

U.S. Secretariat- Council of the Americas and U.S. Chamber of Commerce

Organization varies in each country

Next Steps

NACC priorities to Ministers

SPP Ministers Meeting February 2007

Working groups to continue existing projects and identify new deliverables

The Value of Your Input: Why We Need to Hear From YOU

SPP is a fluid initiative and private sector is the driver

Tell us how the SPP can:

Make your company more competitive globally

Reduce the cost of manufacturing and exporting

Give us your recommendations on:

Cutting red tape and eliminating unnecessary barriers to trade

Useful Links

SECURITY & PROSPERITY PARTNERSHIP of NORTH AMERICA– SECURITY & PROSPERITY PARTNERSHIP of NORTH AMERICA– http://www.spp.gov

TRADE COMPLIANCE CENTER – TRADE COMPLIANCE CENTER – http://www.tcc.mac.doc.gov

TRADE STATISTICS BY STATE – http://ita.doc.gov/tradestats

TRADE INFORMATION CENTER – http://www.trade.gov/td/tic/

UNITED STATES TRADE REPRESENTATIVE – http://www.ustr.gov

EXPORT INFORMATION - http://www.export.gov www.buyusa.gov

Contact Information

Phone: 202-482-1824

Fax: 202-482-5865

Aron.Davidson@mail.doc.gov

Questions?