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A Matter of Trust: Expanding the Preclearance of Commerce between Canada and the United States

Author

Listed:
  • Michael Hart

    (Carleton University)

Abstract

The thickening of the Canada-US border in response to post 9/11 security challenges has created new obstacles to cross-border trade and investment. However, preclearance of people and goods before they arrive at the physical border offers one of the best ways to address crossborder obstacles while ensuring public safety. Preclearance has a track record of success where it has been applied. It has proven to be a cost-effective way to provide air travelers with an economical way to clear customs and immigration before entering the United States from Canada. EU members are satisfied that they have succeeded in guarding their security, while promoting an integrated single market, by relying on a perimeter approach to preclearance. Canada and the United States currently rely on preclearance for trusted traveler and shipper programs. Building on these successful models, Canada and the United States should proceed to designing and implementing ambitious programs that use preclearance to cost-effectively ensure a secure and economical border crossing, for most travelers and shippers.

Suggested Citation

  • Michael Hart, 2010. "A Matter of Trust: Expanding the Preclearance of Commerce between Canada and the United States," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 309, September.
    • Handle: RePEc:cdh:commen:309
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    File URL: https://www.cdhowe.org/public-policy-research/matter-trust-expanding-preclearance-commerce-between-canada-and-united-states
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    References listed on IDEAS

    as
    1. Lawrence L. Herman, 2007. "American Corn and Canadian Trade Actions: One Step Forward, Two Steps Back," e-briefs 42, C.D. Howe Institute.
    2. Arthur J. Cockfield, 2008. "Finding Silver Linings in the Storm: An Evaluation of Recent Canada-US Crossborder Developments," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 272, September.
    3. Bill Dymond & Michael Hart, 2008. "Navigating New Trade Routes: The rise of Value chains, and the Challenges for Canadian Trade Policy," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 259, March.
    4. William B.P. Robson, 2007. "Stuck on a Spoke: Proliferating Bilateral Trade Deals are a Dangerous Game for Canada," e-briefs 47, C.D. Howe Institute.
    5. Michael Hart, 2009. "Potholes and Paperwork: Improving Cross-Border Integration and Regulation of the Automotive Industry," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 286, April.
    6. Alan S. Alexandroff & Gary Clyde Hufbauer & Krista Lucenti, 2008. "Still Amigos: A Fresh Canada-US Approach to Reviving NAFTA," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 274, September.
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    Cited by:

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    2. Bob Baldwin & Brian FitzGerald, 2010. "Seeking Certainty in Uncertain Times: A Review of Recent Government-Sponsored Studies on the Regulation of Canadian Pension Plans," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 310, September.
    3. Clyde Goodlet, 2010. "Too Big to Fail: A Misguided Policy in Times of Financial Turmoil," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 311, October.
    4. Angelo Melino, 2011. "Moving Monetary Policy Forward: Why Small Steps - and a Lower Inflation Target - Make Sense for the Bank of Canada," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 319, January.
    5. Daniel Schwanen, 2011. "Beyond the Border and Back to the Future: Seizing the Opportunity to Enhance Canadian and US Economic Growth and Security," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 141, August.
    6. Globerman, Steven & Storer, Paul, 2011. "Regional and Temporal Variations in Transportation Costs for U.S. Imports from Canada," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 41(2), pages 1-18.
    7. Kevin D. Moore & William Robson & Alexandre Laurin, 2010. "Canada’s Looming Retirement Challenge: Will Future Retirees Be Able to Maintain Their Living Standards upon Retirement?," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 317, December.
    8. Finn Poschmann, 2011. "What Governments Should Do in Mortgage Markets," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 318, January.
    9. Daniel Schwanen, 2016. "At the Global Crossroads: Canada’s Trade Priorities for 2016," e-briefs 231, C.D. Howe Institute.
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    More about this item

    Keywords

    Border Papers. Canada; United States; Canada-US border; cross-border trade; preclearance;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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