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HomePolicy Articles Article Summary

Reaching the Tipping Point: Effects of Post-9/11 Border Security on Canada’s Trade and Investment

Report by Danielle Goldfarb

In this report, Danielle Goldfarb notes how increased border security at Canada-US crossings has had economic ramifications for Canadian exporters. In particular, she notes increased security has meant that shipping goods across the border can lead to unexpected delays and increased costs for Canadian exporters. The inefficiency of border crossings has led many companies to reevaluate their “just-in-time” logistics strategy whereby goods are delivered across the border within hours of ordering, thereby reducing warehousing and inventory costs.

Companies have returned to their pre-NAFTA transport strategies, which have reduced the benefits Canada gained in the agreement because it limits the country’s access to the US market while increasing the costs for Canadian goods and inputs. Consequently, the author suggests that Canada becomes less attractive as a locale for production. Goldfarb concludes that the unpredictability at border crossings must be addressed,otherwise Canadian living standards are likely to decline. She asserts that governments in both the US and Canada must enact policies to alleviate congestion and create predictable border crossings in order for both partners to benefit from the free trade agreement.

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Policy Publication Details

Author(s): Danielle Goldfarb;
Publisher: Conference Board of Canada [ Visit Website ]
Year Published: 2007; Publisher Type: Research Institute
Publicly Available: Yes Research Focus: International;
Registration Required: No Language: English
Payment Required: No Publication Format: Adobe PDF

Subjects / Categories:

Policy Articles / Military & Defence / Border Security
Policy Articles / International Trade, Development & Finance / Imports & Exports
Policy Articles / International Trade, Development & Finance / Canada - U.S. Relations
Policy Articles / Regional & Sectoral / Transport
Policy Articles / International Trade, Development & Finance
Policy Articles / Military & Defence
Policy Articles / Regional & Sectoral
Policy Articles / International Trade, Development & Finance / Canada - U.S. Relations / 2007
Policy Articles / International Trade, Development & Finance / Imports & Exports / 2007
Policy Articles / Military & Defence / Border Security / 2007
Policy Articles / Regional & Sectoral / Transport / 2007


Keywords / Tags:

borders; USA; Canada; economics; imports; exports; trade; NAFTA; transport; logistics;