U.S.-Canada Trade Agreement May Begin to Benefit Trucking This Year, Execs Say

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By Frederick Kiel, Staff Reporter

This story appears in the Jan. 2 print edition of Transport Topics.

Trucking executives said the industry could see some benefits of the recently announced U.S.-Canadian trade agreement as early as this year.

President Obama and Canadian Prime Minister Stephen Harper signed an agreement on Dec. 7 at the White House dealing with a range of trade and border issues. The agreement built upon a framework assented to in February.

鈥淭rucking should benefit from specific objectives listed, including an integrated cargo security strategy, developing pre-clearance initiatives to relieve border congestion, provide information on border wait-times and service levels, establishing a single window for electronic data submissions and enhancing border infrastructure,鈥 American Trucking Associations said in a statement.



Margaret Irwin, ATA director of customs, immigration and cross-border operations, told Transport Topics the industry should begin to see improvements almost immediately.

鈥淚t鈥檚 pretty obvious what they have been doing is to ease transit and build harmonization of electronic systems,鈥 Irwin said. 鈥淭hose programs have been very difficult since 9/11. We鈥檒l have a more practical solution now. It鈥檒l be an equitable system, and everyone will be on the same page.鈥

David Bradley, president of the Canadian Trucking Alliance, which has 4,500 member companies, called the agreement 鈥渉istoric and excellent.鈥

鈥淏oth ATA and CTA are aligned in what we wanted to see, and we got a significant part of what we asked for,鈥 Bradley told TT, but he was cautious about how much of it will be implemented.

鈥淭he agreement is just that: an agreement, not a treaty,鈥 he said. 鈥淚t doesn鈥檛 mean by any stretch of imagination that this is over. What was agreed to now has to be implemented. Some might make the argument that it鈥檚 subject to vagaries of domestic politics.鈥

Still, he said he thought truckers might see some changes quickly.

鈥淥ne of the agreements that should be implemented almost immediately . . . covers domestic shipments that transit though the other country,鈥 Bradley said. He said that before 9/11, Canadian trucks carrying domestic freight could easily transit the United States between Canadian stops, but new security measures have made that nearly impossible.

Bryan Richards, vice president of specialized road services for the Yanke Group of Cos., Saskatoon, Saskatchewan, said that he hoped Bradley鈥檚 supposition was correct.

鈥淏efore 9/11, my five best routes to eastern Canada went through the States,鈥 Richards told TT. 鈥淚t wasn鈥檛 only saving miles but avoiding heavy snow and bad weather, as well.鈥

Todd Spencer, executive vice president of the Owner-Operator Independent Drivers Association, Grain Valley, Mo., said the agreement did little to assist his members.

鈥淥n Canadian-U.S. issues, we have what should be simple issues that are made more complex than they need to be, from the standpoint of small truckers,鈥 Spencer told TT.

He said some actions by individual provinces, more than Canadian national policies, made his members 鈥済rumble.鈥

鈥淲e have provinces that are actually dictating design standards for U.S. vehicles,鈥 Spencer said.

鈥淨uebec and Ontario say that trucks have to have tamperproof governors set for 65 miles per hour, and we鈥檙e opposed to that, basically because at least 27 U.S. states have speed limits higher than that,鈥 he explained.

Spencer added that some provinces imposed 鈥渨heelbase limitations鈥 on the size of tractors.

鈥淭hat seems to be designed mostly to discourage U.S. trucks from operating in Canada,鈥 he said. 鈥淲e don鈥檛 think the length restrictions on tractors make any economic or safety sense.鈥

Similarly, some Canadians didn鈥檛 think all of the post-9/11 U.S. regulations were aimed solely at improving security.

鈥淲here there is a great mood about this agreement is the mutual recognition that, if you clear security in one country, you also clear it in the other,鈥 Marc Cadieux, CEO of the Quebec Trucking Association, told TT.

鈥淏efore, there had to be duplications of all of those processes, which were very hectic and complicated, and many criteria were put on the shoulders of our carriers,鈥 he said.

鈥淒eep down, there was a feeling that protectionism might be under the security blanket,鈥 Cadieux said. 鈥淏ut now, everything is clear and we can gear up to make sure the corridors continue to be open to all.鈥

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