Border and Infrastructure

For CVMA member companies, the Canada/U.S. border is integral to their just-in-time delivery systems and is the lifeline of their manufacturing facilities.

Companies today carry only enough inventory at the final assembly site for roughly one to four hours of production. Traditional warehouses, which not long ago stored the required production stock, have been replaced by the transportation system itself. Most suppliers to the auto industry are located within a two hour drive of the U.S.-Canada border. Many goods are produced less than four hours before they are destined to feed production at a manufacturing facility on the other side of the border. In many instances, shipments of production components are regularly delivered in multiple trips across the Canada/U.S. border each day.

As a result of this reality, CVMA member companies are the heaviest users of the busiest border crossings in the world. Total automotive trade between Canada and the U.S. was $154 Billion in 2002, the majority of which was carried over three bridges in southern Ontario; the Ambassador Bridge connecting Windsor and Detroit, the Bluewater Bridge connecting Sarnia and Port Huron, and the Peace Bridge connecting Fort Erie and Buffalo. Automotive trade accounts for roughly 25% of all trade between Canada and the U.S.

However, these trade routes, including the border crossings, highways and city streets that connect our members to their suppliers were designed to handle trade capacities dating back to the 1920's. Although bridge and tunnel operators have modernized their respective facilities and capacity to increase traffic flow, long delays at border crossings are now a common occurrence. These delays threaten the ability to effectively run modern production and just-in-time delivery systems, as well as future investments in the automotive sector in Canada.

CVMA member companies have done their part to reduce congestion and speed up border crossings by spearheading participation in programs such as Customs Self Assessment (CSA) and Free and Secure Trade (FAST). These programs provide assurances for the government that imports will be properly reported and that shipments are secure so that less processing occurs at the international crossing. However, due to infrastructure constraints, CSA and FAST shipments often remain in a queue behind unprepared and unsecured shipments.

Key priorities for the CVMA on Border Management:

	Fully and rapidly implement the federal/provincial/municipal Windsor Gateway Action Plan to improve access and capacity from the main feeder highways through the city of Windsor to the border crossings.
	Accelerate work under the Canada-US-Ontario-Michigan Border Transportation Planning/Need and Feasibility Study.
	Governments must commit to the creation of a new border crossing for commercial use in the crucial southern Ontario corridor.
	Fully implement low-risk/pre-approved processing programs, including all stated benefits – especially dedicated lanes for FAST and NEXUS – in order to increase program participation and accelerate border processing times.
	Create a contingency plan that will allow FAST participants to access border crossings in the event of an emergency.
	Simplify, streamline, coordinate, and eliminate overlapping policies where possible between Canada and the U.S.