Report * Canada - Border costs reaching 'tipping point'
Small new border costs can have important negative economic consequences, and could prompt companies to locate their production in the larger U.S. market and avoid border-crossing entirely...
Ottawa,BC,Canada -Todays' Trucking - 5 June 2007: -- A myriad of U.S. and Canadian border security measures since 9/11 have not impacted the volume of goods hauled between the two nations, but Canadian companies are forced to pick up most of the tab, according to a new study released by the Conference Board of Canada...
The new border security environment has raised the cost of access to the U.S. market significantly for many companies, as transportation service providers and shippers to their best to absorb and pass as many costs down... In addition to direct costs of complying with new border policies, companies are dealing with indirect costs, such as higher cross-border shipping costs or increased uncertainty about new border policies... In the highly competitive global operating environment, even small new border costs can have important negative economic consequences, and could prompt companies to locate their production in the larger U.S. market and avoid border-crossing entirely, speculates the report. Some companies said that they are not yet getting the full benefits of FAST-crossing lanes for pre-approved traffic, even though they made significant up-front investments to become pre-approved... (Photo: Sights like this at the border are no longer common since 9/11. But that doesn't mean it's no longer a pain to head south)
The new border security environment has raised the cost of access to the U.S. market significantly for many companies, as transportation service providers and shippers to their best to absorb and pass as many costs down... In addition to direct costs of complying with new border policies, companies are dealing with indirect costs, such as higher cross-border shipping costs or increased uncertainty about new border policies... In the highly competitive global operating environment, even small new border costs can have important negative economic consequences, and could prompt companies to locate their production in the larger U.S. market and avoid border-crossing entirely, speculates the report. Some companies said that they are not yet getting the full benefits of FAST-crossing lanes for pre-approved traffic, even though they made significant up-front investments to become pre-approved... (Photo: Sights like this at the border are no longer common since 9/11. But that doesn't mean it's no longer a pain to head south)
Labels: border charges
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