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June 5, 2007 3:30 PM, EDT

Border Measures Boosting Costs

Canadian Report Cites Security, Infrastructure Issues
Larry Smith/Trans Pixs

Security measures at the Canada-U.S. border introduced since 9/11 have not slowed the flow of goods into the United States but have added to costs for Canadian companies, according to a report released Monday, the Ottawa Citizen newspaper reported.

The Conference Board of Canada report called for a series of steps to improve cross-border trade, including pre-clearance of shipments, simplified security rules and improved border infrastructure, the paper reported.

“Contrary to the images of trucks lined up at the border, new border security policies introduced since 9/11 have not reduced Canadian export volumes to the United States,” a summary the report said, the Citizen reported. “The new border security environment, however, has raised the cost of access to the U.S. market for many companies.”

The report said Canada could be a preferred place for companies to serve the U.S. market if pre-approval security programs were implemented more effectively, the paper said.