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### Viewing cable 08VANCOUVER199, BORDER ISSUES FIGURE PROMINENTLY IN REGIONAL SUMMIT

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08VANCOUVER199 | 2008-07-29 18:06 | 2011-04-28 00:12 | UNCLASSIFIED | Consulate Vancouver

`

    R 291855Z JUL 08
    FM AMCONSUL VANCOUVER
    TO SECSTATE WASHDC 4970
    AMEMBASSY OTTAWA
    INFO ALL CANADIAN POSTS COLLECTIVE
    AMCONSUL VANCOUVER

` `

    UNCLAS VANCOUVER 000199

    DEPT FOR WHA/CAN

    E.O. 12958: N/A
    TAGS: PBTS PREL ECON AORC CA
    SUBJECT: BORDER ISSUES FIGURE PROMINENTLY IN REGIONAL SUMMIT

    ¶1. Summary: The flow of people and goods across the U.S.-Canada
    border became the primary topic of discussion at the annual
    Pacific Northwest Economic Region (PNWER) summit, July 20-24.
    Several keynote speakers, including U.S. Ambassador Wilkins, BC
    Premier Campbell, and Canadian Public Safety Minister Day, and
    numerous roundtables and seminars, looked at ways to improve
    border processing, particularly in regards to the upcoming 2010
    Olympic Winter Games in Vancouver. U.S. initiatives were
    well-received while local British Columbia officials publicly
    criticized the Canadian Border Services Administration (CBSA)
    for not taking enough action.  The summit also highlighted
    regional concerns and actions on energy, environment and climate
    change, and the Asia-Pacific Gateway. End Summary.

    Border Restricting Trade and Travel
    -----------------------------------

    ¶2. Vancouver played host to the 18th Annual PNWER Summit,
    bringing together over 800 state/provincial officials, NGOs and
    business leaders from BC, Alberta, Yukon, Saskatchewan,
    Washington, Oregon, Alaska, Idaho and Montana.  Sessions and
    speakers focused on a wide range of topics affecting the region
    but the most prominent issue was border management.  BC, as host
    of the summit and host of the 2010 Winter Olympics, steered the
    summit with numerous keynotes and individual sessions looking at
    what was repeatedly described as a "thickening border," a trend
    blamed for decreased tourism and substantially increased customs
    clearance time for commercial traffic, all leading to lost
    revenue.  Officials from US Customs and Border Protection (CBP)
    and Department of Homeland Security (DHS) anchored the first of
    six border sessions, providing detailed descriptions of USG
    actions to implement WHTI-compliant identification programs
    using radio frequency identification (RFID) technology to
    expedite transit through border crossings.  The CBP/DHS
    initiatives received positive feedback from participants from
    both sides of the border but many are reserving judgment on the
    RFID programs until they are more fully implemented and data
    collected on their effectiveness.

    ¶3. The 2010 Winter Olympics took center stage in many of the
    border sessions.  CBSA incurred some very negative press when
    its representative, in response to a request for comment on how
    it will handle Olympics traffic, noted that they didn't expect
    Olympics traffic to exceed what is experienced in a regular
    August peak season (probably an accurate assessment) but failed
    to provide concrete examples of what CBSA is doing to prepare
    for the rush (peak season now can lead to hours-long waits).  BC
    provincial officials were unimpressed and did not hide their
    concern in statements to media.  Premier Gordon Campbell, in his
    keynote on July 21, described his experience at the 2004 Athens
    Olympics Opening Ceremony, where he waited 3 and half hours for
    transportation at the end of the event.  He emphasized that he
    did not want anyone to remember the 2010 Olympics because of the
    wait at the border.  Canadian Public Safety Minister Stockwell
    Day in his keynote on July 22, directly addressed the issue,
    explicitly promising that there would be no long, multi-hour
    lineups at the border during the Olympics.  He pointed to
    additional lanes (already under construction at Peace Arch) and
    staffing as just two measures being taken to handle the load.
    Despite his reassurances, local officials remain skeptical and
    are looking for more concrete steps from Ottawa and Washington
    to improve border processing.

    ¶4. PNWER, with BC and Washington State delegations in the lead,
    is mounting a full campaign for better border management.
    During the summit PNWER released a Border Charter, outlining its
    priorities and proposals for making the border work more
    efficiently.  The charter closely mirrors and endorses the
    report issued jointly by the Canadian and U.S. Chambers of
    Commerce in February 2008 with an additional emphasis on the
    2010 Olympics.  The charter also establishes a Border Solutions
    Coordination Council within PNWER to monitor developments on the
    border and produce a yearly border report card using the
    proposals in the charter as measures.  Among the many PNWER
    proposals are:

    a. assurance that the U.S. will have 10 lanes for processing at
    Peace Arch during the Olympics;
    b. customer service workshops for customs and border agents for
    dealing with increased Olympics traffic;
    c. pre-clearance program for buses and special lanes for
    Olympics traffic;
    d. special lanes for U.S. and Canadian citizens;
    e. baggage by-pass for air passengers to eliminate duplicative
    screening;
    f. more pre-clearance and processing prior to physical arrival
    at the border;
    g. customs pre-clearance for Amtrak service between Seattle and
    Vancouver;
    h. increased use of truck pre-clearance and electronic seals.
    i. improved procedures for frequent business travelers;
    j. expansion of trusted traveler and enhanced driver's license

    (EDL) programs;
    k. approval of EDLs and Passport Cards for use as air travel
    documents between Canada and the US.

    Sharing Ideas on Energy, Environment and Asia-Pacific
    --------------------------------------------- --------

    ¶5.  PNWER also released a report it commissioned from the Idaho
    National Laboratory looking at electrical transmission in the
    Pacific Northwest.  The report stated the region could lose $55
    to $85 billion dollars and 60,000 jobs annually if actions are
    not taken to fix the region's aging electrical transmission
    system.  The report noted that the system is so constrained
    member utilities are having to turn down new industrial
    customers for lack of capacity.  BC is highlighted as a major
    new source of sustainable power.  The report also describes 5
    major upgrade projects considered critical to the region,
    including California-based Pacific Gas and Electric's proposed
    $4 billion transmission upgrade set to carry 30,000 gigawatts of
     BC power south to the U.S.  In addition to electricity,
    sessions looked at other energy sources, with an emphasis on
    clean energy and technologies being used in the oil and gas
    industry to address climate change.

    ¶6. The conference overlaid Asia-Pacific Gateway throughout, with
    sessions on the Gateway as a border management issue, the
    Gateway and environment, and the Gateway as an opportunity for
    cross-border cooperation in global competitiveness.  During the
    summit representatives from the new Prince Rupert port announced
    they are moving forward on phase two expansion which will
    include a potash component that will "rival that of the Port of
    Portland."  Prince Rupert was initially billed as a port that
    would take overflow from other oversubscribed west coast ports,
    but discussions at PNWER indicate that the small facility, which
    claims to cut off 3 shipping days from Asia, is beginning to
    nibble at the business of its bigger, more southerly rivals.

    ¶7. Comment: PNWER has grown from a small, localized organization
    to a regional powerhouse with substantial public and private
    participation.  The organization hopes to build on this growing
    membership and past successes, such as the introduction of NEXUS
    and enhanced driver's licenses, to push forward an expansive
    border agenda.  However, a bigger agenda requires a broader base
    of support, and with border issues primarily focused on the
    Washington State-BC border, it's not clear PNWER is going to get
    the support it needs from the other members (and the two federal
    governments) to really make a radical change in border
    management.  In other areas, such as energy and climate change,
    PNWER shows much more unified support and will present a
    powerful lobby on issues it chooses to pursue in Ottawa and DC.
    End Comment.

    LUKENS

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