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Good afternoon. It's a special privilege to address you today. The Border Trade Alliance was founded in 1986, two years before the Canada-U.S. Free Trade Act was signed in October 1988; and six years before signing the NAFTA in 1992. Since its founding, the Border Trade Alliance has been a visionary organization, advocating improvements along our shared borders free trade, economic growth and mutual prosperity in North America.
Today the Border Trade Alliance forms a network of almost two million public and private sector representatives who continue building a prosperous North America. Given the global economic crisis, particularly in the United States, and the growing levels of narcotic-related violence in Mexico, your work today is more challenging, and more important, than ever. So let me begin by thanking you for the work you do; and for traveling from Canada, the U.S., and from across Mexico for these very important meetings. And let me thank Erin Ward, BTA's Chair, for the chance to talk about the security challenges to our bilateral relationship, and specifically to our bilateral trade.
I think we can agree here that NAFTA has been a success for all three partners. $1 billion in goods and services and 1 million people legally cross the US-Mexico border every day. Two-way trade in 2008 stood at $367 billion. The Mexican export component was $216 billion – 80% of Mexico’s total exports and 4.5 times more than the total at NAFTA’s implementation in 1994. NAFTA lays a strong foundation for more than trade -- this relationship will help us both weather the difficult economic season ahead.
I think we can also agree that NAFTA's success has strained the aging infrastructure of our border crossings just as security realities require more scrutiny of vehicles, pedestrians, railcars and other traffic across our shared borders. In the difficult economic circumstances of today and the coming months, if not years, efficiency is a premium as manufacturers, produce growers and service providers strive to make markets in an environment of reduced consumption and tightened credit. And we're not just talking border states here. In 2007, Mexico was the number one or number two export market for 21 U.S. states. Economies from Washington State to Arizona rely on Mexican markets for their prosperity. So important is this movement of people and goods between our countries that seven of nine U.S. Consulates in Mexico are located in border states.
Legal commerce across our borders is vital to the health of our two nations. Illegal smuggling of drugs, people, weapons, bulk cash and contraband by organized criminal networks operating without reference to law or border is a cancer that threatens our mutual health. This cancer is not just a federal problem, not just a government problem, not just a law enforcement problem. It is our problem, collectively, and one we need to stand up to day after day. Just as these illegal networks took years to grow, they will take time and determination to vanquish. Together, Mexico and the United States will do just that.
I for one am optimistic that this time of trial, both in terms of economic and security challenges, will end in stronger trade ties, deeper security cooperation, and safer, more prosperous communities in both Mexico and the United States. Here's why.
1) We work smarter
Since September 11, 2001 the U.S. has expedited the development of technologies that will make border crossings more efficient, and targeting border risks more accurate. We offer a CTPAT program to facilitate cargo crossings. We will, as of June this year, require all traveling American citizens to document themselves with a passport, passport card, or enhanced drivers license, the newest of which have smart chips that push data to border inspectors so that they can process travelers more rapidly. The SENTRI and FAST programs, which provide dedicated lanes for trusted people and cargo, are being expanded. Non-intrusive inspection equipment allows cargo to be searched without off-loading, and permits ready detection of contraband. All of these programs help trusted travellers and pre-identified cargo move across the border more fluidly.
2) We work more
There are more USG officials working the border at ports of entry and areas in between than ever before. More ports of entry are open longer hours, more inspectors are available round the clock, and more information about programs, wait times and backlogs is available on the internet and elsewhere so travelers can re-direct themselves to different bridges with shorter waits.
That's not all. Funds have already been approved and construction started to expand the San Ysidro/Puerta Mexico port of entry – the busiest in the world – with completion expected in 2014. In addition, the State Department last year issued a Presidential permit, in record time, for a major new San Diego area crossing, at Otay Mesa East. Three wholly new crossings are currently under construction. Two of these, the Anzalduas bridge linking Reynosa with McAllen, Texas, and a cargo crossing in San Luis Arizona, are scheduled to open later this year.
The stimulus bill just signed by the President -- formally known as the American Recovery and Reinvestment Act -- includes important resources for modernization of both the US-Mexico and the US-Canada borders. The package includes $720 million [RSA1]for immediate expansion and renovation of border crossings and land ports of entry along both U.S. borders, as well as $100 million for border security and technology. $40 million is slated for law enforcement along the U.S. southern border, including $10 million for ATF efforts to halt gunrunning into Mexico. In addition, and addressing another kind of security challenge, $220 million goes to the US Section of the International Boundary and Water Commission to meet immediate repair and rehabilitation requirements to renovate deficient portions of its levee systems. These are all important resources on top of increases already budgeted for CBP, ICE and other government entities operating along the borders.
Last week, local, state and federal officials from Mexico and the United States met in Chihuahua to undertake a California-to-Tamaulipas review of all border crossing projects in the pipeline. With the economic downturn reducing traffic – most noticeably along the Rio Grande, though less so in California – and with dedicated funds now available, an opportunity exists to speed up upgrades. And that leads me to point three:
3) We work more together
If NAFTA marked an historic effort to align and rationalize the U.S., Mexican and Canadian trade relationship, today the U.S. and Mexico are engaged in a similarly historic effort to align our efforts against the security challenges organized criminal networks post to both our countries. The Merida Initiative is a recognition by both our governments that we must coordinate our separate policies and launch some efforts jointly to confront the security challenges that can impact your ability to conduct business along the border. Drug consumption in the United States drives much of the illicit trade across our border, and so we are doing more on demand reduction. Cartel members launch their offensives against each other and the state using arms purchased in the U.S., so we have launched Operation Gunrunner through ATF, and Armas Cruzadas through ICE, to confront various aspects of the trade. Bulk cash feeds the next round of violence and drug production, so we work closely to try and intercept the millions of dollars in cash that flow from the U.S. across into Mexico.
For its part, Mexico has launched an historic offensive against cartels operating in its territory, an offensive that requires commitment as well as sacrifice. There are thousands of Mexican heroes fighting cartels, their stories largely unknown. But they are the ones interdicting hundreds of weapons, seizing tons of cocaine, intercepting millions of dollars. They are the ones resisting both temptation and intimidation to confront criminals. They are also the ones sacrificing their lives in this hugely important undertaking, and we should honor their sacrifice by supporting their effort.
The Merida Initiative does just that, by providing not just our separate commitment as two nations, but uniting our capabilities in a common cause. As Mexico proceeds with police and judicial reform, we will help by supporting integrity programs, providing technical assistance to data base development, and offering forensics and other specialized training. As Mexico expands its efforts to detect arms entering the country we will provide inspection equipment, canine training and technical support. Together the U.S. and Mexico will improve communications, expand intelligence sharing, and increase law enforcement cooperation so we can apprehend cartel leaders and prosecute them no matter which side of the border they're hiding in.
While the resources associated with Merida are just beginning to flow, the partnership of Merida has already achieved results. President Calderon and his national security team are conducting an unprecedented offensive against cartels, shattering their structures and denying them access to their traditional routes. Cartels have reacted violently, through brutal killings, intimidation, psychological operations like the threatening banners, and lately by organizing blockades of border crossings. Yet polls show the Mexican people support the rule of law, the emphasis on public security, and the effort to vanquish cartels.
While we talk a great deal about federal government cooperation, making the borders work is not just a federal problem. One of the reasons I am optimistic that this season of challenge will evolve positively is because of the communities that co-exist on both sides of our border. You'll hear later today from the mayors of many of those communities. They will talk about security challenges yes, but those challenges are discussed in the context of common goals, common visions for their communities, and ultimately common futures. The sister cities along the border understand that their well-being also lies in working together. I have met recently with the mayors of Nuevo Laredo and Tijuana, and their leadership leaves me more optimistic about what can be achieved. After you hear from them I think you'll agree with me.
Making the borders work is also not just a government problem. It's your problem too. First, inform yourselves, and this conference is a good start. I have two other suggestions for you. The U.S. government last week issued a travel alert for Mexico, and many see that as a warning not to travel. They are wrong. Our travel alert is intended to provide accurate information about Mexico and many other countries in the world, so travelers can make informed decisions. As business people you need to make informed decisions too. If you have never joined one of our Overseas Security Advisory Councils -- OSAC -- I would encourage you to do so. Along the border we have OSACs in Nuevo Laredo, Ciudad Juarez, Monterrey, Matamoros and Hermosillo. They serve as a clearinghouse for businesses to share security information with one another.
Second, be a part of the changing culture. Corruption is an increasing challenge on both sides of the border as criminals, thwarted by improved infrastructure, look to exploit human weaknesses. Don't be a part of corruption, and report it whenever you see it.
Third, continue to mobilize your grassroots members to press both the U.S. and Mexico to do more to make the border modern, efficient, and secure. Your ideas and your insistence have made some of the programs I described earlier real. But we need continued engagement to improve. We recently hosted two U.S. congressional delegations here, including several members from border states who told me how their contacts with local business, local mayors and local schools inform their vision of what the border can be.
Fourth -- see the opportunities even in this time of economic and security challenges. This is not a time to give up or entrench. It is a moment to examine how to be more competitive, how to be more innovative, and how to build on the foundation of success NAFTA has laid for us.
I don't want to leave you with the idea that I don't understand how difficult the days ahead may be. President Calderon met with then-President elect Obama in early January, and they were frank in their assessment of the challenges our two nations face, even as they were optimistic about eventual success. I like to think that President Obama selected former Arizona governor Janet Napolitano as Secretary for Homeland Security because he realized she has lived the border experience, and would understand best the imperative for solutions. I can assure you that the issues I've discussed here, and the urgency that we all feel, is shared by the highest levels of both our governments as we continue our shared effort to enhance the security and prosperity of our border. And that's why you should leave here optimistic -- because the U.S. and Mexico are working together as we never have before, and that's the best recipe for success. Thank you.
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