February 15, 2001    

Good Morning.

I am very pleased to be here on my first official visit as the new Minister for National Revenue.  And what a better place to start than here in Toronto at the center of Canada's
business world.

Everybody in this room knows the border is the very heartbeat of our economy. We--like our American cousins--are a trading nation and that border heartbeat; is vital to our very survival.

After all we do $1.9 billion in trade every day with the
United States.


But--as you are aware--on September 11 that border heartbeat became irregular.

When terror came calling; security and safety took the front seat and we--with our partners in the United States--moved swiftly to defend freedom and fight terror.

We now need to ensure that the border heartbeat is steady, regular, secure and vital.

We are getting there. Just Last Weekend Canadian Finance Minister Paul Martin and U.S. Treasury Secretary Paul O'Neil agreed Canada and the U.S. could not allow terrorists to
dictate our border policy.

This government has applied resources, legislation and Canadian will to make our borders work. Ladies and gentlemen, I can tell you that the government of Canada has made a
strong commitment to support the competitiveness of Canadian business without compromising the security, health, and safety of this country.

Current State of the Border

Our borders and the processes we have in place to manage them are absolutely critical to our ability to provide Canadians with the security and economic growth and opportunity which they expect. This must be done in the face of enormous volumes of traffic, which arrive at our borders on a daily basis.

Every day 300,000 travellers enter Canada and we process 40,000 commercial shipments on a daily basis.

These volumes have been growing annually and will continue to grow with each succeeding year. This is the reality today and will continue to be the reality of tomorrow.

The challenge now is to do all this in the post-September 11th environment. Not only have we risen to meet this challenge, I can tell you that we will continue to work
towards solutions to the remaining border issues.

Partnerships with the United States

We have been working closely with the United States on issues of border security and trade facilitation.  As you know, Minister Manley and Minister Cauchon met with Governor Ridge in Ottawa, where they signed a declaration for the creation of a Smart Border for the 21st century between Canada and the US.

I think American Ambassador Paul Cellucci gave a great progress report to journalists last week when he said: "we're making great progress. The goal here is to have as many of the 30 points of the action plan actually implemented by the time President Bush and Prime Minister Chretien meet around the G8 summit in June".

This is a can-do attitude by both Americans and Canadians to make this border work for everybody.

What we have is an aggressive thirty-point action plan for enhanced security at our external borders as well as for the streamlined movement of people and goods across the shared
border.

This action plan is designed to tighten border security while addressing congestion at our busiest ports of entry.

Indeed, Canada and the US are on the same page when it comes to border security and trade facilitation.

Ambassador Cellucci also indicated negotiations were progressing well toward new border crossing systems that could allow security to focus on the sources of greatest potential threat by giving special treatment to commercial traffic and individuals who routinely cross the border for work or business.

Facilitating Trade and Travel

For Canada's part, it means moving forward on ways to manage the border in a cooperative way. Specifically, we are now moving on common customs security standards, information
sharing practices and systems, and joint passenger and commercial processing programs at the US/Canada border.

Innovative joint programs are designed to speed up and streamline the processing of low-risk travellers and commercial shipments.

For travellers, as you may know, the NEXUS program is a joint initiative among the four border agencies in Canada and the United States.

It was temporarily suspended in the immediate aftermath of September 11th however, both countries were determined to restore NEXUS as quickly as possible, recognizing the
valuable role it plays in promoting trade, tourism, and travel between Canada and the US.

With the re-instatement of the program, we have accelerated the evaluation of NEXUS and are working towards expanding the program on a bi-national basis at ports of entry across the shared border.

On the commercial side, our Agency launched the Customs
Self-Assessment (CSA) program last December.


It marked the beginning of our new way of doing business with the trade community to streamline the movement of legitimate goods across the border.

In fact, CSA further positions us as one of the most advanced customs organizations in the world -- undoubtedly, an advantage for Canadian businesses in today's competitive world.

The CSA program is based on a sound risk management regime that streamlines the movement for our identified low risk traders. We intend to present CSA as a model for harmonizing our commercial processing with the US.

CSA all at once facilitates the movement of low risk goods while increasing security.

I urge your to engage your counterparts across the border in an effort to adopt CSA and a joint program to process goods both ways at our shared border.

Investing in Border Management

Before September 11th, we had a clear strategy for dramatically changing the way we manage customs. Simply put: risk management, supported by state-of-the-art technology,
will promote a more secure and efficient border.

It was a good strategy before September 11th, and has now become critical in the environment which we live in today.

I mentioned earlier that this government is committed to supporting the competitiveness of Canadian business.

The recent budget earmarked 430 million dollars for the Canada Customs and Revenue Agency. In total, since February 2000 over half a billion dollars has been budgeted towards
border security and facilitation.

This government is serious about its commitment to the current state of the border as well as that of the future.

The Future of the Border

Sharing intelligence, advanced electronic information, and pre-screening are the keys to the future of border management.

While we have already begun with programs such as NEXUS and CSA, we still continue to work aggressively and quickly with the US to move toward effective joint border  management.

For example, we are pursuing the implementation of pre-approval programs such as the Expediting Passenger Processing System for transborder flights.

EPPS will allow pre-approved air travellers to self-clear at a kiosk using biometrics, and pay duties and taxes with a credit card.

Our US colleagues have agreed to explore the possibility of joining us the EPPS which would become NEXUS Air.

We are also in the process of sharing best practices in order to ensure enhanced security at our international airports and seaports.

Our aims are continued trade facilitation while enhancing border protection.

Conclusion

Although much has been done in the last five months to address the current issues of border management we know there is still quite a bit of work ahead of us.

Your support during this time has been wonderful and greatly appreciated.  And it's at this time that we need your support more than ever. Both government and business must work together to improve in security-related areas.

I am confident that we are on the right track with our plans for a secure and efficient border between Canada and the US. And, I believe that these plans will benefit Canadian
businesses.

Thank you for the opportunity to speak to you today.