Greening the Greening the Trade Corridors in Trade Corridors in North America: North America: Why Corridors Why Corridors and Why Green?and Why Green?

Benjamin Teitelbaum

CEC, April 22nd

The Background

• The Emergence of Cross-Border Regions

– North American economic integration has focused primarily on national economic & environmental dimensions;

– The Mexico-Canada-US trade agreement or NAFTA opened a new era in the way the three countries interact with one another with cross-border regional linkages playing an instrumental role in the process of North American integration.

– A cross-border region often finds that key economic activities and clusters cut across borders.

There are a large number of Corridor organizations along the borders of all three countries

These corridor organizations act as facilitators

Corridor organizations provide a mechanism for regional stakeholders to address “regional” as well as “national” issues

Provinces and states recognize that cross-border collaborations are important to their future prosperity

Corridor associations provide forums for building and enhancing NAFTA relationships and discussing issues on a regional basis

Cross-Border or Trade Corridor Organizations

• US, Canada and Mexico have recognized the reality and importance of these Corridors;

• However, they have not established formal policies that are consistent for developing these gateways across the continent;

• Example> there is no transportation policy to guide infrastructure developments that would facilitate continental economic integration and ensure environmental challenges are dealt in a NA context

Obstacles

In 2001, a report prepared for the CEC examined the environmental impact of NAFTA trade on five bi-national segments of three primary trade corridors. The study found that NAFTA trade contributed significantly to air pollution in all the corridors.

Greening The Trade Corridors

• NA transportation routes and hubs are becoming continental and existing capacity is insufficient to accommodate increased trade

• Increasingly cross border “regional” Corridors are becoming National, Bi-National and Tri-National partnerships

TODAY!

The NA economy can best be visualized in this 21st Century as a deeply integrated continental system of supply chains structured by networks linking production centers and distribution hubs across the continent

What is the situation in 2008 and the future

Governmental Response

-Establishment of Corridors & Gateways based on National priorities (Canada >Asia Pacific Gateway, Ontario-Quebec Gateway & Trade Corridor; US> Alameda Corridor + Major Transportation capital investment; Mexico>Coast & Inland Ports , new and improved train infrastructures, etc.)

-Development of new transportation infrastructures (Churchill > Plains>Kansas> Corpus-Christi > Laredo>Veracruz > Punta Colonet)

Green Corridors Need (1)

• Recognition of the Corridor framework as part of Trade & Environment

• The US Government under Equity Act for the 21st Century (TEA21) designates “High priority Corridors” > Canada & Mexico have no special designation

• Recognition of state & provincial cross-border regional focus as means of promoting & establishing National and Tri-national (NA) initiatives

Green Corridors Need (2)

• Recognition of the need for a NA approach to support the development of an integrated approach to resolving transportation & other infrastructural challenges

• i.e. Canada, US & Mexico could participate together in the establish a NA Intelligent Highway ProgramResult: safer movement of people & goods + energy efficiency = reduction of environmental and GHG impacts

Green Corridors Need (3 -CEC)

• Trade Corridors provide a unique opportunity for the CEC to pursue trade and environmental cooperation issues, and in the process fulfill the purpose for which the NAFTA side agreement on International Cooperation was drafted

• The principal action required at this stage in order to facilitate the CEC involvement in Corridor partnerships is for National Governments to designate Corridor and Green Corridor initiatives a priority of the CEC.

The Role of the CEC• Facilitator: Help coordinate tri-lateral meetings

between Corridor Associations and other regional stake-holders

• Support: Research, scoping & be a clearing-house (transportation & environmental data)

• Assist: In fostering inter-regional partnerships that include local, regional and national stakeholders

By Working directly with regional interlocutors both private sector and/or Corridor associations as

well as regional/local governments the CEC would enhance efforts of National Governments in finding solution to NA transportation &

environmental challenges