Bangor-Halifax pact works best for both cities

A special committee of the Bangor City Council is deciding whether to endorse efforts by neighboring Halifax International Airport (HIA) to establish preclearance services for passengers originating in Halifax, pursuant to the Canada-US Preclearance Agreement of 2001. The City Council has an important opportunity to settle this matter to the mutual satisfaction and benefit of Bangor and Halifax; and it should pursue this opportunity.

The advantages derived from Halifax obtaining originating preclearance service are several. The measure would enable passengers originating in Halifax to clear US Customs and Immigration there. From a security standpoint, it will help integrate the international northeast into the Smart Border Accord by providing advanced screening of individuals before they land in the United States. From an economic standpoint, it will increase connectivity between Atlantic Canada and northern New England by alleviating congestion and allowing flight connections to be dictated by market demand rather than US Customs & Immigration infrastructure.

There are actually two distinct categories of preclearance, each requiring separate applications. BIA does not take issue with the specific form of preclearance Halifax has applied for, the so-called “originating” preclearance outlined above. What remains at issue are BIA’s concerns over so-called “in-transit” preclearance services for flights coming from Europe. BIA wishes to protect its current business servicing flights from Europe, which land at BIA to clear US Customs and Immigration en route to their ultimate destination.

When the issue is framed in the context of these two categories, it is clear that there is really no “competition issue” between Bangor International Airport and Halifax International Airport. BIA is protecting business that Halifax does not want. To address Bangor’s concerns, HIA has offered to enter into a legally binding agreement guaranteeing that Halifax will not apply for in-transit preclearance. The HIA has further offered to indemnify Bangor International Airport for any financial loss it might incur as a result of preclearance, to be determined by a third party of Bangor’s choosing, and verified on an annual basis.

The most frustrating aspect of this debate is the absence of a definable point of contention between the two parties. This is not a zero-sum game where one side wins and one-side loses. Bangor does not take issue with the originating preclearance that Halifax needs. Halifax has no desire for the in-transit preclearance that Bangor objects to. While the city of Bangor should examine the details of the indemnity offer closely, it should also view the offer as extra assurance that HIA will not apply for in-transit preclearance.

Bangor’s economy has little to gain – and much to lose – in objecting to preclearance. Halifax International Airport is the only major airport in Canada not offering originating preclearance services, which means that Atlantic Canada is the only region in Canada without the benefit of this service. This shortfall impacts overall connectivity between Atlantic Canada and northern New England making strengthening commercial ties in the international northeast all the more difficult. We require this strong aerial link to boost the same connectivity we point to when we cite the need for an East-West highway. The absence of this connectivity places the entire region at a competitive disadvantage with other regions across North America.

Originating preclearance services in Halifax can actually enhance traffic at BIA by stimulating traffic growth at both ends making a Bangor-Halifax route more attractive to potential major carriers. Presently, anyone traveling between Bangor and Halifax knows they must drive, fly to Boston or Newark (if they’re lucky enough to get a connecting flight), or charter a plane. None of these options is optimal for most people. If we don’t reduce barriers to the quick and efficient movement of goods, services, and people across our region, how can we compete to attract the investment and jobs needed for growth? In the context of new security realities characterizing our times, our local and regional economic success rests on how well we work across boundaries.

Halifax will strongly appreciate Bangor’s support to obtain originating preclearance services, and has offered a legally binding agreement guaranteeing that Bangor won’t be impacted negatively. Approval of originating preclearance for Halifax conflicts in no way with the interests of the Bangor International Airport, and actually serves to advance the transportation infrastructure of our shared region. It’s time to look past the supposed objections, and toward the actual benefits, and work for the best deal for Bangor.

Andrew MacDonald is senior trade policy advisor with Nova Scotia’s Department of Intergovernmental Affairs in Halifax. He managed technical trade assistance with the Maine International Trade Center in Bangor and Portland from 2000-2003. The views expressed here are his own.