Red tape boosts North American-made vehicle costs

TORONTO – Crossing delays, complex new rules and burdensome paperwork at the Canada-United States border add about $650 to the price of each vehicle produced in North America. The red tape could also cost businesses and consumers billions each year in each country, according to a new report.

The report released Tuesday by a coalition of Canadian companies and business groups also warns that the extra burdens act as a barrier to investment in a variety of industries on both sides of the border, and increase prices of consumer goods.

“We must ensure that the steps we take to combat terrorism also allow us to move toward achieving enhanced trade facilitation at our internal border,” the report states.

The report also says there are now at least 44 government agencies in Canada and the U.S. with some jurisdiction over border issues and that “disturbing” trends are emerging, despite the two countries’ commitment to improve.

Problems include:

. Customs rules are more complex than ever and are not being enforced consistently at the various border crossings;

. Burdensome paperwork and the need for information at border crossings are on the rise;

. Some key crossings have limited or no dedicated commercial lanes.

The report also estimated that average processing time for shipments entering the U.S. from Canada has increased 300 percent per truck since the two governments made their 2001 “smart border” declaration to make border crossings more efficient. For the auto industry, that translates to an additional $800 (Canadian) per vehicle, or $656 in U.S. funds.

The report was written by the Coalition for Secure and Trade-Efficient Borders, a collection of 55 Canadian companies and business groups from a variety of sectors.