R 291855Z JUL 08
FM AMCONSUL VANCOUVER
TO SECSTATE WASHDC 4970
AMEMBASSY OTTAWA 
INFO ALL CANADIAN POSTS COLLECTIVE
AMCONSUL VANCOUVER

UNCLAS VANCOUVER 000199 
 
 
DEPT FOR WHA/CAN 
 
E.O. 12958: N/A 
TAGS: PBTS PREL ECON AORC CA
SUBJECT: BORDER ISSUES FIGURE PROMINENTLY IN REGIONAL SUMMIT 
 
¶1. Summary: The flow of people and goods across the U.S.-Canada 
border became the primary topic of discussion at the annual 
Pacific Northwest Economic Region (PNWER) summit, July 20-24. 
Several keynote speakers, including U.S. Ambassador Wilkins, BC 
Premier Campbell, and Canadian Public Safety Minister Day, and 
numerous roundtables and seminars, looked at ways to improve 
border processing, particularly in regards to the upcoming 2010 
Olympic Winter Games in Vancouver. U.S. initiatives were 
well-received while local British Columbia officials publicly 
criticized the Canadian Border Services Administration (CBSA) 
for not taking enough action.  The summit also highlighted 
regional concerns and actions on energy, environment and climate 
change, and the Asia-Pacific Gateway. End Summary. 
 
Border Restricting Trade and Travel 
----------------------------------- 
 
¶2. Vancouver played host to the 18th Annual PNWER Summit, 
bringing together over 800 state/provincial officials, NGOs and 
business leaders from BC, Alberta, Yukon, Saskatchewan, 
Washington, Oregon, Alaska, Idaho and Montana.  Sessions and 
speakers focused on a wide range of topics affecting the region 
but the most prominent issue was border management.  BC, as host 
of the summit and host of the 2010 Winter Olympics, steered the 
summit with numerous keynotes and individual sessions looking at 
what was repeatedly described as a "thickening border," a trend 
blamed for decreased tourism and substantially increased customs 
clearance time for commercial traffic, all leading to lost 
revenue.  Officials from US Customs and Border Protection (CBP) 
and Department of Homeland Security (DHS) anchored the first of 
six border sessions, providing detailed descriptions of USG 
actions to implement WHTI-compliant identification programs 
using radio frequency identification (RFID) technology to 
expedite transit through border crossings.  The CBP/DHS 
initiatives received positive feedback from participants from 
both sides of the border but many are reserving judgment on the 
RFID programs until they are more fully implemented and data 
collected on their effectiveness. 
 
¶3. The 2010 Winter Olympics took center stage in many of the 
border sessions.  CBSA incurred some very negative press when 
its representative, in response to a request for comment on how 
it will handle Olympics traffic, noted that they didn't expect 
Olympics traffic to exceed what is experienced in a regular 
August peak season (probably an accurate assessment) but failed 
to provide concrete examples of what CBSA is doing to prepare 
for the rush (peak season now can lead to hours-long waits).  BC 
provincial officials were unimpressed and did not hide their 
concern in statements to media.  Premier Gordon Campbell, in his 
keynote on July 21, described his experience at the 2004 Athens 
Olympics Opening Ceremony, where he waited 3 and half hours for 
transportation at the end of the event.  He emphasized that he 
did not want anyone to remember the 2010 Olympics because of the 
wait at the border.  Canadian Public Safety Minister Stockwell 
Day in his keynote on July 22, directly addressed the issue, 
explicitly promising that there would be no long, multi-hour 
lineups at the border during the Olympics.  He pointed to 
additional lanes (already under construction at Peace Arch) and 
staffing as just two measures being taken to handle the load. 
Despite his reassurances, local officials remain skeptical and 
are looking for more concrete steps from Ottawa and Washington 
to improve border processing. 
 
¶4. PNWER, with BC and Washington State delegations in the lead, 
is mounting a full campaign for better border management. 
During the summit PNWER released a Border Charter, outlining its 
priorities and proposals for making the border work more 
efficiently.  The charter closely mirrors and endorses the 
report issued jointly by the Canadian and U.S. Chambers of 
Commerce in February 2008 with an additional emphasis on the 
2010 Olympics.  The charter also establishes a Border Solutions 
Coordination Council within PNWER to monitor developments on the 
border and produce a yearly border report card using the 
proposals in the charter as measures.  Among the many PNWER 
proposals are: 
 
a. assurance that the U.S. will have 10 lanes for processing at 
Peace Arch during the Olympics; 
b. customer service workshops for customs and border agents for 
dealing with increased Olympics traffic; 
c. pre-clearance program for buses and special lanes for 
Olympics traffic; 
d. special lanes for U.S. and Canadian citizens; 
e. baggage by-pass for air passengers to eliminate duplicative 
screening; 
f. more pre-clearance and processing prior to physical arrival 
at the border; 
g. customs pre-clearance for Amtrak service between Seattle and 
Vancouver; 
h. increased use of truck pre-clearance and electronic seals. 
i. improved procedures for frequent business travelers; 
j. expansion of trusted traveler and enhanced driver's license 
 
(EDL) programs; 
k. approval of EDLs and Passport Cards for use as air travel 
documents between Canada and the US. 
 
Sharing Ideas on Energy, Environment and Asia-Pacific 
--------------------------------------------- -------- 
 
¶5.  PNWER also released a report it commissioned from the Idaho 
National Laboratory looking at electrical transmission in the 
Pacific Northwest.  The report stated the region could lose $55 
to $85 billion dollars and 60,000 jobs annually if actions are 
not taken to fix the region's aging electrical transmission 
system.  The report noted that the system is so constrained 
member utilities are having to turn down new industrial 
customers for lack of capacity.  BC is highlighted as a major 
new source of sustainable power.  The report also describes 5 
major upgrade projects considered critical to the region, 
including California-based Pacific Gas and Electric's proposed 
$4 billion transmission upgrade set to carry 30,000 gigawatts of 
 BC power south to the U.S.  In addition to electricity, 
sessions looked at other energy sources, with an emphasis on 
clean energy and technologies being used in the oil and gas 
industry to address climate change. 
 
¶6. The conference overlaid Asia-Pacific Gateway throughout, with 
sessions on the Gateway as a border management issue, the 
Gateway and environment, and the Gateway as an opportunity for 
cross-border cooperation in global competitiveness.  During the 
summit representatives from the new Prince Rupert port announced 
they are moving forward on phase two expansion which will 
include a potash component that will "rival that of the Port of 
Portland."  Prince Rupert was initially billed as a port that 
would take overflow from other oversubscribed west coast ports, 
but discussions at PNWER indicate that the small facility, which 
claims to cut off 3 shipping days from Asia, is beginning to 
nibble at the business of its bigger, more southerly rivals. 
 
¶7. Comment: PNWER has grown from a small, localized organization 
to a regional powerhouse with substantial public and private 
participation.  The organization hopes to build on this growing 
membership and past successes, such as the introduction of NEXUS 
and enhanced driver's licenses, to push forward an expansive 
border agenda.  However, a bigger agenda requires a broader base 
of support, and with border issues primarily focused on the 
Washington State-BC border, it's not clear PNWER is going to get 
the support it needs from the other members (and the two federal 
governments) to really make a radical change in border 
management.  In other areas, such as energy and climate change, 
PNWER shows much more unified support and will present a 
powerful lobby on issues it chooses to pursue in Ottawa and DC. 
End Comment. 
 
 
LUKENS