| Border Chokepoints Draining
US Economic Potential
Washington D.C. - Each year the
American economy loses $4.13 billion in economic potential
because of clogged border crossings into Canada, with
the greatest losses suffered by the Great Lakes States.
"Borders are the chokepoints
of our economy," said Len Crispino, President and
CEO of the Ontario Chamber of Commerce (OCC), located
in Toronto, Ontario, Canada. "Lost jobs and lost
economic potential are having a dramatic impact on the
United States."
In the Cost of Border Delays to
the United States Economy study, released today, the
OCC found that the economic loss to the US is conservatively
measured at $471,461 per hour - each and every hour
of the day. There is also a corresponding loss of potential
employment - particularly in the manufacturing and transportation
industries.
"Since the signing of the
Free Trade Agreement, cross-border traffic has grown
by 152 per cent," said Crispino. "This has
created a significant traffic problem that has been
exacerbated by just-in-time logistics and a lack of
infrastructure capacity."
The study found that Michigan and
Ohio bear the brunt of the economic loss, closely followed
by New York and Pennsylvania. This loss is generated
from routine delays, ranging from 10 minutes up to four
hours.
"There are over 5.2 million
jobs in the United States that are dependant on trade
with Canada. Each year, five times as many US products
are sold to Canada as to Japan," said Crispino.
"Immediate action by both nations is needed to
solve this problem because the cost of inaction is simply
too high."
The OCC has met and will continue
to meet with Representatives from several Great Lakes
States and from key legislative committees with interests
in trade, security and infrastructure - presenting them
with facts about the costs of border delays to the US
economy.
The full study, backgrounder, and
a previous study focused on Canada and Ontario's economy,
can be found at www.occ.on.ca.
Return
to Trucking News Headlines
|
1-877-744-7762
