Increased Canada Us Border Inspections And Their Affect On The Economy.

993 words - 4 pages

This paper examines how post 9/11 increased security at the Canada US border has negatively affected teh economies on both sides of the border. BackgroundOn September 11, 2001, North America's world changed forever. After the obvious loss of lives, buildings, and sense of security, North America is also facing several other problems. Like throwing a rock in a pond, the ripples extend far beyond the splash.One of the ripples from 9/11 is increased, and tighter, Canada-US border inspections. Because of the tighter border, the lines at customs are longer and less friendly. Americans are less willing to cross the 49th and venture into Canada, which is having a huge effect on the Canadian economy. The United States is also the destination of close to 85% of Canadian exports, and stricter borders are hurting trade. Trucks containing goods going to the US from Canada (and vice versa) are being held up at the border, which is costing businesses greatly.This issue is affecting small and large businesses alike. Gas stations close to the border have seen more than a 75% decrease is their gas sales, and car plants in the US depending on parts made in Canada are being affected by not having the parts in time to ship orders. Another issue is the effect of the customs lines are having on the towns at the border. Windsor Ontario has been very public in stating that the lines of cars, and trucks in particular, are seriously harming businesses in the area.Assessment of the IssueNo one can argue that September 11th changed the priorities for all North Americans. Homeland security rose to the forefront of the populations conscious, economic trade took a back seat. Tighter security at all entries to America is obviously very critical, especially now. Tighter security, however, does not come without ramifications. Many of these ramifications were on the economy. We saw the fall (or accelerated fall) of the stock exchanges, the tourism sector (I'm a Maritimer, I can call it a sector) took a huge hit, and the retail sector was also severely affected. As were many other sectors, thus the need to take whatever measures possible, without affecting national security, to help stop the ripples of 9/11.Small businesses are being hit harder than chain stores and large companies. One gas station close to the border says its business is a quarter of what it was before 9/11. The same gas station had to lay off half of its employees, which has a compounding effect to the economy. People spend less, income is affected, jobs are lost, and fewer people have money to spend. The problem will continue to compound unless measures are taken to curtail this issue.Although not as seriously affected as small businesses, larger companies are feeling the pinch of increased border inspections. The auto industry in particular is suffering from the consequences of tighter border security. Many of the big US...

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