Business security and globalization issues in Canada and Mexico - Research Paper Example

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Business Security and Globalization Issues in Transport Industry In order to maintain a competitive position in the world trade market, transport industry needs to be given topmost priority. For restructuring of the global economy, transport and logistics play a major role and that is why governments of all countries should strive for a safe and efficient transport industry…
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Business security and globalization issues in Canada and Mexico
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Download file to see previous pages CTA represents the trucking industry’s perspective on national and global policy, general and legal regulations that affect trucking. In Canada, 90% of items like food and consumer goods are carried by the trucking industry across the country. This industry reaches out to provide its services to almost every town, city and community of Canada. 70% of trading relation between Canada and US and 50% of trading relation between Canada and Mexico comprises of the trucking industry. In spite of the fact that few very large and public limited companies form the Canada Trucking industry, yet it is ruled by thousands of businesses of medium and small sizes and independent businesses which are operated by the owners. Most of such businesses are owned and run by Canadians. In 2000, trucking industry in Canada garnered freight revenue of $48 billion. Out of the 400,000 people employed by this industry, the number of drivers is over 260,000. (“Submission on the Canada-United States of America Trade Relationship and the Canada-Mexico Trade Relationship”) Effects of US Security Initiatives The initiatives taken under the Smart Border Accord could challenge the ability of the Canadian carriers to participate in the trading relationship with US unless an appropriate balance in trade/security is maintained with the US. To influence the border policy decisions of US, Canada has to maintain a strong partnership with the Americans in the field of border and security efficiency. Substantial steps must be taken by both countries to tackle national security concerns as well as to ensure smooth flow of low risk commercial freight across the border. As long as border security is not addressed properly economies of both country and especially economy of Canada is bound to suffer. Investments should be made on infrastructure like tunnels and bridges to expand the crossing capacity in the Canada-US border. Both United States and Canadian governments should support the use of FAST cards as substitute of the Transportation Workers Identity Card developed in the US. (“Submission on the Canada-United States of America Trade Relationship and the Canada-Mexico Trade Relationship”) Trucking industry in Mexico Commercial transport in Mexico is dominated by its trucking industry. Mexico’s truck fleet increased by 85% between the years 1989 and 1992 due to government’s deregulation of the industry. Till 1989, Canada’s truck fleet could run only on certain routes and could carry only certain types of cargo. This led to inefficiency within the industry. Since 1992, trucks can run over any road within the country and can carry all kinds of cargo except the dangerous and explosive ones. This has resulted in doubling the number of trucks in Mexico and due to intensified competition costs have also fallen drastically. (Nolan, 308) Canada and Mexico’s Trade with the United States Canada and the United States are the largest trading partners of each other. Canada exports 87% of its total exports to the United States every year and the United States sells 22% of its total exports to Canada. Every day over 37,000 trucks cross the border of Canada and the United States and Canada receives 50% of all automotive exports of US. Of total trade in Canada, trucks carry 70% with US and 50% with Mexico. Mexico is the sixth largest trading p ...Download file to see next pagesRead More
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