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European Affairs
Special Report: Allies Against Terror
Cooperation on Trade Security Must Be a Top Priority
By Douglas Browning
As we seek to create a safer trading system, the need to ensure the security of supply chains from the point of manufacture to final delivery will present a critical challenge. Meeting this challenge must be a top priority in the cooperation among governments and the private sector, and between Europe and the United States, that will be necessary to prevent legitimate trade being used for terrorist purposes, and to continue to counter the familiar threats of trafficking in narcotics. We have already been working vigorously to develop solutions.
Soon after September 11, 2001, U.S. Customs and Border Protection undertook an analysis of the security risks posed by commercial traffic, as part of a wider U.S. government assessment of the nation's vulnerability to future terrorist attacks. As a result, we have developed a layered approach involving improved security checks earlier in the supply chain, more effective screening at ports of entry, and programs enabling us to make better-informed decisions about when to examine a shipment.
This has been the prime strategy behind our efforts over the past two years, which have included significant collaboration with partners in the public and private sectors. As a single customs administration, our ability to secure the global supply chain is limited.
Perhaps the most important reason why partnerships are essential is that security must be taken seriously at every step of processing and transport. Because world trade is now so inter-connected, one negative incident would have a profound impact on the entire trading system, affecting every country and the whole international trade community. All of us have an incentive, indeed an obligation, to tackle this problem together.
In order to tighten the screening of goods in foreign seaports the United States opened discussions with other governments whose jurisdictions encompass the top 20 ports sending containers to our shores. Because of the profound trade relationship between Europe and the United States, many of these "megaports" are to be found on the European continent.
The Container Security Initiative, launched by our agency in 2002, has been a great success and we have benefited from close cooperation with the countries in which the first 20 ports are located. We are continuing to encounter similar levels of cooperation as we move beyond the first phase of CSI and start to include other ports in the program.
In the second phase of the initiative, we are looking for partner countries in which custom administrations are able to inspect originating or transshipped cargo; where there is, or will be, non-intrusive inspection equipment to conduct screenings; and where there are ports sending substantial, regular, and direct container traffic to the United States. Clearly, a number of additional locations in Europe will meet these criteria.
The initiative has raised some concerns in the European Union about the possibility of creating a competitive advantage for ports selected for first phase participation in CSI. It must be noted, however, that the CSI sites were chosen based on existing maritime trade lanes and the volumes of U.S.-bound exports. The designated ports were already doing high volumes of business outbound to the United States and CSI simply acknowledged and capitalized on that reality. A hallmark of U.S. Customs and Border Protection security initiatives has been the commitment to avoid disruptions or the introduction of inefficiencies into the global supply chain - CSI exemplifies that goal. We will continue to work with the European Commission to ensure that this commitment is met. We are committed to expanding the program to all EU seaports that meet certain minimum standards.
The aim is to find operational solutions that make sense for specific locations and can be supported by the appropriate human, technological, and information resources on our side. U.S. Customs and Border Protection employs a layered approach to meet its mission critical objective of a secure and efficient global supply chain. CBP relies on its human resources, inspectors and analysts, backed by enabling technologies such as non-intrusive inspection equipment and targeting systems, as well as accurate and timely data from traders, to facilitate legitimate trade while targeting potential threats.
The good news is that the dialogue is continuing, that we are establishing consultative mechanisms and, most importantly, that we are finding common ground on which to base a robust CSI regime that will help to ensure the security not only of Transatlantic trade, but also of global trade.
Of course, cooperation among governments is only one element of the strategy. We must also work with the private sector to implement security measures at points in the commercial process where we, as a government authority, cannot effectively intervene.
The Customs-Trade Partnership Against Terrorism, or C-TPAT, is the body in which we are seeking the support of the private sector in enhancing supply chain security. Well over 3,000 U.S. companies have joined the program and it will soon be opened to overseas manufacturers so as to connect all parties in the global supply chain in a secure logistics process from production to delivery.
Many C-TPAT importers are multinationals or have commercial dealings with companies in Europe. When the program is opened to parties outside the United States, it is our hope that the European business community will take part - not just because the volume of trade originating in Europe is significant, but because it is in the interest of European business to be part of this effort.
It is equally critical that governments on both sides of the Atlantic develop layered defenses to secure the global supply chain, which is only as strong as its weakest link. No country wants to be the weak link targeted by terrorists.
Since September 11, 2001, we have been fortunate not to have suffered a terrorist attack in the United States. This is at least in some measure the result of the hardening of our defenses. As the United States becomes a more difficult target, however, international terrorists will strike at softer locations - as we have seen, for example, in Bali, Yemen and Saudi Arabia. No country wants to find itself in this situation, and certainly the countries of Europe have much to gain by similarly hardening themselves against attack.
Significant leverage is created when numerous countries take similar approaches to these challenges. Those who would seek to exploit legitimate trade for nefarious purposes will find it much more difficult when governments, the entire customs community and the private sector are actively implementing stringent security measures.
International standards are being developed, through work in the World Customs Organization and other bodies. The essential ingredient, however, is execution of these standards at the national, regional and global levels. This is where the next steps must come.
Both the United States and Europe are clearly committed to combating international terrorism and balancing the imperatives of security and trade facilitation. The United States is working with EU member states and with the Commission to achieve our shared objectives. But moving farther up the supply chain - closer to points of manufacture in sensitive areas of the world - calls for proactive initiatives within Europe to work with other governments, to work with the private sector, and to obtain advance information for screening purposes. I am optimistic that this course will be followed.
I am equally hopeful that the dialogue we have started with the Commission will bear positive results. Customs administrations, as the agencies responsible for implementing policies developed elsewhere in government, often get caught in the cross fire. The U.S. Congress has mandated that U.S. Customs and Border Protection take very specific actions to improve trade and supply chain security, some of which have caused serious concern in the European Parliament. It is becoming increasingly important to forge closer links among legislators on both sides of the Atlantic.
Over the years, good mechanisms for consultation have been established government-to-government, customs-to-customs, and customs-to-private sector. At the policy level, there must be a robust dialogue among legislators to ensure that both sides are pursuing policies and enacting laws that work well together. This is an area in which the potential benefits for national and global security go well beyond the customs arena.
In today's environment, we have to find as many ways to work together as possible, particularly given the depth of the Transatlantic relationship, the system we both have an interest in preserving, and the many values our peoples share. In the customs realm, there is only a small margin of acceptable error, which gives us little luxury to allow misunderstandings to prevent us from coming together in support of our fundamental goal - preserving the flow of legitimate trade through the maintenance of adequate security.
We have started a process that is destined to remain with us for some time, as the conditions that are forcing us to make changes are not likely to disappear. While there has been progress, more work needs to be done. I am confident that we shall continue to find solutions together and, in so doing, maintain the trade and customs relationships that have been so important to both the United States and Europe. What is important is that we move forward together, that our political leaders remain engaged, and that we continue working toward a harmonious balance between real security and real trade facilitation.
Douglas Browning is Deputy Commissioner of the U.S. Bureau of Customs and Border Protection within the Department of Homeland Security, a position he has held since May 2002. He is responsible for the development, implementation, and the evaluation of Service-wide programs, policies, and procedures relating to the observance of legal decisions and the publishing of rulings. Previously, he served as Assistant Commissioner for the Office of International Affairs at the U.S. Customs Service, and as District Director in Baltimore, Maryland.