Container initiative touted as incentive for secure ports

The Bush administration believes that its global port security initiative is a good motivator for insecure ports to improve, a senior Homeland Security Department official said on Wednesday.

The U.S. Container Security Initiative requires that U.S.-bound containers of goods be tracked from their points of origin and includes the 20 top ports in the world. Some nations, particularly in the European Union but also in Latin America, have raised concern that the U.S. customs advantages given to shipments traveling through the recognized ports will disadvantage shipments from unrecognized ports.

But Cresencio Arcos, director of international affairs at Homeland Security, responded to those concerns at an event of the Inter-American Dialogue by arguing that the effort will force the other ports to meet the security standards to receive equal treatment.

"There is a growing concern in Latin America that they won't be included [in the initiative] fast enough," Arcos said on an Inter-American Dialogue panel. "We want that motivation. We want to give them the incentive that the quicker you clean up the ports, the sooner you'll receive" certification by the United States.

Arcos said three Latin American ports are under consideration for inclusion in the initiative: Panama; Santos, Brazil (near the large industrial city of Sao Paolo); and Buenos Aires, Argentina. While they are the largest ports in Latin America, more than volume is being considered in identifying ports for the initiative, he said. Corruption also is a major factor in the region.

Arcos said that half of his time is spent on issues related to Mexico and Canada because of the amount of activity there. He came under some criticism from industry representatives who said the change in the balance between security and trade has slowed some trade.

Shanker Singham, an attorney at Steel, Hector and Davis in Miami, said his firm's clients have complained most about the difficulty in obtaining visas to enter the United States and said a decline in the number of visa applications shows a "self-selection" process where businessmen do not even try.

Singham also said the global "just in time" supply chain is critical to the U.S. economy and has been negatively impacted by stronger security measures, including the requirement for advance electronic manifests. He added that efforts in negotiations for trade agreements aimed at smoothing the cross-border flow of goods have slowed.

The Dec. 12 entry into force of the U.S. bioterrorism law also is raising concern abroad, Singham said. He urged that security measures be as targeted as possible toward risky shipments by using the latest technologies.

George Weise, vice president at Vastera and a former customs official, urged businesses to share as much information ahead of time with customs officials in order to expedite shipments. Arcos said information is at the crux of Homeland Security's efforts.

He also acknowledged that despite new measures and technologies, 1 million people enter the United States illegally every year and 8 million to 10 million are in the country at any time.