Beyond Preclearance: The Next Generation U.S.-Canada Border

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1 Beyond Preclearance: The Next Generation U.S.-Canada Border Gerry Bruno Vice President, Federal Government Affairs, Vancouver Airport Authority & Co-Chair, Beyond Preclearance Coalition Solomon Wong President & CEO, InterVISTAS Consulting IATA AVSEC World MIAMI, FLORIDA FEB 26, 2019

2 Key Coalition Objectives Complete the unfinished business of the Beyond the Border Action Plan Industry groups provided ideas to further streamline free-flow movement of low risk travelers and goods, but Beyond the Border 2.0 did not happen Address the Challenges of Forecast Growth in International Traffic: Need to add 38,000 officers to current base of 84,000 in next 20 years Requires $30 billion in new operating costs Advance New Process Convergence, Technology & Risk Management Solutions: Close the growing gap between resources/capacity to handle growth Integrate/combine air travel processes using Biometric Single Token Use travel/trade history for Probability-based Risk Management

3 COALITION PARTNERS

4 COALITION PARTNERS (cont d)

5 THE PLAN Establish Coalition Jan-Jun 2018 Set Up Website ( Mar 2018 Appoint Steering & Executive Committees May 2018 Stakeholder Input: Woodrow Wilson Forum, PPF & PNWER Roundtables, July 10 workshop, Cargo workshop Mar-Aug 2018 Complete Beyond Preclearance White Paper May-Oct 2018 Fall Conferences focused on B.P. White Paper: NASCO (Vancouver) CanAm BTA Conference (Washington, DC) Aviation Border Summit II (Vancouver) Sep 26-27, 2018 Sep 30-Oct 02, 2018 Oct 11-12, 2018

6 WHITE PAPER: Released Oct 2018

7 Estimated Annual Savings 54 RECOMMENDED CHANGES TO U.S.-CANADA BORDER Travel Trade Total Maritime $5 M $1,245 M $1,250 M Aviation $106 M $3,228 M $3,334 M Rail $1 M $4,596 M $4,597 M Land $162 M $3,878 M $4,040 M Total $269 M $11,702 M $13,221 M

8 Public-Private Policy Partnership Model Cost-Recovery not fully sustainable model in the long term Need to move to shift to a P4 model Public-Private-Policy Partnership Strong ROI for both Industry and Government ABC/PIK/APC Model is good example Airports/Airlines invested in technology Governments invested in back end systems Industry ROI=capital deferment, faster processing and better customer experience Government ROI=reduced staffing, future cost avoidance

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12 New agreements to be implemented Opportunities for greater collaboration for next generation models Eliminating re-screening with one-stop security important progress, but longer-term vision needed

13 84,000 officers in 2018 processing people/goods (US-Canada)

14 what do we need in 20 years? 84,000 officers in 2018 processing people/goods (US-Canada)

15 what do we need in 20 years? shortfall of 38,000 officers 84,000

16 EIGHT TECHNOLOGY GAME CHANGERS 1. Next-generation Biometrics 2. Remote and multi-use screening 3. Drone networks 4. Blockchain and Track/Trace 5. AI/Machine Learning 6. Mobile smartphone 7. Autonomous vehicles 8. Enterprise cloud services

17

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19 Connections T O D A Y

20 Future Connections V I S I O N

21 US Preclearance T O D A Y

22 Global Preclearance V I S I O N MULTI-CHANNEL PRECLEARANCE HD Video In-person Screening (local/remote) Mobile

23 Global Preclearance V I S I O N PRECLEARANCE FOR MORE THAN ONE COUNTRY Different Methods to Clear (tied to biometrics) Clearance to One Country OR Clearance to Multiple Countries

24 Global Preclearance V I S I O N

25 Air Cargo T O D A Y

26 Air Cargo V I S I O N

27 Applied Research Approach Needed Airport Cooperative Research Program Great model to conduct research Oversight from airports, airlines, government, academia Problem Statements Model ensures continuous research Housed within globally recognized Transportation Research Board (TRB) Research on future of Preclearance Limited At Present Some joint testing & evaluation, but limited at product level We need to ensure that people-process-technologies and space planning are hollistic

28 Investment Model people space

29 Public-Private Partnership Investment Model people technology space process

30 1. Adopt a Remote Clearance Approach

31 2. Pilot Screen Projects Once, Accept Multiple Times

32 3. Trusted Secure Token

33 4. Move Away from Fixed Checkpoints to Clearing Flows

34 5. Harness Big Data for Risk Management Travel History Trade History Better Risk Management Precleared Low Risk

35

36 Implications for AvSec 1: Data Sharing Previously confined to voluntary programs (e.g., registered traveler programs) Changes to RT model in Europe Move towards making sure there is an in-person review of every single third-country national More work needed Positive data sharing as much as negative data sharing ( derogatory ) Example CAN+ Visa Travel history review Blockchain models/unhcr

37 Implications for AvSec 2: International Cooperation & Recognition Mexico accepting Japanese Visa as equivalent for Chinese visitors One stop security expansion UK/NZ/Australia cooperation on visa application centres Mutual recognition Simplification of visa processing and replacement with travel authorization (e.g., ETA) Digital IDs

38 Implications for AvSec 3: Role of Technology Smart security was an important driver but more significant power needed for efficiencies Remote processing Higher throughput for border/security controls Privacy by Design needs to be built in 7 foundational principles Complexity around access (e.g., blockchain ledger) Europe is a great model to start, but implementation of GDPR mixed

39 YVR AVIATION BORDER SUMMIT II

40 PILOT INITIATIVES: Priorities and Working Groups Expanded U.S.-Canada Facial Recognition Pilot Project Single Window eta/esta Conduct Research to Support Policy Decisions

41 PILOT INITIATIVES: Priorities and Working Groups Remote Screening of Goods/Facilities Colocation Trusted Traveler Program Integration Security Rescreening Elimination

42 NEXT STEPS: Advance Aviation Summit Working Groups Agree on Bi-National Governance Framework Ongoing Advocacy & Communications Transportation Border Summit-April 2019 in U.S. Chambers Hall of Flags

43 TRANSPORTATION BORDER SUMMIT APRIL 25, 2019 Organized by US Chamber, Canadian Chamber and Beyond Preclearance Coalition Pre-Summit Break-Out Groups in early April: Air & Marine: DC Rail & Land: Ottawa Establish Multi-Modal Working Groups

44 INFORMATION/COALITION CONTACTS: MATT MORRISON GERRY BRUNO SOLOMON WONG Pacific Northwest Economic Region Vancouver Airport Authority InterVISTAS Consulting Inc. T: T: T: ; E: E: E: BRANDEN HARDENBROOK Pacific Northwest Economic Region T: E: ALANA LAWRENCE Vancouver Airport Authority T: E: Download White Paper/Summit Report:

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