Monday, September 19, 2011

The War on Terror and the Fight for Survival (Economic and Security)

The North American Fair Trade Agreement (NAFTA) incorporates the United States, Canada, and Mexico in a strong interdependent trade relationship (http://www.fas.usda.gov/itp/policy/nafta/nafta.asp, 2011).  As I actually had created a presentation on this very topic in my previous Economics class, all three nations benefit one another by trading with one another.  By simply having the advantage of geographic proximity, Canada, Mexico, and the United States have a relatively harmonious cooperation when it comes to trading with one another.

From a profitable standpoint, since Canada is the United States’ biggest trading partner, (http://www.census.gov/foreign-trade/top/dst/current/balance.html, 2011), it clearly has manifested itself as a strong entity that will continue to improve the US economy (by the US ‘exporting’ to Canada, with 1/3 the transportation costs).  This is extremely advantageous, as aforementioned, it is MUCH closer than China (the US’ 2nd largest trading partner).  A similar situation applies with Mexico, the southern neighboring country.  By trading with one another, many steps are eliminated—expensive transportation costs, the time-consuming processes of getting goods/products from one location to another (the primary sources being more required paperwork, more people needing to review that paperwork, etc.).  There really are no trade barriers between Canada, the US, or Mexico.  How convenient!

Or is it?  One could verify these statements were (relatively) true—as they were probably said 10 years ago.  Yes, 10 years ago--before the catastrophic and mind-shattering September 11 event that changed the world forever.  What used to be safe and secure is no longer—even with all measures taken--and the attentive-yet-not-Big-Brother-is-Watching trading capacities between countries also cease to exist.  Where the US Border Patrol used to worry about illegal drug-smugglers and immigrants, now they must worry about who is on the road, when they are on the road, and what they are carrying—all in a 24-hour, 7-day-a-week basis.  Will a person (or people) die today due to a potential terrorist attack?  How can we prevent that?  For starters, the US should bulk up on security at the borders.  It will only let the most secure people through. 

Nevertheless, what about a trucker who doesn’t have all of his papers? What if the administration at his workplace had filled out the wrong documentation and this trucker has 8 tons of milk to deliver?  As long as the borders are secure, though, he should be fine, right?  Not necessarily! Adding insult to injury, the waits at the borders are 10-15 hours (Carbaugh, 2008).  This delays essential deliveries, and potentially adds overtime hours for truckers who are carrying that freight. In the case of our trucker, he was carrying milk.  Milk does not keep fresh for very long, so, by waiting 10-15 hours, there are 8 tons of it that just completely spoiled.  How much will that cost the company?

Therefore, it is valid to say that the War on Terror in the United States has significant impacts in many arenas.  Be it through travel, transportation or entertainment, every single person encounters an example where potential terrorism is a threat.  In the case of posing trade barriers amidst the same continent, the War on Terror has begun to do that as well.  Nevertheless, I do believe that those measures are extremely necessary and am glad that officials are being very thorough in their methodology.  It is unfortunate, though, that it must take such a long time (and is thusly very costly!) to search and ensure each individual (and the goods they are carrying) is not a threat to other civilians.  I am curious if there is such a cost-effective, less intrusive way of doing this?  Hmm, this sounds like a highly potential topic for my white paper! 

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