A survey of cross-border trade at a time of heightened security: The case of the Niagara bi-national region

For many of the executives of companies bordering within the Niagara Bi-National Region, the new border security regulations are contributing significantly to their costs of conducting cross-border business. In some instances, these costs are likely to result in the undesirable effects of trade diversion, import substitution, and related consequences. The strategic response made by these companies may also affect the cross-border Niagara Bi-National Region, local labor markets and business-residential communities. It is therefore a must that business transactions across the US-Canada border be managed so that the risks of possible terrorist threats are reduced while minimizing disruptions to cross-border commerce. Essentially, the goal would be to develop a border management philosophy similar to the one adopted by the EU benefiting both the government and private sector enterprises. From a survey data, respondents fall into uncertain or do not know categories when it comes to the strategic responses to security-related trade disruptions. This only means that it is important to discover exactly what specific trade, production and location strategies corporate executives will actually adopt as they assess the advantages and disadvantages of cross-border commerce. It will also be useful exploring the potential threat of increased security of North American Free Trade Agreement.