Research and Other Activities

For a listing of all publications please see CUSTAC Publication List.

 
This paper examines the impact of the 2002 U.S. Bio-terrorism Act (BTA) upon Canadian exporters of food products to the United States. A major goal of the BTA is to secure U.S. ports of entry against imports that might threaten the health or safety of U.S. citizens. Although this is a respectable goal, data from a sample of 144 Canadian exporters suggest that the BTA represents a major non-tariff barrier to Canada-U.S. trade. Current regulatory procedures have disrupted cross-border supply chains in significant ways. These disruptions have damaged the Canada-U.S. commercial relationship by imposing extra shipment and distribution costs upon Canadian exporters. These delays have had a serious impact upon small-to-medium sized firms (SMFs). The paper concludes with a brief discussion of possible remedial actions that might be taken by Canadian exporters.
Following the terrorist attacks on September 11, 2001, the U.S. and Canadian federal governments increased restrictions on materials and people crossing the border.  These regulations have introduced costly compliance requirements for Canadian and U.S.-based companies who conduct business across the international border. Several regulations were shown to have disrupted Canada-U.S. supply chains in the years following 2001, due to clearance delays and unpredictable wait times at U.S. ports of entry (e.g., inspections, detentions, and product testing).  A recent study by the Canada-U.S. Trade Center suggests that many Canadian and U.S. exporters plan to counteract these delays by either: (1) establishing production or distribution facilities inside the other country; (2) cutting their dependence upon international suppliers; (3) shifting existing production or distribution facilities back to their home country; or (4) diverting trade from overseas.  Strategic adjustments of this nature could have profound effects upon the geography of Canada-U.S. supply chains, the structure and volume of bilateral trade, and the management of just-in-time (JIT) delivery systems. This project follows up on this study and addresses these emerging issues via in-depth personal interviews with 35 Canadian and U.S.-based companies that had indicated a commitment to exploring one or more of the strategic responses mentioned above.  Preliminary findings suggest that firms on both sides of the border are quickly adjusting to the new security requirements and are improving communication channels throughout their cross border supply chains to stay abreast of new developments. 
  • The impact of U.S. government anti-terrorism policies on Canada-United States cross-border commerce by Alan MacPherson, James E. McConnell, Anneliese Vance and Vida Vanchan. This paper examines the extant and potential impact of U.S. government antiterrorism policies on Canada-U.S. cross-border commerce. Particular attention is focused upon the cross-border trade that takes place between Southern Ontario (Canada) and Western New York (U.S.). Evidence from a survey of Canadian and U.S. exporters suggests that U.S. antiterrorism measures have inflated the business costs of exporters on both sides of the border. These measures have also created shipment delays that ultimately translate into lost revenues. While some of these security-related initiatives have been motivated by a genuine concern for the well-being of U.S. citizens, they nevertheless act as non-tariff barriers to bilateral trade. We argue that a potential long-run consequence of these additional costs is trade diversion. The paper concludes with a brief discussion of the implications of the empirical findings for the geography of Canada-U.S. bilateral trade and foreign direct investment. This project is funded by the Canadian Embassy, Washington, DC. Please email authors for more information.

The Center has been awarded a contract from the Canadian Embassy to work on An Annotated Bibliography on the Economic Dimensions of Border Polices and Issue on the Canada-US Commercial Relationship. Alan MacPherson, Jim McConnell and Anneliese Vance are co-authors.

This paper examines the nature and timing of U.S. foreign direct investment (FDI) in the London legal market. Evidence from a survey of 38 U.S. subsidiaries suggests that FDI has taken place primarily to serve U.S. clients located within the United Kingdom. The evidence also suggests that early investors (pre-1990) belong to a core group of multinational companies with headquarter locations in first-tier U.S. cities (New York, Chicago, Los Angeles). Later investors more typically hail from smaller cities. A number of important differences between early versus late investors are revealed. Specifically, subsidiaries that were established prior to 1990 are more likely to enjoy local decision-making autonomy than their counterparts that entered the London market more recently. The paper concludes with a brief discussion of the implications of the survey findings for future research on FDI in professional services.

 

The US machine tool industry enjoyed a period of global dominance between the early 1900s and the late 1970s. In the final quarter of the last century, however, almost every major US producer lost domestic market share as a result of import competition. By the early 1990s, several segments of the US machine tool industry appeared poised on the edge of market exit. This paper argues that US producers have achieved a rebound in recent years. This rebound has been driven by a variety of innovation-related efforts, including improved machine design, increased R&D, a renewed emphasis upon export markets, and greater customization. Evidence comes from a national survey of 104 machine tool producers. A major finding is that recent employment growth has been concentrated among younger firms, especially those that have made strategic commitments to increased R&D spending, faster cycle times, and improved customer support. In contrast, the incidence of zero or negative employment growth is more pronounced among older firms, many of whom primarily serve local customers. The paper concludes with a brief discussion of possible futures for the US machine tool sector.

Page updated June 25, 2008

Department of Geography College of Arts and Sciences