Geographic and Temporal Variations in Freight Costs for U.S. Imports from Canada: Measurement and Analysis

In recent years, private sector managers in both Canada and the United States have expressed concerns about a 'thickening' of the Canada-U.S. border with resulting adverse consequences for continued integration of the North American economy and, more specifically, for Canada-U.S. trade. Several factors have been identified as particularly relevant contributors to higher costs associated with bilateral trade. They include more frequent and closer inspection of goods crossing the border owing to stricter health and safety regulations and heightened security against acts of terrorism. The added delays and uncertainties imposed upon commercial shipments, particularly from Canada to the U.S., arguably add to the costs of shipping goods across the border, thereby discouraging trade at the margin.