Mr. Speaker, the preclearance act is a key element in Canada's efforts to modernize our border with the United States, while at the same time maintaining Canada's sovereignty and protecting the rights and freedoms of travellers in Canada.
The world we live in is increasingly interdependent, a world in which capital, goods and people move ever more freely. To remain competitive we must look outward and think globally. New technologies and modes of transportation increasingly allow us to transcend national boundaries. In this era of just-in-time production we must find new and innovative ways of moving people and goods while ensuring the safety and security of our border.
Today over $1.35 billion in trade crosses the Canada-U.S. border each day. There are over 200 million border crossings each year. The success of our bilateral relationship with the United States hinges on our ability to move people and goods efficiently. I would like to elaborate on how this act will help to modernize the management of our border.
Preclearance is not a new concept. It was introduced in Toronto in 1952 and is currently operating at the Vancouver, Edmonton, Calgary, Winnipeg, Toronto, Ottawa and Montreal airports. It allows U.S. border control officers working in Canadian airports to determine whether people and goods can enter the United States. In 1974 Canada and the U.S. formalized this arrangement under the air transport preclearance agreement.
Bill S-22 will provide structure for the existing preclearance regime and direct its enforcement. The bill represents roughly two years of negotiations with the United States government. The preclearance scheme is a hybrid which maintains the supremacy of Canadian law but also allows the U.S. to administer certain civil and administrative matters in designated areas that pertain to the entry of persons and goods to the United States.
One of our primary objectives has been to safeguard Canadian sovereignty. This has been accomplished by ensuring reciprocity, by making clear that the charter of rights and freedoms and all Canadian laws will apply and by ensuring that only Canada enforces criminal matters in the preclearance area.
Since the signing of the open skies agreement in 1995 there has been a 39% increase in air traffic between Canada and the United States. Many destinations do not have customs and immigration inspection.
When this legislation comes into force, intransit preclearance operations will be extended in Vancouver and will be implemented in Toronto and in Montreal's Dorval airport. Other Canadian airports with current U.S. preclearance programs will subsequently become eligible for intransit preclearance.
Intransit preclearance will improve service to international transiting passengers, encourage the use of Canadian air carriers and airports for travel from Asia and Europe to the United States via Canadian airports and foster economic development in airport communities.
The preclearance act is intended to be the basis for agreements between Canada and the United States for other modes of transport which may include air cargo, road, rail, marine and ferry. This will further revolutionize the way we manage the border by creating a virtual border, a border that allows travellers and commerce to be processed at their point of departure rather than at the physical border. It will significantly reduce costs and increase convenience.
Canada and the United States have a long history of co-operation along the world's longest undefended border. Beyond facilitating travel and trade, the preclearance act is a symbol of how we can manage the border as a joint asset in the next century.