Canada: Client Alert: Implications For Business In Our New Security Conscious Environment

The creation of Public Safety and Emergency Preparedness Canada (PSEP) in Canada and the Department of Homeland Security (DHS) in the US are the most visible examples of security-related public sector upheaval that is impacting the North American business community. New security-related programs and policies have challenged companies’ traditional approaches to supply chain and organizational management. Many of these policies and programs are being harmonized between Canada and the US, but divergences exist. Although organizations must be proactive in addressing the challenges this new security conscious environment creates, they should also capitalize on the emergent opportunities.

In Canada, PSEP has spearheaded security programs that expedite trade in goods (FAST) and individuals (NEXUS, CANPASS – AIR). Since Canadian authorities are following the lead of their US counterparts, Canadian organizations can benefit from the lessons learned by American organizations responding to similar programs. Canadian companies should be cognizant of significant structural differences between Canada and the US that might limit the degree to which American implementation models can be imported into the Canadian context.

In the US, the DHS has become the epicentre of national security. As the DHS’s priorities are shifting from response programs to prevention and detection programs, the impact on business becomes more acute. From bilateral programs such as FAST to increased domestic inspection of goods in transit, the US has set the standard for heightened security while attempting to limit impact on trade.

Although security-regulated initiatives in Canada and the US have increased the regulation of transporting goods and services in the North American marketplace, these initiatives have nonetheless created significant opportunities. From supplying cutting edge inspection technology to managing innovative security plans, private sector organizations have the ability to align themselves as direct/channel suppliers and outsourcing partners of both the Canadian and American governments.

These presentations provide an overview of the structure and security-related programs emerging from government, and how the business community can manage these developments to minimize challenges and maximize opportunities.

© Copyright 2004 McMillan Binch LLP