U.S. Businesses Along Canadian Border Feel Impact of New Border I.D. Requirements

The Wall Street Journal reports that many U.S. businesses along the Canadian border are complaining that a U.S. law requiring travelers to show more than a driver’s license to enter the United States is hurting sales. They claim the additional burden is causing a sharp decline in patronage by Canadian customers.

The law, The Western Hemisphere Travel Initiative, was drafted in 2005 in response to the 9/11 Commission report that recommended tighter border restrictions. The law’s initial provisions, which required greater documentation from air travelers to the United States, took effect January 2007.

During June 2009, the first month the new land and sea crossing requirements became effective, there was a 23% drop from the previous year in border crossings at the U.S.-Canada bridges. Although some businesses are reporting a 27% to 30% drop in sales, U.S. government officials contend the law has had no discernible negative impact on business. Some experts believe the recession is damaging travel and business along the border because people are not traveling as frequently or as far.

Security experts suggest that the law was designed more with Mexico in mind—where documentation requirements have been strict for some time—and not Canada. Before the new requirements, security at U.S.-Canada crossing points was remarkably lenient and Canadians were sometimes permitted to enter the U.S. without showing identification.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.