i think next time he comes in he should dress properly. [laughter] >> thank you -- thank you, mr. speaker. within the next -- within the next couple of years, they will relocate a further 1300 jobs away from bath allowing two major sites in the city to be redeveloped. given the urgent need for 3,000 additional affordable homes within the city, will he give me the assurance that the mod will work with the homes and community agency and the local council to ensure that the sites will be used for the houses rather than getting the best house of the sale? ? >> i discussed this with my honorable friend this morning and i agree they should work with the home and community agencies try to bring this about. sometimes the wheels can turn quite slowly when it comes to

defense states and i know he will work hard and i would ask the ministry of defense to work hard to get this fixed. >> thank you, mr. speaker. the prime minister will be aware that a week is a long time in politics. having had all that time key now update the house on his rethink of the school partnerships? >> i think it's quite a common position actually between -- i read the debate where the shadow sports minister said that clearly we couldn't afford the current level of commitment and also -- he also said that the current way of doing things wasn't particularly efficient. so we are reviewing it and making sure that we do provide money for school sport from a center but we do it in a better way because frankly today there are too many children in too many schools that don't have access to sport after 13 years of a government that talked an awful lot about it? >> thank you, mr. speaker. the brown report states that only just over 1% of u.k. graduates made gifts to their

former universities compared with at least 10% in the u.s. would the prime minister agree with me that those of us who receive free university education and are in a position to do so should be encouraged to do sincerest givings to support current students. >> in other countries they do better at endowing their universities. and making sure they have a wider source of income. i think he makes an important point. if we're going to look for how we're going to fund universities in the future, it cannot be right and we won't get a proper expansion of higher education if we just ask the taxpayer many of whom don't go to the university to fund that expansion. it's right. but only when they're successful. only when they left university, only when they're earning 21,000 pounds then they should make a contribution and they should do it in the progressive and the fair way that brown and us have set out. >> the prime minister will be aware of the conditions sweeping across central scotland.

constituents have been trapped in cars and buses overnight, trapped in their own homes and school children forced to spend the night in temporary accommodation. can the prime minister assure me that the u.k. government is offering all possible assistance to the scottish authorities up to and including the use of military personnel and equipment? >> i can certainly give him that assurance that we stand ready to give any assistance in terms of how we are doing these things. we have ministerial meetings at effectively the cobra level that are going through what actions need to be taken. there is a bigger strategic supply of grit then there has been in previous years. the military stand ready to help and whatever needs to be done i can guarantee him will be done. >> order, statement the minister for pensions.

>> without the new s.t.a.r.t. treaty being ratified by the senate, we do not have a verification mechanism to ensure that we know what the russians are doing. and they don't know what we're doing. and when you have uncertainty in the area of nuclear weapons, that's a much more dangerous world to live in. >> find out more about the expired s.t.a.r.t. treaty with russia, what it might accomplish, where the treaty stands now as well as its history. online at the c-span video library.

search, watch and share all free. it's washington your way. >> the u.s. chamber of commerce hosted this forum yesterday on global trade in the world economy. we'll hear first from the head of u.s. customs and border protection. this is two hours. [applause] >> thank you, ann, and thank you again to the chamber for providing an opportunity to share cbp's thoughts and perspectives on something as critical as the north american competitiveness and the global supply chain. what i'd like to do this morning before opening it up for questions is to actually take the paradigm that we have become accustomed to thinking about, trade and facilitation and questioning it. even in someone as practiced and skilled and knowledgeable as ann

beauchene, you noticed when she talked about trade and facilitation she talked about dual goals and purposes of cbp. she talked about achieving simultaneously security and facilitation and this is the way we think about it. we have a paradigm that looks at these as mutually exclusive as matters that have to be balanced rather than as a single phenomenon. what i'd like to do this morning is challenge that paradigm. one that, in fact, i up until just relatively recently myself adopted in 1995, i was the united states attorney in the southern district of california on the u.s.-mexico border in attorney general's reno southwest border representative. and the first of the trusted traveller programs, the century program was introduced at that

time as a result of legislation sponsored by representative jack brooks of texas and lynn shank in california. and it authorized the creation of the nation's first trusted traveller program involving mexican citizens and u.s. citizens crossing on the mexican border and i remember talking about the need to balance trade and facilitation. it was seen as a zero-sum game in which if you were to enhance security by definition, you would decrease facilitation in the movement of travelers across the u.s.-mexican border. i now do not accept that paradigm as a useful one. and want to challenge all of you today and then have you challenge me back in the question and answer period about the relationship of security and facilitation. because it is, i submit,

critical to the examination of your subject today, north american competitiveness and the global supply chain. remember where the term "paradigm" came from. those college students of my vintage will remember the term was introduced by thomas kuhn, a historian of science who wrote a terrific book now, unfortunately, according to my children, not on the reading lists of histories of science. but it was called the structure of scientific revolution and it introduced the notion of paradigm. paradigm being the way of seeing the world, the prism by which or the lens by which theories of reality were interpreted and people interpreted their world. paradigm, for example, as applied by kuhn said during the era when the pyramids were built, the version -- or the

reality for egyptians in that time was that the earth was the center of the universe. and that the solar system and other planets actually rotated around the earth. and kuhn's thesis was that sense of what human beings were actually in part explained, this bold construction of something as monumental as the pyramids of giza in a very early period in human history. and then as you go on and he shows that as copernicus demonstrated, in fact, that the earth was not at the center of the universe but rather in the solar system, based on the sun and the earth was one of several planets, the way in which people viewed themselves was different. and he goes on and shows how

nu-newtonian quantum mechanics is what people saw and other example in my last pitch to pick up that book is during the renaissance he actually relates the renaissance to galileo and says the paradigm of galileo as an artist and a science can be reflected both in his scientific writings and in his art. and so on and so on. so that you look in the 21st century in which we have deconstructed art, jackson pollack is modern art. roth co is modern art a wholly different way of seeing art than in the renaissance. you take my point. a paradigm is my way of seeing the world. the usual paradigm in security facilitation debate are the two are mutually exclusive if not antithetical to one another and they have to be balanced and i

want to challenge and make the argument that in the contemporary security context, you have to see security and facilitation as, in fact, the same phenomenon. where we are today -- a trade community continues to ask for -- sees its job in advocating before cbp and seeing it as less enforcement and cbp and other border enforcement agencies such as cpc the consumer protect safety commission or the food and drug administration. we are perceived as saying what we need is more enforcement and the discussion is less enforcement, more facilitation, more enforcement, less facilitation and i want to reject that again. that dichotomy is a false one, a self-defeating one. in fact, if you look at the way in which trade operates today,

99 point -- you pick the decimal point, 1 to 9 is actually consisted of lawful travelers and lawfully cargo. and we are looking at the very small number of cargos and small number of persons who threaten the american homeland or the american people. so, in fact, we are faced with a situation in which we are looking for a needle in a haystack. in order to find and do our job at cbp of keeping dangerous people and dangerous things away from the border. what i asked my colleagues at cbp to understand is that they cannot do that unless we actually improve our relationship with the intelligence community. and you can pluck the needle out of the haystack if you know where it is but since that happens with precious little frequency, the more reliable

method and one that we rely on at cbp is reduce the size of the haystack and reducing the size of the haystack requires that you facilitate and move quickly that traffic which you know something about. you know either to be trusted or about which you have sufficient information to make a judgment that the person or the cargo is not a threat, does not present a high risk and by moving that traffic and those passengers through the supply chain quickly, you actually increase the probability that you can locate the needle in the haystack. trade, promotion, and security are not mutually exclusive. in fact, in today's environment, we can only improve our security profile by segmenting the traffic in the way that i'm suggesting to you this morning.

so let me illustrate the implications of that new view of the relationship between security and facilitation by reference to the last three terrorist acts or attempts against the american homeland. the effort made by abdulmutallab, the nigerian traveller who attempted to blow himself up on the northwest airline over detroit, now just under a year ago, in december, 2009. the effort of faisal shahzad to blow up a car in time square and wreak havoc on the new york population once again. last spring.

and most recently the yemen cargo plot in which two packages addressed to chicago synagogues were dispatched into the global supply chain with the expectation that they would blow up two cargo planes over the united states. let us analyze those three in light of the paradigm i'm suggesting to you today. so in the first instance with abdulmutallab, the fact of the matter is cbp was prepared but by reason of its risk management procedures and its targeting procedures was prepared to actually take him into secondary when he arrived at the detroit airport. he had been identified for

secondary inspection but, of course, it would have been too late. had he been able to ignite petn in his underwear and explode the plane over detroit. the second incident with faisal shahzad, he was identified and arrested boarding the plane by cbp officers because he had been identified through various databases and targeting procedures because he had traveled to the fatah, the area between afghanistan and pakistan and had traveled there frequently enough so that when he came back, he would be a naturalized united states citizen born in pakistan, he was identified and a report was written up which then -- after

he left the car in time square with the keys in it, the police were able to trace the car very quickly to the woman in connecticut from whom he had purchased the car. and while she could not identify faisal shahzad, she did retain his phone number, his phone number in her cell phone address book. or history record and that cell phone number permitted the authorities to locate and identify faisal shahzad and then permitted him to be arrested and identified as being on the flight manifest on the airplane last spring. and then just recently, in fact, the two packages from yemen most

likely would have been identified in the targeting procedures used by the national targeting center for cargo since they had come from yemen and were addressed to chicago synagogues, they most likely would have been identified for secondary inspection or primary inspection when they landed at jfk in new york. again, too late. the targeting would have picked out these dangerous cargos in the extreme of commerce but too late. so when you look at those three incidents and you put them in the context of your subject today and cbp's challenge regarding facilitation and security, what are the implications of that? the first is for customs and border protection, we must begin

to see the borders not simply as lines on a map, lines in the sand that physically separate one country from another, showing where one jurisdiction ends and another sovereignty begins, but rather in addition to borders being physical boundaries and ports of entry, seaports, air ports or land ports, borders need to be looked at as flows of goods, people, ideas, capital and cultures across a global landscape. and it is by looking at borders as a combination of physical boundaries but also as flows of goods and people that we begin

to understand the global supply chain and its interaction with border protection and border security. that's first. the second implication of the analysis of the three events is that we need to make judgments about passengers and cargos as early in time and as far away geographically as we can from the actual physical boundaries. that, in fact, we need to secure the flows of goods and people and we do that by obtaining information and by applying rule sets that can differentiate

among the various risks that these passengers and cargos present to the security function. it also requires that the information be obtained predeparture. and that the assessments of risk be made before a plane, a train or a ship actually departs. from the home port. so, in fact, as you look at what we have done in the maritime context, and as we partnered with the chamber to introduce the 10 plus 2 isf requirements having to do with maritime cargo, it applied that paradigm. if you will.

24 hours before containers are loaded onto ships bound for the united states, there is a requirement that cbp receive 10 elements having to do with the shipper and the cargo and two elements having to do with the placement on the ship, the container placement on the ship. and that information then is analyzed and typically we can prevent cargo from being loaded or we can certainly mark it for special inspection before it arrives in the united states. some days or even weeks thereafter. in the aftermath of the yemen cargo plot, the same model was adopted albeit with completely different rules of collaboration

and engagement with the private sector. and i want to come back to that in the context of the partnerships that are implied by this paradigm change. but, in fact, when we get the maritime information and now as we begin obtaining cargo information from express carriers as well as commercial airlines having to do with aviation cargo, we get it before departure. and then we assess it according to the very sophisticated rule sets that have been developed that reflect the threat streams that the intelligence community brings to the attention of the targeters. it permits us to do risk management in a new and much more effective way predeparture.

so that judgments can be made about how enforcement ought to be carried out. and importantly in a complementary sense what cargos can be identified as lawful and trusted and, therefore, expedited to thin out the haystack. the key is targeting risk management -- risk assessment and traffic segmentation. the keys to cbp and its border protection function in a world in which borders or flows towards a physical port of entry. so what are the very direct operational implications of this paradigm change?

first of all, partnership. not in a rhetorical way. but in a very important sense that is critical to security and economic competitiveness. this involves first partnerships within dhs. i can tell you that since the christmas day bombing attempt, the collaboration between cbp and the transportation security administration is unprecedented in its depth and its breadth. in the wake of the yemen cargo plot, john pistole, the tsa administrator and i were able to call on this cooperation that

have been built up between the staff so that we have seen the kind of progress that i will describe to you in a moment that's taken place in terms of securing the flows of air cargo. toward the united states. this same kind of partnership i should say parenthetically needs to be engaged in by cbp with regard to our other borders. the maritime borders of the united states coast guard. but let me leave that for another day. the second implication is partnership in the private sector. perhaps the most important partnership of all. because, in fact, it should be clear from the paradigm i present to you that government agencies cannot alone secure the global supply chain.

we're 99 point x percent where the traffic is lawful and legitimate. without engaging with the shippers and the freight forwarders and the freight consolidators, the carriers, and the importers who account for that flow. who know their cargo as we can never know it. so that unless we engage with the private sector in new and different and more intensive ways, we will not be able to increase our security profile or our economic competitiveness by driving down transaction in visiting ports in a way that will be sufficient for our goal. what does that mean?

that means first of all, the programs like ct pack, customs trade, partnership against terrorism. it needs to be taken to a new level. yes, we are very proud that we have 10,000 partners at ct pack but we need to increase that dramatically. in order to obtain the benefits of segmentation which as the paradigm suggests is so necessary. we need to take the trusted traveller programs like global entry, which has grown from 10,000 members to 100,000 members in 2010 and we need to take that to 3 1/2 million members over the next 24 to 36 months. so that we can, in fact, when we return from foreign air travel

go up to the kiosk, swipe our passports, put on ten fingerprints down for a biometric match with the passport. answer the customs declaration questions on a touchscreen and then move through that airport without otherwise stopping. because we are trusted travelers.

they need to be dealt with on an account basis with an account executive responsible for that account for and we need to move toward that small land we began a pilot in new york city with regard to the electronic industry and you need to help us

make this into a standard way of doing business with many of our clients. the second is the center of excellent and expertise in los angeles having to do with the pharmaceutical industry in which we will modernize the ways in which we operate with regard to the industry's accounting for much of american trade by becoming in concert with the private sector and expert business of those industries. we need to modernize the way in which we do business and the way in which we relate the private sector. and four, in terms of the implications before building this partnership we need to enter into the grand bargain with the private sector. a grand bargain in which very many historical and traditional ways in which americans think about the relationship with

their government is revisited in a very specific way. we americans ever since the seventeenth century have resisted sharing information with the government. sort of a healthy streak built into the dna of liberty in a society. it is the reflexive sense that the less the government knows about our affairs the better off we are. it is rooted in enlightenment views of political philosophy and the independent american frontier street that serves as well as the people and as a nation. context of the world in which we

communication, global flow we need to revisit that bargain on a very specific negotiated basis. the barn and being we will share about ourselves on two conditions. first, the government will maintain that information and privacy that confidence, something parenthetically wiki leaks disgrace of someone revealing that information indiscriminately has put a doubt but i am confident we will address this as a government and as a people. but the first part of the bargain is keep the information confidential and use it for the purpose for which the government has provided it by shippers or traveler's. the second condition is expedite

movement of those people through the inspection line. and the cargo through the cargo line. that basis for it bargained exists and we need to work toward it. and it is part of the implication of the paradigm shave. i have asked you to consider this morning. we all grew up thinking that information is power and in fact information is power. but the lesson we grew from that is that we should toward the information. in fact, many bureaucracies operate on that notion. that if we don't share the information we therefore give our function to a greater power.

the world in which we live today, that actually is not true. it is by sharing information that we leverage our influence and our reach. it is by sharing, not by awarding, and that we accrete power. those four implications of this for the private sector are joined by one additional lesson. we must in fact partner internationally. we must in fact have mutual recognition agreements so that these risk-management, traffic segmentation and enforcement techniques are not simply coming for the united states to the

physical borders but rather involve the global flow to the full extent practical depending on the quality of the proposed partnership and of the proposed partner. and lastly, with regard to management. when the flows reach the physical boundaries we need to do a better job partnering with the fda and the federal highway transportation authority and the variety of other partners for whom we serve as executive agents at the physical line. so i have proposed to you today a paradigm that says security and facilitation are not mutually exclusive but in fact

they are the same phenomenon. and in the regime today of national security we need to view it in that fashion. there is another reason why we need to operate operating travelers as being critical to american national security. that is because in the economic world of today if the united states is to remain competitive, we need to make north america competitive. and we make north america competitive by driving down the transaction costs of doing business within the next the context.

button% or 15% or 20%. in a fair amount of competitive cost cutting can take place in land borders between the united states and mexico. this is not something about which we have much of a choice. i believe history will record the united states unlike any other power coming out of a war like world war ii was the single dominant superpower and proceeded in the marshall plan, the truman doctrine to build back europe and in the east asian context build back japan as we helped build back germany and then proceeded over the next generation to support economic

growth around the world by opening up our borders to trade that have been the basis for population having a middle-class aspirations to 40% of the world's population having an opportunity to think about a middle-class life. we did that. he the president's call to double our exports in the next five years. to roll up our sleeves and become once again the economic future for the world and i believe we can do that and i believe the border and borders have a lot to do with whether or not we can remain competitive starting on a continental basis in north america.

challenging the paradigm change that i suggest we make as we work toward a competitive north an economically and physically secure american homeland. thank you very much. [applause] >> alan bersin, thank you. we appreciate your comments about the partnership which is not just rhetoric. we appreciate that very much. we have a few moments for questions if there are any from the floor. please wait for a microphone and identify yourself.

>> good morning. kathryn robinson from the national association. thank you for everything you said today and changing the paradigm. i have a question and risk-management and risk fragmentation. if you could explain how those are different from each other that would be helpful and if risks segmentation would then involved treating traders differently than the rest of the trade because that has been my understanding of risk-management better practice we haven't seen. >> the two were obviously related. risk-management is the acquisition of information and application of targeting rules that permit you to differentiate the risks. when i say segment the risks i am referring to the way in which you then treat the adjustment about the threat presented so

more strictly speaking risk-management and traffic segmentation. >> i wanted to follow up on a comment you made about improving partnerships between the other agencies and the government that are involved with border management. during your time and office you made an enormous effort into that area. a want to see if you can give us a frank assessment of how you think it is going. the meeting you held in october, reports that came out of that were pretty good but there is some existing legislation for example that tells the other agencies they have to participate but so far it is a voluntary process.

is more legislation needed? >> with regard to partnership with the private sector before moving on to other government agencies, as you know, and i indicated my remarks, thank you for giving me the opportunity to do that. we hatta 10 plus 2 arrangement of the history of the relationship and the notion that was opposed on the trade and was resisted but three years later as -- hardly everyone's dispute of the importance of getting the information under containers before hand and being able to

act on that prior to departure and prior to coming in to the united states. as you know in the aftermath of the yemen, though plot, both mr. kissel and i taking a lead from secretary of soliton no, government was on the phone with leaders of commercial airlines and express carriers, from the very beginning, this was a partnership to address the issue in a coke creation style. in fact the announcements will be made with regard to the third security directive as it comes out in the next coming weeks, will actually be a product for which the government's response will be sure, reflects deep and

early involvement of the private sector. that is an important direction and it is reflected in the way in which we as a nation and as a government, reacted to the human cargo plot and weeks of the partnership began to produce the results that that kind of public collaboration would bring. we had conditions under which early provision of information will lead to early release of cargo in a very direct way, the situation provided us the opportunity to follow.

it is going well. we continue to work on it with a trade day in which one in which starting at 9:30 in the morning until 630 at night, one association after another comes in engaging in dialogue. d. kantor and directness is admirable and leading to issues on the table that can only produce better results for everyone most importantly the american economy. and competitiveness. with regard to partner agencies there are 47 agencies that have a physical wind. there are 12 major partner agencies for which the united

states and border protection agency serves as an executive agent. it was remarkable but i am told a conference of consumer product safety commission, and a commissioner, margaret peggy hamburg of the food and drug administration posted in october was the first time these twelve agencies showed up. and talk about how to manage the border in the private sector. the most important outcome of that meeting aside from revitalizing the automated commercial environment we are committed to doing. in concert with the

international trade data system, the agreement that all the agencies subscribe to to create a mechanism by which we could conduct discussions regarding order management and we would have a mechanism by which distances of views could be -- when there was a difference between the cbp commissioner and the fda commissioner with regard to enforcement -- there is two different ways enforcement and as you know in the private sector, consequences largely visited on the private sector. we are determined here in accordance with the obama

administration's determination to double exports and streamline trade to correct that. we are making progress for government agencies. this has to be sustained and the way you sustain it is by insisting on the paradigm i have proposed which is to not get trapped in an e. economy between strafe of the american economy, practices at the border and security. >> time for one quick question and we will wrap things up. >> eric coolidge of american shipper magazine. we talked about the trust of

dray program and partnership, companies follow security guidelines and give that ahead of time. we can talk about that for a while. what concrete steps do you specifically have in mind to modernize that program, when will we see those? >> two major directions. first to expand the reach with foreign partners. we have begun a mutual recognition discussions with european union. the way we already reached them in new zealand, jordan and korea with mutual recognition of trusted shipper programs. we need a more concerted and

effective way, quicker time frame of recognizing that we need to be satisfied, as our foreign partner would need to be appropriate allegations for security. the second major area is engaging with vote private sector to overcome this notion that the benefits of being in this have not been realized. release rate, you begin to see that in fact there have been significant benefits so that i would suggest a system that by my remarks here this morning, the next level is what are additional benefits that we need

to build that are consistent with the notion of enhancing supply chain security so that where there is -- there are dozens we could ron. where there are companies have manufacturing -- manufacturers abroad and have a whole series of different entities that are involved in the transportation and clearance of that cargo on its way to the american shelf. we need to actually build a single identifier that would permit us to track that from the manufacturing floor to the department store shelf in a way that will then make the partner responsible for the supply chain validating the supply chain and

intermediate links. that will be an investment in money but the return would be in much earlier release time in the way we are contemplating with commercial airliners with air cargo. and the other aspect of partnership that diluted to earlier. let me thank the chamber for the opportunity to address all of you, thank you for your consideration of this paradigm and i look forward, as we will look at this new prism of the viewing american security and competitiveness, we can give a little more texture and grain to

the vision. and develop programs in support of policy that are consistent with it and hold out great promise for the american economy and american security for the american private sector that is that the core of efforts to continue the economic miracles that have been performed in the american framework of american history. >> appreciate your time. [applause] >> good morning. we appreciate the opportunity to be here and wonder if it is wise to follow your boss and he was fairly clear and eloquent that

are facing cdt, end those that were long term custom folks. it is a challenge looking at the title and he is given us both which is a good thing. just to recap a little of what we have been focusing on for the last year but particularly he came on in march. the paradigm he has put on the table for us is security and facilitation are not two things that have to be in balance. they are essentially the same thing and if we don't accomplish one we won't accomplish the other.

he sees the integration of those thingss as the end goal and the end goal is economic competitiveness of north america. as you can tell he is very passionate about that. he will mention his grandchildren and you can frequently feel the energy and focus he puts in to push fairly creatively about our day today work, and how we develop policy and how we interact with numerous partners in a cage in facilitation and security. he pointed out and i want to reiterate, the importance of using advanced data and doing the right targeting to allow us to manager risks, however you

want to label it, we are moving low risk trade and travel through our borders. is not stopping point. and the border he mentioned are not a stopping point. sure we are conducting effective enforcement. not more or less enforcement but protection of intellectual property rights or the american public on important safety issues that enforcement has to be a tool in strategy to do those things well. we are undertaking or we have undertaken a number of conditions either from cbp or as

part of a larger government wide initiative or even global initiative in a number of areas that i would like to give a few more details about. the first one i would like to talk about is the national export initiative. when the president and administration started about increasing exports in five years there were folks who said we deal with that. we don't do exports. in fact, when you look at our ability to assist in enforcement of export control as well as to assist in management of export data, we have a lot of experience with import data. we have a lot of systems which could be better but a lot of experience with managing risk through data. one of the capabilities we would like to bring to the table and

support our partners throughout the department of homeland security of all the other agencies involved is help with enforcement and data management. another initiative and i won't go into a lot of detail because i believe my colleague mr. britain will focus on the air cargo security aspects. really good partnership effort within the department of homeland security as well as with the private sector. a lot of activity going on. a lot of activity very quickly after the most recent threat and that is a major area where we can test a lot of these theories about better segmenting risks and using advanced data to segment that traffic. the third area is an area that i'm much more familiar with. and that is the current efforts on managing by account. we have talked about account

management within the u.s. customs service for 15 years. it is a bit of a time work for aids. commissioner has given us the opportunity and has asked me to lead a major review we have had in place since the beginning of july to try to accept what could be done with this concept of managing by account. we work closely with commercial operations advisory committee this submitted a white paper to us in may of 2009. with a lot of ideas how to expand potential of managing by account and a lot of discussion, a lot of conference calls and multi day meetings in d.c. and the application of a two month working group we have tried to

sort through the concepts, figure out how they work in the real world and put a couple tests on the table. the commission mentioned two of those tests we kicked off on november 1st. the account executive pilot and center of excellence and expertise pilot. and what i would like to know about those two pilots is they really are two tests of an account based approach and the gold with both of those pilots is to try to facilitate lowers trade at more effectively. one of the things we realize is years ago when we talked about this, we immediately thought about the border. what we have come to realize and many of you have realized is the inspection rate or the release

time is minimal. we were talking a major importer yesterday and they quoted their average time to release as-3.4 days. really trying to impact the number of inspections that most importers seek, might not be where we have the greatest impact. we have begun to think it is on the costs associated with bringing goods across the border. the commissioner talked about lowering transaction costs and the goal he laid out very recently for us is lowering transaction costs by 20%. how do we do that? we don't know. that is an area that i will make my pitch at the end of my remarks that we need some assistance in understanding the supply chain and those points of

leverage where you can reduce your costs and we can better use tools we already have available to us or tools we might make available to us whether it is advanced data or intelligence or just better understanding of global supply chains or experts who know your industry and did know when to ask questions and when not to ask questions. what we are hoping is if these two pilots, the account executive focus on the electronics industry and the center for excellence and expertise, will help us gather information in a fairly focus away from those two industries and figure out how to use that information better to facilitate trade war and force a lot and spread those lessons learned to other industries. we are also looking at simplifying the entry and

financial processes. one of the points made repeatedly is we gave lots of data in multiple times. this cost money and time and we want to use our data better. so how do we do that? how do we rationalize, reconcile all the data we get from -- the entry submissions and summary submissions and target effectively that data. that is going to be a challenge. we spent months working on it and work closely with some additional subject matter experts in the trade and we couldn't come to a set of options that really provided value to the trade. stay tuned on that. we also look at testing better

ways to use data. we get a lot of data but is it the right data? do we know enough about your supply chain to be able to essentially negate compliance, low risk importers. if i know who your manufacturer or your carrier or warehouse and i see that pattern and comfortable with that pattern of moving goods i should be looking at it. if icy a manufacturer that i know is not one of your licensees or protected good, but we need to do some tests with in specific industries to focus on that data to refine our targeting and risk assessments. another effort we have undertaken the commissioner

mentioned is the import safety and our partnerships with other government agencies. we have 53 other government agencies that interact with us at the border. 47 of those agencies are members of the international trade data system. 12 are really where most of the work gets done. ten of those 12 attended the import safety conference at the end of october that pulled together the heads of each of those agencies into a senior forum with facilitation at the border. we have the experience of talking to government colleagues were we talk about facilitation as one of our primary missions and they will say that is not our mission. but it is. there was a good discussion of

that but there was an acceptance by most of those agencies that we had to develop a risk-management strategy that relies on a partnership between those agencies as well as with the private sector and we had to had a consistent risk-management approach. you are going to rely on trusted partners, not just cbp. other government colleagues had become part with the concept can use the data we had available and relationships we had available through those programs. the commissioner also mentioned he was looking for that to be an ongoing discussion and there was broad support across the other agencies for that ongoing executive level discussion focused on trade facilitation and border management which i think is a huge step forward. the last area i want to raise for you is the work we were

doing on the international trade data system. many of you know that over the last year or so, cbp has had a pretty strong he epiphany that needed it to go. we have implemented a essentially a new approach and that approach -- one is to finish up the work we already committed to primarily on the manifest and things like post summary correction and identify of consultation and collaboration with the trade community that will let us get our mission done and let you manage your account end

facilitate trade. cargo release is obviously a huge -- it is about getting relief to goods. we also recognize that that is going to be where most government partners are going to want data and going to wind interaction and going to impact that facilitation process. that is where we are going to put our effort. we are going to look to you for support both in terms of developing requirements and support meant letting our stakeholders know that case is a critical system not just for customs issues but everybody else that does business on the border. so i mentioned i had a pitch to work to us and talk to us rather working through continued interaction at the chamber. the commissioner mentioned he is making regular meetings, eight to ten hours yesterday with a variety of groups who are

looking to support cbp. i want you to continue that support. it uk to us. we are at touch point or costs or the tools we can both be using. with that i will turn it back over to you. >> thank you. my name is david with the commerce department. i want to talk about a national expert initiative and then turned the discussion directly to house supply chambers related to that and more detail about some of the things we have been doing to realize competitive supply chain in the united

states. next slide please. next slide. here it is. four slides to show you about this. basics on a national export initiative, an organized attempt for government resources to expand exports dramatically. the objective is in five years, alongside it. we concentrate the existing resources we have that has to do with improving advocacy and trade communities within the departments across the government to expand export financing. improved market performance by better market access abroad solving commercial problems and trade agreements and compliance with what we have right now. the origins of this come from some basic realizations. the u.s. is not known for a lot of small exporters with other

countries. 58% of people exported in the united states go to one country so there's room to expand that and develop exporting to the new burgeoning markets as well as the established countries for large trade flows already. one of the key elements that the president has organized an export cap around this. some of the lead agencies on this or the trade policy related finance department of transportation has recently joined this group as well. there are budgets to enhance this and the balance is a terrific idea. there is a lot we can do. for a group like this expertise and supply let's look how this relates to the issues here. it flowed from a big question. we sustained economic recovery

and a drastic increase in trade flows, the u.s. system is the infrastructure and supply chain capabilities up to the task right now. another question is can we handle tomorrow's trade flows with today's infrastructure. the short answer is there is a lot of work we can do to improve this to sustain what is out there. let's get to the financing. what the government needs to do to allow to happen to make it all real, but with the recognition that export growth and sustained economic recovery depends on real supply chains and real efficiency we have been able to build this concept of a competitive modern supply chain into the presidential report on the national export initiative. the goal behind this is to work with friends in other agencies to make sure the united states comes to some decisions on the

adequate freight policy. in the simplest possible commercial terms the ability to have a real competitive modern supply chain has to do with the cost of everything made or moved or exported or imported in this country has so it is a big deal. has to do with how we compete or meet global price points. how products and services stack around world. there has been a good deal said about how this is a commercial issue. we have got great response from industry. 300 countries joined this work on these issues. the key thing behind this is this is not just serious. it is a real commercial business issue. it has to do with how business is done in a globally sourced environment. has a lot to do with the financial performance of the firm. affects financial ratios. variability of delivery time,

shipping and gets down to questions like where people are going to invest. if you're going to invest in places with adequate supply chains these are long-term decisions that depend in important ways. is a reality that entire supply chains compete with each other. not just individual companies. there's a lot of sharing going on. this is the business issue behind it. with that let me show a few things we have been doing with our partners in the department of transportation to take a look closer to a meaningful policy for the united states. we spend a lot of time of congressional activity and health hearings on the hill and testify at the importance of issues in the private sector and private conference is getting the word out. the main elements, we started

with a national conference to look at the big picture for freight policy should be. and all star cast with the cabinet secretary or blue ribbon panel of industry executives from around the country. what we have been doing since then is to start going out to the region and look for regional inputs in the trade policy. we have done events that were fantastically successful. in atlanta we have 145 people show up to work with us. we work that the georgia center for logistics'. we had people from all over the southeast looking at the particular mix of issues with supply chains. we did one in chicago. this was organized with the csc m p and bob moran with the chain

group and the issues have a lot to do with the land interface in that area. we had 90 people doubled in a larger room with great enthusiasm and debates about getting ready to do more with regional output -- out reach discussions in seattle and kansas city early next year. we did an event at the annual conference at the end of september with our assistance secretary from dot and senior level people. the ceo from the railway and secretary of transportation from california or representatives of caterpillar. basically an all-star team located in the same issue of. i mention this not because -- there has been discussion of many issues for many years.

at this stage everyone has gotten the idea that something has to be fought about visually or schematically about how we are going to handle this. the question is whether to have trade policy or think about these things in a more organized way that favors business and the ability to manufacture and do business in this country but what the solution sets will be. we are organizing meetings where people bring their ideas. we will take this back and build it into the debates in washington. what this means in more concrete terms which gets to some of the things going on internationally is this whole question of which revision we should have for facilitating the movement in the united states. i had the good fortune in september, some months we had, to visit with the german government and the eu as part of

a larger fact-finding mission organized by the dot with governments of canada and mexico to look at what trade policy looked like in europe. and general planning funding issues. what i saw confirms a lot of what we see which there are big problems in other markets with this but the europeans like the canadians or chinese governments are devoting serious attention to a vision for the future on these things. and priorities for spending for the rest of it. it is a real challenge. it is not the competition that will not solve something for our part. this gets ultimately to questions of things like performance measures, how fast it should go, or through different facilities. what is the role of the federal

and state governments. how should we manage these things. the big thing we are doing is not just the value of the operators of the transportation, they compete in global markets with products. it has been terrific and we would get more people engaged as we go forward. we hope to revive the two,. we invite everyone to reply to that to participate. and the government as a whole.

and the other federal government to ensure we are working toward a holistic system of integrated approach to moving freight in this country. we had a great response from industry. we will be doing some focus groups in washington and early january up to date. and as participants i will invite you to join with us and be part of us. competitive in other markets. thank you very much.

[applause] >> i am doug brittin with gsa. thank you for inviting us to talk about critical issues with the air cargo industry with global freight going forward. i don't have any slides or anything. i will just talk about the challenges we face and that we still see industry facing going forward. first of all, what has been accomplished already in the u.s. as far as cargo. requirements in 2007 fusses cream cargo transported on passenger aircraft by -- industry did accomplish and it is important to acknowledge that industry accomplished that. it was very much a collaborative effort between the u.s. government and tsa in particular

working with regulated departments with the community that we regulate certainly with the passenger airlines for u.s.-based and foreign based carriers and more importantly than that engaging a shipper community. but the task we look for in 2007 and looked at what had to be accomplished in the next several years with over twelve million pounds the day being uplifted in the u.s. of air cargo and passenger aircraft. we realize quickly that that is an insurmountable task. and they're not designed to take things apart, pieces of cargo individually based on

requirements of the act. working as a community with the industry and we can jointly develop cargo screening program. this will enable people in the supply chain to screen cargo and keep it in a secure chain process ball away from a shipper if they chose to screen the cargo. on behalf of multiple shippers prying -- prior to giving it to the carrier keeping it a secure supply chain and moving it to the airlines they can accept that cargo and move closer. soaker kudos to the airline in getting the word out to the u.s. industry so to speak, to the challenges of the effort to get that done without disrupting commerce because there would have been significant delay if the airline hadn't screamed all those pieces and packages.

we are certainly pleased that industry got past that gold in august of this year. 52% of the cargo on passenger aircraft is screened before it gets to the airlines. that is a significant change from where we were from a smaller percentage. that has been pretty successful. there are challenges that remain going forward, the challenges are on the area of technology. we have available any thing that can screen larger than 40 x 4865 inch high skid of homogenous cargo. there isn't anything out there that can screen anything

rebuilt. canines are pretty effective overall and we are pleased to see that we are piloting the use of private canines in the industry to determine how much we can certify of those going forward because they may be an effective vehicle in the future but those challenges to get that larger volume of cargo screened more efficiently and effectively and cost-effective we going forward. so that pretty much what happened in the u.s. is a different story when you look at international air cargo. we are still under the requirements of the 9/11 act to obtain 100% screening cargo on international inbound cargo on passenger aircraft. the deadline was not different from what it was for the domestic. it was supposed to be accomplished in august of 2010.

we had said when hearing back from industry as well, further compound in the u.s. and geared to high volumes of cargo at the airport facilities. that is compounded by the fact that we don't have the regulatory reach. we can't go out and set up programs because regulatory reach at tsa only goes to the carrier's. we can regulate with a carrier does carrying cargo in the u.s.. we can't tell the shippers in germany or japan what they must do in the way of cargo security screening which falls on the airlines themselves but still, a

million pounds of cargo that flies into the u.s. with passenger aircraft. we only have two vehicles with which to accomplish that goal. we testified to congress that we expect industry can accomplish this later than 2013 that can be done sooner working with industry on some approaches but only two vehicles available to accomplish that. we continue to ratchets up screening percentages and most recently did that in may of 2010. and practices which in fact enable the airlines to screen more cargo and that places a burden on all the airlines but they have stepped up to the plate and answered that challenge to get more cargo screened coming into the u.s. but the other vehicle we have in

order to get to that goal is working with foreign governments to work towards recognition of their supply chain security practices which we call our national cargo security programs. what we can do is work with individual governments to determine what they do in the way of their security. many of which contain a supply chain element but we can't just go out automatically and say it looks good on paper. we have a good program that allows you to screen overseas or allows your shippers to screen similar to what we do in the u.s. under a certified program. we need to lift up the covers and do all kinds of things to determine what they are doing is commensurate with our requirements under the 9/11 act and that is a time-consuming process but we have engaged in