For quite some time, American border policy has found itself in a tricky spot, trying to balance security with commerce. Yet, looking back at history suggests that well-thought-out policies utilizing technology and risk management can actually improve both aspects.
The events following 9/11 serve as a case in point. After terrorists took advantage of weaknesses in aviation security, the US implemented significant changes that enhanced safety while also boosting efficiency. A new initiative aimed at reducing risks from travelers entering the US allowed legitimate travel for various reasons, be it business, professional, or personal.
Today, the challenges have shifted, but they’re just as pressing. Our borders need to be safeguarded from illegal activities and also from economic threats, like counterfeit products and vulnerabilities in the supply chain, not to mention influences from hostile nations. And this is even more critical in the context of rising tariffs and geopolitical competition.
The way forward is to embrace technology to enforce source and origin rules—similar to what was done with the Smart Border Initiative back in the early 2000s. This initiative, launched between the US and Canada, used advanced screening of higher-risk cargo while promoting trade facilitation and increased security for lower-risk shippers and travelers.
This approach proved effective. Programs for reliable travelers, like Nexus, alongside expedited freight lanes, significantly sped up legitimate commercial dealings even as border security became tighter.
We need to adopt this method today, but on a grander scale. Technology can ensure seamless trade flows, validate the origin of goods, and verify compliance with agreements like the US-Mexico-Canada Agreement. As geopolitical tensions rise, especially concerning China, we simply can’t let unclear supply chains and forged origin rules threaten our economic and national security.
The US economy heavily relies on cross-border trade. In fact, nearly $800 billion worth of products exchanged between the US and Mexico in 2023. However, it’s all too common for legal transactions to get bogged down by outdated security measures that allow illegal goods to slip through.
Our current system struggles to accurately track where products actually originate. It’s unclear if Chinese steel is getting routed through Mexico to bypass tariffs or if counterfeit medicines are coming from dubious suppliers. Without improved traceability, a rules-based trade system turns into a target for exploitation.
The solution lies in implementing border technologies that ensure transparency and accountability. Just as the screening measures post-9/11 helped differentiate between genuine threats and low-risk travelers, adopting digital trade verification and customs declarations will enable authorities to pinpoint which cargo needs scrutiny and which can be expedited.
A technology-driven border strategy should focus on three key areas:
- End-to-end supply chain verification: With digital tracking, we can create an unchangeable record of goods as they cross borders, ensuring compliance with trade agreements and rules of origin. This eliminates blind spots that could be exploited by adversaries.
- Visual documentation of goods in transit: Reliance on traditional “paper trails,” like bills of lading, is outdated. Nowadays, technology can provide visual, timestamped, and geospatially stamped photographic evidence to maintain product integrity throughout the supply chain.
- AI-driven risk assessment: Artificial intelligence can analyze shipping data in real time, flagging any anomalies that indicate fraud or misrepresentation while allowing trusted shippers to pass through smoothly. This mirrors how airline security evolved post-9/11.
- Automated Customs Processes: The Smart Border Initiative sped up customs handling for travelers and shippers. We now need a similar digital pre-clearance system for trade, ensuring that goods from trusted manufacturers and verified exporters don’t get caught in bureaucratic hold-ups.
Critics of border security reforms often claim that stricter controls hinder trade. But the reality is without better technology, we jeopardize the gains of fair trade.
If we can’t trust the supply chain, tariffs and trade barriers will inevitably increase, forcing businesses to either relocate production or deal with rising compliance costs. In this case, the cost of inaction far exceeds that of modernization.
Since 9/11, we haven’t shut down airports to passengers. Together with Canada and Mexico, we’ve done the same at land borders. It’s time we apply that same principle to the goods coming into our country.
We’ve developed methods to screen travelers against terrorism. Now, we need to address the risks posed by products at our borders. By adopting contemporary trade verification tools, we can make sure that America stays secure and open for business.
Duncan Wood is an independent analyst and former chairman of the Pacific Council on International Policy.
