CTA calls for government investment in CBSA to avoid IT outages

The Canadian Trucking Alliance (CTA) has recently raised concerns about the stability of the Canada Border Services Agency (CBSA) IT infrastructure, following a significant outage that affected the processing of trade data. This incident has underscored the urgent need for investment in modernizing the systems that facilitate cross-border trade. With trade being a critical component of Canada's economy, ensuring the reliability of these systems is essential.

Understanding the Role of CBSA in Trade

The Canada Border Services Agency (CBSA) plays a vital role in managing and facilitating the movement of goods across the Canadian border. This federal agency is responsible for the enforcement of laws pertaining to immigration and customs, as well as the collection of revenue generated from customs duties. As such, its operations are crucial for maintaining the flow of trade.

Given the importance of CBSA, any disruptions to its systems can have far-reaching consequences. The recent IT outage is a stark reminder that the infrastructure supporting trade is not only outdated but also in dire need of investment and upgrades.

Details of the Recent CBSA IT Outage

On July 23, a significant IT infrastructure failure led to disruptions for users of the eManifest portal, which is essential for submitting trade data electronically. An initial bulletin from CBSA indicated that many users were experiencing issues with their trade data being stuck in an “Updating” status. By July 26, the agency announced that the problems affecting the processing of Electronic Data Interchange (EDI) and eManifest messages had been resolved, but not without considerable delays.

This outage not only stalled trade at the Canadian border but also had a cascading effect on the supply chain, particularly for businesses relying on just-in-time delivery. As CTA president Stephen Laskowski noted, "The prolonged system outage … slowed the movement of trade down to a trickle at the Canadian border."

Impact on Businesses and Supply Chains

The ramifications of the IT outage were felt across various sectors of the economy. For many businesses, the delays resulted in increased costs and disruptions in their supply chains. The following are some of the key impacts:

• **Disrupted Just-in-Time Shipments:** Companies that operate on tight delivery schedules faced delays, affecting their inventory management.
• **Increased Operational Costs:** Businesses incurred extra costs due to extended waiting times and potential penalties for late deliveries.
• **Customer Service Challenges:** Companies struggled to meet service standards, leading to frustration among customers.
• **Risk of Losing Trade Partners:** The reliability of Canada's border infrastructure is crucial for maintaining relationships with international trade partners.

Beverley Hudd, from Fairway Transport, highlighted that despite the widespread issues, her company managed to navigate the situation effectively by ensuring that drivers had all necessary documentation prepared, including their Advanced Commercial Information (ACI) documentation.

The Call for Action from CTA

The CTA has called on the Canadian government to prioritize investments in the modernization of CBSA's IT systems. In a statement, Laskowski emphasized that the recent outage should serve as a wake-up call for policymakers. He stated, "With trade coming to a standstill, this gives Canada’s trade partners and customers in the U.S. another reason to relocate and reassess whether dealing with cross-border shipments remains feasible."

CTA's director of policy, Lak Shoan, added that the issues with the CBSA systems are not new. "Carriers and the supply chain have dealt with frequent and severe outages for at least five years," he remarked. This long-standing challenge highlights the critical need for immediate system upgrades to facilitate smoother trade operations.

Importance of Investment in IT Infrastructure

Investing in robust IT infrastructure is essential for several reasons:

• **Enhances Trade Efficiency:** Modern systems can process data more quickly and accurately, reducing wait times at the border.
• **Improves Security Measures:** Upgraded technology can enhance security protocols, ensuring safe and secure trade practices.
• **Supports Economic Growth:** A reliable trade system fosters economic stability and growth by facilitating easier access to markets.
• **Increases Competitiveness:** Countries with efficient trade systems are more attractive to international businesses and investors.

As Stephen Laskowski pointed out, **"the hardworking border officers at the CBSA continue to do their best to facilitate trade through paper processes,"** but this is not a sustainable solution. The government must recognize the critical importance of investing in these systems to support not only border officers but also the millions of truck drivers and businesses that rely on smooth cross-border operations.

Looking Forward: The Future of CBSA's IT Systems

In light of the recent events, the future of CBSA's IT infrastructure is under scrutiny. There are ongoing discussions about how best to implement changes that will prevent similar outages in the future. Some potential steps forward include:

1. **Conducting a Comprehensive IT Audit:** Assessing current systems to identify weaknesses and areas in need of improvement.
2. **Engaging with Stakeholders:** Involving businesses and trade partners in discussions to understand their needs and expectations.
3. **Securing Funding for Upgrades:** Prioritizing budget allocations to ensure that the necessary resources are available for system enhancements.
4. **Implementing Regular Maintenance Schedules:** Ensuring that systems are regularly updated and maintained to mitigate unforeseen outages.

As the CTA continues to advocate for necessary changes, the hope is that the government will take decisive action in the upcoming federal budget to address these critical issues and secure the future of cross-border trade.

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