Border management: facing new challenges: Martyn Dunne comments on the New Zealand Custom Service's approach to border management in the 21st century.

• Author: Dunne, Martyn

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The growth of cross-border activity in recent years has been extensive and continues to increase. Growth in the volume of trade and travel has changed the structure of economies, and even the political and social organisation of countries.

According to the World Bank:

* world trade in 2006 continued the strong growth trends of recent years ($26 trillion in 2005)

* exports expanded by 16 per cent in value (well above the 8 per cent average experienced in previous years)

* 800 million people travelled to foreign destinations in 2005

* 200 million people now live outside their country of birth.

The growth in developing countries has been the most extensive. The developing economies in East Asia doubled their production output over the last decade and have significantly increased their share of the world's economy. The economic growth in China, India and Thailand has been driven by greater integration into the world's economy. There is no evidence that trade integration between countries is slowing. International tourism experienced a significant downturn after September 2001, but volumes have rapidly increased in the last few years.

In spite of our distance from many markets, New Zealand's trade and travel volumes continue to grow and we are meeting the challenges of new markets, while maintaining our traditional ones.

Merchandise exports grew 11 per cent in the year ended 2006. Australia remains our largest market followed by the United States and Japan. Exports to China, the United Kingdom and South Korea remain steady. China has now surpassed the United States as New Zealand's largest source of imports: by 30 June 2007, New Zealand imports from China grew 18.7 per cent to NZ$5.2 billion.

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Huge growth

Between 2002 and 2006, New Zealand experienced a 40 per cent growth in visitor arrivals. We welcomed nearly 4.4 million international visitors by air in 2006. By 2015, arrivals are expected to reach almost 6 million. Australia is by far New Zealand's largest source of visitors, followed by the United Kingdom, the United States, Japan, China and South Korea. Of note, the number of Indian visitors grew by 14 per cent from the previous year.

Cruise ship passenger numbers have doubled since the summer season of 2000/01, with 64,800 visitors arriving in 2006/07. Bookings for future years predict further growth with this number expected to double again in the 2008/09 season. We should also remember that New Zealanders continue to travel in greater numbers--with 50 per cent more now proceeding overseas every year than in 2000.

Worldwide production and supply chains are becoming increasingly fragmented and the import/export industry is seeking to gain maximum competitive advantage from supply chain efficiency. At the same time, many of our major trading partners, such as the United States, are emphasising the importance of secure supply chains and driving the development of global security standards.

Because our predominant exports are primary produce and our distance from world markets is considerable, we cannot take advantage of land and air links. This makes New...