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UPDATE 1-Canada-U.S. agree on cross-border truck plan

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By Robert Melnbardis

OTTAWA, June 28 (Reuters) - Canada and the United States have agreed on a plan to ensure the fast, secure transport of goods by trucks between the two countries, a move aimed at freeing up security bottlenecks created by fears of more terror attacks, officials said on Friday.

Flanked during a press conference in Niagara Falls, Ontario, by Tom Ridge, White House Homeland Security Advisor, Canada's Deputy Prime Minister John Manley said the two countries had made significant progress on a new joint program --Free and Secure Trade (FAST)-- to securely and efficiently move commercial shipments across the shared border.

"We're well on our way to creating a smart border for the 21st century, one that's open for business but closed to terrorists," Manley said.

FAST trucks, those that qualify as low risk and will be pre-screened by customs officials, will use dedicated lanes at border crossings. That will allow border officials to devote more attention to higher-risk trucks, he said.

"For frequent shippers and for companies whose bottom lines are driven by just-in-time delivery, like those in the auto sector, FAST will fundamentally change the way the border works," Manley said.

"Based on principles of risk management, shipments of goods that can be identified as low risk will cross the border with far greater ease, adding certainty to scheduled delivery times and reducing costs," he added.

Some 200 million travelers cross the 5,500-mile (8,850-km) border between Canada and the United States every year. They are also each other's most important trading partners.

The two countries agreed on the deployment of a border-wide "fast lane" program called NEXUS to speed the flow of pre-screened low-risk travelers and plan to launch a NEXUS-Air pilot project.

"We expect NEXUS to be in place at all high-volume border crossings by 2003 and to open here at the Peace Bridge by January 1st," Ridge said.

Canada and the United States also initialed a "safe third" pact that will require that refugee claimants apply for asylum in the last of the two countries where they have been present.

That means those seeking asylum in the United States will be not allowed to apply for refugee status in Canada if they have already gained access to the United States.

Manley disagreed with criticism from human rights advocates who say the "safe third" measures will make Canada less welcoming to genuine asylum seekers as many first try to get into the United States before coming to Canada.

"It will significantly facilitate our ability to deal with and process asylum seekers in Canada," he said.

The two countries began working on their "30-point action" plan in December to deal with security concerns regarding the cross-border transport of people and goods.

Manley and Ridge signed their progress report on the Smart Border Declaration and its companion 30-point action plan. Canadian Prime Minister Jean Chretien and President George W. Bush are expected to sign the plan, which focuses on the secure flow of people and goods across the border, later this year.