(This webinar will be presented in Spanish / Este seminario web se presentará en español.)

Andrew Farrelly, CEO and co-founder of CT Strategies, has devoted most of his career to strengthening U.S. security interests, serving as director of targeting programs for the U.S. Customs and Border Protection (CBP) and most recently as CBP’s chief of staff for the deputy commissioner. As a lead-up to his March 19, 2025, AIAG webinar “Navigating Cross-Border Logistics: AEO and CTPAT Updates and Compliance Strategies,” Farrelly gives some valuable insights into border and trade challenges.

(Este seminario web se llevará a cabo el 19 de marzo de 2025 y se presentará completamente en español. No pierda la oportunidad de obtener información clave sobre logística transfronteriza y estrategias de cumplimiento.)

Register for the webinar here / Regístrese para el seminario aquí.

AIAG: How did you make the move from CBP to your own firm?

Farrelly: My business partner and I started the company about 11 years ago when we both left U.S. Customs and Border Protection. We set up the company as a consulting service for border issues, customs and trade issues, border security issues, etc. We have offices in the U.S. as well as in Brussels for the EU and in Vietnam for Asia Pacific. Basically, we help companies manage their relationship with Customs. We got involved with AIAG because our subject matter experts come out of the AEO (Authorized Economic Operator) world.

AIAG: There's a lot changing with the new administration, which has led to worries about how international trade will be affected. What are your automotive customers most concerned about right now?

Farrelly: I think the uncertainty is the worst piece. Throughout my career — whether it was my years in customs or in the private sector — the one thing I heard about a lot was the desire for better speed in the supply chain. But really, the majority of industry participants want predictability, and predictability is what’s being thrown out right now. You can deal with an adverse policy or a decision that you know has to be made. You can adjust your supply chain. It may not be great, but supply chains are resilient. Supply chain partners can be resilient if they can know what to expect and can adjust to it. Right now, there isn't that predictability. It’s really hard to know what to do to prepare. Participation in programs like CTPAT can help get yourself in a more predictable position at the border.

Most people realize they can't change the tariffs. But how can we prepare for it?

AIAG: What steps can automotive companies take now?

Farrelly: If you're already a partner in CTPAT or PIP in Canada or OEA in Mexico, then leverage that partnership. Reach out to your point of contact and ask the tough questions: What can we do? Is there any additional guidance? That’s a really important starting point. And as you bring on new suppliers or new contractors for those parts of your supply chain that are eligible to be part of these programs, encourage them to take part. If your entire supply chain is a participant in a program like CTPAT, it makes their engagement at the border a lot better. An additional step is reaching out to the ports that you deal with most. They’re there to answer questions to help. Get a better understanding of trade flows, times, anything that can make your experience a little bit more efficient. Start establishing these contacts. You never want to have to make a friend during an emergency — you want to have those friends before something happens.

AIAG: What’s your advice to companies that feel they are in a state of emergency now?

Farrelly: Don't panic. There are a lot of things going on that are being thrown out there and then pulled back, never executed, or executed with uncertainty, such as the Mexico and Canadian tariffs. I am not judging the new administration, but we need to see how serious they are about leveling some of these really tough tariffs. A little bit of patience, a little bit of planning, a little bit of no panic is going to go a long way. You can only do what is in your control.

Once we're past this initial shock of whatever the administration is doing with the tariffs with Mexico and Canada, we will likely have a renegotiation of the USMCA. Particularly for the automotive industry in North America, it's an important moment in time to look at the supply chain, as interconnected as it is, and really decide as a block if North America, U.S., Mexico, and Canada can become a competitive force in the global marketplace. I think it can be. The auto industry is a really good example of a successful supply chain. If we can get past this initial phase, the auto industry is going to be in an important position to voice how that supply chain should look and make a substantive contribution.

Want to hear more on this topic? Register for Andrew Farrelly’s AIAG webinar here. (Este seminario web se presentará en español. No pierda esta oportunidad de obtener información clave.)

CT Strategies is an AIAG CTPAT training partner. Visit here for CTPAT training registration and information / Visite aquí para información y registro de capacitación en CTPAT.