By 2008, Americans will need passports to re-enter the United States from Canada, Mexico, Panama and Bermuda.

Similarly, Canadians will also have to present a passport to enter the United States. Canadians have been the only foreigners allowed to enter the United States with just a driver's license.

Americans returning from Mexico, Panama or Bermuda currently need only a government-issued photo identification card plus proof of U.S. citizenship like an original birth or naturalization certificate, according to the State Department's Web site.

A State Department official said the implementation of the law will be done in three phases, beginning the end of this year, and are to be completed by Jan. 1, 2008.

Besides a passport, re-entering Americans could use another approved travel document like frequent travel cards, which are issued to some people who travel often between the U.S. and Mexico. These cards typically are used to avoid long border-crossing lines. But in most cases, only passports will do, another U.S. official said.

The new system will deal first with the Caribbean, then Mexico and Canada. It will start at airports and subsequently spread to land crossings, said an official speaking on condition of anonymity.

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