DETROIT -- Michigan’s Secretary of State and the Department of Homeland Security signed agreements Monday creating an enhanced Michigan driver’s license that doubles as a passport.

The new license can be applied for next June, when the federal Western Hemisphere Travel Initiative begins -- which requires anyone who enters the country by land or sea to show an approved government document, like a passport.

It is completely voluntary and is available to U.S. citizens only.

Secretary of State Terri Lynn Land said the two agencies have been working together to create the enhanced license since 2005. Officials said the new license is essential to continuing southeast Michigan’s role as an international trade center.

“It offers motorists an affordable, single-document option that meets their driving and border crossing needs. Equally important, it allows commerce between Michigan and Canada to continue uninterrupted,” Land said.

More than $1.1 billion in goods cross over the border every day with 40 percent of the trade happening in metro Detroit. Slowdowns cost time and money, and could force businesses to use border crossings elsewhere.

Embedded in the license is a chip bearing a unique federal ID number that sends a signal over a short distance when it’s used while crossing the border. Immigration officers can verify identities without even touching the card.

"You stop and then move forward, and in that period of time of when you stop and move forward the chip will be read and the information displayed," said Assistant Secretary Stewart Baker. "You should not have to actually hand over the card to the officer."

The enhanced license will cost more than a conventional one but less than a passport. The actual cost is to be determined but law limits it to no more than $50.

The new license will be accepted in Canada, Mexico and the Caribbean.

A valid passport is still needed for international travel elsewhere.