NAFTA dispute costing Texas firms millions

On 11.12.09, In Cross Border Program, NAFTA, By PMC

“We're the FedEx of Mexico,” said Christian Bruns, general manager of Estafeta USA. “Since we're a majority-held Mexican company, we cannot go intrastate in the U.S. We have to use third parties in the U.S. instead of taking our own trucks.”

“We're the FedEx of Mexico,” said Christian Bruns, general manager of Estafeta USA. “Since we're a majority-held Mexican company, we cannot go intrastate in the U.S. We have to use third parties in the U.S. instead of taking our own trucks.”

NAFTA, one of the most contentious trade agreements signed by the U.S., was meant to unite the U.S., Mexico and Canada economically. But 15 years after it was enacted, it has spurred endless division, the latest being a high-level spat between the U.S. and Mexico that critics say is hurting the profitability of American companies.

Under the North American Free Trade Agreement, the U.S. was supposed to allow Mexican trucks access to U.S. highways. But American unions have put up roadblocks for years by accusing Mexican trucks of being unsafe.

Since NAFTA went into effect in 1994, Mexican trucks have not had access to the U.S. market except for a September 2007 pilot program. That program allowed 100 trucking companies to move cargo beyond U.S. border towns but ended in March when the U.S. government cut its funding.

A few days after that, Mexico retaliated by slapping duties as high as 45 percent on 89 U.S. products, including pencils, pears and potatoes.
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U.S., Canada, Mexico making progress on trade problems

On 10.24.09, In Cross Border Program, By PMC

A junk Mexican truck? I don't think so. Image taken at Otay Mesa Pilot of a dual registered W900

A junk Mexican truck? I don't think so. Image taken at Otay Mesa Pilot of a dual registered W900

Canada’s trade minister said Monday that some progress is being made on a nagging trade issue with the United States, while U.S. Trade Representative Ron Kirk said a tangled dispute with Mexico over cross-border trucking and California Christmas trees might resolve itself next year.

Welcoming Cabinet-level Mexican and Canadian trade officials to the city where he served as mayor, Kirk said language that removed funding for the Mexican truck program has been restored in next year’s budget bill.

“We won’t be handcuffed by prohibitory language,” he said.

When the border was closed to 500 U.S.-certified trucks in a pilot program, Mexico imposed retaliatory tariffs on 89 U.S. exports ranging from cosmetics and toilet paper to Christmas trees. The truck-and-trade issue put the Obama administration in a political fix because organized labor opposed allowing Mexican trucks an open road north of the border.
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Hoffa rejects responsiblity for job losses over Mexican truck dispute

On 09.17.09, In Cross Border Program, NAFTA, By PMC

Teamsters President James Hoffa who seems to think that people still believe his lies about "unsafe Mexican trucks" despite overwhelming evidence to the contraryOn Tuesday, the U.S. Chamber of Commerce released a report that looked at the effect of three trade actions/inactions by the Administration are having and will have on American workers.

One of the three actions concerned the failure to implement NAFTA trucking provisions, which have been challenged for more than 15 years. Of course, Teamsters President James Hoffa has to chime in with his usual irrelevant opinion.
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OIG Report – Political aims keep a deal idling slowly

On 09.04.09, In American Politics, Cross Border Program, FMCSA, Guest Bloggers, NAFTA, Trucking Opinions, By PMC

frio_expressThe federal government has prompted yet another delay in the implementation of a NAFTA provision that allows Mexican truckers to bring cargo from that country to U.S. markets.

Under the North American Free Trade Agreement, that provision should have gone into effect on Jan. 1, 1995 — more than 14½ years ago.

The U.S. Transportation Department’s inspector general on Wednesday issued a report stating that the department still needs more information to determine if Mexican trucks are safe enough to enter this country.

The report, prepared by department auditors, says that some states don’t adequately report the nationality of people convicted of traffic violations, and that some buses aren’t inspected sufficiently when they cross the border.

This despite a 2007 pilot program that allowed a limited number of Mexican trucks free access throughout the country. Most people didn’t even notice the program was in operation, suggesting there was no sudden rash of accidents due to their presence on U.S. roads.
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NAFB – “DOT Issues Report on Mexican Truck Safety”

On 09.04.09, In Cross Border Program, By PMC
Every truck from Mexico that enters the US at Otay Mesa crosses these CHP Inspection scales and are subject to random or for cause inspection at any time

Every truck from Mexico that enters the US at Otay Mesa crosses these CHP Inspection scales and are subject to random or for cause inspection at any time

AMERICAN FARM BUREAU FEDERATION
A new report from the U.S. Department of Transportation’s Inspector General affirms that Mexican trucks are as safe as U.S. vehicles and Mexican truck drivers have better safety records than their U.S. counterparts. The report, a – Follow-Up Audit on the Implementation of the North American Free Trade Agreement’s Cross-Border Trucking Provisions — notes that in FY 2008, more than 220-thousand inspections were performed on Mexican trucks by DOT’s Federal Motor Carrier Safety Administration.

During those inspections only 1.2 percent of Mexican drivers were placed out of service for a violation, as compared to nearly 7 percent of U.S. drivers who were inspected. About 21.2 percent of Mexican trucks – compared to 21.8 percent of U.S. trucks – were placed out of service for safety reasons or because they had violated some other regulation.

Steve Mulder, a spokesman for the Alliance to Keep U.S. Jobs, says the obstacles to resolving the debate over Mexican truck safety – have been removed. He adds, – the tariffs, which remain in place, were prompted by – pure politicking – in the United States, and the new DOT report – makes it clear that Mexico has lived up to the United States’ demands when it comes to truck safety.

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