The Obama administration has taken the first step toward renewing a pilot program that allows Mexican?truckers to operate within the U.S., as stipulated in the North American Free Trade Agreement, but still must work with Congress on fashioning a new program, U.S. Trade Representative Ron Kirk said Tuesday.

U.S.Trade Representative Ron Kirk told a news conference in Mexico last week that the Obama administration had taken the first step in coming up with a new program when it convinced Congress not to prohibit a cross-border program in the 2010 omnibus spending bill.

With that being said, the mexenophobes are beginning to come out from under their rocks. Some, such as Teamster’s Jimmy Hoffa, using the same old tired and debunked rhetoric that he’s spewed for the past 18 years.

Others, such as OOIDA, seems to have largely abandoned the misinformation about the safety concerns and are now attacking the tariffs, and a report last year concerning the C-TPAT program.

We’re not going to unnecessarily rehash the arguments of the past, which debunked the majority of the oppositions objections to Mexican trucks operating in the US. The information disproving the claims of the Teamsters, OOIDA, and the ersatz “safety groups” remains on the site for those that wish to access it.

We will however, being addressing the new arguments these groups are putting forth.

First off, let’s get Hoffa’s irrelevant rants out of the way.

No more Mexican trucks, ever, Hoffa declares

That was the words from the lips of that babbling buffoon Jimmy Hoffa last week when news of Trade Rep Ron Kirks trip to Mexico was announced.

Hoffa went on to say:

“We got the border closed to unsafe Mexican trucks and we’re keeping it closed. The Teamsters did that, nobody else did that – the Teamsters did that.”

Like ALIPAC’s William Gheen, Hoffa has a problem with the truth and is more than willing to claim credit where credit isn’t due.

It’s true, that with the help of union stooges in Congress, such as departing Senator Byron Dorgan, language was inserted into the 2009 Omnibus Appropriations bill which pulled all manner of funding for continuation of the cross border program. This in the face of massive evidence of the safety and compliance of the Mexican carriers in the 18 months that the cross border program was operational.

In the 2010 Omnibus Appropriations Bill, this language was removed.

Perhaps Hoffa thinks he has an abundance of political capitol from his allowing negotiations that permitted YRC to avoid bankruptcy. And there is no doubt he is still pissed his beloved “card check” has not passed Congress which was part of the reason they invested millions in the elections of Democratic candidates.

Whatever, Hoffa’s tired old rhetoric about dangerous Mexican trucks will have no bearing on the new debate.

OOIDA changes focus of attack

The Owner Operators Independent Drivers Association (OOIDA) seems to have changed the focus of their attack on our obligations under NAFTA.

In the beginning, they followed the debunked rhetoric about the safety angle of Mexican carriers, again, claims that were totally discounted in the Inspector Generals mandated reports and SAFESTAT statistics for the participating carriers.

This time around, they are attacking it from two angles. Legitimacy of the rataliatory tariffs, and the October report about C-TPAT certified carriers being caught with drugs onboard.

The Tariffs

One week after Obama pulled the plug on the Cross Border Program, Mexico, as was their right under the provisions of NAFTA, imposed tariffs amounting to $2.4 billion dollars on more than 90 US produced products. Many of these tariffs effected our ag sector.

The tariffs were meant to send a message to the political stooges of OOIDA and the Teamsters who pushed Congress to violate and nullify our obligations under NAFTA.

One of these, Representative Peter Defazio (D-Or), in a press release, pointed out that several of the tariffs were aimed at products produced in DeFazio’s home state and the home states of various other lawmakers who actively sought to shut down the program.

He went on to say:

“These tariffs are illegal and should be treated as nothing more than political gamesmanship. Mexico has no legal grounds to implement any of these tariffs. Even if there was a legal basis for the tariffs, the $2.4 billion price tag is a disproportionate response, and the 90 U.S. products targeted for tariffs were illegally selected”

Well, D’uh? Did he expect Mexico to target the production of states that supported the program? Nothing about the tariff’s are illegal, as Mexico has the right to cure for the US not living up to it’s obligations. After almost 20 years of being promised a solution and being treated like the proverbial “red headed step child”, Mexico had enough and sought solutions through the tariffs. The 90 products were not “illegally selected” as DeFazio and OOIDA alleges. They were selected to make a point.

These tariffs expire on March 16, 2010, and if a resolution is not reached, an agreement which the US will abide by and not blow smoke up Mexico’s ass, then we can expect the tariffs to be extended and expanded, probably to include meat and poulty products. If the latter happens, we can expect Don Tyson of Tyson’s Foods, to raise holy hell.

OOIDA made this comment in their latest “Call to Action”;

“Instead of bowing to Mexico, the U.S. Trade Representative needs to be standing up for U.S. jobs and American interests. Congressional leaders whose constituents were targeted by the Mexican tariffs have repeatedly called on (Trade Representative) Kirk to fight back and challenge those tariffs, but so far (he) has refused to do so.”

Trade Representative Kirk has repeatedly indicated that the simplest way to get the tariffs dropped is to simply initiate another cross-border program. He’s even gone so far as to indicate that congressional limitations on cross-border programs had been eliminated. Ron Kirk is correct.

Removal of funding prohibition in 2010 Appropriations Bill

As noted, the language prohibiting funding for any manner of cross border operations of Mexican trucks was removed from the 2010 appropriations bill.

The new language says:

“Sec. 135. Funds appropriated or limited in this Act shall be subject to the terms and conditions stipulated in section 350 of Public Law 107-87 and section 6901 of Public Law 110-28, including that the Secretary submit a report to the House and Senate Appropriations Committees annually on the safety and security of transportation into the United States by Mexico-domiciled motor carriers.”

OOIDA goes back to Section 350 of language in a bill from I believe 1999, which according to the latest USDOT Inspector General report (available in the download section of this site) FMCSA and Mexico have substantially complied with. The remaining concerns are largely administrative and has no impact on the safety of the trucks involved.

In brief, simply more of the smoke and mirrors used by the opposition to misinform the public.

C-TPAT

OOIDA is trying to use a report from last year that showed, if I remember correctly, that in a 2 year period, 7 or 8 trucks vetted under C-TPAT were found to be transporting. Because of this, OOIDA is using this as a basis for further objection. The objections are pure horseshit.

C-TPAT, is a program that that focuses on terminal security of companies enrolled in it on both sides of the border. Controlled access to facilities, ID checks, cameras and other perimeter security and controlled access to office areas. It also involves background checks of personnel. It is not a program that permits speedier or no inspection crossings at the border. Long waits in lines at the border for inspection permit CBP officials to “walk the dogs” down the line of waiting trucks, and possibly decide who goes to secondary. And keep in mind also. That drugs can’t cross without the cooperation of corrupt Customs agents at the border crossing. The C-TPAT argument is another smokescreen.

AMERICAN JOB LOSS AND COMPETITION

All parties concerned opposing Mexican trucks are using fearmongering to push their point once more.

OOIDA:

“The USTR seems to be more interested in placating the Mexican government than in standing up for U.S. jobs and American small businesses, “Who the hell does he think he works for?”… Todd Spencer

The facts are, that during the 18 months the Cross Border Program was active, not one American lost a job due to this program. In addition, no mention was made of the 800+ Mexican carriers grandfathered in under the 1982 moratorium. So are we to believe that 100 or 1000 Mexican trucks are going to make a difference? We don’t think so.

TEAMSTERS

Hoffa babbles;

“We’ve got our work cut out for us. There’s change going on. The tea-baggers show up and are against Social Security and Medicare,They even want to shut down the VA hospitals. The Republicans are moving to the far, far right. We have to have a government that fights for us. We have to change everything that we’re doing to put Americans and Teamsters back to work. That’s our message. Let’s get to work.”

More fear mongering without any basis in truth from Hoffa Nobody is talking about shutting down VA hospitals. And the Mexican truck issue has had no effect on the Teamsters diminishing membership.

I was in Von Ormey Texas overnight yesterday, and guess what people. The Mexican trucks are still here. The same ones that participated in the Cross Border Program are still running throughout the US, legally!

How you say? US and DOT regs allow Mexican companies to establish a US subsidiary, and many of the participants have done just that, including Fernando Paez, owner of Transportes Olympics, the first company to cross under the CBPP.

Operating as FERNANDO PAEZ TRANSPORT, OMC TRANSPORT and OLYMPIC TRANSPORT, and using the same trucks as were used during the cross border program, Mr. Paez continues to operate safely and in compliance throughout the US. The trucks, including his newest Cascadias are dual registered, and because of a 1992 Letter of Mutual Understanding, between Mexico and the US, acknowledging that the US CDL and the Mexican Licencia Federal de Conductor, are similar, Mexican drivers can legally operate in the US.

Another thing to toss around in your mind is American job losses.

No jobs have been lost because of the presence of Mexican trucks operating in this country. However, because of the efforts of the Teamsters, OOIDA, and the “safety groups”, which caused the termination of the program, countless thousands of American jobs have been eliminated because of the retaliatory tariffs, which were established by Mexico. Not only jobs, but market share in the ag community has been lost. The latter, will be extremely difficult to recoup.

So no, the Mexican trucks and Mexico have not cost Americans jobs. The protectionist and isolationist agenda of OOIDA, the Teamsters and others, are solely responsible for the loss of American jobs. Think about it.

And of course, the Trucking talkers are all chiming in. Most have OOIDA as an advertiser and they’re following the propaganda of OOIDA. Nemo, Sommers, Bubba Bo, all, are passing this false information on to their listeners, who accept it as the truth with mindless acquiescence. One of these talkers, Evan Lockridge of The Lockridge Report, recently had the cojones to suggest what is really behind the fierce opposition. Simple racism! We think Lockridge is on the right track.