Give me some time here, until the office calls me to look up some facts of what companies operating in Mexico have to pay, Mexican companies and American companies doing business in Mexico.

There is a high social security withholding that companies have to make. Tax on profits in a country where there is not an income tax but the IVA, currently at 10%. Take into account that credit is difficult to get here and when granted rates are in the 14%-23% range on a note of 36 months after a down payment (enganche) of generally 10-12%.

You have insurance costs which are slightly higher than in the U.S. True, you have fuel down here costing about $2.40 per gallon ($.564 pesos per liter) but most of the major trucking companies have open accounts with PEMEX which hits them with a premium on their purchases in the neighborhood of the above interest rates.

You have outrageous tolling here. And if the companies choose to use the toll roads, you are looking at almost $50.00 for the 100 mile stretch of toll road between Nuevo Laredo and the northern suburbs of Monterrey.

If you refer to the trucks coming across the border under the program. Sure, they may fill their tanks up at the terminal in Monterrey. These Frieghtliners generally hold 240 gallons, the same as my T-600. They will have to buy fuel in the U.S. Pay excise taxes at the pump etc. In addition to the need for additional insurance through an American underwriter which adds to the costs we don't have.

One factor cancels out the other. Business in Mexico is not the free wheeling liberal all rules out the window atmosphere that many seem to think.

But give me some time to look for those numbers. I know I have seen them before.

Let us first eliminate labor cost from the equation, since that seems to be the primary focus.

Suppose (just for argument's sake) a US trucking firm had a limitless supply of eager, capable and qualified US citizens who could drive trucks for $10/hr. Suppose a Mexico-based trucking firm could likewise pay its drivers $10/hr and do the same work in the United States.

Which would be more profitable? The Mexican one. Why? Because their remaining costs of doing business would be vastly cheaper. They don't have healthcare costs as high, business costs as high, they don't have the same taxation structure, and so on. And if US trucking firms are uncompetetive due to mandated costs of doing business, then they begin to lose market share.

So even removing labor cost from the equation, there would still be an adverse impact on US drivers.

In fact, this would also further create an incentive for some US-based trucking firms to move south of the border, to further exploit the unlevel playing field and to seek that path of least resistance. Many would gladly exploit lax standards in Mexico and shirk community and public safety requirements, given the opportunity – and this would further result in job loss to US-based truckers.

You know, Trailero… In many ways, what you are advocating here in your support for Mexican trucking is not at all dissimilar to the situation you described of frauds driving up in their Cadillacs to pick up free government cheese. Seems all the more hypocritical, the more we delve into this.

I can't speak to exactly what a Mexican firms health care costs are because in Mexico, a worker who is paying into the social security system (IMSS) is entitled to free basic health care at IMSS hospitals for life.

In Mexico, all firms have an obligation to pay various taxes relating to their business including social security on their workers, business taxes, payroll taxes. The tax structure for a trucking business here is similar to the U.S.

As far as these guys paying highway taxes, I don't have a specific answer for that yet, but I will. I would imagine that Mexico will be brought into IFTA and the IRP the same as Canada was. It would be illogical to think otherwise.

I am no proponent of isolationism or separationism, but I believe that there should be a level playing field. I do not consider US vs. Mexico (or China and many other competing markets) level playing fields. You seem to be focused solely on the worker. That's only the beginning.

If an individual is employed by a Mexican trucking firm, are that firm's health care costs as high as his US counterpart's for example? I highly doubt it. Does the Mexican trucking firm pay the same taxes? We rapidly turn into a comparison of apples and oranges, which may make it impossible for the two to compete evenly, even if their drivers were paid an equal hourly wage.