Nov 12

NAFTA dispute costing Texas firms millions

By PMC Cross Border Program, NAFTA Comments Off

“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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