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Oct 24

U.S., Canada, Mexico making progress on trade problems

By PMC Cross Border Program Add comments

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.

Kirk declined to say who is complaining the loudest about the Mexican tariffs. He did say California agriculture groups have made clear to their representatives in Congress just how complicated bilateral issues can get.
Overall U.S. exports to Mexico from March, when the tariffs were imposed, through July were down 28 percent. California table grapes were hit with a 45 percent duty, while wine shippers must now pay a 20 percent tariff.

Meanwhile, Canadian provinces and cities have refused to take bids from U.S. companies until Washington scraps the “Buy America” provision in the stimulus spending package. Under that legislation, cities and states could avail themselves of a share of $260 billion in federal spending only if they bought U.S.-made steel and equipment.

“We’ve made some headway,” Canadian Trade Minister Stockwell Day said after a bilateral session with Kirk and three-party talks that included Mexican Economy Secretary Gerardo Ruiz Mateos on regional trade issues.
Day said Washington is now reviewing a Canadian proposal containing procurement guidelines that Canada’s provinces and municipalities can live with. Working level talks resume next week, he said. “We think this is workable.”

The three sides agreed to set up ad hoc committees, staffed with senior trade officials, on environmental and labor cooperation.

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View Comments “U.S., Canada, Mexico making progress on trade problems”

Tennessee Trucker says:

01/11/2009 at 09:05

So, can American driver’s go to Mexico? As a driver, I’d just as soon drive all the roadways, Mexico, US, and Canada. The gov’ts need to make it easier to let us get where we’ve got to go.

So, again, my question is, will the Americans have fair access to Mexico, too?
- PMC says:
  
  01/11/2009 at 09:13
  
  Under the program that was killed, American’s had full access to Mexico. As a matter of fact, American carriers made twice the number of trips into Mexico as Mexican carriers made into the US.
  
  And I agree. We should not be restricted in where we can do our job because of a few protectionists.
  
  BTW, rates in Mexico stay at or above $2.00 a mile.
Rick says:

10/12/2009 at 11:43

I am interested where you got the 2.00 per mile rate?
- PMC says:
  
  10/12/2009 at 17:41
  
  Several sources Rick.
  
  The August 2009 issue of the NATSO Truckers News, interviewed a friend and colleague from Laredo who has been involved in Mexican trucking for many years.
  
  I made a post about it here that you might find interesting
  
  Also, I have seen first hand, confirmation sheets with the rate from Point A in the US to the US/Mexico border, the rate for cross border drayage if applicable and the rate for transport from the border to the customer in the interior of Mexico.
  
  Rates average $2.00 a mile or better, when fuel surcharges, border crossing costs and Mexican tolls are factored into it.
  
  GERARDO GOANA – MANAGER RAGAR TRANSPORTATION
  “The big Mexican freight lines don’t want to run in the US. It’s too expensive. The rates are too cheap. They have better rates in Mexico than we do here. To go to Monterrey from Nuevo Laredo, a distance of 150 miles, is $300 and some odd dollars to the truck. Laredo to San Antonio, approximately the same distance, they want to pay you $200.00. They don’t want to jump in here and start running. They say “Man, we;ll go broke!”