Tom Donohue, president of the US Chamber of Commerce, claims that these tariffs have cost 25,000 American jobs. The tariffs have targeted everything from sunscreen to paper to dishwashers. Oregon and Washington State have been hit particularly hard by the trade dispute with most potatoes for McDonald's fries in Mexico coming from these two states and US potato exports to Mexico being cut in half. There has been a 10-15% reduction in acreage assigned to potato cultivation in Oregon, and factories manufacturing frozen potato products in both states have shed jobs, with some even closing down. Canada has been able to take over much of the potato business to Mexico and has seen its exports in this industry increase 50%. The Christmas tree industry in Oregon has also taken a substantial hit since Mexico was a large consumer. Many suppliers have resorted to massive burnings in order to get rid of surplus stock. In all, 87 Washington state products have been targeted by the tariffs and the trade dispute has impacted US agriculture and industry across the country. 

 

Congress claims to have ended the pilot trucking program due to regulatory and safety concerns brought up by analysts and industry groups. The Teamsters Union has been one of the most vocal of these groups in criticizing the program since its inception, claiming that Mexican trucks and drivers are not subjected to the same stringent standards that those in the US trucking industry are and are therefore a danger to American drivers. They also claim that bribery and corruption are prevalent in Mexican government and industry and that even if regulations were put in place, drivers with bad records could pay-off officials to be given clean slates. 

 

The US Department of Transportation (DOT), however, claims that these concerns are largely baseless. They state that Mexico has a computerized database of its drivers similar to that in the Unites States and that throughout the pilot program, Mexican truck drivers were regularly drug tested. The DOT also says that Mexican truck drivers have an excellent safety record. During the pilot program, Mexican trucks made 20,000 trips into the United States and there was only one accident, which resulted in a minor injury. Bill Graves, CEO of the industry group the American Trucking Association, claims that there was in fact no good reason to halt the program and that its cancellation can be seen as discriminatory since Canadian trucks and truck drivers are allowed to make deliveries inside the United States. Mexico has even accused Congress of bowing to the Teamsters Union in reneging on the commitment it made in NAFTA by ending the program. Many international trade experts have come out in support of Mexico claiming it has every right to impose tariffs since the United States is not upholding what it agreed to. 

 

Parties in both nations are working towards an agreement which would put an end to the trade dispute as soon as possible. One of the most vocal on the issue has been Senator Patty Murray (D-Washington), who heads the Senate Appropriations Subcommittee on transportation. DOT Secretary Ray LaHood recently said that the Obama Administration is close to a deal that would resolve the situation. 

                                                                                                                           - Kyle Kuersten

 

U.S. Farmers Suffer From Ban on Mexican Trucks (by Chris Arnold, National Public Radio)

U.S. Sen. Murray Urges Obama to Work with Calderon on Tariff Resolution (by Lyndon Finney,    TheTrucker.com)

U.S. May Reopen Border to Truckers (Reuters)