U.S. Shifts Gears on Mexico Trucking Deal
Friday, July 08, 2011
Seventeen years after the North American Free Trade Agreement went into effect, the U.S. government has agreed to a controversial provision allowing trucks from Mexico to deliver goods deep into the country. The turnabout by the Obama administration left one American trucking association “fuming” over the decision.
Until now, the federal government required Mexican truckers to offload their cargo after crossing the border, which stood in conflict with the terms of the 1994 NAFTA. Mexico’s government grew tired of Washington’s refusal to change its position, and, in 2009, imposed a tariff on American goods and agricultural products in retaliation.
In an effort to boost U.S. exports, the administration conceded to Mexico’s trucking demand, and in return Mexico eliminated tariffs on $2.3 billion in U.S. goods. The White House, which ordinarily promotes any decision intended to boost the economy, was noticeably quiet about the decision. But a trade group for drivers who own their trucks, the Owner-Operator Independent Drivers Association (OOIDA), was anything but quiet about their reaction to the change.
“People in Washington are constantly talking about two things these days—creating good jobs for Americans and cutting wasteful spending. This program does exactly the opposite for both,” said Todd Spencer, executive vice president of OOIDA. “This program will jeopardize the livelihoods of tens of thousands of U.S.-based small-business truckers and professional truck drivers and undermine the standard of living for the rest of the driver community.”
The association has opposed opening the border because it claims Mexico has not instituted regulations and enforcement programs similar to those that American truckers must abide by.
In an attempt to halt the deal, the association this week asked a federal court to review the legality of the administration’s decision.
-Noel Brinkerhoff
U.S. Truckers Shocked by Agreement with Mexico (Owner-Operator Independent Drivers Association
U.S. and Mexico Sign Trucking Deal (by Binyamin Appelbaum, New York Times)
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