DOT said the proposal “prioritizes safety, while satisfying the United States' international obligations” under the North American Free Trade Agreement.
When NAFTA went into effect in 1994, a key provision opened international traffic in a band along the U.S.-Mexico border in 1995 and called for the opening of long-distance truck traffic in 2000, but that process has been delayed.
After the U.S. Congress refused to fund a Cross-Border Trucking Pilot Program, the Mexican government in 2009 imposed $2.4 billion in retaliatory tariffs on U.S. imports. In August 2010, Mexico increased imposed tariffs to cover 99 products, while reducing or eliminating duties on several others.
Under the proposal announced Thursday, passenger and hazardous materials carriers would be excluded from the program, and DOT said “subject to negotiation with Mexico, the number of carrier and truck participants in first phase of program will be managed to ensure adequate oversight.”
DOT said carriers and cross-border driver information would be vetted by the U.S. Homeland Security and Justice departments, and there would be carrier safety management programs covering areas such as vehicle maintenance, drug and alcohol testing programs, and driver qualification files.
Drivers would have to pass an English language proficiency and U.S. traffic law test, and for an agreed upon period of time a carrier's long-haul operations, vehicles and drivers would be inspected by the Federal Motor Carrier Safety Administration each time one of its vehicles crosses the northbound border.
DOT said it would use electronic systems for “redundant monitoring of program's trucks, drivers and carriers.” After passing two reviews, participating carrier would be eligible for full operating authority.
The National Foreign Trade Council said it welcomed the DOT proposal as “a sign that concrete steps are being taken to settle this dispute in the near term.
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| Reinsch |
NFTC Vice President for Regional Trade Initiatives Chuck Dittrich said it was “in the United States' and Mexico's interests to resolve this issue quickly, and we are encouraged that the administration will now engage the Mexican government to devise a solution that will benefit workers and consumers in both countries. This is a promising start to a proactive 2011 U.S. trade agenda.'
United Fresh Produce Association said the news was “a positive sign of progress in what has become a significant issue for the produce supply chain.
'This has gone on much too long and needs to be rectified as soon as possible,” said Robert Guenther, United Fresh senior vice president. He said his group would be “working with our members to analyze the impact of this proposal and in particular discuss with Mexican officials if this proposal meets the United State's obligations under NAFTA. In turn, we will ask the Mexican government to suspend their current trade retaliation efforts that have severely impacted trade of fresh fruits and vegetables with Mexico.'
At least one trucking organization, however, responded against the DOT 'concept.'
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| Spencer |
“While we appreciate that the administration is proposing to allow Congress and the public to weigh in on a future trucking program with Mexico, they seem to be missing the main issue at hand,' Spencer said. 'The onus is upon Mexico to raise their regulatory standards, not on the U.S. to lower ours to accommodate their trucking industry.'
OOIDA said to ensure the safety and security of U.S. citizens, Mexico-domiciled trucking companies and truck drivers “must be required to comply with the same level of safety, security and environmental standards that apply to their U.S.-based counterparts, not only while they are operating in the U.S., but also in their home country.”
OOIDA said to date, Mexico “has failed to institute regulations and enforcement programs that are even slightly similar to those in the United States.” ' Chris Dupin
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