OUR THOUGHTS ON:

U.S. Mexico Trucking Agreement

Transportation & Logistics

By Amanda Nixon

On Wednesday, July 6, the U.S. and Mexico came to an agreement over a cross-border trucking dispute that has lasted 15 years. Since the North American Free Trade Agreement was signed in 1994, Mexican trucks have only been allowed to drive within a 25-mile radius of the border.

By signing this new agreement, officials will allow each country’s trucks to have access to the other’s roads. This agreement will also lift $2.4 billion of tariff taxes from U.S. exports, which Mexico had placed as a result of Mexican trucks not being allowed on U.S. roadways. Half of the tariffs will be eliminated by July 16, and the rest when the first Mexican truck is able to deliver within the U.S. The new trucking permits will be issued in August.

The main concerns circling the agreement are about the safety of Mexican trucks in the U.S., as well as the potential for jobs to be taken away from U.S. truck drivers and given to lower-wage Mexican drivers, as some U.S. independent truckers see it. 

The U.S. Department of Transportation say that the safety concerns have been solved by implementing electronic monitoring systems in Mexican trucks that oversee how many hours the trucks are in service. Also, inspections will be made to make sure that safety requirements are met, according to a Mexican transportation ministry statement.

Resources:
Transport Topics Online – U.S., Mexico Sign Cross-Border Trucking Agreement:
http://www.ttnews.com/articles/basetemplate.aspx?storyid=27071 
Bloomberg - U.S. and Mexico Sign Pact to Resolve 15-Year Cross-Border Trucking Dispute:
http://www.bloomberg.com/news/2011-07-06/u-s-and-mexico-sign-pact-to-resolve-15-year-cross-border-trucking-dispute.html
USA Today - U.S., Mexico sign cross-border trucking deal, tariffs fall:
http://www.usatoday.com/money/world/2011-07-06-mexico-us-trucking-agreement_n.htm

Amanda Nixon was the author of this insight.

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