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August 27, 2010

No End in Sight for Mexican Truck Dispute 

A year after President Barack Obama met with Mexican President Felipe Calderon to discuss allowing Mexican trucks to resume traveling beyond the U.S. border region, no progress has been made on resolving congressional objections. Mexico this month ordered at least $2.5 billion in punitive duties on 99 categories of U.S. manufactured and agricultural products, doubling the tariffs added last year in its first response to the trucking ban.

During his meeting with Calderon last August, Obama pledged to work with Congress to address safety concerns about allowing Mexican trucks free range to operate on U.S. highways. (see Aug. 14, 2009, AASHTO Journal story) Presently, Mexican trucks may travel only 25 miles from the border, and then must transfer their goods to an American truck for further transportation. The North American Free Trade Agreement requires open trucking, but Congress in March 2009 abolished a pilot project to permit Mexican trucks farther into the country over safety concerns.

U.S. Transportation Secretary Ray LaHood told Congress five months ago that the administration was finalizing a plan with Mexico for it to increase truck safety standards in exchange for allowing more access to American highways. But there's still no agreement, causing the trade war to escalate, the Houston Chronicle reported.

Concerns over job loss, truck safety, and border security are reasons given for opposition to permitting Mexican trucks from having greater access to the United States.

During the 18-month pilot program that Congress terminated last year, the Federal Motor Carrier Safety Administration found long-haul American truck drivers and U.S. trucks were out of service more than Mexican truckers and their rigs, but the limited number of Mexican trucks participating in the pilot program undercut the study.

Lawmakers representing states where the Mexican tariffs are having an impact are pushing for an agreement. Sen. Patty Murray, D-Washington state and chairwoman of the Senate transportation appropriations subcommittee, placed language in the pending Fiscal Year 2011 transportation spending bill that would require the administration to generate a plan to resolve the Mexican truck dispute by Oct. 1. Her state's farmers have suffered from the 20% duties placed on U.S. potatoes by Mexico, reducing the number of potatoes being exported.


Questions regarding this article may be directed to editor@aashtojournal.org.

 
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