Fleet Management News & Business Info | Commercial Carrier Journal
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6 commercial carrier journal | march 2017 Strained U.S.-Mexico relations threaten future of cross-border trucking Trump's hardline trade stance, new legislation could lead to more tariffs and a new chapter in Mexican truck saga BY JEFF CRISSEY T he U.S. Department of Transportation-led three-year cross-border trucking pilot program between the United States and Mexico ended in October 2014, but the Trump administration and newly introduced legisla- tion are certain to test the strength of our relationship with our trade partners to the South. The history of U.S.-Mexican truck relations is a long and storied one dating back to the days of deregulation. Up until 1982, when the Bus Regulatory Reform Act was enacted under the Reagan administration, Mexican carriers had free rein on U.S. highways. BRRA limited their access to restricted zones along the U.S.-Mexican border. The restrictions were made permanent during the Clinton administration. The North American Free Trade Agreement was signed in 1994 with the intent to eliminate trade barriers with Mexico and Canada, including the Mexican truck ban. An arbitration panel ruled the ban was a violation of the NAFTA agreement in 2001, and work began on a new pilot program overseen by the U.S. Department of Transportation to ensure Mexican trucks operating in the United States met certain safety and environmental requirements. In 2008, the Bush administration established the founda- tion for the cross-border trucking program we all are familiar with today. After the pilot program was conducted from 2011 to 2014, the Federal Motor Carrier Safety Administration claimed it had enough data to determine Mexican-domiciled carriers had adequate safety performance and began accepting applications from Mexico-domiciled carriers for operating authority in the United States. A year ago, FMCSA announced it would accept Mexico safety certification for trucks entering the United States af- ter examining the annual truck inspection criteria used by Mexico's Secretaría de Comunicacio- nes y Transportes (SCT) and deemed it was similar enough to that used by DOT's inspection process. Last November, the agency also extended the right for Mexican carriers to lease commercial trucks to U.S.-based carriers to haul freight inside the United States. At the same time, then-presidential candidate Donald Trump began blasting U.S. trade deals, including NAFTA and the Trans-Pacific Partnership. Since taking office, Trump has scuttled TPP entirely and promised to move forward with renegotiating NAFTA. Although the terms of our trading rela- tionship with Canada likely will remain unscathed, demanded changes with Mexico could lead to new tariffs on U.S. goods entering Mexico or even spark an all-out trade war between the two countries. Last month, FMCSA's decision to accept SCT-certified trucks came under fire again. "Blueprint for America's New Trade Policy" – new legislation introduced by U.S. Rep. Peter DeFazio (D-Ore.) – outlines the procedures for renegotiating NAFTA and stipulates that a replacement "should require all foreign service providers' vehicles and drivers entering the United States to meet all U.S. highway safety and environmental standards before being granted access to and use of U.S. distribution and transportation systems." In a nutshell, this language would prevent FMCSA from accepting Mexican trucks and force SCT to adhere to the same standards U.S.-based carriers do from DOT and the U.S. Environmental Protection Agency. The odds of Mexico enact- ing the more-stringent standards are unlikely at best. "For the first time in nearly a quarter-century, we have an opportunity to replace NAFTA and build a fair trade policy that works for all Americans," said DeFazio. "After working with labor stakeholders and fair trade advocates, we have come up with principles that will serve as the foundation of a sustainable trade policy that will bring jobs back to the United States while protecting America's environment, workers, con- sumers and sovereignty." The legislation also would direct Trump to begin the NAFTA renegotiation process by June 1, leading to what could be a long, hot summer for U.S.-Mexican trucking interests. UPFRONT JEFF CRISSEY is Editor of Commercial Carrier Journal. E-mail jcrissey@ccjmagazine.com.