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  - September 30, 2007 -  

Mexican Truckers in the US: Understanding the Issues

 
 

FMSCA Hopes to Quiet Critics with Plans to Track Trucks by Satellite; How We Got Here

 
 

 

SCDigest Editorial Staff

SCDigest Says:
Many view Mexican carriers and drivers as an answer to driver shortage and overall carrier capacity issues.

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The passions on both sides of the Mexican trucker debate are pretty high, which is interesting because the issue of access to the US for Mexican trucking companies was hardly noticed amid all the other debate over the North American Free Trade Agreement (NAFTA) before its adoption in 1994.

A lot has changed since then, however. In the US, the past few years have seen both increasing concerns about illegal immigrants from Mexico and threats of terrorist activity made more likely by porous borders, especially the Southern one with Mexico. Now, it’s not just the Teamsters looking to stop the access (which they fear will depress wages and jobs), but conservative media pundits as well. Others opposed to the plan site concerns about the maintenance and safety of Mexican fleets.

At the same time, trade between the US and Mexico has increased significantly since NAFTA’s passage, and the US has seen growing driver shortages among its trucking ranks. Many view Mexican carriers and drivers as an answer to driver shortage and overall carrier capacity issues.

Last week, The Federal Motor Carrier Safety Administration (FMCSA) announced it was going to require satellite tracking of both Mexican trucks coming into the US and US carriers entering Mexico.

"This will give us the ability to monitor every vehicle from Mexico and ensure all companies are following our strict safety requirements, including those governing hours of service," said FMCSA Administrator John Hill in a statement from the agency. The system would also track the date and time of international and state crossings by Mexican carriers.

The move is another effort to keep the three-week program alive after both houses of Congress voted to pull its funding because of perceived concerns about Mexican trucks and drivers jeopardizing safety on U.S. roads.

 
 
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How Did We Get Here?

Below is an overview and partial chronology of the Mexican trucker debate. It was developed in part based on a recent article from the Knowledge@Carey newsletter from Arizona State University.

  • On January 1, 1994, after fierce debate and concerns about a “great sucking sound” that would be millions of US jobs headed to Mexico, NAFTA goes into effect.
  • NAFTA requires unrestricted shipping between North American countries. Trucks from neighbor nations were to be given access to border states by 1995, and region-wide by 2000. The provisions have been in effect for movement between Canada and U.S. trucks, but Mexican trucks have been excluded due to safety and other concerns, despite the NAFTA requirements.
  • The Clinton administration refused to open U.S. highways to Mexican trucks in 1995. Mexico appealed to a NAFTA arbitration panel, which ruled in 2001 that the United States must allow Mexican trucks to enter. The United States has not complied. Critics say the US stance undermines NAFTA and discourages other nations from honoring trade agreements.
  • Finally, in February 2007, the countries came to an agreement that would allow 100 Mexican and US trucking companies basically unlimited access to make point-to-point deliveries from one country to the other.
  • In mid-September, the program began, with a Mexican carrier entering the US, and a few days later an American carrier transporting into Mexico.
  • A few days later, the US Senate passes a bill that would ban the Mexican trucking program. But a similar bill would have to pass the House and be signed by President Bush to become law. While it cannot overturn NAFTA treaty provisions, it is designed to have the same effect by prohibiting the Transportation Department from spending money on the pilot program
  • NAFTA allows trucks from any North American country to deliver and pick up goods within the borders of neighboring nations, but point-to-point shipping on foreign soil is prohibited. For example, a Mexican truck can deliver a shipment from Mexico within the United States and return with goods to sell in Mexico, but it cannot pick up and then deliver shipments within the United States. The same rules apply for US and Canadian vehicles.
  • Currently, Mexican trucks are required to drop off US-bound shipments within the immediate border zone. This is generally 25 miles from the international border, although the area is larger in Arizona. Likewise, US trucks must drop off shipments in Mexico shortly after crossing the border.
  • Since trucking firms don't want expensive, long-haul tractor trailers idling on the border, cartage companies often pick up shipments and drop them off on the other side of the border, for a fee. Cartage vehicles are generally older, and may emit more pollutants, causing environmental problems.
  • The busiest point of entry on the southern border is in Laredo, Texas, where the lion's share of US-bound trucks pass. Most produce from Mexico enters the United States via Nogales, Arizona, causing seasonal fluctuations in border traffic that have led to lengthy delays. Other major entry points are El Paso, Texas and San Diego, California.
 
     
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