Audit Report is Coming on Mexican Trucking Program

Audit Report is Coming on Mexican Trucking Program

Within the next month USA transportation officials anticipate an audit report on the trucking pilot program with Mexico.  While U.S. produce industry shippers may be anxious because thereport could be negative, they fear it could lead to another round of retaliatory tariffs by Mexico.

At the same time some trucking groups in the USA hope this is exactly what happens.  Not necessarily retailitory tariffs by the Mexicans, but they are strongly opposed to Mexican truckers having free access to USA markets with poorly trained drivers and subpar equipment, compared to American standards — not to mentions concerns freights were plummet.

The apple, pear and cherry industries in the Northwest has paid tens of millions of dollars during the three years that Mexico imposed 20% tariffs.

The North American Free Trade Act requires the U.S. to allow cross-border trucking.  However, opposition by U.S. trucking unions – including the Teamsters  and trade organizations – such as the Owner-Operator Independent Drivers Association, OOIDA, has kept the Mexican trucks out for more than a decade after the act went into effect in 1994. The trucking interests cited safety concerns with Mexican trucking equipment and drivers.

Despite lobbying efforts and some congressional roadblocks, the pilot program finally gained approval from President Obama and his Mexican counterpart Felipe Calderon in July 2011.  The first Mexican truck came into the U.S. in October 2011.

However, only six Mexican carriers — each with one truck approved for the program — are participating in the pilot program.

One requirement built into the pilot program is that the DOT be able to document the safety of the Mexican trucks and drivers with “statistically valid” data. Powers said that could be a difficult task because of the low participation numbers.

 

 

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