78 Members of Congress Call for Renegotiation of NAFTA Cross-Border Trucking Provision
On April 14, 2010, 78 Members of Congress sent a letter to Transportation Secretary LaHood and U.S. Trade Representative Kirk asking for the renegotiation of the section of the North American Free Trade Agreement that opens U.S. highways to Mexican trucks.
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In the letter, the signatories warn the Administration that they believe that it would be difficult, if not impossible, to receive Congressional support for a U.S.-Mexico cross-border trucking program.
Signatories Say Renegotiation Would Eliminate Mexico’s Retaliatory Tariffs
As an alternative, the signatories suggest that the U.S. renegotiate U.S. NAFTA Annex 1 (I-U-21), the U.S. commitment to liberalize cross-border trucking, and thus eliminate the requirement to open U.S. borders to Mexican trucks. The signatories also state that renegotiation would eliminate retaliatory tariffs, which are negatively impacting U.S. export markets.
(Since termination of the U.S.-Mexico Cross Border Trucking Pilot, Mexico has imposed tariffs on U.S. origin products classified in 89 tariff numbers. The tariffs were estimated to cost U.S. businesses $2.6 billion per year in lost sales. The Obama Administration has been working to try to come up with a new trucking scheme so that the U.S. and Mexico can move beyond their dispute over this issue, however, no such deal has been struck.
Most recently, during an April 12, 2010 meeting in Monterrey, Mexico to discuss transportation issues, DOT Secretary LaHood and Mexico's Transportation Secretary Horcasitas agreed to establish a working group to consider next steps in resolving outstanding motor carrier issues in the cross-border trucking program, stating the resolution of this problem was of highest priority.)
(See ITT’s Online Archives or 03/10/10 news, (Ref: 10031010), for BP summary of DOT Secretary’s testimony that Administration is finalizing a U.S.-Mexico trucking proposal.
See ITT's Online Archives or 03/18/09 news, (Ref: 09031805), for BP summary of FMCSA's formal termination of the U.S.-Mexico cross-border trucking pilot.
See ITT’s Online Archives or 03/31/09 news, (Ref: 09033130), for BP summary of the ITA’s descriptions of the U.S.-origin products subject to Mexico’s retaliatory tariffs.)
Rep. DeFazio press release, which includes the letter (dated 04/12/10) available at http://www.defazio.house.gov/index.php?option=com_content&task=view&id=573.