For the first time in two decades, the US Department of Transportation plans to accept applications from Mexican long-haul trucking companies for authority to operate in the US.
The announcement comes in the wake of a three year pilot program in which small amount of Mexican truck fleets were allowed to cross over the border and use US highways freely.
While the 1993 North American Free Trade Agreement (NAFTA) allowed trucks from both Mexico and Canada to travel freely in the US, under pressure from organized labor and law enforcement groups up until last week the transportation department effectively banned Mexican trucks from freely crossing the border.
Mexicans Respond with Tariff
Mexican authorities retaliated by placing a $2 billion tariff on US lumber and other products that are sold in Mexico.
Now US Transportation Secretary Anthony Foxx announced the reversal of the long-standing policy, offering the three-year pilot program as proof that allowing Mexican trucks to travel freely in the US was completely safe.
“Opening the door to a safe cross-border trucking system with Mexico is a major step forward in strengthening our relationship with the nation’s third largest trading partner and in meeting our obligations under NAFTA,” Foxx said in a news release. “Data from the three year pilot program and additional analysis on almost 1,000 other Mexican long-haul trucking companies that transport goods in the United States proved that Mexican carriers demonstrate a level of safety at least as high as their American and Canadian counterparts.”
Teamsters Cry Foul
The transportation department’s decision was immediately criticized by the Teamsters Union and other labor groups that complained that the reversal in policy was short-sighted and irresponsible.
Teamsters president James P. Hoffa charged that the DOT’s own inspector general has not been able to vouch for the safety of Mexican trucks allowed into the US during the trial period.
“I am outraged that the Department of Transportation has chosen to ignore the findings of the DOT Inspector General and is moving forward with a plan to open the border to Mexican trucks in the coming months,” Hoffa said in a news release released within hours of the transportation department’s announcement. “The policy change by the DOT flies in the face of common sense and ignores the statutory and regulatory requirements of a pilot program. Allowing untested Mexican trucks to travel our highways is a mistake of the highest order and it’s the driving pubic that will put at risk by the DOT’s rash action.”
Cites DOT’s Own Report
According to the Teamsters, the DOT’s Inspector General’s report concluded that the pilot program constituted too small a sample to make such sweeping regulatory changes.
“One thing was made clear in the IG’s report: The pilot program was a failure,” Hoffa said.
Despite complaints from labor, the transportation department will begin accepting applications for US operating authority this year. Once Mexican trucks are on US highways, Mexico is expected to lift its retaliatory tariff on US imports.
The Teamsters represent about 70,000 long-haul truckers and about 260,0000 UPS employees.