Arkansas Truckers Weigh In On U.s.-mexico Rules

Thoughts are mixed at the local level about the effect of Thursday’s (Mar. 3) announcement that the U.S. and Mexico would implement long-delayed cross-border trucking provisions of the North American Free Trade Agreement.

According to a statement from the American Trucking Associations, the agreement upholds previous requirements for Mexican trucks operating on U.S. highways. The most talked about provision of the agreement requires that Mexican-based trucking companies receive authority to operate in the U.S. from the Federal Motor Carrier Safety Administration. To receive the FMCSA approval, Mexican trucks must “meet the same safety standards as U.S. fleets and that those trucks are prohibited from hauling freight between destinations within the United States,” noted the ATA statement.

Local trucking officials from USA Truck and Arkansas Best weigh in on the subject.

Clif Beckham, president and CEO of Van Buren-based USA Truck, isn’t sure the deal will soon deliver positive results.

“I’m not convinced this is going to have any near-term impact. This political football has been punted, passed and kicked around since NAFTA was enacted. There will likely be a string of legal and political maneuvers following this announcement that will once again drag it out,” Beckham said.

Beckham also believes the agreement, if and when it does become standard practice, will only be used in border areas.

“Plus, my experience has been that very few Mexico-based carriers want their trucks running too far into the U.S. and vice versa,” he said.

Like USA Truck, ABF Freight System — the largest subsidiary of Fort Smith-based Arkansas Best Corp. and the nation’s second largest less-than-truckload carrior — also has operations in the U.S. and Mexico. David Humphrey, vice president of investor relations and corporate communication for Arkansas Best Corp., says more uniform rules should help the company.

“As a result of this agreement many of the Mexican tariffs that were previously imposed on U.S. goods are expected to be lifted. ABF does business with Mexican companies shipping into the U.S. as well as with U.S. shippers sending goods into Mexico. As a result of this new agreement, the resumption of a more normal exchange of goods between our two countries should help increase ABF’s cross-border Mexican business,” Humphrey explained.

Michael Tilley with our content partner, The City Wire, has more in this report.