Local truckers react to proposed 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.

“ATA is pleased that Presidents Obama and Calderon and their administrations have worked through their differences and have put our two countries on the path to resolving this issue after nearly 16 years,” noted the statement from ATA President and CEO Bill Graves. “We hope this agreement will be a first step to increasing trade between our two countries, more than 70 percent of which crosses the border by truck.”

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 US, 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 operates 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.

Mexico imposed tariffs on U.S. goods shipped into and out of the country in 2009 when Congress ended a cross-border trucking pilot program. Noting that Mexico is the second-largest trading partner with the U.S., the ATA says the new agreement should end the tariffs.

“When properly implemented, NAFTA’s trucking provisions should evolve to allow for a more efficient, safe and secure environment for cross-border operations between the U.S. and Mexico,” Graves said. “Ensuring a level playing field requires that both countries establish permitting and regulatory processes that are clear and transparent to ensure that carriers from both countries are treated equitably.”