Economy

Trade Groups: ‘Keep on Truckin’ in NAFTA
Written by Tim Triplett
November 15, 2017
More than 100 trade organizations representing a cross-section of U.S. business and industry sent a letter to USTR Robert Lighthizer on Tuesday urging the U.S. to maintain, and even extend, trucking provisions in the new NAFTA agreement. The trade groups called for the U.S. to permit Mexican carriers to haul freight further into the United States.
“We strongly urge you not to eliminate NAFTA’s trucking provisions in an updated agreement. We depend on the trucking industry, both American and Mexican, to safely and efficiently haul our products in both countries. Eliminating NAFTA trucking, including any investment protections, would have a long-term negative impact on our businesses,” the group wrote.
With a few exceptions, Mexican carriers are restricted to a commercial zone that extends only about 20 miles north of the border. “We depend on efficient border crossings to remain competitive. Increasing trade in both directions is putting more and more pressure on our southern border land ports. Permitting Mexican carriers to haul freight beyond the border zones will help alleviate some of the congestion at the border, creating more efficiency through the system. By having these trucks drive further into border states, it will alleviate truck traffic out of the commercial border zones,” the letter states.
Mexican carriers and drivers are not permitted to haul domestic U.S. freight, so they do not compete with U.S. carriers and drivers, the group pointed out. “The Mexican trucking program is not an open-door policy that permits any and all Mexican trucking companies to haul freight beyond the border zones. Mexican carriers undergo a case-by-case review process before the U.S Department of Transportation grants them authority to operate. These carriers must adhere to all U.S. laws and regulations. And, most importantly, Mexican carriers operating beyond the commercial border zones have an excellent safety record. We urge you to keep NAFTA’s trucking provisions in a NAFTA 2.0,” the letter states.
Cross-border trucking rules are apparently a sticking point in the NAFTA negotiations. In the fourth round of the NAFTA talks, the U.S. sought a provision that would allow it to restrict Mexican truck access at a later date without being in violation of NAFTA, World Trade Online reports.
The American Trucking Associations and the Canadian Trucking Alliance were not among the signers to the letter. The U.S. Chamber of Commerce and the Institute of Scrap Recycling Industries were among the signatories.

Tim Triplett
Read more from Tim TriplettLatest in Economy

Steel groups welcome passage of budget bill
Steel trade groups praised the passage of the Big Beautiful Bill (BBB) in Congress on Thursday.

Industry groups praise Senate for passing tax and budget bill
The Steel Manufacturers Association and the American Iron and Steel Institute applauded the tax provisions included in the Senate's tax and budget reconciliation bill.

Chicago PMI dips 0.1 points in June
The Chicago Purchasing Managers Index (PMI) slipped 0.1 points to 40.4 points, in June.

Multi-family pullback drives housing starts to 5-year low in May
US housing starts tumbled in May to a five-year low, according to figures recently released by the US Census Bureau.

Architecture firms still struggling, ABI data shows
Architecture firms reported a modest improvement in billings through May, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.