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Mexican Trucking Proposal Stirs Strong Reactions

The Journal of Commerce Online - News Story
Independent truckers attack DOT plan; U.S. manufacturers welcome it

Independent truck drivers slammed the Department of Transportation's "concept document" for a renewed cross-border trucking program with Mexico, while manufacturers stung by high Mexican tariffs welcomed the long-expected initiative.

The DOT released a barebones "concept" document for a cross-border trucking program Thursday, nearly two years after Congress and the newly installed Obama administration shut down a Bush administration pilot project.

The document is a "starting point" for negotiations with Mexico, the DOT said, providing a bare outline of the vetting process and inspection and monitoring requirements for Mexican carriers that would participate in a program.

The Owner-Operator Independent Drivers Association called the DOT plan a potential job killer and said Mexico must raise its truck safety standards before the U.S. should consider opening highways beyond the border area to Mexican trucks.

"With so much focus in Washington on creating jobs, it's a bit shocking that the administration would pursue a program that can only rob U.S. drivers of their jobs," said Todd Spencer, executive vice president of Grain Valley, Mo.-based OOIDA.

OOIDA is one of several groups, including the Teamsters union and consumer advocacy organization Public Citizen, opposed to a program that would give Mexican drivers the same access to the U.S. as their Canadian counterparts.

The association also claims Mexico's truck safety regulations are not as stringent as U.S. rules, a claim Mexican officials deny. Mexican truckers that do enter the U.S. are required to obey all U.S. truck safety regulations, the DOT has pointed out.

Even so, Mexican carriers can afford to pay lower wages than U.S. truckers, according to OOIDA, which would give them a cost advantage seeking Mexico-bound freight in the U.S. as a backhaul after delivering freight from Mexico.

The National Association of Manufacturers called the release of the DOT plan "an excellent development" but warned "we're not out of the woods yet."

"It will take substantial effort on the part of the Obama Administration and Congress to work through the concepts in this proposal and create a final agreement acceptable to all parties," Director of International Trade Policy Doug Goudie said.

Classic case of the government creating two (if not more) conflicting objectives and not being smart enough to connect the dots to understand the conflicts.
The President said he wanted to double exports in five years to create jobs; but he and the Democrats in Congress receive tremendous financial support from the unions, including the Teamsters. So they stopped the Mexican trucks from coming across the boarder into the US, as had been done for two years with no safety issues being noted; in retaliation the Mexican government imposed tariffs on US imports that from the state of Washington alone cost $2.8 Billion a year in exported goods.
So now back to this trucking issue - gain $2.8 Billion in export sales from one state alone and the jobs that would represent, or lose the $2.8 Billion in exports but keep US truckers happy?? It suggests that someone needs to do a true analysis of the impact of doing it either way and in the end doing what is best for the US as a whole, not what one group wants.

- By 105DRVR on 1/7/11

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