AgTC: Mexico Trucking and Ag Duties - Important Update!

AgTC: Mexico Trucking and Ag Duties — Important Update!

Yesterday Secretary of Transportation Ray LaHood made an important announcement regarding the Mexico trucking dispute and U.S. agricultural shipments to Mexico.

The Department of Transportation has put together a revised trucking program designed to solve the dispute; it is at the White House today.

LaHood acknowledged that such a program is a part of NAFTA and that "we need to do it." He thinks the proposal now at the White House will meet Congressional concerns about safety. He mentioned that it would include checking the mechanical standards for the trucks themselves, regulation of the maximum hours of service for drivers, and stricter driver license checks, and possibly checks on the process for obtaining a license. He hopes to have the program reinstated (and Mexican duties on U.S. exports repealed) by "the early part of the summer."

He also specifically acknowledged that the Mexican tariffs on the 90 items (largely agriculture) have had a significant impact -- they have caused producers and suppliers to press their representatives to reconsider termination of this program.

AgTC Analysis

The real question of course is whether Congress and Mexico will agree to this new plan.

First, it is widely presumed that Congressmen may really be less concerned about the safety of the Mexican trucks and drivers than they are about supporting the Teamsters in their vehement opposition to the competition that Mexican companies represent. So, will the Teamsters accept it, and what if they won't?

Second, if the proposed DOT plan is so tough on the Mexican truckers (by establishing standards higher than those imposed on U.S. truckers), then Mexico won’t accept it, and they won't lift the tariffs.

But progress seems to be in the works. The Administration is going to try to sell this to both the Teamsters and the Mexican government, and the possibility of relief from the Mexico duties by this summer is encouraging — and not a moment too soon since it’s already too late for agricultural being harvested now.

By the time of our annual conference the first week of June, there will hopefully be real action at the White House on this, and progress to lifting the tariffs on U.S. agricultural exports to Mexico. We will have an update at the Conference.

AgTC: Mexico Trucking and Ag Duties — Important Update!

Yesterday Secretary of Transportation Ray LaHood made an important announcement regarding the Mexico trucking dispute and U.S. agricultural shipments to Mexico.

The Department of Transportation has put together a revised trucking program designed to solve the dispute; it is at the White House today.

LaHood acknowledged that such a program is a part of NAFTA and that "we need to do it." He thinks the proposal now at the White House will meet Congressional concerns about safety. He mentioned that it would include checking the mechanical standards for the trucks themselves, regulation of the maximum hours of service for drivers, and stricter driver license checks, and possibly checks on the process for obtaining a license. He hopes to have the program reinstated (and Mexican duties on U.S. exports repealed) by "the early part of the summer."

He also specifically acknowledged that the Mexican tariffs on the 90 items (largely agriculture) have had a significant impact -- they have caused producers and suppliers to press their representatives to reconsider termination of this program.

AgTC Analysis

The real question of course is whether Congress and Mexico will agree to this new plan.

First, it is widely presumed that Congressmen may really be less concerned about the safety of the Mexican trucks and drivers than they are about supporting the Teamsters in their vehement opposition to the competition that Mexican companies represent. So, will the Teamsters accept it, and what if they won't?

Second, if the proposed DOT plan is so tough on the Mexican truckers (by establishing standards higher than those imposed on U.S. truckers), then Mexico won’t accept it, and they won't lift the tariffs.

But progress seems to be in the works. The Administration is going to try to sell this to both the Teamsters and the Mexican government, and the possibility of relief from the Mexico duties by this summer is encouraging — and not a moment too soon since it’s already too late for agricultural being harvested now.

By the time of our annual conference the first week of June, there will hopefully be real action at the White House on this, and progress to lifting the tariffs on U.S. agricultural exports to Mexico. We will have an update at the Conference.