Mexican Trucks Will Have Access To Entire Nation

Mexican Trucks Will Have Access To Entire Nation

Decision To Open Domestic Transportation May Reverberate In Waterborne Shipping

      President Bush Dec. 4 signed into law a provision that will in time grant Mexican trucking companies access to roadways throughout the U.S., a decision that may reverberate in the domestic waterborne shipping industry.
     The Senate had previously drafted a set of safety standards for which it would have conceivably taken years to establish inspection and enforcement systems, and which Mexican trucking companies would have been very hard pressed to meet. The House of Representatives passed legislation to prohibit Mexican trucks from operating outside of a 20-mile zone within the U.S. border.
     However, a House and Senate conference committee in November compromised on legislation that keeps several of the safety standards proposed by the Senate but relaxes or eliminates others in order to make it easier for Mexican trucking companies and the U.S. Department of Transportation to meet the new less demanding guidelines.
     NAFTA, which was implemented in 1994, required that the U.S. open U.S.-Mexico border states to Mexican trucking in 1995. Further, it required that Mexican trucks and drivers be allowed access to all states in the U.S. by Jan. 1, 2000. In the interim, it allowed Mexican trucks to travel in a commercial zone ranging from 3 to 20 miles into U.S. soil to deliver cargoes bound for interior states.
     Although this issue deals exclusively with ground transportation, it has strong parallels with U.S. shipping laws, the Jones Act and Passenger Vessel Services Act. These cabotage laws reserve the waterborne transportation of cargo and passengers for ships built in the U.S., crewed with U.S. citizens, owned and operated by companies for which a majority of stakeholders are U.S. citizens.
     Organized labor has long objected to opening the U.S. to Mexican trucking, citing greatly increased safety risks from inferior long-haul trucks from Mexico operating on U.S. roadways, as well as the loss of jobs and attrition in wages that will befall American truck drivers as a result.
     The Clinton administration never implemented the NAFTA requirement that would have granted unrestricted access to Mexican trucking operations, citing safety concerns. Mexican trucks have remained limited to the 3 to 20 mile zone.
     A NAFTA tribunal in Mexico challenged this position in 1998 and in February 2001 released a decision requiring that the U.S. open its border per NAFTA requirements or face financial penalties.
     The compromise legislation signed by the President will allow Mexican carriers to apply to the DOT for conditional and/or permanent operating authority. If the operator is found to meet U.S. safety standards, a permit can be granted to authorize the company's trucks to operate throughout the U.S.
     According to the U.S. Customs Service, 2,383,471 trucks crossed the border from Mexico to the U.S. in 2000 and, as of September 2001, 1,681,526 trucks had entered the U.S. from Mexico.
     According to a study published in February 2001 by Public Citizen, about 1 percent (35,000) of every one million Mexican trucks that cross the border undergo safety and licensing inspections. Of that 1 percent, more than one-third, about 12,250, are turned away because of safety deficiencies.
     In all, the Transportation Department (DOT) estimates that opening the border will increase traffic from Mexican trucks to about 7 million from its current level, according to the study. At the time the report was published, there were 101 state commercial truck inspectors and 60 federal inspectors at the border. The DOT estimates covering every one of the 7 million Mexican trucks would require about 32,000 inspectors.
     The compromise legislation doesn't hold to the truck-by-truck inspections cited by Public Citizen. Instead, it modifies the safety standards originally passed by the Senate to create a company-by-company inspection system, with additional checks of individual drivers at the border.
     Under the new legislation, Mexican trucking companies that apply for conditional authority to operate within the U.S. must pass safety inspections by U.S. inspectors, and 50 percent of the trucking capacity must be inspected in Mexico. The original Senate package required 100 percent. Those seeking permanent authority must undergo a full compliance review and on-site inspection by the DOT.
     Mexican trucks operated by approved companies must be inspected every 90 days for three years. Border crossings must be equipped with scales, and in-motion weighing systems must be in place at the 10 busiest border crossings. Approximately 200 new Federal Motor Carrier inspectors and field personnel must be hired.
     Mexican truck drivers carrying hazardous cargo will undergo electronic driver's license verification. At least 50 percent of all other Mexican truckers will be subject to electronic license verification.
     Before any Mexican trucking companies are granted authority to operate beyond the 20-mile border restriction, the DOT must inspect the border systems to ensure the improvements have been implemented.

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