Contact President Barack Obama, Your U.S. Senators and Your U.S. Representative Urging Them to Lift the Mexican Trucking Ban

May 5, 2009

Due to the termination of the U.S. Department of Transportation’s Cross Border Trucking Pilot Program with Mexico, the United States is now in violation of its legally binding, bilateral trade obligations with Mexico on international trucking. On March 19, 2009, the Mexican government instituted retaliatory tariffs on $2.4 billion worth of U.S. manufactured and agricultural exports. This dispute must be resolved quickly to end the trade war that is causing prices to fall for many U.S. American farmers.

Background

The North American Free Trade Agreement called for cross-border trucking to be phased in starting in 1995. In September 2007, after 12 years of delay, the United States began living up to the promise it made in the NAFTA by launching the U.S. – Mexico cross-border trucking demonstration program. Canadian trucks and truck drivers, also covered under the NAFTA trucking provisions, have never faced similar restrictions on their access to deliver cargo across the boarder into the United States.

The landmark 2007 agreement between the U.S. and Mexican governments to begin implementation of the NAFTA trucking provisions allowed a modest number of Mexican trucks and truck drivers that were certified by Mexican government to meet all U.S. safety standards and as knowledgeable of U.S. driving laws, to travel beyond the 25-mile border “commercial zone” to which they have been restricted, while offering reciprocal access to U.S. trucks in Mexico. Recently, the U.S. Congress included a provision in the fiscal 2009 omnibus appropriations bill terminating the program. As a result the Mexican government instituted retaliatory tariffs.

Mexico is a top market for U.S. exports, providing millions of jobs to U.S. workers. Trade between the United States and Mexico totaled $368 billion in 2008, making Mexico the third-largest U.S. trading partner after Canada and China. The retaliation is already impacting a broad range of U.S. businesses that compete in the Mexican market. Many companies are being forced to shift production abroad or simply stop shipments. Over $1.5 billion in U.S. manufactured products and $900 million in U.S. agriculture products are impacted by the retaliatory tariffs. In agriculture alone the retaliation puts over 12,000 jobs at risk. Specifically, Mexico is the #1 export destination for U.S. beef, dairy, poultry, rice, soybean meal and oil, corn sweeteners, cotton, apples, and dry edible beans. It is also a major market for pork, corn, soybeans, eggs, vegetable oils, fresh U.S. potatoes, snack foods, and other consumer-oriented agricultural goods.

While the safety of Mexican trucks and drivers was cited as a concern, there has been no evidence to suggest Mexican trucks or drivers operating in the United States are unsafe. In fact, the opposite is true. Both the Inspector General’s Status Report on the demonstration project, issued on February 6, 2009, and the Independent Evaluation Panel Report, dated October 31, 2008, found that Mexican trucks that were certified by the Mexican government under the pilot program not only were safe but that they were safer than their U.S. counterparts. Additionally, under the North American Free Trade Agreement – Canadian and Mexican truck drivers must abide by all the same laws U.S. truck drivers abide by when operating in the United States. Trucks that do not meet these standards are simply not allowed to operate in the United States.

Grange Policy

Agriculture Exports & Embargoes

2. The National Grange supports legislation or administrative action that will continue to maintain and increase the exporting of agricultural commodities. The Grange will oppose restrictions being placed on imports into the United States that could result in retaliatory action being taken against U.S. agricultural exports by the exporting country.

Action Needed

Please e-mail President Barack Obama, your U.S. Representative, and your U.S. Senators urging them to resolve this NAFTA trade issue. Please feel free to cut and paste the following sample letter. To e-mail President Obama click here. To e-mail your U.S. Representative click here and to e-mail your U.S. Senators click here.

If you have any questions or comments regarding this Action Alert, please contact National Grange Program Assistant Molly Thompson by e-mail: mthompson@nationalgrange, or by phone: 1-888-4Grange ext. 107.

Thank you for your grassroots participation in the National Grange Legislative Program.