Posts Tagged ‘pilot program’

Tariffs End as First Mexican Carrier Plans to Enter U.S. this Week

Wednesday, October 19th, 2011

Last week served as a big step in the Mexico/U.S. Cross-border Agreement as Transportes Olympic became the first Mexican carrier granted access into the U.S., ending Mexican tariffs placed on U.S. goods.

Mexico/U.S.

Apodaca-based Transportes Olympia, the first Mexican trucking company to be granted operating authority in 2007 until the pilot program was stopped two years later, would ship steel and building products about once a week into the U.S., according to chron.com.

Guillermo Pérez, Transportes Olympic manager, responded to the decision by stating, “We’re really, really happy with this news.  We can actually give door-to-door service to our clients” (http://www.fronterasdesk.org/news/2011/oct/18/nafta-free-trade-border-business-manufacture/).  Pérez is referring to the ability of Mexican trucks to conduct long-haul runs as opposed to the previous agreement where they had to hand off their shipments to a U.S. carrier after crossing the border.

According to chron.com, the Mexican trucking company is expected to make its first shipment this week, operating with two trucks and one driver.

With the U.S. granting a Mexican carrier operating authority, Mexico has removed the remaining tariffs that they had placed on 99% of American goods in retaliation of the U.S. ending the pilot program in 2009.

Although there have been many arguments that the cross-border agreement would lead American truckers to lose their jobs and cost U.S. taxpayers between $500,000 to $700,000 install mandatory EOBRs (electronic onboard recording devices) in Mexican trucks, experts believe there to be many benefits in the program.

In a study conducted earlier this year by Texas A&M University, an estimated 12,000 U.S. jobs are said to be resurrected due to abolishing the tariffs.   Along with job creation, the program is said to “reduce shipping costs for consumers and would improve border and freight security” (http://www.chron.com/business/article/Mexico-ends-tariffs-as-cross-border-trucking-2219646.php).

Experts also believe that by allowing long-haul trucking, it would make it harder to smuggle drugs into the country, which would be easier to do with a truck that has been parked for a long period of time.

Officials also emphasize that each Mexican carrier granted access would have underwent driver background checks, pass U.S. emissions standards, safety audits, along with several other inspections.

Road Scholar Transport incorporates EOBRs and other safety technology on our trucks, conducts pre- and post-trip inspections on every truck, as well as conducts mandatory drug and background checks on every driver to ensure only the safest drivers and equipment on the road.  Visit www.roadscholar.com to learn more about Road Scholar’s technology and to get your freight onboard a safe carrier today.

What do you thing of the Mexican/U.S. Cross-border Agreement?  Do you think it is beneficial or does more harm?  List your comments below.

news on the trucking industry

OOIDA Becomes Enraged at Second Cross-Border Agreement Signing Allowing Mexican Carriers to Begin Application Process

Thursday, July 7th, 2011

Yesterday, Ray LaHood, U.S. Transportation Secretary, signed an agreement that would abolish $2.4 billion worth the retaliatory tariffs Mexico placed on U.S. goods back in 2009, believing that doing so would lead to job creation.

U.S./Mexico

According to thetrucker.com, LaHood signed the final agreement with Mexico’s Arturo Pèrez-Jàcome, Secretaría de Comunicaciones y Transportes Dionisio, stating that 50% of the retaliatory tariffs would be lifted within the next 10 days, removing the tariffs completely once the U.S. grants a Mexican carrier operating authority, which is expected to happen within the next upcoming months.

Mexican carriers are now permitted to register for the pilot program at any time, expecting the first carriers to start transporting goods in the U.S. by the end of August, the site notes.

But in order to be granted operating authority, Mexican carriers must meet certain requirements including:  “trucks will be required to comply with all Federal Motor Vehicle Safety Standards, they must have electronic monitoring systems to track Hours of Service compliance,” drivers must undergo drug testing and have their driving record carefully reviewed by the U.S. DOT, and knowledge and understanding of the “English language and U.S. traffic signs” (http://www.thetrucker.com/News/Stories/2011/7/6/Cross-bordertruckpactsignedtariffstoendMexicancarrierscanapplynow.aspx).

According to LaHood, “The agreements signed are a win for roadway safety and they are a win for trade.  By opening the door to long-haul trucking between the United States and Mexico, America’s third-largest trading partner, we will create jobs and opportunities for our people and support economic development in both nations,” thetrucker.com posted.

Although it is said that the cross-borders agreement will create more job opportunities, OOIDA believes otherwise.  In fact, the association expressed that the program would instead take away from U.S. jobs, especially those truckers working for small businesses.

OOIDA, who was strongly against the agreement in the first place stating that “Mexico has failed to institute regulations and enforcement programs that are even remotely similar to those in the United States and because there would be no relevant corresponding reciprocity for U.S. truckers,” is now irate with the fact that LaHood signed the agreement “without providing the public or Congress with the final details of the agreement,” believing him to be “sneaking down there to sign it” (http://www.thetrucker.com/News/Stories/2011/7/6/OOIDAUStruckersfumingoveragreementwithMexico.aspx).

OOIDA also fought the fact that U.S. taxpayers are spending their hard-earned money to provide EOBRS (electronic onboard recording devices) for these Mexican carriers operating in our country.

Do you support LaHood’s decision to sign the agreement or are you in favor of the OOIDA’s standpoint?  Post your comments below.

news on the trucking industry

Mexican Cross-Border Program Could Be Up and Running Within Months

Tuesday, January 11th, 2011

According to U.S. Trade Representative Ron Kirk, the proposed program which would remove barriers on U.S. exports Mexico/United Statesby allowing Mexican carriers access to U.S. roadways could be in effect within four to six months.

In a speech yesterday, Kirk noted that “the U.S. would like to sit down and begin negotiations with Mexico in the next week.” (http://online.wsj.com/article/SB10001424052748703779704576074283804970202.html).

The proposal came after disputes resulting from the termination of the pilot program in 2009, which led to Mexico retaliating through the installation of tariffs on American goods.

The “rotating list of 99 U.S. products in 2009” include “pork, ketchup, and wine” (all goods in which Road Scholar Transport has the capability to safely transport), resulting in over $2 billion a year in tariff costs (http://www.businessweek.com/ap/financialnews/D9KLQBMO1.htm)

According to businessweek.com, Mexico has agreed to “stop rotating the products being taxed” but refuse to remove the tariffs all together.