The US Department of Transportation (DOT) has unveiled an initial concept of a long-haul cross border Mexican trucking programme in an effort to end the long-running trade spat between the US and Mexico.
The proposal aims to satisfy the obligations of the US under the 1994 North American Free Trade Agreement (NAFTA), while also prioritising the safety of products transported across the border.
According to a department release, a formal proposal, on which the public will have the opportunity to comment, is expected to be announced in the coming months.
United Fresh senior vice-president Robert Guenther welcomed the news as a positive sign of progress in what has become a significant issue for the produce supply chain.
“We are pleased that the Department of Transportation has finally released a US-Mexico Cross Border Trucking proposal,” said Mr Guenther in a statement.
“This has gone on much too long and needs to be rectified as soon as possible. We will be working with our members to analyze the impact of this proposal and in particular discuss with Mexican officials if this proposal meets the US’ obligations under NAFTA.In turn, we will ask the Mexican government to suspend their current trade retaliation efforts that have severely impacted trade of fresh fruits and vegetables with Mexico.”
Since the US is not currently meeting its NAFTA obligations to allow a pilot programme of Mexican trucks to enter the US, United Fresh said Mexico has placed retaliatory tariffs on many US goods, including fresh produce items, entering Mexico.
Given the economic impact on the fresh produce industry and the damage caused to US-Mexico trade, United Fresh contends that the crisis must be resolved urgently.
Under the Omnibus Appropriations Act of 2009, Congress blocked funding for the Mexican Cross-Border Truck Safety Program.
This was a pilot programme allowing a small number of Mexican trucks to enter the US while operating in international commerce.
Though this programme did not provide the full access that the Mexicans were entitled under our NAFTA obligations, the programme had been in operation without retaliation since 2007.
By removing this programme, United Fresh explained that the US is now in violation of its NAFTA commitments and excessive tariffs have been placed on US products totalling US$2bn.
In 2010, Congress removed the prohibition on funding allowing the Administration to move forward with a new pilot programme.
However, the Administration has yet to finalise this new pilot programme and the Mexican government has imposed new duties on additional fresh produce items as a result of the unresolved conflict.
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