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Monday, June 4, 2012

Landmark US-Mexico trucking agreement resolves 15-12 months conflict

The United States and Mexico on Wednesday signed an settlement aimed at resolving a cross-border trucking dispute. The longstanding disagreement had come to symbolize rising resistance, especially within the US Congress, to free-trade provisions with America's southern neighbor.

The accord, signed in Mexico City by US and Mexican transportation officers, would finish a 15-year-outdated controversy that on the US aspect featured fears of unsafe Mexican vans barreling alongside US highways, driven by unprofessional Mexican truckers.

On the Mexican facet, outrage over the American disregard for a NAFTA provision led to retaliatory tariffs on US items ranging from pork to client care merchandise � which cost the US as a lot as $2 billion in exports.

The accord was greeted warmly by US trade, farm, and enterprise organizations � however condemned by US trucking organizations, an indication the settlement could face trouble in Congress.

Below the sett lement, the US will reinstate a pilot program for Mexican truck certification that was launched under the Bush administration � and defunded by an angry Congress in 2009. Mexico, in turn, will instantly drop half of the tariffs on about a hundred US merchandise, with the rest to be removed when Mexican vehicles actually begin rolling across the border.

"The agreements signed as we speak are a win for roadway security and they are a win for trade," mentioned US Transportation Secretary Ray LaHood after signing the documents.

The accord requires all Mexican vehicles working within the US to adjust to US security standards, and it mandates the set up of monitoring devices to trace truck usage and compliance with service requirements.

Recognizing the potential for a detrimental response from Congress, some supporters of Wednesday's settlement wasted little time with reward and obtained right on to warnings towards attempts to as soon as again sidetrack the resolution.

"We're encouraged there may be finally a positive end in sight," mentioned Invoice Reinsch, president of the Nationwide International Trade Council in Washington. But he added, "We urge Congress to refrain from any action that might derail the program or fall short of our commitments below NAFTA."

Some, who oppose any trucking accord permitting Mexican trucks to come back north, continue to hammer at security concerns.

"Opening the border to harmful vans at a time of high unemployment and rampant drug vio lence is a shameful abandonment of the Division of Transportation's duty to guard Americans from hurt and to spend American tax dollars responsibly," said Jim Hoffa, common president of the Teamsters, in a statement. He mentioned the accord "endangers American motorists."

Mexican vehicles are already allowed to flow into in the US within 25 miles of the border. The new agreement will permit Mexican vehicles to deliver items into the US and to return goods to Mexico, but it surely bars the transport of goods between US destinations.

Each side in the debate over Mexican vehicles are latching onto the difficulty of the day � jobs � to make their case for or against the agreement.

Secretary LaHood stated that by "opening the door to long-haul trucking between the US and Mexico � we will create jobs and opportunity for our folks and help financial development in each nations."

Farmers are notably blissful: Mexico is the second-largest purchaser of US p ork after Japan, for instance, however pork sales to Mexico have sagged lately beneath the retaliatory tariffs.

However the Teamsters' Mr. Hoffa says the deal will probably be a job killer. "The so-known as pilot program [for certifying Mexican trucks] is a concession to multinational firms that send jobs to Mexico," he said. "It lowers wages and robs jobs from laborious-working American truck drivers and warehouse workers."

The opposing arguments reveal the trucking dispute to be a microcosm of the bigger debate within the US over trade. How Congress responds might suggest which method the trade winds are blowing.

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