Two decades after NAFTA, Mexican carriers to be allowed in U.S.

Just over 20 years ago, the North American Free Trade Agreement (NAFTA) included a stipulation allowing Mexican truckers to make deliveries in the U.S. Now, just after the two-decade anniversary for the ground-breaking legislation, that provision is set go from paper to reality. 

The Federal Motor Carrier Safety Administration (FMCSA) recently explained that a three-year-long study – to determine whether or not Mexican truckers can operate to the same safety standards as U.S. and Canadian carriers do – found that allowing trucks from Mexico would not present a problem. Drivers delivering cargo from the only NAFTA-participant yet to operate trucks freely within U.S. borders were found to be compliant with the safety stringencies set by the administration.

"A three-year-long study found that allowing trucks from Mexico would not present a problem."

Mexican trucking firms seeking long-haul authority in the U.S. will have to pass certain standards before being allowed to operate within the 50 states. There will be the Pre-Authorization Safety Audit that must be cleared, as well as hours-of-service monitoring and drug testing. Additionally, drivers from Mexico will be required to carry a U.S. commercial license or the Mexican equivalent, and will have to be proficient in English. After Mexican carriers obtain authority to operate within U.S. borders, they will be required to pass the North American Standard Level I inspection every 90 days for four years. 

Despite the numerous standards Mexican drivers will be required to clear before operating in the U.S., there is still significant opposition to the Department of Transportation's (DOT) announcement that carriers from Mexico will soon be allowed to operate freely in the U.S. The International Brotherhood of Teamsters (IBT) General President Jim Hoffa voiced his strong opposition to the move following the administration's announcement. 

"I am outraged," he asserted. "This policy change by the DOT flies in the face of common sense and ignores the statutory and regulatory requirements of a pilot program. Allowing untested, Mexican trucks to travel our highways is a mistake of the highest order and it's the driving public that will be put at risk by the DOT's rash decision."

​Internal audit found pilot program gathered insufficient data
Hoffa's contention that the allowance for Mexican trucks to freely operate within U.S. borders is "untested" is a reference to a recent Office of Inspector General audit that found the pilot program designed to monitor Mexican carriers did not collect enough data.

It explained that compared with FMCSA's estimate about the number of participants needed for the study, not enough trucks were studied during the length of the pilot program to make a conclusive statement regarding the safety of Mexican carriers. Only 15 carriers participated in the study, well short of the administration's estimate of 46 participants for sufficient data. Additionally, 90 percent of the border crossings and 80 percent of the inspections conducted within the pilot program were attributed to just two carriers. 

Whether or not the pilot program's findings were sufficient, the DOT has announced that the new border crossing program will expand economic opportunities for both Mexico and the U.S. The move to allow Mexican truckers to operate freely within the U.S. is expected to eliminate $2 billion in annual retaliatory tariffs on U.S. goods. 

The DOT's determination that Mexican carriers should be allowed to operate within U.S. borders comes after a 2001 NAFTA Dispute Settlement panel ruling that found the U.S. was not in compliance with regulatory requirements by not allowing Mexican trucking firms to make cargo deliveries in the U.S. Now, 20 years after the historic legislation broke down trade barriers between Canada, Mexico and the U.S., Mexican carriers will finally be allowed to cross freely into the U.S.