We can’t say the Mexican trucking dispute is over, but we can now say that, at last, the end appears to be in sight. Almost two years after Mexico imposed retaliatory tariffs on billions of dollars of American manufactured goods exports, the Obama Administration has released a long-awaited “Concept Document” that provides a foundation that, if it can be successfully turned into a mutually acceptable proposal, will lead to compliance with our NAFTA commitments and the removal of Mexico’s retaliatory tariffs on billions of dollars of U.S. exports.
While release of the interagency document is an excellent development and very good news, we are not out of the woods just yet. It will take substantial effort on the part of the Obama Administration and Congress to work through the concepts in this proposal and create a final agreement acceptable to all parties. Public comments will be solicited. And, of course, the Mexican government will need to be an integral part of any agreement. A solution will need to ensure that Mexican and American cross-border trucking takes place in a manner similar to the existing cross-border trucking that has existed between the United States and Canada. The good news is that a successful solution will speed commerce and increase productivity and efficiency in supply chains.
But only after a final agreement is reached and we are compliant with our NAFTA commitments will the tariffs be removed. And Mexico’s retaliatory tariffs have had an significant impact on a wide variety of industrial sectors across the entire country. For two years, manufacturers around the United States have faced these retaliatory tariffs on their exports to Mexico. As a result, our competitors from Canada, Latin America, China and elsewhere have had an opportunity to increase their market share in Mexico at our expense. We need to move swiftly toward a solution so the tariffs can be eliminated.
Still, we appreciate the efforts put forth by the Administration in its interagency process to develop and release this concept document. The proposal released today will form the basis on which discussions between the United States and Mexico (with input from Congress and a public comment period) will take place. We strongly encourage all parties involved to buckle up, buckle down and get moving. Every day that passes means unnecessary barriers to American exports remain in place.
Department of Transportation release, “U.S. Cross-Border Trucking Effort Emphasizes Safety and Efficiency“