Obama Administration to Revisit Cross-Border Trucking

Cerberus

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Obama Administration to Revisit Cross-Border Trucking
By Oliver B. Patton, Washington Editor

3/13/2009
After President Obama signed an appropriations bill this week that cuts off funding for a controversial cross-border trucking program with Meixco, the Obama administration has said that it wants to come up with an alternative approach to cross-border trucking.

The omnibus spending bill withdraws funds for a demonstration program in which a limited number of U.S. and Mexican carriers were permitted to engage in cross-border long-distance trucking.

The program had been viewed by the Bush administration as a way to prove the effectiveness of a safety management system devised by the Federal Motor Carrier Safety Administration, as a prelude to fully opening the border.

Under the North American Free Trade Agreement, the crossing was supposed to have been opened to border-state traffic in 1995 and to long-distance traffic in 2000. The opening was stalled until 2007, in part by difficult negotiations with Mexico, but mainly by the legislative and legal tactics of U.S. labor, owner-operator and citizen advocacy groups who fear loss of U.S. jobs to Mexican drivers and argue that Mexican trucks will not be safe.

The Department of Transportation, in a statement, said that Congress has opposed the project "because of concerns about the process that led to (its) establishment and operation.

"The administration recognizes these concerns," DOT said in its statement. "The president has tasked the Department of Transportation to work with the U.S. Trade Representative and the Department of State along with leaders in Congress and Mexican officials to propose legislation creating a new trucking project that will meet the legitimate concerns of Congress and our NAFTA commitments."

DOT also said that Sen. Bryon Dorgan, D-N.D., the sponsor of the funding cut-off provision and the principal antagonist of the Bush administration in this matter, has said he is willing to work with the new administration to come up with an alternative.
 
What a load of poop regarding the DOT's statement about Congress being opposed to this program. If Congress was truly opposed to this...it would have been shut down years ago.

This federal gov't of ours has no intentions to close off the border to Mexican trucks even during that country's turmoil, and proof of corruption. Where's the best interest of American citizens being considered here?

-ss-
 
What a load of poop regarding the DOT's statement about Congress being opposed to this program. If Congress was truly opposed to this...it would have been shut down years ago.

This federal gov't of ours has no intentions to close off the border to Mexican trucks even during that country's turmoil, and proof of corruption. Where's the best interest of American citizens being considered here?

-ss-
I agree SS..Congress is not oppossed to it...This is ONLY MY OPINION....People are getting FED UP with the goverment...There surely has to be a straw that breaks the camels back, as far as how far the American people can be pushed before they push back...They know if they open the boarders now with OUR TRUCKERS STARVING it's not going to go over well...
 
if you all ain't noticed i haven't said anything in a while, mainly because you all just want to talk about a problem there an not many want to do any thing about it, frankly with very few few exceptions the wineing and crying I am done with, if you all have any balls the quit crying and do something.

another way to put it is talk is cheap and if all of you steering wheel holders just want to cry the blues without willing to do anything about it then shut the hell up and let the one take care of your sorry asses, if any of you ever get guts to actually take care of business then let me know I will be proud to stand beside you
 
How ready are you?

This is a message board for all truckers. Nothing big is ever going to happen from this forum. If anybody on this site wants to get involved in something big, nothing is stopping them.

Want to get something started, this is a great time to do it.

I will even put forth some effort to get it started. How ready are you?
 
if you all ain't noticed i haven't said anything in a while, mainly because you all just want to talk about a problem there an not many want to do any thing about it, frankly with very few few exceptions the wineing and crying I am done with, if you all have any balls the quit crying and do something.

another way to put it is talk is cheap and if all of you steering wheel holders just want to cry the blues without willing to do anything about it then shut the hell up and let the one take care of your sorry asses, if any of you ever get guts to actually take care of business then let me know I will be proud to stand beside you
Well I do understand your frustrations..After last year though I realized that trying to get things changed in our country or the trucking indudstry was not going to happen by trying to get a few forums together...Unitl I see some "MAJOR INTEREST" by truckers or citizens to actually take a stand I'm done wasting my time and energy trying to get people involved...I devoted months of my life last year trying to get people involved and where did it get me? Now look at where we're at..
 
sorry about the rant, just getting very frustrated.
i guess i just went off after talking to a group of truckers and hearing them agree that something needs to be done and one of the main topics was refusing to haul cheap freight and all agreed that we had to stop it and then 2 of the group turned right around and took the first cheap crap that came along, I know one load only paid $1.05 a mile as I turned it down a few minutes before and then they used the lames excuses to justify taking them, it kinda set me off for the whole night.
 
$1.05 a mile? I'd kill for that kind of rate, considering I used to get paid .90 cents!

Freight moves on credit. And with the existing credit crunch, many would be more than happy to take that 1.05 until things pick back up. I'm one of the fortunate ones where I don't have to worry about the home front. But for those that do, I wouldn't be too harsh on the ones that take those "cheap" loads. To them, it may be the difference between feeding the kids a balanced meal, or PBJ for another week.
 
sorry about the rant, just getting very frustrated.
i guess i just went off after talking to a group of truckers and hearing them agree that something needs to be done and one of the main topics was refusing to haul cheap freight and all agreed that we had to stop it and then 2 of the group turned right around and took the first cheap crap that came along, I know one load only paid $1.05 a mile as I turned it down a few minutes before and then they used the lames excuses to justify taking them, it kinda set me off for the whole night.
I can say gearjammer, "I feel your pain, or maybe that should be, I feel your frustration"....
 
$1.05 a mile? I'd kill for that kind of rate, considering I used to get paid .90 cents!

Freight moves on credit. And with the existing credit crunch, many would be more than happy to take that 1.05 until things pick back up. I'm one of the fortunate ones where I don't have to worry about the home front. But for those that do, I wouldn't be too harsh on the ones that take those "cheap" loads. To them, it may be the difference between feeding the kids a balanced meal, or PBJ for another week.

the issue was them saying one thing and saying we would all stand firm and then turning right around and doing the opposite.

everyone just seems to think there is nothing that can be done and unless we all start standing up together nothing will change.

I changed my way of doing business this year and have been able to average a decent rate per loaded mile although i have had fewer miles my bottom line has improved quite a bit, and while I am very specialized and the group I was talking with were equipped to handle about the same things we all had agreed that the rate would have been raised if we all said no the first round but to then cave in that quickly and not even try to negotiate a reasonable rate was absurd.

one guy took it because it got him within 200 miles of home so he called it a backhaul rate and the other guys excuse was ig got him to a better area, it was going to Jacksonville from atlanta and we all know just how hot Florida freight is don't we.

To ty this in with this thread, I know that there are a few people on here that regularly call their elected officals about things that are just plain wrong in this industry and the cross border program is one of them but like the people that took the cheap crap too many either figure there is nothing that can be done or just don't take the time to bother to call, if all the people that scream about the program would just take 5 minutes out of their lives and call this program would have died a long time ago but instead "the one" has been yet again given the impression that there is wiggle room and that this insane program can yet again be ressurected .

I have felt for a long time that we the people have got to take our country back and have also felt that the trucking industry thru their unique place in moving this country have it in our power to lead the change if only we would unite and stand up to the forces that are tearing this country down, after all a lot of people with a lot less to unite them have successfully done it, look at the groups that have come together to cause a lot of the headaches in this industry, the groups that have fought and continue to fight the current hours of service are a prime example, small groups for the most part that have had a huge impact on every truckers livelyhood and not for the better.
 
Trucking Headlines

Mexico fights cross-border trucking end

By eTrucker Staff

Upset with the U.S. cancellation of a pilot program to allow Mexican trucks to transport goods in the U.S., Mexico said today, March 16, it will raise tariffs on about 90 U.S. products, according to news reports.

Mexico's Economy Department said the U.S. decision violates the North American Free Trade Agreement that was set to have approved cross-border trucking years ago. Mexican officials told a news conference the tariff increase will affect about $2.4 billion in trade. It did not name the products or specify how much import tariffs will rise.

President Obama has signed a bill that ended the 18-month-old cross-border trucking program with Mexico, but initiated efforts to meet North American Free Trade Agreement obligations.

Last week, Obama signed the 2009 Omnibus Appropriations bill, which included a provision to end the Department of Transportation’s trucking project, which was to allow 100 Mexican carriers to do business beyond the border zone in the United States, and a reciprocal number of U.S. carriers to do the same in Mexico.

Congress had sought to end the program and several groups had fought it in federal court over concerns the select carriers in the program were not representative of Mexican carriers and the number of participants was statistically insignificant.

When Republican DOT Secretary Ray LaHood and Democrat Obama represented Illinois as congressional members, they voted for a bill passed to halt the project. The DOT released a statement that Obama recognized these concerns.

“The president has tasked the Department of Transportation to work with the U.S. Trade Representative and the Department of State, along with leaders in Congress and Mexican officials, to propose legislation creating a new trucking project that will meet the legitimate concerns of Congress and our NAFTA commitments,” said a DOT statement.

Sen. Byron Dorgan (D-N.D.), who sponsored the amendment that ended the program, had written to DOT officials to express “his willingness to work with the administration in good faith to address this issue."

On Feb. 6, the DOT’s Office of Inspector General reported earlier criticism of the program: it had insufficient participants to yield statistically significant results. The program’s first year ended Sept. 6, but in August, the DOT extended the project two more years. The Bush administration had supported the program.
 
I'm curious as to the number of companies that actually cross the border into Mexico. I know many companies avoid it like the plague, preferring to drop at a transfer point in one of the border towns.
 
The lastest figures regarding number of companies and trucks from the two country's involved in the program is...

America: 10 companies ~ 52 vehicles (registered to operate in Mexico)
Mexico: 27 companies ~ 104 vehicles (registered to operate in America)

These numbers do not reflect Mexican truck companies operating within American borders prior to the pilot-program. They only reflect the companies involved in the program. I haven't been able to locate stats on the number of Mexican trucks registered with OP2 status...but I know it's well into the thousands.

Here's a concern which I have yet to see addressed. The number of OP2 status Mexican trucks traveling beyond the 20 mile commercial zone being allowed to travel on American soil without verifying their status because of this program. Does anyone believe Mexican truck drivers are not exploiting this situation? I don't.

-ss-
 
And so it begins....

March 17 (Bloomberg) -- Mexico set the stage for the first trade war of President Barack Obama’s administration by slapping import tariffs on $2.4 billion of U.S. goods in retaliation for a ban of its trucks from American roads.

The tariffs, affecting about 90 items from 40 states, were imposed by Economy Minister Gerardo Ruiz Mateos yesterday after the U.S. suspended a program to allow some Mexican 18-wheelers to deliver goods across the border. U.S. Republican lawmakers said Mexico, which didn’t provide details of the tariffs, would concentrate on farm goods such as rice, beef, wheat and beans.

While this isn't good news for the farmers, it's even worse news for the folks in Mexico. Their economy isn't much better than ours and food prices are sure to rise because of the tariffs.

This is one of the reasons why NAFTA should be revisited. While on paper, the program sounds really good, in practice, it does nothing more than hurt our folks in the U.S. While I'm not a total protectionist when it comes to trade, there needs to be a fair balance and we aren't seeing that with the current state of affairs.

Something does need to be done. Mexico is our 3rd largest trading partner, and we can't just shut off the border and ignore 'em. However, on the flip side, the country needs to pull its collective head out of it's backside and start making serious inroads to cleaning up their act. Problem is, corruption is a way of life there, and I don't see that changing any time soon.
 
Mexico Retaliates For Cutting Off Cross-Border Program

Mexico Retaliates For Cutting Off Cross-Border Program

3/17/2009
Mexico is retaliating for last week's actions that cut off funding for a federal pilot program that allowed a limited amount of cross-border trucking.

Mexico says it will increase tariffs on about 90 U.S. products because the action violates the North American Free Trade Agreement, which was supposed to have opened cross-border trucking in 1995.

The Mexican Economy Department says it will affect about $2.4 billion in trade.

The omnibus spending bill signed by President Obama last week withdraws funds for a demonstration program in which a limited number of U.S. and Mexican carriers were permitted to engage in cross-border long-distance trucking.

However, after President Obama signed the appropriations bill, the Obama administration said that it wants to come up with an alternative approach to cross-border trucking.

Following the announcement by Mexico about increasing tariffs, White House spokesman Robert Gibbs said the administration wants to work with Congress to come up with a plan that would restore that program.

Gibbs says the White House is working with Sen. Byron Dorgan of North Dakota to write a bill that would deal with lawmakers' concerns.

The program had been viewed by the Bush administration as a way to prove the effectiveness of a safety management system devised by the Federal Motor Carrier Safety Administration, as a prelude to fully opening the border.

Under NAFTA, the crossing was supposed to have been opened to border-state traffic in 1995 and to long-distance traffic in 2000. The opening was stalled until 2007, in part by difficult negotiations with Mexico, but mainly by the legislative and legal tactics of U.S. labor, owner-operator and citizen advocacy groups who fear loss of U.S. jobs to Mexican drivers and argue that Mexican trucks will not be safe.

Teamsters General President James P. Hoffa called Mexico's actions an absurd overreaction. "The right response from Mexico would be to make sure its drivers and trucks are safe enough to use our highways without endangering our drivers," Hoffa said. "The border must stay closed until Mexico holds up its end of the bargain."
 
i say screw'em. like they have any leg to stand on here. they need us more than we need them. see how they feel when we stop exporting to them and stop taking any of their imports. And then ship'em back from here or make them become citizens so they can pay taxes.
 

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