NAFTA update would give US more control over cross-border trucking with Mexico
The United States-Mexico-Canada Agreement (USMCA), the new trade deal replacing the North American Free Trade Agreement (NAFTA), will allow the U.S. more control over the existing cross-border trucking program.
The trilateral deal is expected to affect auto makers the most– by requiring a larger portion of vehicles to be made in North America, setting a minimum fixed wage for auto workers, and forcing Canada to effectively cap its automobile exports to the U.S.
There are three main takeaways for the U.S. trucking industry, according to CCJ. USMCA, if passed through Congress, will:
- Allow the U.S. more control over the existing cross-border trucking program by allowing it to cap the number of Mexican-domiciled carriers who can receive U.S. operating authority.
- Allow the U.S. DOT opportunities to evaluate Mexican-based carriers who already have U.S. operating authority.
- Maintain the prohibition on Mexican-based carriers hauling freight between points within the United States. That is, they cannot haul loads that originate and end in the U.S. They can only haul cross-border loads.
The current truck transportation mode of switching freight near the borders between the U.S. and Mexico will remain in place for the foreseeable future.
The agreement now must be ratified by Congress and then signed by President Trump to take effect. Based on all the procedures that would have to be followed, Congress will not be able to vote on ratifying the new trilateral treaty until sometime next year— months after our midterm elections in November.
For more details, read the full CCJ article.