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Dec 13, 2007

MEXICANS' TRUCKS * USA - No truck with border traffic

USA -The Financial Times Limited (UK), by Laura Dixon -December 12, 2007: -- ... According to Armando Chacón, investigations director at the Mexican Institute for Competitiveness, improving border facilitation and the movement is vital for the economic success of the region... At the moment, the average waiting time for those carrying cargo during peak hours is five hours... The Institute estimates that reducing the waiting time for all transport at the border by 75 per cent would save $513.3m per year... In response to vocal opposition to the project, the US authorities have promised "each lorry that crosses the border as part of the pilot programme will be checked ...every time"... The plan has not passed without criticism in Mexico either... Canacar, the national chamber representing some 5,000 cargo transport businesses, petitioned the government to postpone the plan, alleging that the conditions were unfair to Mexican businesses... The difficulties of the project could be seen in the take-up. Only four US companies have so far been authorised to travel into Mexico, with 41 vehicles between them. The nine approved Mexican companies have 47 vehicles... And there have been other teething problems... Transportes Olímpicos has had to send a replacement to the frontier when the original driver was turned away for not having good enough English... Mexican companies are also vulnerable to higher insurance costs... But, with cross-border traffic from Mexico to the US reaching 4.8m crossings in 2006, the plan has found numerous supporters... The Mexican Institute for Competitiveness estimates that improved efficiency on the border could be worth between $31bn and $40bn. Some 73 per cent of cargo from Mexico to the US goes by truck... Scott McLaughlin, president of Stagecoach Cartage and Distribution, one of the four US companies licensed under the scheme, has made some 70 trips from the US to Ciudad Juárez, just over the border, and one to Obregón on the Gulf of Mexico... "I think the plan has gone marvellously so far," he says... Some believe that for Nafta to be able to compete in an increasingly competitive world, permanent improvements to crossborder transport are unavoidable...

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