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Jan 13, 2008

MEXICANS' TRUCKS DEBATE * USA - Cross-border trucking continues despite protests

Like it or not, Mexican trucks will continue making deliveries into the United States interior despite congressional efforts to block their passage

Brownsville,TX,USA -The Brownsville Herald, by Aaron Nelsen -January 12, 2008: -- ... Congress voted last year to stop funding for a cross-border trucking pilot program, however, last week, the Bush administration argued that while the congressional action bans funding for a new program it does nothing to stop the current one... The cross-border program has faced opposition from labor and environmental groups ever since it was proposed with the signing of the North American Free Trade Agreement in 1994... More recently, truck operators have spoken out against the program, claiming that it will undermine American operators, but some Valley businesses maintain the local impact would be minimal... Cross-border trucking is a multi-billion dollar industry and growing. U.S.-Mexico ground transportation trade totaled $26.6 billion in October 2007, up 6 percent compared to October 2006, according to the Department of Transportation. The value of imports carried by truck was 10.6 percent higher in October 2007 than October 2006 while the value of exports carried by truck was 3.1 percent higher. Texas led all states in ground trade with Mexico in October with $8.2 billion... As trade with Mexico continues increasing, proponents of cross-border trucking argue, it will reduce costs for consumers. Initially, however, the pilot program is limited in scope... “Myself, I’m not afraid of Mexican trucks coming up north,” said John Cumberworth, president of Sun Belt Transportation in Brownsville. “The ones that want to come are going to come, so there’s no use complaining about it”... Despite claims from many of his peers that U.S. truckers are now at a disadvantage, Cumberworth said U.S. companies have an advantage over their Mexican counterparts. While Mexican companies pay their operators less, he said, U.S. companies could offset losses with lower operating costs... The Mexican Embassy also applauded the DOT decision to continue the cross-border trucking demonstration program. “The administration’s position strongly supports the view that complying with NAFTA and expanding its benefits is in the best interest of both nations and more importantly of consumers (on) each side of the border,” said Ricardo Alday, spokesman for the Mexican embassy in the United States...

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