After nearly two decades of tension and ongoing dispute, the United States Department of Transportation yesterday announced the signing of an agreement that will allow U.S. and Mexican trucks to freely transport goods anywhere across the nearly 2,000-mile long U.S.-Mexico border. The new accord formalizes an agreement announced in March by Presidents Calderón and Obama and marks the end of one of the largest commercial disputes to arise between the two countries since the North American Free Trade Agreement came into force in 1994.
An immediate effect of the new accord will be the removal by Mexico of nearly $2.4 billion worth of punitive tariffs that it imposed in 2010 in response to a U.S. court ruling that prohibited Mexican trucks from transporting goods within the United States. According to a statement by U.S. Transportation Secretary Ray LaHood, “the agreements…are a win for roadway safety and they are a win for trade.”
The accord resolves numerous safety concerns, which had stymied earlier efforts to conclude negotiations. Mexican trucks will be required to use electronic systems that monitor hours of service and routes and Mexican drivers will be required to take tests that gauge their understanding of English and ability to read traffic signs.
Pro-business groups, which had lobbied hard on behalf of the agreement, responded swiftly to yesterday’s news: “This is a vital program to our region’s competitiveness that will foster greater security and increase efficiency at our border, while reducing the cost of business in our region, which ultimately benefits consumers with lower prices,” said Kyle Burns, president and CEO of the Free Trade Alliance San Antonio.