U.S., Mexican Standoff Still Continues
President Barack Obama's assistants have pledged to put an end to the aggravating 15-year standoff between United States and Mexico over cross-border trucking tarnished by a U.S. restriction on long-haul Mexican freights.
But it seems insiders see faint visions of advancement in putting an end to the squabble that has claimed a approximately 25,600 jobs in the U.S., suffered a gauging $2.6 billion in lost exports, and boosted import expenditure to American consumers by an estimated $2.2 billion.
Brigham McCown, a former senior executive at the Department of Transportation whose Dallas-based law practice includes clients with trade issues, says that both countries are saving face by saying, "Were working to resolve the dispute. He knows that in reality no ones sees this matter of contention moving forward before 2012.
Transportation Secretary Ray LaHood and U.S. Trade Representative Ron Kirk have oftentimes said the White House and powerful lawmakers are approximating vague agreements that would compel Mexico to bolster truck safety standards. That, in turn, would alleviate congressional safety apprehensions and possibly pave the way for America to open the southern border to long-haul Mexican trucks as appropriated by the North American Free Trade Agreement since 1995.
We are finalizing a plan, LaHood told lawmakers in March. Were close to talking to all of you about what we think are our ways of addressing the safety concerns that Congress brought to us.
Five months have passed, theres still no agreement on harsher safety measures that might allow Mexican trucks to move Mexican goods further the 25-mile-wide border NAFTA trading zone.
With the absence of deal between the White House and Congress, the trade war intensifies. Mexican authorities have imposed at least $2.5 billion in punitive tariffs on 99 categories of U.S. manufactured and agricultural products up from $2.4 billion in penal duties imposed on 89 categories of products last year.
The duties also influence several goods made or distributed in Houston, which includes manicure and pedicure products, sunglasses, statuettes and ornamental, and line telephone sets.
The Greater Houston Partnership supports free trade, said Jeff Moseley, president and CEO of the Greater Houston Partnership, the primary business advocate for the 10-county Houston region. We are hopeful of a resolution of this issue.
The tariffs were evoked by Congress scratching an 18-month pilot program that allowed 100 long-haul Mexican trucking companies within the vicinity of the United States.
Mexicos U.S. Embassy said in an issued statement, Mexico has yet to receive a formal proposal for resolution of this dispute and an unequivocal signal that the U.S. government is working to eliminate the barriers that Mexican long-haul carriers face to access the U.S. market. Kirk, the former Dallas mayor who serves as the U.S. trade representative, said Obama understands the economic pain that these tariffs cause for American farmers, companies and workers.
Due to clashing political pressures from the left and right, the administrations hands are tied. Labor unions aiding Democrats in the fall are attacking any deal, distinctly the 1.4-million-member Teamsters union. Reps. John Culberson, R-Houston, and Ted Poe, R-Humble, are the conservatives that have enumerated highway safety concerns and the plausible risk of terrorists using Mexican trucks to enter the U.S. territory.
White House is not inclined to arm immigration hard-liners heading into midterm congressional elections that will be regarded as a mandate on Obamas leadership.
Jeffrey Shane, a former Department of Transportation executive who worked on the trucking issue before going back to private law practice in Washington, D.C., said, Its a stalemate where Obama cant win.
The safety of Mexican trucks serves as a lightning rod. Without major incident during the 1 ½ year pilot program, they transverse into the U.S. 46,000 times.
The Federal Motor Carrier Safety Administration discover long-haul U.S. truck drivers and American trucks were out of action more than Mexican truckers and trucks, but said the minimal number of Mexican trucks weaken the study.
Rep. Peter DeFazio, D-Oregon, chairman of the House Transportation and Infrastructure Committees panel with jurisdiction over highways insisted, The safety concerns are just too big an obstacle to overcome. He wants the administration to renegotiate NAFTAs open access trucking requirement.
The Teamsters also display no sign of alleviating pressure on Congress.
To turn those unsafe trucks loose would be catastrophic, explained Teamsters President James P. Hoffa. Theres no way this will ever be a two-way street. Can you imagine a teamster driving a load of Cadillacs down to Mexico? How far do you think hes going to get?
Congress are constantly being showered with contributions by labor unions, to help guarantee that their message is heard.
So far this year, the Teamsters political action committee has donated around $1.6 million to congressional candidates.
According to the Center for Responsive Politics, it already has raised $10.2 million for the recent election cycle, almost as much as the $12.6 million raised during 2008, a presidential election year. Still, there are clashing business interests for legislators back home.
Sen. Patty Murray, D-Wash., chair of the Senate Appropriations Committee panel with jurisdiction over transportation, has included language into the must-pass fiscal 2011 transportation appropriations bill challenging the administration to create a plan by Oct. 1.
Her states farmers have been greatly affected by the 20 percent tariffs imposed on U.S. potatoes by Mexico, cutting the states potato exports by an estimated $14??million and endangering a lot of the industrys 20,000 jobs.
The California Farm Bureau Federation estimates that Mexicos 45 percent tariffs on grapes have greatly reduced California grape exports by almost 70 percent. The duties imposed on other produce exported by California was also greatly affected.
