NAFTA's arrival in North America indicated a new era of prosperity. The years from the time of this turning point free trade agreement have empowered economic links on this continent to strengthen and develop, particularly in the transportation industry.
An offer, which Mexico can hardly say no to, is being offered by the U.S. With the new trucking agreement being laid on the table, Mexican trucking companies will find it easier to operate in the U.S. This measure has been long overdue. Such an arrangement is already being enjoyed by Canadian truckers, thus extending the terms to Mexico revs up the harmonization of transportation rules across the continent. Eliminating the hindrances to cross-border shipping will make it easier for shippers to anticipate their logistics costs and track deliveries.
Any fears with regard to Mexican truckers may pose traffic hazards or undercut U.S. truckersÃƒ‚Ã¢€Ã¢„Ãƒ‚¢ margins should be alleviated by the specifics of the official proposed framework. The bond will demand Mexican trucking firms to comply with U.S. standards in safety and environmental impacts. Encouraging Mexican hauling companies to do business on those terms will increase the quality of long-haul delivery service.
There are already oppositions rousing against the proposed framework. Shielded groups always dread innovation and competition when their sinecures are being threatened. These group must understand and check the hard facts that harmonization of cross-border trade via NAFTA has contributed heavily to economic growth for the three countries involved.
U.S. trucking standards being extended to Mexican haulers can possibly offer opportunities for U.S. truckers. Logistic division of YRC Worldwide (YRCW) could enjoy increase in the freight-forwarding traffic it manages if Mexican truckers are permitted to back-haul commodities from the U.S. Arkansas Best (ABFS) may enjoy an advantage if its partnership with a Mexican carrier grants it more transshipment choices across the border.
The access of trucking across the U.S.-Mexico border will be an advantage for trade once the final specifics of this program are agreed upon by both countries. Lifting of any tariffs the Mexican government has imposed in retaliation for the U.S.'s eradication of the earlier pilot program should follow suit once a permanent agreement comes into fruition. That in itself will be a delightful progress for American exporters.