UNITED STATES/MEXICO – The Obama Administration has granted Mexican trucks permanent entry to the U.S. to haul goods both ways, ending a 20-year dispute.
East Oregonian reports that this decision ends the prospect of a resumption of $2 billion worth of annual retaliatory Mexican tariffs on the U.S. agricultural and personal care products and manufacturing goods.
The Agriculture Transportation Coalition (AgTC) wrote to U.S. Transportation Secretary Anthony Foxx thanking him for the decision. Aside from praising the removal of the threat of Mexican retaliatory Mexican tariffs, which the Coalition called “vital to the U.S. agriculture economy,” they also praised the effects this decision will have on the U.S. truck driver shortage.
“American Trucking Associations estimates a shortage of 30,000 truck drivers in the U.S. and growing, as truckers reach retirement age, and younger drivers are not filling in their ranks. Mexico based drivers will not be taking jobs away from U.S. drivers, rather they will be filling a much needed gap, and increasing efficiency for U.S. import and export businesses,” the Coalition said in its letter.
Mike Powers, Executive Vice President of the Northwest Horticultural Council in Yakima, Washington, mirrored this sentiment saying that the decision is good news for Pacific Northwest apple, pear and cherry growers who lost an estimated $80 million or more due to 20% duties in 2009, 2010 and 2011 due to tariffs. According to Eastern Oregonian, Mexico is the number 1 export market for Washington apples and pears.
In 2011, an agreement was reached to end the tariffs by renewing a trucking pilot program. The Federal Motor Carrier Safety Administration said that data collected on 15 Mexican trucking companies in the program and 952 other Mexican trucking companies allowed to haul under pre-existing authority, revealed that Mexican trucks and drivers met U.S. and Canadian standards.
Stay tuned to AndNowUKnow as we continue to track the effects of this major announcement.
