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  1. #1
    Senior Member zeezil's Avatar
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    Barriers for Mexican trucks questioned


    U.S. could gain if Mexican trucks roll, backers say
    Barriers for Mexican trucks questioned
    Sean Holstege
    The Arizona Republic
    Nov. 18, 2007 12:00 AM

    Mention Mexican trucks driving on U.S. highways and you'll be hit with a long list of downsides: They are dangerous, poorly regulated and pose a danger to the public, the environment and jobs.

    Rarely does the discussion turn to the potential upsides of letting trucks from Mexico cross the border and deliver their goods in the United States: Cheaper goods on U.S. store shelves, a drop in tariffs farmers pay to export produce to Mexico and an increase in business for major distribution centers in cities such as Phoenix and Tucson.

    Those benefits, and the fact that Mexican trucks already driving on U.S. highways have better safety records than their American counterparts, get lost amid concerns and rhetoric about open borders, illegal immigration and free trade.

    "I don't think this has anything to do with Mexican trucks. It's the flashpoint for all the other issues: secure borders, national security, immigration policy and NAFTA," said Brigham McCown, a former U.S. Department of Transportation attorney who successfully defended the truck program in the U.S. Supreme Court.

    The 1994 North American Free Trade Agreement allows Mexican and U.S. long-haul trucks to deliver goods throughout both countries. But the border has never been fully opened to truckers from either country, with lawmakers failing twice to honor that portion of the 13-year-old trade pact and then blocking a trial program this fall.

    Surprising statistics
    Most lawmakers agree with labor groups, public-safety advocates and truckers that opening the border would make for dangerous highways because there is little to no regulation of drivers or their vehicles in Mexico. They also fear a flood of trucks on U.S. highways.

    But federal data show that hundreds of Mexican trucks and drivers already in the United States have better safety records than their U.S. counterparts.

    Those statistics also show that only a tiny number of Mexican trucking firms seek permission to work in the U.S.

    Mexican trucks operated throughout the United States until 1982, when President Reagan imposed a moratorium because Mexico never let U.S. truckers drive there. Reagan's order allowed Mexican trucks that already had permits to continue driving in the United States. There are 859 firms still in operation.

    Since 2003, drivers of those trucks have been out of compliance 1.2 percent of the time, compared with 7 percent for U.S. trucks. About 21 percent of the Mexican trucks stopped for inspection are ordered out of service, 2 percent fewer than U.S. vehicles.

    Most Mexican trucks and drivers operate in a narrow commercial zone, where they are required to transfer their cargo to U.S. trucks, which complete the delivery.

    Added costs
    Transferring goods from Mexican trucks to U.S. trucks tacks $200 million onto the cost of Mexican produce.

    In winter, most produce on store shelves in the western United States comes through Nogales. Arizona logistics firm Kamble Co. estimates that a $50,000 load of melons and tomatoes costs an extra $800 to $1,600 in transfer-related fees, which are passed on to consumers.

    There would be no transfer fees if Mexican trucks could complete their own deliveries.

    Company Chief Executive Tim Pague is trying to capitalize on the new trucking rules by forming trading relationships on both sides of the border, but he's had to turn down interested firms because of the political stalemate.

    An expanded trucking program also would benefit U.S. farmers.

    In a previous trade dispute, Mexico won a NAFTA panel ruling against the United States for failing to let trucks cross the border. The 2001 ruling means that Mexico has the right to keep tariffs high on U.S. farm exports, which have tripled under NAFTA to $10.6 billion. The agricultural tariffs are due to expire in January, but with no agreement in place, they could be continued.

    The cross-border trucking program could also be a boon to companies that do business in Mexico.

    Los Angeles -area firm Plastic Express has permits to send 22 trucks into Mexico, more than any U.S. firm. The company hauls plastic pellets from oil refineries to maquiladoras near the border in Baja California Norte, under a standing arrangement with the state government. The new regulations would allow Plastic Express to branch out to Sonora and elsewhere.

    Trade between the United States and Mexico totaled $332 billion last year.

    Business for states
    Border states could expect more business if the trucks are allowed to roll. Industry experts and economists say distribution centers in places such as Phoenix and Tucson would replace the smaller warehouse and short-haul operations in places such as Nogales.

    "Nationwide, the impacts are probably pretty minimal," said Tom Fullerton, an economics professor at the University of Texas at El Paso.

    Inland cities in border states with connections to rail and interstate highways would benefit most, experts say. Mexican trucks would continue north to major distribution centers in cities such as Phoenix and Tucson.

    "If they fix the border crossings and get rid of all those warehouses, you have a very different economy on the border. It can grow coherently," said Dawn McLaren at ASU's W.P. Carey School of Business.

    They likely would not go much farther.

    "Mexican trucks coming up through the heartland just isn't going to happen," said McCown, the former Transportation Department lawyer.
    http://www.azcentral.com/business/artic ... s1118.html
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  2. #2
    Senior Member magyart's Avatar
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    The American companies that shut down operations in the U,S, and moved to Mexico want to use Mexican trucks. This will save them time and money.

    I sat too bad. If you move out of the U.S., you should suffer the consequences. If fuel prices go up, pay it. If you have to wait in line crossing the border, wait. If cargo must be transferred at the border, do it.

    You wouldn't have these problems if you had stayed in the U.S.

  3. #3
    Senior Member Ratbstard's Avatar
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    This article is a year old but still relevant:

    Friday, February 10, 2006
    December U.S Trade Deficit: $65.7 Billion

    Please see Dr. Setser's comments: Big, and getting bigger.

    The U.S. Census Bureau and the U.S. Bureau of Economic Analysis reports that the U.S. trade deficit for December was $65.7 Billion.


    Click on graph for larger image.

    And on an annual basis, the AP reports: U.S. Trade Deficit Hits All-Time High

    The U.S. trade deficit soared to an all-time high of $725.8 billion in 2005, pushed upward by record imports of oil, food, cars and other consumer goods. The deficit with China hit an all-time high as did America's deficits with Japan, Europe, OPEC, Canada, Mexico and South and Central America.

    The Commerce Department reported Friday that the gap between what America sells abroad and what it imports rose to $725.8 billion last year, up by 17.5 percent from the previous record of $617.6 billion set in 2004.

    It marked the fourth consecutive year that America's trade deficit has set a record as American consumers continued their seemingly insatiable demand for all things foreign from new cars to televisions and electronic goods.
    ...
    The U.S. trade deficit with China rose to a record $201.6 billion last year, the highest deficit ever recorded with any country and 24.5 percent above the previous record of $161.9 billion set in 2004. Part of that increase reflected a 42.6 percent increase in imports of Chinese clothing and textiles, which soared at the beginning of the year after the removal of global quotas.
    ...
    The United States also recorded record deficits with Japan at $82.7 billion. Until it was surpassed by China in 2000, Japan was the country that had the largest trade gap each year with the United States.

    America's trade deficit set records with much of the rest of the world as well. Among those records was a $122.4 billion gap with the 25-nation European Union, a $92.7 billion deficit with the nations that belong to the Organization of Petroleum Exporting Countries, a $76.5 billion deficit with Canada and a $50.1 billion deficit with Mexico. Canada and Mexico are America's partners in the North American Free Trade Agreement. The deficit with the countries of South and Central America rose to a record $50.7 billion last year.

    A huge 39.4 percent jump in petroleum imports, which rose to $251.6 billion, was a major factor contributing to last year's deficit increase. The price of those imports rose to an all-time high, reflecting tight global supplies. The United States was forced to import more oil in the fall after Hurricane Katrina caused widespread shutdowns of Gulf Coast production.

    __________________________________________________ __
    Can we afford to increase these statistics anymore?
    __________________________________________________ _____
    http://calculatedrisk.blogspot.com/2006 ... llion.html
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