Obama Promises Solution to U.S.-Mexico Trucking Spat (Update1)

By Nicholas Johnston and Jens Erik Gould

Aug. 10 (Bloomberg) -- President Barack Obama told his Mexican counterpart Felipe Calderon that he is committed to resolving a dispute over truck access to U.S. highways.

Obama said he will also address safety concerns about the trucks raised by the U.S. Congress, an administration official said after the two leaders met in Guadalajara yesterday at a summit of North American leaders. Calderon told Obama that the dispute has hurt trade, raised consumer costs and reduced job creation, according to a statement from his press office.

Removing restrictions that prevent Mexican trucks from delivering goods across the border has been a top issue for Calderon since the U.S. Congress, citing safety concerns, ended a pilot program in March that allowed some trucks access. Mexico retaliated by imposing $2.4 billion in tariffs on U.S. goods after the program ended, affecting companies such as Procter & Gamble Co., the world’s largest household-products maker.

U.S. exporters such as Appleton Papers Inc. of Appleton, Wisconsin, and Mary Kay Inc., the Dallas-based cosmetics seller, have urged Obama to reach an agreement to put Mexican trucks back on U.S. roads and end the tariffs imposed on makers of paper, batteries, toothpaste and grapes.

Closely held Appleton is a member of the Alliance to Keep U.S. Jobs, a group of companies formed to fight the tariffs. Other members include Caterpillar Inc., Smithfield Foods Inc. and PepsiCo Inc.

Nafta and Trucks

As part of the North American Free Trade Agreement, the U.S. agreed to allow Mexican trucks unrestricted access to deliver goods in the U.S., a pledge it has never fully honored because safety advocates and union officials say Mexico’s trucks and drivers don’t meet U.S. standards. Nafta rules would also have allowed Mexican trucks to pick up cargo to return to Mexico.

Around 4,500 Mexican trucking companies represented by the National Freight Transportation Chamber, known as Canacar, said in June they were seeking $6 billion in compensation from the U.S. because of the trucking conflict, alleging its northern neighbor wasn’t complying with Nafta.

In 2008, the U.S. and Mexico had $368 billion in trade, making Mexico the third-largest U.S. trading partner after Canada and China, according to the Commerce Department.

Transportation Secretary Ray LaHood is sharing a set of principles about the truck dispute with the Mexican government and with members of the U.S. Congress, Commerce Secretary Gary Locke said in a speech today in Washington.

“LaHood is trying to shop those principles to both sides,â€