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Washington, DC.
July 6th, 2011
MEXICO AND THE US SIGN A MEMORANDUM OF UNDERSTANDING ON LONG-HAUL CROSS-BORDER MOTOR CARRIER SERVICES
Today’s signing of the Memorandum of Understanding between the Mexican Ministry of Communication and Transportation and the Department of Transportation of the United States on Long-Haul Cross-border Motor Carrier Services (MoU) formalizes the agreement announced last March by presidents Calderon and Obama to resolve the 16 year old bilateral dispute and enable the United States to come into full compliance with its commitments on long haul cross-border trucking services under the North American Free Trade Agreement (NAFTA).
This MoU, and the subsequent publication of the regulations and procedures to obtain operating authority in the Federal Register, establish a new reciprocal program that will last up to three years. It will grant Mexican carriers the certainty they need, as they will be eligible to obtain full permanent operating authority for cross-border long-haul services of international cargo as long as they meet all statutory requirements and operate safely in the United States. Mexican carriers have already proved that they can meet all U.S. regulatory requirements and operate safely in the United States. Several U.S. government studies and an independent panel have repeatedly shown that Mexican trucks and drivers meet or exceed the safety records of their counterparts in the United States.
Mexico and the United States enjoy over a billion dollar a day trade relationship, and 70% of that trade travels by truck. A modern, agile, and efficient border contributes to the safety, environmental protection, and the competitiveness of North America as a whole.
As agreed, with the signing of the MOU Mexico will suspend 50% of the tariffs applied to all products subject to the current retaliatory measures. The remaining tariffs will be suspended as soon as the first Mexican carrier is granted operating authority. Mexico reserves its rights under the NAFTA to reinstall retaliatory measures if there is any deviation from the agreement, or if the program is terminated.
Mexico acknowledges that the role of numerous U.S. industries has been particularly effective in conveying the importance of full U.S. compliance of its commitments under international trade agreements, as business decisions are based on certainty of rules and on the willingness of each side to abide by them. Resolution of this long standing dispute and the possibility for door–to-door delivery services of international cargo will bring many benefits to businesses, consumers, and producers of both our nations.
The Government of Mexico recognizes the commitment of the Obama Administration to solve this longstanding dispute, welcomes the important step we are taking today, and reiterates its commitment to continue enhancing free trade and competitiveness in North America. |
