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Weekly Report - 22 January 2015 (WR-15-03)

MEXICO: Long wait over for Mexican truckers

It took 21 years after the signing of the North American Free Trade Agreement (Nafta) but Mexican truckers will soon be able to operate in the US rather than having to unload their cargo at the border to be taken on to its destination in US trucks. Under the 1994 Nafta treaty, Texas, California, New Mexico, and Arizona were meant to be opened up to Mexican trucks by December 1995 and all constraints on their free circulation lifted by 2000. But, invoking fears about low Mexican compliance with safety and environmental standards, the US Teamsters union won support from protectionist politicians in Congress to prevent the liberalisation of the US road haulage market. The policy change should sharpen Mexico’s competitive edge in its capacity to make goods available to the US supply chain.

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