Cross-border trucking continues despite protests

Like it or not, Mexican trucks will continue making deliveries into the United States interior despite congressional efforts to block their passage.

Congress voted last year to stop funding for a cross-border trucking pilot program, however, last week, the Bush administration argued that while the congressional action bans funding for a new program it does nothing to stop the current one.

“The current cross-border trucking demonstration project will continue to operate in a manner that puts safety first, with participating Mexican carriers subject to all safety standards required by the 2008 omnibus bill and the department, while giving U.S. trucking companies new opportunities and U.S. consumers significant savings,” according to a statement from the U.S. Department of Transportation (DOT).

The cross-border program has faced opposition from labor and environmental groups ever since it was proposed with the signing of the North American Free Trade Agreement in 1994.

More recently, truck operators have spoken out against the program, claiming that it will undermine American operators, but some Valley businesses maintain the local impact would be minimal.

“I think the impact the politicians are talking about doesn’t reflect the reality here,” said Jose Antonio Ramos, director of transportation for Transmaquila in Matamoros. “If there is an impact it will be to reduce operating costs on both sides of the border.”

Transmaquila delivers maquiladora products from Matamoros to Brownsville, and the company doesn’t intend on changing its arrangement any time soon.

Cross-border trucking is a multi-billion dollar industry and growing.

U.S.-Mexico ground transportation trade totaled $26.6 billion in October 2007, up 6 percent compared to October 2006, according to the Department of Transportation. The value of imports carried by truck was 10.6 percent higher in October 2007 than October 2006 while the value of exports carried by truck was 3.1 percent higher.

Texas led all states in ground trade with Mexico in October with $8.2 billion.

In Brownsville, exports to Mexico totaled more than $485 million and imports more than $217 million,according to Department of Transportation.

As trade with Mexico continues increasing, proponents of cross-border trucking argue, it will reduce costs for consumers. Initially, however, the pilot program is limited in scope.

Under the program, up to 100 Mexican carriers with 500 trucks could receive permits, according to the DOT.

So far, permits have been issued to 12 Mexican companies with a total of 57 trucks and four U.S. companies with 41 trucks, according to the Federal Motor Carrier Safety Administration, the Department of Transportation agency that regulates the program.

Companies on both sides have already begun making deliveries, but the change has hardly been noticed in the Rio Grande Valley.

Mexican trucks have long been permitted to operate in a 25-mile border zone.

“Myself, I’m not afraid of Mexican trucks coming up north,” said John Cumberworth, president of Sun Belt Transportation in Brownsville. “The ones that want to come are going to come, so there’s no use complaining about it.”

Despite claims from many of his peers that U.S. truckers are now at a disadvantage, Cumberworth said U.S. companies have an advantage over their Mexican counterparts.

While Mexican companies pay their operators less, he said, U.S. companies could offset losses with lower operating costs.

The Mexican Embassy also applauded the DOT decision to continue the cross-border trucking demonstration program.

“The administration’s position strongly supports the view that complying with NAFTA and expanding its benefits is in the best interest of both nations and more importantly of consumers (on) each side of the border,” said Ricardo Alday, spokesman for the Mexican embassy in the United States.