Following the announcement on February 23, 2007, by U.S. Secretary of Transportation Mary Peters, that in 60 days the border would be open to about 100 Mexican trucking companies in a yearlong pilot program, the controversy has been wild and Heated.
Since the announcement by Secretary Peters, the Federal Motor Carrier Safety Administration (FMCSA) has clarified some of the terminology and statements she made. On April 6, I interviewed, Duane Debruyne, spokesperson for the FMCSA who explained that, “This is actually a demonstration program, not a pilot program as originally described by the Secretary. The demonstration program is designed to show the safety performance of these trucks while traveling in the U.S.” This language is important because, according to Debruyne, a pilot program would allow legal exemptions to certain requirements whereas a demonstration program does not allow any exemptions. Debruyne went on to clarify that the 60-day period announced by the Secretary is actually a “working time frame,” meaning it could be less or more.
This new policy, whether pilot or demonstration, still begs the question of why? When the United States agreed to the North America Free Trade Agreement (NAFTA), part of that agreement was to open the borders to trucking. Although we have done that with Canada, it has never been implemented for Mexico. “NAFTA is a law that the FMCSA and the DOT are required to implement, so that is what we are doing,” explained FMCSA spokesperson Debruyne.
Beyond the idea that the U.S. needs to comply with this law, perhaps the most touted benefit is the anticipated economic impact. According to a February 23 American Trucking Association press release, “Every day nearly $2.4 billion in trade flows between the United States, Mexico and Canada. Seventy-five percent of the value of that trade is carried by truck.” The estimated cost to consumers of transferring products from one truck to another under the current program is about $400 million per year. The release also noted that exports to Canada and Mexico, due to NAFTA, have increased 157 percent. So, the American trucking industry is expecting to benefit from the open border because they, too, are restricted from traveling into Mexico.
What are the concerns? Safety is a legitimate concern. Opening the U.S. and Canadian border is less complicated because Canada has safety regulations, driver qualifications, and other similar regulations. The U.S. and Canada also share a common history, common language, and common heritage. The challenge with Mexico is that safety has never been a high priority. If you think about the truck market in the U.S., the newer trucks run over the road and as they age many go into service as gravel or construction trucks. From there they are sold to other markets, like Mexico.
The U.S. DOT announced that it would be sending FMCSA safety inspectors to Mexico to inspect the trucks of the 100 carriers applying to participate in the program. According to Secretary Peters, “This program will make trade with Mexico easier and keep our roads safe at the same time.” Included in the inspections will be confirmation of a valid CDL, a current medical certificate, and compliance with HOS rules once in the U.S. On a related note, there is a requirement that all Mexican drivers be able to speak, read, and write English.
According to Debruyne, “These inspections are identical to a DOT Compliance Audit that is commonly performed on U.S. Carriers.” He also indicated that the FMCSA currently has 3-5 teams, each with 3-5 members, in Mexico performing inspections.
Critics of the plan, such as me, question whether or not the U.S. government can inspect these 100 carriers and their trucks within the 60-day timeframe. Debbie Hersman, member of the National Transportation Safety Board, questions how the U.S. can even afford to do these inspections. The FMCSA spokesperson did indicate that there have been no supplemental appropriations requested, nor are any needed, to implement the demonstration program.
Other critics, such as Joan Claybrook, president of the group Public Citizen, questions how the U.S. will know how many hours a driver from Mexico has driven prior to entering the U.S. In other words, the HOS regulations are meaningless because Mexico does not have the same regulations nor do they maintain log books. The Owner-Operator Independent Drivers Association has also expressed some concerns about the pilot program.
In response to the HOS concern, Debruyne explained that they are relying on the Mexican government to ensure that the drivers are not fatigued prior to entering the U.S. “The Mexican government and Mexican carriers have every incentive to make certain they comply, and we expect they will.”
But the Bush Administration, with the full support of the American Trucking Association, has announced the implementation of this demonstration program. So unless Congress acts, it is likely the borders will be opened to Mexican trucking as soon as May. The demonstration program is set to run one year, and then it is full steam ahead. There has been some movement in Congress to try and stop or delay the opening of the borders to Mexican trucks. Congressman and presidential hopeful, Duncan Hunter introduced stand-alone legislation to stop it, as did Congress-woman Nancy Boyda. In addition, the U.S. Senate introduced and passed an amendment to an appropriations bill that would delay the program (this bill will likely be vetoed by the President because it is connected to the Iraq funding). Other legislation may also come.
Another interesting point about this demonstration program is that it does not allow U.S. trucks into Mexico yet, that will come later this year or next. “The U.S. is further along with IT sophistication and the Mexican government is playing catch up. But, Mexico has committed to having an application for U.S. carriers within six months. They have committed to full reciprocity,” adds Debruyne. This is interesting because it was Mexico that took the U.S. government to the NAFTA court to force implementation. According to FMCSA Administrator John Hill, in testimony to a House subcommittee on March 30, 2007, not fully opening the border to Mexican trucks could cost the U.S. government about $2 billion in penalties as the result of a ruling by the board that oversees NAFTA.
During the 2004 presidential election I had the opportunity to interview President Bush and I asked him about opening the border. His response was, “By truly opening the market between Mexico and the U.S. for trucks and buses, we are ensuring more opportunities for American companies, more jobs for American drivers and better deals for American consumers.” But what will happen to freight rates as Mexican truckers pick up U.S. loads to take back to Mexico? American drivers will also lose the freight that they had previously picked up at the border as Mexican drivers will now deliver that freight themselves. It confuses me as to how that activity will create more American jobs.
Another question for all drivers to consider is, once the border is open for U.S. drivers to travel into Mexico, will you? Do you have confidence in the Mexican government’s ability to guarantee your safety?
Economic benefits, safety issues and new jobs for American drivers all sound interesting. The American Trucking Association and the Bush Administration think it is a great idea. With no public comment period, the only recourse you have is to contact your congressional representative to express your opinion.
Where does this leave us for now? As a frequent guest on “The Peter Boyles Show” on KHOW radio in Denver, Colorado, I have suggested it will proceed as planned. Other guests on the show, including Congressman and Presidential hopeful Duncan Hunter, U.S. Senator Wayne Allard, and Teamster leader Jimmy Hoffa, Jr., believe it will be stopped. I hope I am wrong and they are correct.
Secretary Mary Peters was contacted four weeks prior to writing this, and after weeks of trying, her office finally indicated that she was “too busy” to respond in person or via email to my questions. It would have been great to hear more on her thoughts.
