In August, we reported how trucking freight to Mexico became more expensive when their government placed tariffs on additional American goods. The move was initially made in 2009, in retaliation for the U.S. failing to comply with the North American Free Trade Agreement (NAFTA), due to concerns the American government had about the safety of Mexican trucks.
In what appears to be an attempt to end the dispute between the two countries, the U.S. Department of Transportation released new developments on January 6, signaling the U.S. government is developing a cross-border, long-haul trucking program. The proposal would allow long-haul Mexican trucks to move freight over the border.
After the tariffs were placed, cheese exporters were hit especially hard, resulting in many cheeses sales dropping as much as 66 percent.
The International Dairy Foods Association has commended the proposal to end the dispute.
On the flip side, the Teamsters union, which represents long-haul truckers, has voiced their opposition to the movement, stating the proposed agreements would threaten American jobs. Safety concerns were also voiced in reference to the drug cartel violence plaguing the border.
While no official action is yet finalized, the announcement marks the beginning of movement to make negotiations a priority in 2011. As developments occur, we�ll be sure to keep you posted.
Until then, how you do feel about the negotiations?
Do you believe the Teamsters union�s concerns are valid?
Will additional opportunities open up to move freight?