Long-haul trucking companies may need to add more motorized trailer dollies soon. The long, controversial history of the North American Free Trade Agreement could be adding another chapter.
Renegotiating NAFTA
During recent NAFTA negotiations, President Donald Trump’s team put forth an extensive list of demands to be met in order to keep the agreement in effect. One of the conditions was removing the Mexican long-haul industry from a NAFTA chapter on cross-border services.
While the U.S. Trade Representative’s office has remained mum on the content of their proposals, a number of sources close to the negotiations have reported this particular demand. It was described as a “broad industry exclusion” that was submitted during October’s round of talks.
U.S. and Mexico Trucking Industries: A Contentious Relationship
Even after NAFTA went into effect, the U.S. put up several roadblocks to Mexican truckers operating in the country. Initially, they could transport loads only a short distance across the border before transferring them to American truckers.
In 2001 a dispute resolution panel found in Mexico’s favor, but the U.S. refused to comply, causing Mexico to impose retaliatory tariffs. Finally, in 2015, the U.S. granted licensed Mexican truckers the right to haul cargo across the country.
If the new proposal goes into effect, it could be a step toward restricting Mexican truckers once again. Without the advantages and protections afforded by NAFTA, Mexico would have a hard time challenging future trucking requirements imposed by the U.S.
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