|
TRADE POLICY/ NEGOTIATIONS NORTH AMERICAN FREE TRADE AGREEMENT NAFTA:
X-20 chaired the NAFTA land transportation negotiations and leads the
Department’s efforts to implement the Agreement’s land transportation
provisions. Activity: Implementation of the land transportation provisions of the North American Free Trade Agreement (NAFTA). Background: Under the NAFTA, the United States agreed to phase-out restrictions on cross-border passenger and cargo services beginning in 1994, with the lifting of restrictions on charter and tour bus operations. The United States delayed the opening of the border states for cross-border trucking in 1995, and subsequently postponed the implementation of provisions allowing Mexican carriers to operate regular route cross-border bus services and cross-border truck services throughout the country. A NAFTA dispute settlement panel ruled in February 2001 that the blanket exclusion of Mexican trucking companies from the United States violated U.S. NAFTA obligations. The ruling gives Mexico the right to retaliate against the United States up to the same dollar value of losses caused by the U.S. action, estimated by Mexico at $1 to $2 billion a year. The panel also noted that the United States could, on a case-by-case basis, subject Mexican motor carriers operating in the United States or seeking U.S. operating authority to different safety requirements than it applies to U.S. and Canadian carriers in order to address legitimate safety concerns. Section
350 of the DOT Appropriations Act for fiscal year 2002 sets the conditions
for Mexican motor carrier operations in the United States. In March
2002, the Department published a series of rules that fulfill the Congressional
mandate with respect to the application and safety monitoring processes.
The Act also required the DOT Inspector General (IG) to review DOT’s
cross-border operations. The IG’s report entitled Implementation
of Commercial Vehicle Safety Requirements at the U.S.-Mexico Border
was issued in June 2002. The Secretary certified that opening the border
does not pose an unacceptable safety risk after receiving assurance
from the Federal Motor Carrier Safety Administrator (FMCSA) that FMCSA
had complied with the Section 350 requirements and addressed the IG
findings and recommendations. The President modified the moratorium
on new grants of operating authority for Mexico-domiciled motor carriers
on November 27, 2002. Delays continue because of pending litigation.
A coalition of safety, labor, environmental, and other interest groups
sued the Department for not conducting an Environmental Impact Statement
(EIS) before issuing the Mexican carrier rules. The Ninth Circuit Court
of Appeals ruled in the plaintiff’s favor and set aside the FMCSA
rules. The USG’s request for rehearing was denied, and we are
now considering other possible options. Revised on
Friday, January 16, 2004
|
