It has been proposed by the Obama administration that a new inspection and monitoring system should take place to allow long-haul trucks from Mexico into the United States.
This proposition by the administration has come following years dispute and safety concerns regarding the permitting of trucks from Mexico to US. However, there have been many delays over the past years with regards moving forward with this issue. The US pork industry is anticipating a favourable outcome of the dispute.
The proposition to end this has come about when Obama administration released a concept paper Thursday which aims to create a way forward in putting a stop to the nearly two-year-long dispute of the Cross Border Trucking Pilot Program.
Negotiations with Mexico
Ray LaHood, US Transportation Secretary has stated that this proposition is seen by his agency as a starting point to rebuild negotiations with Mexico, which has slapped tariffs on US products over the delay.
The United States and Mexico will have to come to agreements about the carriers that are permitted in a first phase, safety audits is expected to be in place, and also driver background checks should be carried, amongst other agreements. Amidst much scrutiny of the issues, trucking safety programs will also be reviewed and the aim is so that every vehicle gets inspected and certified by highway safety and officials.
Pork industry eager for an end to the trucking dispute
Mexico is a major importer of US pork and at the moment there is a 5% duty on the product – with many believing that the duty was put in place due to the trucking dispute between the countries.
"The pork industry has been eagerly awaiting this moment, which should further facilitate pork trade to Mexico," said Rich Nelson, analyst with agriculture advisory firm Allendale Inc. Mexico is positive about the negotiations and also US industry officials welcome the proposal.
"We can't say the Mexican trucking dispute is over, but we can now say that, at last, the end appears to be in sight," Doug Goudie, the National Association of Manufacturers' trade policy director said.
In the past the plan has failed to progress with this issue over the past decade, currently prospects for an agreement are still uncertain.