A series of announcements
and proposals by the Bush administration have all but prepared
the way for the opening of the U.S. border to Mexican trucks
by the end of 2001. Under the North American Free Trade Agreement,
the United States was to have fully opened the border in 1995
to Mexican trucks. However, the Clinton administration refused
to comply with NAFTA and kept the border closed to Mexican trucks
wanting to travel beyond the free trade areas in the border
states.
Now the border
is poised to open under a new administration that wants to comply
with the NAFTA rules. Under NAFTA, Mexican trucks will be allowed
to bring an international shipment from Mexico to a point in
the United States or from the United States back to Mexico.
For this privilege, Mexican trucks and drivers will be required
to comply with all U.S. safety rules. Many in the United States,
including OOIDA, are concerned, however, that no matter what
rules Mexican trucks must obey, there will be no practical way
of enforcing them.
The Bush administration
has made three recent announcements to attempt a reply to the
concerns that unsafe Mexican trucks are going to flood uninhibited
into the country once the border is opened. President George
W. Bush has proposed more money in the budget to hire border
inspectors, the FMCSA recently released a report that downplays
the number of Mexican trucks that cross the border, and finally
the FMCSA has proposed the procedures under which Mexican truckers
will be allowed into the country.
More
federal money for enforcement
In the Bush
administrations proposed 2002 budget, $19 million is dedicated
to increase oversight and enforcement activities including
stationing 80 additional federal enforcement personnel at the
U.S./Mexican border. An additional $56 million will be
dedicated to improving state and federal border inspection facilities.
The proposed number
of new inspectors, however, is less than the number previously
recommended by the Department of Transportations (DOT)
Inspector General (IG). In a 1998 report, the IG recommended
that the optimal federal border presence, for the number of
trucks entering the border states at that time (1998), would
have been 126 additional inspectors. This years budget
proposal falls short of that number by 46.
The budget is
also silent on the need for additional inspectors throughout
the country now that Mexican truckers will be able to travel
beyond the border states.
The
feds downplay Mexican truck numbers
In
an effort to downplay the impact that opening the border to
Mexican trucks will have on our country, the FMCSA recently
released a study showing that the number of trucks already coming
into the country is less than had previously been reported.
For the last several years, the number of trucks coming into
the United States from Mexico was estimated to be around 4.5
million per year. This new report distinguishes the number of
border crossings from the number of distinct trucks crossing
the border.
The study found
that 80,000 distinct trucks made the 4.5 million border crossings
in 1999. Of those 80,000 trucks, 63,000 were of Mexican origin.
The FMCSA then pointed out that 97,000 trucks had been inspected
at the border during 1999. The conclusion we are encouraged
to draw is that far more inspections were done than there were
trucks crossing the border, and therefore our inspectors will
not be overwhelmed by many new trucks coming into the country.
Predictions are
scarce, however, of how many additional trucks may cross into
the United States once they are allowed to travel to any state.
Some NAFTA critics assumed that when this new privilege is given
to Mexican truckers, thousands more will be attracted to the
business and begin coming into the United States.
Others believe
that there will not be a large increase of Mexican trucks crossing
the border. They believe the trucks that now must drop off their
load in the border states will instead just deliver that load
to its final destination wherever that is in the United States.
If this is true, there will be substantially the same number
of trucks crossing the border.
In either scenario,
it is certain that non-border states will see an increase in
Mexican truck traffic. Whether or not those states are prepared
to enforce our truck safety laws against Mexican trucks is one
of the most overlooked issues.
FMCSA
proposes three rules to allow Mexican trucks into the U.S.
FMCSA
has published three different proposals with which it plans
to monitor Mexican truck compliance with U.S. safety rules.
Under these rules, Mexican motor carriers must register themselves
with the FMCSA and demonstrate a promise and intent to obey
U.S. motor carrier law.
The first proposal
requires the registration of Mexican carriers that only intend
to operate between Mexico and the free trade areas in the border
states. The second proposal requires the registration of Mexican
carriers that want to operate between Mexico and any place in
the United States. The final proposal outlines the FMCSAs
plan to ensure that Mexican carriers are obeying U.S. safety
rules.
No matter where
a Mexican truck and driver goes into the United States, under
NAFTA they are required to meet our safety standards. FMCSA
states that these standards include all U.S. ...carrier
requirements, vehicle requirements, including but not limited
to, the ability of the driver to read and speak the English
language sufficiently to converse with the general public, understand
highway traffic signs and signals in the English language, respond
to official inquiries and make entries on reports and records.
Although there
are two distinct registration proposals for two different operating
authorities, the forms and their requirements are almost identical.
The first proposal
is entitled Requirement for Mexican-domiciled motor carriers
of property that want to operate only in U.S. municipalities
and commercial zones adjacent to Mexico in Texas, New Mexico,
Arizona, or California. These Mexican carriers must complete
a revised Form OP-2.
The second proposal
is entitled Application by Certain Mexican Motor Carriers
to Operate Beyond the U.S. Municipalities and Commercial Zones
on the U.S.-Mexican Border. These motor carriers must
complete a revised Form OP-1(MX). Both applications require
the following:
For some requirements,
the FMCSA asks the Mexican motor carrier to certify
on its application forms that it has a system in place to ensure
compliance with U.S. safety laws, that it is properly registered
with the Mexican government, that none of its affiliates have
been disqualified from operating in the United States or Mexico.
They must also certify that it will comply with IRS regulations
regarding the U.S. Heavy Vehicle Use Tax, abide by U.S. Labor
Department rules, and that it has the ability to provide
the proposed service and to comply with all pertinent statutory
and regulatory requirements.
Proposal number
three is entitled Safety Monitoring System and Compliance
Initiative for Mexican Motor Carriers Operating in the United
States. This proposal describes the FMCSAs plan
to ensure that Mexican motor carriers obey U.S. safety laws.
The registration
of a Mexican carrier will be conditioned on the carrier successfully
completing a safety oversight program that includes
a safety review within 18 months of the application. The proposal
states that the procedures of what will be a safety review
have not yet been developed. The safety review will either be
conducted at the motor carriers business premises or the
carrier will be required to bring designated documents to an
alternate facility such as a border inspection station.
If the carrier fails to show adequate safety management
controls then its registration would be immediately suspended.
FMCSA also warns
of enforcement action if a Mexican carrier is discovered doing
the following things:
The FMCSA mentions that
detection of these violations will require states to expand
the scope of their roadside inspections and to collect additional
safety data. There is little acknowledgment in the proposed
rule of the additional responsibilities states will be forced
to assume or the additional personnel and funding that states
will need to perform these responsibilities.
The FMCSA warns
that violations of these rules would trigger either a deficiency
letter or an expedited safety review. The carriers authority
would be suspended if it fails to respond sufficiently to the
letter or undergo the safety review. The FMCSA also states that
this safety oversight program is meant to supplement,
not replace, the regular safety fitness procedures applicable
to all motor carriers within their jurisdiction.
Implementation
of NAFTA is moving forward despite the protest of several dozen
Congressmen and membership organizations including OOIDA. The
political pressures on the Bush administration are different
than those on the Clinton administration. What has been proposed
in the budget and in these proposed rules is, perhaps, the best
attempt that the administration can make to address the concerns
of NAFTA critics, without compromising its promises to open
the border. The Bush administration believes that the trade
benefits of NAFTA will outweigh any negative effects of allowing
Mexican drivers on our highways.
If you feel differently, you may submit comments about these proposals to the Department of Transportation. Comments are due by July 2, 2001, and may be mailed, faxed, hand delivered or electronically submitted to the DOTs Docket Management Facility:
Docket Management
Facility
Room PL-401
400 Seventh Street, S.W.
Washington, DC 20590
FAX (202) 493-2251
Online at
http://dmses.dot.gov/search.htm
Refer to the docket numbers of these proposals: 98-3297, 98-3298
and 98-3299. Copies of them may be found at www.ooida.com.