OOIDA comments on NAFTA delivered to lawmakers

OOIDA President Jim Johnston's written testimony regarding NAFTA issues were delivered July 18 to the House Highways and Transit Subcommittee of the House Transportation and Infrastructure Committee. Prepared on behalf of independent small business trucking members of OOIDA, comments were also delivered to the Senate's Commerce, Science and Transportation Committee.

Johnston emphasized that the proposal at issue under the North American Free Trade Agreement ("NAFTA") is not simply the opening of the border to Mexican trucks. "At issue is the opening of all interstate highways and local roads throughout the United States to Mexican trucks," said Johnston. "Only from this perspective do you begin to understand the great impact that Mexican trucks will have on our country. OOIDA believes that no matter how strong our border enforcement is, the majority of problems our country will face with Mexican trucks will occur within the interior of the states."

In his comments, Johnston said it is well known that Mexican carriers and truckers are not required to meet, and frequently fail to meet, U.S. motor carrier safety standards. In response to these safety concerns, the Federal Motor Carrier Safety Administration has proposed that Mexican carriers undergo a "safety review" in the first 18 months of their operation in the United States. Some in Congress have suggested that this review must occur before a Mexican carrier begins its U.S. operation. "Although useful and important, this exercise in paperwork would have little practical effect on the safety of Mexican trucks operating in the United States," said Johnston.

The Senate Transportation Appropriations Subcommittee has recommended a much more stringent pre-qualification of Mexican carriers and drivers, a stronger enforcement presence at the border, better tools for enforcement personnel, and consequences for Mexican carrier violation of U.S. laws. "These are very positive and necessary actions," Johnston said, "but we recommend that more needs to be done. There are NAFTA trade rules that implicate Customs and Immigration issues which are just as important as the safety issues. Specific restrictions in the NAFTA agreement proscribe the activities and movements of Mexican trucks and drivers in the United States. Enforcement of these provisions will require the efforts of the Customs Service and the Immigration and Naturalization Service in coordination with state enforcement officials. No such effort has been proposed or contemplated."

The OOIDA president said another overlooked issue is the revenue from fuel taxes, heavy truck excise taxes, and highway user fees that the states and the federal government will lose. These are important revenue sources that go to build and maintain our highways and bridges. When Mexican trucks come into the United States fueled up with cheap Mexican diesel, they avoid paying those taxes and replace American trucker who used to pay those taxes. "There is no plan in place to address this consequence of NAFTA," Johnston says.

If these issues are not addressed, OOIDA members believe that we will see thousands of unsafe Mexican trucks operating virtually uninhibited on our highways. These trucks will not only endanger the safety of our highways but also create an issue of fairness to U.S. truckers who pay their fair share of taxes and comply with higher safety standards.

Prepared on behalf of independent small business trucking members of OOIDA, similar comments were also delivered to the Senate's Commerce, Science and Transportation Committee on July 18.