USTR, NPPC Addresses Trucking Dispute with Mexico
U.S. labor union politics continues to confound efforts to end a long-running trucking dispute with Mexico, which has now added U.S. pork to its North American Free Trade Agreement retaliation list.
Compiled by staff
Published: Aug 18, 2010
United States Trade Representative Ron Kirk has expressed disappointment over the Mexican government's decision to implement changes to its list of products receiving increased tariffs due to the cross-border trucking dispute.
"We are disappointed that the Mexican government has announced its intention to impose duties on additional U.S. products related to the cross-border trucking dispute between our countries," Kirk said. "Mexico is an important U.S. export market and President Obama understands the economic pain that these tariffs cause for American farmers, companies and workers."
The National Pork Producers Council seems as angry with the U.S. government, as with Mexico, in the seemingly endless NAFTA trucking dispute over allowing Mexican trucks to ship longhaul in the U.S.
"The United States is not living up to that trade obligation," NPPC spokesman Dave Warner said. "That is now going to hurt U.S. pork producers; it's already hurt other commodities, other products. There were $2.4 billion worth of products that were stuck on a retaliation list last March."
A punitive Mexican tariff against U.S. pork, now means reduced sales that hit $762 million last year. Warner says the trucking dispute remains a 'political' question for Congress and the White House, faced with continued pressure from trucking unions.
"There are plenty of members of Congress who believe they are protecting some of their constituents' jobs by not allowing Mexican trucks to haul into the United States," Warner said. "Really what that is doing is just creating this situation where Mexico is retaliating against our products and that's going to cost even more jobs."
Congress created a pilot program three years ago to allow limited Mexican long-haul trucking in the states, but failed to renew it last year. Even if they had renewed it, Warner is skeptical of what the outcome would have been.
"I'm not sure if the Mexican government would be happy with another pilot program," Warner said. "This is an issue of U.S. jobs and the United States living up to its obligations under the free trade agreement."
But the question now is where the pork industry or other ag interests can apply pressure, right before an election, when Democrats at both ends of Pennsylvania Avenue are intent on protecting union campaign dollars and votes.
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