http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQbKUhGAWAEgGE, 3M Freight Costs May Rise After U.S. Bars Mexican Trucks
By Thomas Black and Carlos Manuel Rodriguez - March 19, 2009 00:01 EDT
March 19 (Bloomberg) -- General Electric Co., 3M Co., Caterpillar Inc. and other U.S. companies operating in Mexico will pay higher shipping costs after the U.S. scrapped a trucking program designed to eliminate daylong delays at the border.
The U.S. last week canceled a pilot project begun in September 2007 that allowed Mexican trucks to transport goods past a 25-mile commercial zone along the border. Mexico responded this week by placing tariffs on $2.4 billion of U.S. goods exported to the country annually.
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The U.S. and Mexico agreed under the 1994 North American Free Trade Agreement to streamline trucking operations at the border by allowing drivers of one country to drop off cargo in the other nation and pick up a load to return home. The U.S. has ignored Mexico’s demands to fully implement the rules, saying Mexican trucks and drivers aren’t safe enough for U.S. roads.
The suspended program allowed 26 Mexican trucking companies to operate on U.S. highways. It was renewed for two more years in August before being canceled by a provision in the $410 billion spending bill passed by Congress on March 11.
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