Canacar, a quasi-governmental body representing Mexico’s trucking industry, has brought a complaint against the US under NAFTA alleging damages arising from Congressional interference with free trade in trucking services, the TT Club has reported. The economic loss claimed is about $2 billion per year.
Back in the year 2000, Mexico won a NAFTA arbitration in respect of the refusal of US authorities to allow Mexican tucks to cross the border. Restrictions were loosened by the White House but subsequently re-tightened by Congress. 2008 marks the beginning of a pilot program to permit increased border volumes.
FMCSA administrator John Hill is quoted in TT News as saying “We believe we are in the process of fulfilling our NAFTA obligation buy having this demonstration program, and we encourage Canacar to participate…”
Some observers might consider eight years a long time to dream up a pilot program for responding to a NAFTA decision. The FMCSA is clearly not one of those observers and, if Canada’s experience on softwood lumber is any indication, they can expect the US and a battalion of trade lawyers to stand behind the position that it is ‘in the process of fulfilling its obligations,’ and litigate both the obligations and the process the the highest levels. For the original article click here: