By Tom Ramstack
March 11, 2008
The Bush administration yesterday warned Congress against ending a program that allows Mexican trucks to operate on U.S. highways.
The Mexican government is likely to retaliate with economic sanctions if Congress eliminates the trucking program, which is authorized by the North American Free Trade Agreement (NAFTA), said Transportation Secretary Mary E. Peters.
"Whatever their reason, this is no time to let the politics of pessimism dim the promise of prosperity for hundreds of thousands of American drivers, growers and manufacturers," Mrs. Peters said.
She estimated that U.S. companies could lose $2 billion in trade each year if Mexico retaliates with new tariffs and fees.
The warning preceded a Senate hearing scheduled for today to review a Transportation Department pilot program that allows some motor carriers from Mexico and the U.S. to ship freight across the border.
Before the NAFTA treaty, Mexican truckers were forced to transfer their loads to U.S. trains or trucks for delivery in the United States. U.S. truckers were forbidden to cross the Mexican border.
U.S. truckers complain that the cross-border program, which started Sept. 4, allows lower-paid Mexicans to take their jobs.
The Teamsters union, which represents truckers, says Mexican trucks fail to meet U.S. standards on safety and emissions.
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