The American Apparel & Footwear Association (AAFA) and the American Cotton Shippers Association are among 100 state and national trade associations to sign a letter calling on the US government’s trade agency to preserve trucking provisions in the North American Free Trade Agreement (NAFTA) during modernisation negotiations.
In the letter to US Trade Representative Robert Lighthizer yesterday (14 November), the group “strongly” urged him to keep NAFTA’s trucking provisions in a NAFTA 2.0, saying they depend on the trucking industry, both American and Mexican, to “safely and efficiently haul our products in both countries”.
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The Office of the US Trade Representative has previously proposed eliminating the provision that allows Mexican trucks to move more easily into the US, and vice versa, in favour of reverting to rules established by Congress, which would likely be more restrictive on Mexican trucks.
“Eliminating NAFTA trucking, including any investment protections, would have a long-term negative impact on our businesses,” it adds.
The group – which also includes the Retail Industry Leaders Association, North American Shippers Association, and the Footwear Distributors & Retailers of America (FDRA) – explains it depends on efficient border crossings to remain competitive, and increasing trade in both directions is putting more and more pressure on southern border land ports.
“Permitting Mexican carriers to haul freight beyond the border zones will help alleviate some of the congestion at the border, creating more efficiency through the system,” it adds. “By having these trucks drive further into border states, it will alleviate truck traffic out of the commercial border zones.”
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By GlobalDataIt also notes that, as Mexican carriers and drivers are not permitted to haul domestic US freight, they are not competing with US carriers and drivers and often work in tandem with their US motor carrier partners. “Currently, it is a small, but important way of making sure our industries and North America remain competitive in the world market,” the letter states.
Meanwhile, the group claims the Mexican trucking programme is not an “open-door policy that permits any and all Mexican trucking companies to haul freight beyond the border zones”, and explains Mexican carriers undergo a case-by-case review process before the US Department of Transportation grants them authority to operate. “These carriers must adhere to all US laws and regulations,” it adds. “And, most importantly, Mexican carriers operating beyond the commercial border zones have an excellent safety record.”
The letter comes as talks to renegotiate NAFTA head into their fifth round later this month. Last week, Dr Sheng Lu, assistant professor at the Department of Fashion and Apparel Studies at the University of Delaware, identified the textile and apparel products that would be most affected by NAFTA’s termination. US President Donald Trump has repeatedly threatened the trilateral deal will be terminated if a new one cannot be struck.
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