The Impact of NAFTA on Trucking

NAFTA is a treaty agreement that can be describedborder fence and increased border security have
as slightly controversial. One of the area wherefurther complicated the issue.
NAFTA has had an affect is on the commercialMexico does not have anywhere near the safety
trucking industryregulations of the U.S. trucking industry, and if Mexican
In 1994, the United States, Canada, and Mexico signedtruckers were to be allowed on U.S. highways, higher
the North American Free Trade Agreement known asinsurance rates are one of the predicted impacts of
NAFTA. This agreement was intended to encouragethis on the trucking industry. Insurance rates have been
the free flow of trade between the countries of Northsteadily climbing as the result of increased liability
America, and was viewed and touted as a wonderfuldemands and further increases would create a severe
boost to the economy of all three countries. In thehazard on an industry already reeling from the impact
years since the agreement was signed, problemsof increased fuel costs.
were encountered that were not carefully thoughtAmerican truckers see the NAFTA tradeoff as
through or ignored by the drafters of the agreement.opening up lucrative and already highly competitive
Many of these problems directly relate to the truckingAmerican markets to Mexican truckers who will be
industry. The primary cause of concern was theable to travel freely on one of the best maintained and
provisions in the agreement that would allow the trucksextensive highway system in the world. In return,
of each of the signatory countries to travel freely uponAmerican truckers get the chance to travel on poorly
the highways of each other's countries. The main bonemaintained and inadequate Mexican highways to visit
of contention has been the overall conditions andmarkets that provide considerably less income
standards in the Mexican trucking industry, and thepotential than what they have in their own backyards.
quality of Mexican highways. The 67,000 memberIt does not appear to be a very good deal.
strong Owner-Operator Independent DriversThe trucking industry faces many challenges of its
Association (ODIDA) has been outspoken in itown today, and the prospect of having it hurt even
opposition to free access being granted to Mexicanmore by unfair foreign competition is extremely
drivers.disturbing to truckers. The future of NAFTA and the
In 2003, there was court ordered Environmental Impactdecisions that will be made in the future by the
Reports done on the effect of Mexican drivers usingCongress concerning its implementation are of great
U.S Highways. The courts ruled that the EIR wasconcern to everyone in the industry, and also to
inadequate, and further studies needed to be done.everyone who depends on the industry to meet their
Recent efforts to control the influx of illegal immigrationtransportation needs.
between Mexico and the United States, and talk of aCarl Stinson is with - a directory of trucking companies.