80 research outputs found
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Status of Mexican Trucks in the United States: Frequently Asked Questions
In the North American Free Trade Agreement (NAFTA), which took effect in January 1994, the United States and Mexico agreed to allow each other’s trucks to carry goods across the border to make deliveries anywhere inside their respective countries. This provision was controversial in the United States, and a trial program begun in September 2007 by the George W. Bush Administration was defunded by Congress in March 2009. Mexico imposed tariffs on certain U.S. goods in response to the program’s termination, as permitted by NAFTA. After bilateral negotiations, the Obama Administration announced a new pilot program to allow long-haul Mexican trucks into the United States in April 2011. The first Mexican truck with long-haul operating authority crossed the border in October 2011.
This report answers frequently asked questions about the pilot program permitting Mexican trucks into the United States
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North American Free Trade Agreement (NAFTA) Implementation: The Future of Commercial Trucking Across the Mexican Border
[Excerpt] NAFTA set forth a schedule for implementing its trucking provisions that would have opened the border states to cross-border trucking competition in 1995 and all of North America in 2000, but full implementation has been stalled because of concern with the safety of Mexican trucks. Congress first addressed these concerns in the FY2002 Department of Transportation Appropriations Act (P.L. 107-87) which set 22 safety-related preconditions for opening the border to long-haul Mexican trucks. In November 2002, the U.S. Department of Transportation announced that all the preconditions had been met and began processing Mexican applications for U.S. long-haul authority. However, a suit over environmental compliance delayed implementation further. After the suit was resolved, in February 2007, the U.S. and Mexican Secretaries of Transportation announced a demonstration project to implement the NAFTA trucking provisions. The purpose of the project was to demonstrate the ability of Mexico-based motor carriers to operate safely in the United States beyond the border commercial zones. Up to 100 Mexico-domiciled carriers would be allowed to operate throughout the United States for one year and Mexico would allow the same for up to 100 U.S.-based carriers. With passage of the U.S. Troop Readiness, Veteran’s Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 (P.L. 110-28), Congress mandated additional requirements before the project could begin. After failing to defund the demonstration project in the FY2008 Consolidated Appropriations Act (P.L. 110-161), Congress succeeded in terminating the demonstration project through a provision in the FY2009 Omnibus Appropriations Act (P.L. 111-8). Subsequently, Mexico announced it would retaliate by increasing import duties on 90 U.S. products. The Obama Administration has indicated it intends to propose a revamped program that will address the concerns of Congress. The FY2010 Consolidated Appropriations Act (P.L. 111-117) passed in December 2009 did not preclude funds from being spent on a long-haul Mexican truck pilot program, provided the terms and conditions stipulated in section 350 of P.L. 107-87 and section 6901 of P.L. 110-28 were satisfied.
One truck safety statistic, “out-of-service” rates, indicates that Mexican trucks operating in the United States are now safer than they were a decade ago. The data indicate that Mexican trucks and drivers have a comparable safety record to U.S. truckers. Another study indicates that the truck driver is usually the more critical factor in causing accidents than a safety defect with the truck itself. Service characteristics of long-haul trucking suggest that substandard carriers would likely not succeed in this market. As shipment distance increases, the relative cost of trucking compared to rail increases, and thus shippers utilizing long-haul trucking are willing to pay more because they require premium service, such as precise delivery windows or cargo refrigeration. These exacting service requirements would seem to disqualify truckers with unreliable equipment or incompetent drivers. In contrast, the short-haul “drayage” carriers that Mexican long-haul carriers would displace, typically use older equipment because of the many hours spent idling awaiting customs processing at the border. If Mexican carriers do eventually receive long-haul authority, the short term impact is expected to be gradual as Mexican firms deal with a number of stumbling blocks, including lack of prearranged back hauls and higher insurance and capital costs, in addition to the customs processing delays. In the long run, use of drayage companies is likely to decline as they lose part of their market share to Mexican long-haul carriers. The most common trips for these carriers will probably be from the Mexican interior to warehouse facilities on the U.S. side of the border or to nearby cities in the border states
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Harbor Maintenance Trust Fund Expenditures
This report reviews the legislative history of the Harbor Maintenance Tax (HMT) and legal challenges to it, discusses the advantages and disadvantages of alternative funding mechanisms, and describes the commercial context of current dredging activity
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Harbor Maintenance Finance and Funding
This report discusses the harbor maintenance trust fund (HMTF), which receives revenue from taxes on waterborne cargo and on cruise ship passengers. The future of the HMTF is a major issue in consideration of the Water Resources Development Act (WRDA), which is now pending in Congress
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CRS Insight
This report discusses rail-related fatalities and the problem of trespassing by pedestrians on the railroad tracks which is the leading cause of fatalities in rail incidents. Statistics on fatalities, known causes of trespassing, and initiatives to reduce trespassing incidents such as Operation Lifesaver are discussed
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Can Marine Highways Deliver?
Policymakers have been discussing the potential for shifting some freight traffic from roads to river and coastal waterways as a means of mitigating highway congestion. While waterways carry substantial amounts of bulk commodities (e.g., grain and coal), seldom are they used to transport containerized cargo (typically finished goods and manufactured parts) between points within the contiguous United States. This report examines the viability of such a shift, from legislative and economic standpoints
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Status of Mexican Trucks in the United States: Frequently Asked Questions
This report answers frequently asked questions regarding the current plan to permit Mexican trucks into the United States
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Rail Safety Efforts Miss Leading Cause of Fatalities
This report briefly discusses the debate over the reauthorization of the Rail Safety Improvement Act of 2008 (RSIA08; P.L. 110-432). Congress is focusing on steps to prevent train derailments and collisions. Such incidents often receive extensive publicity and cause harm to bystanders, such as the residents of Mount Carbon, West Virginia, who were forced to evacuate after a train carrying crude oil derailed and burned on February 16, 2015
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Harbor Maintenance Trust Fund Expenditures
In 1986, the Harbor Maintenance Tax (HMT) was enacted to fund U.S. Army Corps of Engineers' (USACE or the Corps) activities related to the routine operation and maintenance (O&M) of harbors, namely the dredging of harbor channels to their authorized depths and widths. Economic and equity issues related to HMT expenditures and collections are the main focus of this report. Before analyzing these issues, the report reviews the legislative history of the tax and legal challenges to it, discusses the advantages and disadvantages of alternative funding mechanisms, and describes the commercial context of current dredging activity. The last section identifies legislation related to harbor maintenance funding
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Hurricane Katrina: Shipping Disruptions
This report discusses hurricane Katrina, the extent of the damage, how soon normal port operations can resume, and which shippers in particular will have the hardest time adapting should the disruption continue for an extended period
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