DOT Proposes Solution to U.S.-Mexico Border Trucking Dispute

This initial concept document was shared with Congress and the government of Mexico.

DOT Says It Has Been Working to Resolve Dispute Since 2009

After the cross-border pilot program was terminated in March 2009, Secretary LaHood and other Administration officials met with lawmakers, safety advocates, industry representatives and other stakeholders to address a broad range of concerns. This initial concept document, which is a starting point in the renewed negotiations with Mexico, addresses concerns raised during that process.

Formal Proposal for Public Comment Expected in Coming Months

A formal proposal, which the public will have the opportunity to comment on, is expected to be announced in the coming months.

Concept Plan Includes Pre-Operations, Operations, and Transparency Elements

The initial concept plan includes three elements, details are as follows:

Pre-Operations Elements

Application: Interested Mexican Carriers apply for long-haul operating

• Passenger and hazardous materials carriers will not be included in this program.
• Subject to negotiation with Mexico, the number of carrier and truck participants in first phase of program will be managed to ensure adequate oversight.

Vetting:

• Applicant carriers’ information is vetted by the Department of Homeland Security (DHS) and Justice Department (DOJ).
• Driver specific information from applicant carriers is vetted by DHS and DOJ.

Pre-Authority Safety Audit (PASA)

• Review carrier’s safety management programs (vehicle maintenance, drug and alcohol testing programs, driver qualification files, etc.).
• Review driving records for only those drivers who would participate in cross-border long haul operations.
• Review the combined driving record of drivers who would participate in the program (U.S. driving history, Mexican Federal license history, and Mexican State license history).
• Inspection of each vehicle to be used in the phased in program.
• Check all participating vehicles for Federal Motor Vehicle Safety Standards (FMVSS) Certification.
• Check all participating vehicles for Environmental Protection Agency (EPA) emissions standards.
• Conduct an English Language Proficiency and U.S. Traffic Laws knowledge test of each driver participating in the program, conducted in English.
• Review of all convictions, crashes and inspections in Mexico in determining carrier’s safety record.

Comparability:

• Document Mexican Commercial Driver’s License process to demonstrate comparability.

Insurance:

• If PASA is successfully completed, applicant must submit evidence of financial responsibility (insurance) to FMCSA.

Operations Elements

Monitoring:

• Inspections -- For an agreed upon period of time a carrier’s long-haul operations, vehicles and drivers would be inspected by FMCSA each time one of its vehicles crosses the northbound border.
• Electronic Monitoring - The program will use available technology to provide redundant monitoring of program’s trucks, drivers and carriers.
• Initial, phased in access.

Follow Up Review (1st Review):

• Each Mexican trucking company would undergo a follow-up review to ensure continued safe operation. After the follow-up review, the company’s trucks would be subject to border inspections at FMCSA’s normal border inspection rate² and subject to inspections in the interior of the U.S. at the same rate as U.S. companies. Additionally, the company must maintain a valid safety inspection sticker.

Compliance Review (2nd Review):

• After successful completion of a compliance review and earning a Satisfactory Safety Rating, the participating carrier will be eligible for full operating authority.

Federal Motor Carrier Safety Administration Reviews:

• Insurance Monitoring -- FMCSA monitors the participating carriers’ insurance filings to ensure there are no lapses in coverage.
• FMCSA conducts compliance reviews of drug and alcohol collection and testing facilities used by participating carriers.

Transparency Elements

Federal Register Notice:

• FMCSA publishes a Federal Register notice describing the proposed program and docket appropriate analyses and seeks comment on the program.

Publically Accessible website

• FMCSA develops and maintains a public website that provides information on participating carriers.

Federal Advisory Committee:

• DOT establishes a Federal Advisory Committee Act group with representation from a diverse group of stakeholders.

Periodic Reports to Congress:

• DOT is required by statute to submit annual reports to Congress.

Office of the Inspector General:

• DOT OIG is required by statute to submit reports to Congress.

¹Since termination of the U.S.-Mexico Cross Border Trucking Pilot in March 2009, Mexico imposed higher tariffs on 89 U.S. origin products starting on March 19, 2009. The tariffs were estimated to cost U.S. businesses $2.6 billion per year in lost sales. The list of products was modified effective August 19, 2010 to generally strengthen the sanctions that were previously imposed. The Obama Administration had been working to try to come up with a new trucking scheme so that the U.S. and Mexico can move beyond their dispute over this issue.

²Drivers’ licenses will still be checked at a 50% rate in accordance with requirements in the Department of Transportation and Related Agencies Appropriations Act of 2002 (Public Law 107-87).

(See ITT’s Online Archives or 04/16/10 news, 10041633, for BP summary of 78 members of Congress writing USTR Kirk asking for the renegotiation of the NAFTA cross-border trucking provision.

See ITT’s Online Archives or 03/10/10 news, 10031010, for BP summary of DOT Secretary LaHood discussing the pilot and saying the Administration is finalizing a trucking proposal.

See ITT's Online Archives or 03/18/09 news, 09031805, for BP summary of FMCSA's formal termination of the U.S.-Mexico cross-border trucking pilot.

See ITT’s Online Archives or 08/19/10 news, 10081921, for BP summary of Mexico’s modified list of U.S. products subject to retaliatory trucking dispute tariffs.

See ITT’s Online Archives or 03/31/09 news, 09033130, for BP summary of the ITA’s descriptions of the original 89 U.S.-origin products subject to Mexico’s retaliatory tariffs.)