Revving up
The end of an old haulage dispute will give Mexican exports an edge
EVERY day along the world’s busiest border, an expensive and time-consuming pantomime is acted out. Goods coming from Mexico are painstakingly unloaded from Mexican lorries so that they can complete their journey in identical lorries driven by Americans. The North American Free-Trade Agreement (NAFTA), introduced in 1994, promised each country’s lorry-drivers the right to roam freely in the other’s border states by 1995 and nationwide by 2000. But American unions, fearing that their members would be undercut, persuaded Congress to forbid Mexican hauliers from venturing more than a few miles beyond the frontier—even though 70% of the two countries’ $400 billion a year in trade is delivered by lorry.
Within the next few weeks, however, Mexican lorries should be rumbling north at last, following a deal signed by the two countries on July 6th that ends America’s 16-year violation of the treaty. The Mexican government reckons the agreement will cut Mexican exporters’ shipping costs by 15%. Firms on both sides of the border “can do business and know that the rules of the game will be respected,” says Beatriz Leycegui, Mexico’s undersecretary of trade.
This article appeared in the The Americas section of the print edition under the headline "Revving up"
More from The Americas
Years of growth forged prosaic politics. Now Panamanians are fed up
They will elect a new president on May 5th
Latin America’s farmers are cashing in on hot hot cocoa prices
They aim to spend the windfall improving their technology to expand production
Andrés Manuel López Obrador will haunt his successor
Mexico’s next president will struggle against gangs, poverty and migration