Trade rep, senator say ending Mexico truck program damaging economy

Sen. Maria Cantwell says the Mexico truck dispute has cost the U.S. $2.6 billion and 25,000 jobs. (Associated Press/Harry Hamburg)

By LYNDON FINNEY
The Trucker Staff

3/4/2010

WASHINGTON — U.S. Trade Representative Ron Kirk admitted Wednesday that the tariffs imposed by Mexico in retaliation for the U.S. ending the cross border trucking program had hurt the U.S. economy.

“It has not been a positive for our trade policy. We want to get it resolved,” Kirk told members of the Senate Finance Committee at a hearing on the U.S. 2010 trade agenda.

Kirk’s comments came at the end of a brief dialogue between Sen. Maria Cantwell, D-Wash., near the end of the hearing.

Meanwhile, 56 lawmakers have sent a letter to Kirk and Secretary of Transportation Ray LaHood urging the Obama administration to resolve the nearly year-long dispute that started when Congress killed the program in the 2009 appropriations bill.

Kirk’s answer to Cantwell’s question about the administration’s plan to come up with a new cross border plan did not elicit any new news about the issue.

Kirk thanked committee members for helping pass a 2010 appropriations bill that did not include language prohibiting a cross border program, and then said, “President Obama, as you know, has asked Secretary LaHood to help us move forward and work with Congressional leadership to come up with an acceptable program to get this resolved. It is having a very negative impact, particularly on our agricultural industries in Washington and Texas and we’d like to come up with an acceptable program to move forward.”

Cantwell noted that the U.S. Chamber of Commerce estimated the dispute has cost the U.S. economy some $2.6 billion and 25,000 American jobs.

The first signatures on the letter sent to Kirk and LaHood are those of Rep. Rick Larsen, D-Wash., and Rep. Dennis Cardoza, D-Calif., who it was reported on thetrucker.com on Feb. 5 were in the process of drafting a letter calling for a resolution to the dispute and were preparing to ask colleagues to sign the letter. To read the story click here.

The letter, delivered March 1, noted that the tariffs have had “a devastating impact on our local industries and area economies. Therefore, given the importance of this matter to our constituents, we urge you to immediately implement a plan of action to rectify this situation.”

A spokesperson for Kirk’s office said the U.S. Trade Office and the Department of Transportation were working on a response to the letter.

The lawmakers wrote that the current situation was unsustainable and untenable.

"Our constituents need help immediately and we implore you to work quickly to implement a solution that ensures safety and normalizes trade. Please communicate your plans for a solution so we are better able to understand the administration's strategy," the lawmakers said.

Congress terminated funding in the fiscal year 2009 omnibus appropriations bill for a pilot program that allowed trucks from Mexico into the U.S. to deliver loads beyond the commercial trade zone and trucks from the U.S. to do the same in Mexico.

Lyndon Finney of The Trucker staff may be reached to comment at editor@thetrucker.com.