Tex-Mex Combo Proves Unpopular

Tex-Mex Combo Proves Unpopular
August 13, 2008

The American press has been chock full of articles describing the showdown in Congress regarding the upcoming deadline signaling the end of the first, and perhaps only, year of the Mexican truck pilot program. To refresh the memory for those who have bypassed these articles, the program allows specially registered Mexican trucks to travel anywhere in the United States. Prior to this program, trucks from Mexico were limited to a zone approximately 25 miles north of the border. At this point, cargo destined for points in the U.S. would have to be transferred to American trucks for further transport.

Briefly, the program was originally approved during the Clinton administration as part of the North American Free Trade Agreement (NAFTA). Since the truck program's inception last year, it has faced fierce opposition from a number of sources including the International Brotherhood of Teamsters and various American trucking associations. The opposition argued that American drivers would be at risk due to far lower safety standards of Mexican vehicles. Additionally, cheap Mexican labor would put American trucking jobs at risk.

The Bush administration, strongly in favor of extending the program, has maintained that Mexican trucks participating in the program are inspected with greater scrutiny than American vehicles. Also, according to top officials at the Federal Motor Safety Association, the Mexican companies are thoroughly screened prior to being accepted, and their drivers are held to the same standards as U.S. drivers.

The opposition has filed suit in Federal court and is awaiting judgment. Congressional opponents are trying to force an end the program. The Bush Administration is trying to find loopholes that will allow the program to continue.

The central question, though, is who is actually benefiting or suffering from this program.

One year after its inception, only 27 Mexican companies, with 104 trucks, and 10 U.S. companies, with 52 trucks are participating. The program was intended to have the participation of 100 companies per country.

The impact of the program has been marginal. Recently, a couple of participating Texas companies were interviewed. Both admitted that they haven't truly profited from the program, nor would they lose any major investments, were the program to be terminated.

In other words, although there may be noted political gains or losses surrounding the program's continuation or demise, that's where the benefits and damages will end. On the roads, the impact has been negligible and, apparently, so it will remain.

As the saying goes, "the best-laid plans of mice and men often go awry."