U.S. Transportation Secretary Mary Peters Monday warned that now is not the time to halt efforts to implement trucking provisions in the North American Free Trade Agreement because doing so could hurt an already struggling U.S. economy.
The DOT's cross-border trucking pilot program, which started last September and is scheduled to last a year, has been extremely controversial.
The press conference was held as the full U.S. Senate transportation committee is scheduled to old a hearing on the program Tuesday afternoon. U.S. Sen. Byron Dorgan, D-N.D., has said he wants to ask the administration why it has ignored the law that was supposed to cut off funding for the program. He's referring to an amendment he sponsored in the 2008 omnibus appropriations bill signed by President Bush Dec. 26. The Federal Motor Carrier Safety Administration has said the amendment's wording bars it only from "creating" any new cross-border project with Mexico, not from continuing an existing program.
In fact, FMCSA Administrator John Hill has talked about possibly extending the program, according to published reports. He says not enough carriers have signed up for the pilot program because of its uncertain future, and one way to gather the safety data needed would be to extend the program.
Peters said at Monday's event that a coalition of more than 69 U.S. companies and agricultural and business organizations support the project because of the benefits it provides to U.S. exporters, who every year ship billions worth of products and produce into Mexico. Should Congress choose to end the project, Mexico has the right under the rules of NAFTA to impose fees and tariffs on U.S. goods that would surely result in lost business and lost jobs, she said.
"Our drivers and our workers don't deserve a timeout from success and prosperity. So my message to Congress is clear. If you want to help American businesses thrive, support American agricultural success, and champion American highway safety, then keep on trucking with cross border shipping," Secretary Peters said.
The DOT presented information from Dermot Hayes, professor of economics and finance, Iowa State University, on the likely employment impacts if Mexico decides to retaliate for the U.S. not making good on its NAFTA responsibilities.
Hayes says according to "reliable confidential sources inside Mexico, Mexican policymakers have constructed a "retaliation list" that hits industrial sectors in key U.S states - items for which it will restrict imports from the U.S. into Mexico, such as almonds (current export value $23.5 million) to target Calfornia; shampoos and sunglasses and three other product lines to target Illinois; coin/token operated games to target Nevada.
Based on the draft retaliation list, Hayes predicts the potential impact of Mexican retaliation on the U.S. economy could be between 10,227 U.S. jobs and 40,909 U.S. jobs. "Job losses may be felt in 17 states as a result of the failure of the United States to honor its commitments on the NAFTA trucking provisions."
The Owner Operator Independent Drivers Association called the whole thing "a sad attempt at economic fear mongering," said OOIDA Executive Vice President Todd Spencer. "Despite their lip service, they well know that the pilot program is outside of the law."
The association contends that the economic interests of a few have been placed above the safety and security of many.
Spencer finds humor in the Secretary's contention that the cross-border pilot program presents U.S.-based truckers with a 'promise of prosperity'.
"Safety standards in Mexico simply are not on par with those in the United States, and few U.S. trucking companies even appear interested in going south," added Spencer. "The program is being spun as a solution to a problem that doesn't exist."
As for the "retaliation list," Teamsters General President Jim Hoffa doesn't buy it. Hoffa pointed out that the United States buys $70 billion more goods from Mexico than it sells to that country. "I don't buy it," Hoffa said in a conference call with reporters. "They've got a $70 billion trade surplus. They'd be foolish to do it."
The DOT's cross-border trucking pilot program, which started last September and is scheduled to last a year, has been extremely controversial.
The press conference was held as the full U.S. Senate transportation committee is scheduled to old a hearing on the program Tuesday afternoon. U.S. Sen. Byron Dorgan, D-N.D., has said he wants to ask the administration why it has ignored the law that was supposed to cut off funding for the program. He's referring to an amendment he sponsored in the 2008 omnibus appropriations bill signed by President Bush Dec. 26. The Federal Motor Carrier Safety Administration has said the amendment's wording bars it only from "creating" any new cross-border project with Mexico, not from continuing an existing program.
In fact, FMCSA Administrator John Hill has talked about possibly extending the program, according to published reports. He says not enough carriers have signed up for the pilot program because of its uncertain future, and one way to gather the safety data needed would be to extend the program.
Peters said at Monday's event that a coalition of more than 69 U.S. companies and agricultural and business organizations support the project because of the benefits it provides to U.S. exporters, who every year ship billions worth of products and produce into Mexico. Should Congress choose to end the project, Mexico has the right under the rules of NAFTA to impose fees and tariffs on U.S. goods that would surely result in lost business and lost jobs, she said.
"Our drivers and our workers don't deserve a timeout from success and prosperity. So my message to Congress is clear. If you want to help American businesses thrive, support American agricultural success, and champion American highway safety, then keep on trucking with cross border shipping," Secretary Peters said.
The DOT presented information from Dermot Hayes, professor of economics and finance, Iowa State University, on the likely employment impacts if Mexico decides to retaliate for the U.S. not making good on its NAFTA responsibilities.
Hayes says according to "reliable confidential sources inside Mexico, Mexican policymakers have constructed a "retaliation list" that hits industrial sectors in key U.S states - items for which it will restrict imports from the U.S. into Mexico, such as almonds (current export value $23.5 million) to target Calfornia; shampoos and sunglasses and three other product lines to target Illinois; coin/token operated games to target Nevada.
Based on the draft retaliation list, Hayes predicts the potential impact of Mexican retaliation on the U.S. economy could be between 10,227 U.S. jobs and 40,909 U.S. jobs. "Job losses may be felt in 17 states as a result of the failure of the United States to honor its commitments on the NAFTA trucking provisions."
The Owner Operator Independent Drivers Association called the whole thing "a sad attempt at economic fear mongering," said OOIDA Executive Vice President Todd Spencer. "Despite their lip service, they well know that the pilot program is outside of the law."
The association contends that the economic interests of a few have been placed above the safety and security of many.
Spencer finds humor in the Secretary's contention that the cross-border pilot program presents U.S.-based truckers with a 'promise of prosperity'.
"Safety standards in Mexico simply are not on par with those in the United States, and few U.S. trucking companies even appear interested in going south," added Spencer. "The program is being spun as a solution to a problem that doesn't exist."
As for the "retaliation list," Teamsters General President Jim Hoffa doesn't buy it. Hoffa pointed out that the United States buys $70 billion more goods from Mexico than it sells to that country. "I don't buy it," Hoffa said in a conference call with reporters. "They've got a $70 billion trade surplus. They'd be foolish to do it."
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