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M.S. Carriers Targeted By Mexican Trucking Group

Canacar, Mexico’s National Trucking Association, has a bone to pick with Memphis-based M.S. Carriers

by Staff
October 18, 2000
2 min to read


Canacar, Mexico’s National Trucking Association, has a bone to pick with Memphis-based M.S. Carriers.

According to Journal of Commerce Online, the group has threatened a national strike if Transportes EASO, an M.S. Carriers affiliate, does not cease operations in Mexico, and announced that fact in a full-page ad in Mexico’s newspapers last week.
The article said that one of Canacar's main causes since the signing of the North American Free Trade Agreement has been the defense of the clause of NAFTA that reserves domestic point-to-point trucking to Mexicans. The group says 85% of EASO's shipments are domestic.
"We are requesting the immediate revoking of permits awarded to Transportes EASO SA de CV for providing services reserved exclusively for Mexicans, or Mexican companies with foreign exclusionary clauses, as well for having distorted the legal nature of neutral investment," Canacar wrote in an open letter that was signed by Canacar's national executive council and 44 regional delegations.
"If these complaints by the national trucking industry, Canacar, and its executive council are not addressed soon, we cannot be responsible for any action taken by the industry to show its disagreement," the letter said.
Truckinginfo.com attempted to contact M.S. Carriers for comment, but phone calls were not returned.
Neutral investment is a legal structure created by the Commerce Ministry to circumvent restrictions on foreign investment in some industries through non-controlling shares. Canacar complains that the concept did not exist when NAFTA was signed.
The ad also mentions Schneider National and Celadon Group as having received special Commerce Ministry treatment through subsidiaries Transpo Virel and Servicios de Transportacion Jaguar, reported Journal of Commerce.
Canacar said in Schneider’s case, ownership through a bank trust has been sold, and that Celadon's operations have been limited to international hauling.
The group also implied that Celadon may have benefited from nepotism. Juan Pablo de la Calle, the original legal owner of Jaguar, is the late brother of Luis de la Calle, currently vice minister of international trade negotiations.
Contract Freighters Inc., Burlington, TSI International, Roadway Express, Werner Enterprises Inc. and Swift Transportation were cited as having acted within Mexican law, reported JoC.

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