Wednesday, April 6, 2011

Much Ado About Nada?

(DC Velocity – Mark B. Solomon)

What if they threw open the U.S.-Mexican border to all qualified trucking companies, but no Mexican truckers showed up?

It would indeed be an ironic outcome of a battle that has dragged on for more than 11 years, culminating in March 2009 in a mini-trade war that has cost
U.S. exporters billions of dollars in lost revenue and, according to U.S. Chamber of Commerce estimates, led to the loss of more than 25,000 American jobs.

Yet it is entirely plausible, according to various experts. For all the publicity surrounding the March 3 announcement by President Barack Obama and Mexican President Felipe Calderón of a tentative resolution to the cross-border dispute, few expect the status quo to change for years to come. The agreement would allow carriers on both sides of the border to operate beyond a 25-mile “commercial zone,” but that doesn't necessarily mean they'll take advantage of that freedom. In fact, Mexican truckers will have little, if any, desire to operate deeper into
U.S. commerce than they already do, these experts say.

“The majority of Mexican truckers don't want any part of it,” says Herb Schmidt, president and CEO of Con-way Truckload, the truckload unit of Con-way Inc. Schmidt estimates that only 5% of the 80 Mexican truckers that have cross-border interline relationships with Con-way Truckload have even considered serving the
U.S. market beyond the commercial zone. Read more here.