Comings & Goings: Do Mexican trucks endanger American drivers?

One of the items tucked into the 2009 budget bill was a provision to end a pilot program allowing Mexican trucks access to U.S. highways. In response, the Mexican government is moving to impose tariffs on 90 American products imported into Mexico, valued at $2.4-billion according to an editorial in the San Jose Mercury News.

Enacted as a result of NAFTA (the North American Free Trade Agreement), the pilot program was one step on a path to establish “freer” trade by allowing Mexican truckers to transport goods throughout the U.S. and American truckers the right to deliver freight into Mexico. Before Congress moved to end the program, the outcome of a successful pilot would likely have been the permanent presence of Mexican trucks on U.S. highways and American trucks in Mexico.

Canadian truckers currently have no restrictions that prevent them from driving on U.S. highways.

Voicing the argument against the Mexican truckers, the Teamsters Union claims that Mexican trucks and drivers do not meet the same safety standards required of U.S. truckers and, therefore, threaten American drivers. The Sierra Club takes the position that Mexican trucks do not meet U.S. emission standards and will degrade America's air quality and contribute to pollution-induced illness and disease.

Contradicting the Teamsters' claims, former Department of Transportation Secretary Mary Peters has stated that the Mexican companies in the year-long pilot are required to comply with all U.S. safety regulations and standards and to carry insurance with a licensed U.S. firm. Drivers must hold a commercial drivers license, carry proof of medical fitness, comply with the hours-of-service rules, and be able to understand questions and directions in English.

While I agree with the Teamsters that imposing uniform standards and regulations is only fair, I doubt this is their only motivation in opposing this provision of NAFTA. Competition from Mexican drivers who make a fraction of the Teamster's pay will cause some U.S. truckers to go out of business and their Teamster drivers to lose their jobs. The Teamsters, understandably, want to prevent this to maintain their standard of living.

The benefit of allowing competition will be a more efficient industry with lower costs for shippers, leading to lower costs for consumers. Competition leads to what economists call creative destruction, which benefits society. I favor competition over protectionism, having developed this belief from the perspective of my career in the high-tech semiconductor industry, where the competitive race never ends. Another good perspective on this topic is found in Thomas Friedman's book, The World is Flat.

So let's establish common standards for all truckers, hold them accountable, and open the highways.

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