OOIDA optimistic USMCA will address issues with Mexican carriers

The United States-Mexico-Canada Agreement, also known as USMCA or NAFTA 2.0, had been in effect since July, but how is enforcement of the trucking provisions going?

On Sept. 29, Jay Grimes, the Owner-Operator Independent Drivers Association’s director of federal affairs, was featured on America’s Work Force Union Podcast addressing enforcement of USMCA. Specifically, Grimes discussed USMCA enforcement issues relevant to independent truck drivers.

During the segment, host Ed Ferenc brought up the issue of Mexican trucks coming into the United States. Ferenc mentioned how Mexico’s safety guidelines are much different than federal regulations in the United States. The question is whether or not USMCA will address those long-standing issues.

According to Grimes, eventually, USMCA will solve many of those issues. Grimes pointed to a provision in the updated North American trade deal that establishes a review process. Currently, that process is under an information collection phase. However, once that review process is in place, investigations can be launched to determine whether a Mexican carrier or driver is causing economic harm against American drivers.

Grimes stated that owner-operators and independent drivers have been particularly affected by the lack of Mexican carrier oversight before USMCA.

In addition to equipment safety standards, Mexico’s laws are more lax in the areas of inspections, training and environmental regulations. Grimes said those factors create both highway safety and economic issues.

Ferenc also mentioned how Mexico may be having second thoughts after USMCA went into effect. Grimes said this apprehension relates to the investigations that are being led by the U.S. International Trade Commission. Just a few weeks ago, the commission proposed the adoption of interim rules that essentially formalizes language in the trade deal.

“Mexico kind of said, ‘Hey, we might not like this as much as we thought,’” Grimes said.

However, those concerns are a little too late. Grimes said it is unlikely the U.S. International Trade Commission will make any changes. Both OOIDA and the International Brotherhood of Teamsters have filed joint comments supporting the commission’s interim rules. Grimes said he expects the commission to formally adopt those rules later this year.

“When you look at the safety stats and the safety data from the Department of Transportation, Mexican crash rates are about two and a half times higher than the average American crash rate,” Grimes said. “So certainly interacting with those drivers on the road is a safety concern.”

Grimes said the process set up right now is not reciprocal. There are plenty of Mexican carriers coming into the United States, but not very many U.S. carriers going into Mexico. Grimes said that once all of the processes included in USMCA are in place, Mexican carriers will be restricted to haul within the border zone while reducing the amount unsafe carriers crossing the border.

In addition to the investigation process, the trade agreement directs the Department of Transportation to look into current operating authorities it has issued to Mexican carriers.

The official July 1 start date kicked off a 180-day period for the U.S. DOT to conduct a survey of operating authorities to see if they are operating safely. After that report is filed, the DOT inspector general will review the actions and procedures taken by the DOT.

OOIDA is in communication with all relevant federal agencies while the review period is underway.