Mexican trucks could be impacted by updated NAFTA

The U.S. could stymie Mexican trucks providing long-haul trucking services beyond U.S. border commercial zones via annex language attached to the U.S.-Mexico-Canada Agreement (USMCA).The annex says the US "reserves the right" to limit "grants of authority for persons of Mexico to provide cross-border long-haul truck services" outside U.S. border commercial zones, if those limitations "are required to address material harm or the threat of material harm to U.S. suppliers, operators, or drivers."Under the provision, "material harm" means a significant loss in the share of the U.S. market for U.S.-owned long-haul truck companies "caused by or attributable to persons of Mexico." The provision was pushed by the International Brotherhood of Teamsters and the Owner-Operator Independent Drivers Association, which had worked for over 20 years to block NAFTA cross-border trucking provisions.The U.S. pork industry is closely watching the Mexican trucking situation as it could be impacted by the provision. The fear is that Mexico could continue its tariffs on U.S. pork products even when the Trump administration lifts metal tariffs on the country.