by Star69
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Okay, so that wonderful NAFTA bill from a decade or so ago included a provision for a Cross Border Demonstration Project, which allowed 10 American trucking companies (and 52 American drivers) to cross the southern U.S. border and deliver loads in Mexico, while at the same time allowing twice as many Mexican companies and Mexican drivers to haul anywhere within the United States, even all the way to Maine. (Why twice as many Mexicans as Americans, I have no idea nor see the wisdom in that!)

People in the U.S. were outraged (including most U.S. truck drivers who feared losing even more loads to foreigners), claiming Mexican trucks and drivers were not under the same stringent safety restrictions as U.S. trucks and drivers and the Mexican trucks would be menaces on our highways, so that provision was put off and put off. Mexico even sued the U.S. to implement the program.

So, all right, the program is conducted, initially for one year, but thanks to former DOT head Mary Peters (who doesn't know her butt from a hole in the ground) an additional two years were added to the program!

Senator Jim Dorgan tried unsuccessfully to put a stop to the program back in 2007, but one stupid little word in the legislation screwed that up.

Now just a week or so ago, a new bailout bill was signed, and one of the provisions within that bill was legislation that did put an end to the Cross Border Demonstration Program. (Jim Dorgan learned his lesson and this time made damned sure each and every word left no wiggle room for a different interpretation!)

Now Mexican trucking companies can't drive further than the commercial zone at the border, just like they used to. Everything is back to square one. Just like the old days, American drivers haul export loads to Laredo, Texas and drop them, then hook up to a northbound import load and haul it north. They aren't losing work to the foreigners any more.

Mexican drivers come across the U.S. border, hook to those loads and pull them across the border into Mexico.

The Cross Border Demonstration Project, if permanently allowed, would also have put a lot of Mexican drivers out of work. American drivers must drop southbound loads at the border, where Mexican short-haul drivers come across, hook to them and take them across the border into Mexico. Thus there are Mexican companies at the border that hire Mexican drivers to do nothing but cross the border and hook to these loads, take them just a few miles into Mexico and drop them, where long-haul Mexican drivers take them further south. This program would have eventually put every one of those short-haul companies out of business.

Well, for some strange reason, the end of this program makes Mexico angry (what's new?) so to retaliate against us they increased import tariffs on American goods coming into Mexico!

Here's where the irony comes in.

Those higher tariffs included agricultural products, which includes Washington State Pears, Cherries and Apricots...which are picked by (who else?) Mexicans!

I'm still laughing.

Washington pear growers face new tariff by Mexico

The Associated Press
Published: 03/20/09 12:05 am

YAKIMA - Washington state apples escaped a tariff imposed by Mexico in retaliation for a halt to Mexican trucks having access to United States highways, but other Northwest crops weren't so lucky.

A lengthy list of products - including pears, cherries, apricots, Christmas trees and frozen potatoes - are subject to tariffs as of Thursday. The full list of products represents $2.4 billion in trade nationally.

Fresh pears, the only affected crop being exported to Mexico at this time of year, will see an increase of up to $4 per box, industry officials said. The current average per-box price is $18.

Mexico is a $40 million market for Washington and Oregon growers and is the Northwest's largest export market for Anjou pears.

Washington and Oregon have shipped 1.36 million boxes so far this year on top of almost 2 million boxes last year, according to the Yakima Valley Growers-Shippers Association.

The average Northwest pear crop exceeds 13 million boxes.

"I think, without a doubt, this will hurt the pear guys," said Mark Powers, vice president of the Northwest Horticultural Council in Yakima. The council represents the tree-fruit industry on trade and other issues.

Cherries and apricots won't be affected unless the tariff stretches into summer.

Washington pear growers face new tariff by Mexico | The News Tribune - Business | Seattle-Tacoma News, Weather, Sports, Jobs, Homes and Cars | South Puget Sound's Destination


I guess the Mexicans really like Washington apples because they didn't increase the import tariffs on those...yet. (Or maybe it's because they can't grow apples in Mexico?) :rolleyes:
  • Profile picture of the author HeySal
    Paybacks could get quite explosive on this issue. US might end up imposing their own tarriffs - and those will more than likely hit more than just the Mexican border.
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    Sal
    When the Roads and Paths end, learn to guide yourself through the wilderness
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