Nafta and Mexican Trucking

In: Business and Management

Submitted By katinoorie
Words 268
Pages 2
Case Discussion Questions
1. What are the potential economic benefits of the trucking provisions in the NAFTA treaty? Who benefits?
The potential economic benefits are the greater economic efficiencies due to the free trade in goods and services that are meant to yield low cost of cross-border transportation which can eventually lower the storage and warehouse decline saving more money. Also reduction in unload-upload or short-haul truckers would save money and time. An indirect benefit would be the cost reduction duet to the competition in transportation companies. This is a mutual benefit agreement between USA and Mexico so the citizens of both the countries will benefit.

2. What do you think motivated the Teamsters to object to the trucking provisions in NAFTA? Are these objections fair? Why did Congress align itself with the Teamsters?

Teamsters union opposed this in USA arguing:
• Mexican truck drivers had poor safety record
• Mexican trucks did not adhere to the strict safety and environmental standards of the United States
• The trucks were older, dirtier and more dangerous than American trucks.
• Drivers in Mexico are not taken off the road if they commit a serious traffic violation in their personal vehicles
• Limits on the hours a driver can spend behind the wheel are ignored in Mexico.

Objection regarding the Mexican trucks are not fair as the trucks were required to pass the 22 new safety standards set by the congress. This objection is also not fair because the Mexican trucks used for the pilot program proved to have more safety records than the US counterparts after 18 months of…...

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