Senate Committee Approves Amendment Aimed at Halting Mexico Trucking Program
By Sean McNally, Senior Reporter
This story appears in the July 21 print edition of Transport Topics. Click here to subscribe today.
The Senate Appropriations Committee approved an amendment to the Department of Transportation’s fiscal 2009 budget aimed at halting the U.S.-Mexico trucking pilot program.
By a 19-10 vote, the committee added language that would prohibit DOT from using any money to “establish, implement, continue, or take any other action” to operate the pilot program. The amendment was proposed by Sen. Byron Dorgan (D-N.D.).
The amended bill was sent to the Senate floor for a vote. However, leaders in the House have said they do not intend to bring any budget bills to the floor during the remainder of the current session.
The U.S. Court of Appeals for Ninth Circuit has been deliberating over a series of lawsuits regarding the fate of the pilot program since February.
“My expectation is [DOT is] going to lose in the Ninth Circuit,” Dorgan said, but if not, his amendment “would prohibit funding for a pilot program or any program of longhaul Mexican trucking.”
The House and Senate each previously have attempted to halt the program.
Earlier this year, Dorgan warned DOT he believed the agency was violating a law — passed last year as part of the agency’s budget — preventing funds from being spent “to establish” a cross-border pilot program. The wording is at the center of the lawsuit.
Kristin Schrader, spokeswoman for the Federal Motor Carrier Safety Administration, told Transport Topics that DOT “has adhered to the law and all requirements established by Congress for implementing our obligations under [the North American Free Trade Agreement].”
“Safety continues to be our paramount focus as the demonstration project goes forward, operating safely under current law,” she said.
Rod Nofizger, director of government affairs for the Owner-Operator Independent Drivers Association, told TT that Dorgan’s amendment “should serve as a preemptive message to the administration.”
“Congress doesn’t want the program running now and certainly will not be happy with any attempt to extend or expand it come September,” he said.
In recent interviews with TT, Peters and FMCSA Administrator John Hill have said that as the program nears its September conclusion, DOT is considering an extension of the pilot program.
Before the vote was held on the amendment, Senate Republicans defended the program, saying it was beneficial to business and to the U.S.-Mexican trading relationship.
“I think this is a very bad idea, because we have gained significantly in terms of customer service, in terms of minimizing damage to goods hauled. It speeds up delivery, lowers cost for Americans who purchase the goods. It provides more efficient shipping, allowing our trucks to do business in Mexico, and taking on new export opportunities,” said Sen. Kit Bond (R-Mo.), the ranking Republican on the subcommittee overseeing DOT.
Bond said if Congress ended the program, “Mexico has the right — and I understand they may exercise it — to impose significant fees and tariffs on U.S. goods.”
Mexico’s leading trucking association has served notice to U.S. officials that it intends to sue for damages under NAFTA, arguing that the closed border has hurt its industry.
The two sides currently are in negotiations before going to a formal arbitration process.
Dorgan said the safety concerns outweighed any economic risks.
“There is a substantial difference, and weakness, with respect to standards in Mexico and standards in our country,” he said. “If the standards were equivalent I would not be interested in pursuing this, but they are not nearly equivalent and I think there are safety issues as a result of this.”
