The omnibus fiscal year 2009 appropriations bill approved by the House of
Representatives last week includes a provision that would end a pilot project allowing
Mexican long-haul trucks to operate within the U.S. However, domestic interests are
urging President Obama not to let the project die.

The pilot project allows up to 100 Mexico-domiciled motor carriers to operate beyond
the border commercial zones and the same number of U.S. carriers to operate in
Mexico. It was launched in September 2007 and extended last fall through
September 2010. In 2007 Congress passed legislation aimed at ending the project,
but the Department of Transportation pointed out that the bill only prohibited the
“establishment” of such a program, not the continuation of the one already
underway.

As a result, the new language states that none of the funding made
available by the bill “may be used, directly or indirectly, to establish, implement,
continue, promote, or in any way permit a cross-border motor carrier demonstration
program to allow Mexican-domiciled motor carriers to operate beyond the
commercial zones along the international border between the United States and

Mexico, including continuing, in whole or in part, any such program that was initiated
prior to the date of the enactment of this Act.”

A number of domestic agriculture and business organizations wrote to President

Obama recently urging him to “resist all efforts to halt or impede” the Mexican truck
project. The elimination of this project could prompt up to $2 billion in retaliation
from Mexico, the letter warned, which is “a top export market for U.S. goods and
services providing jobs to millions of U.S. workers.” The letter asserted that the
participating Mexican carriers have excellent safety records and that the project
lowers transportation costs and reduces congestion at the border.