Cross-border trucking pact between US and Mexico

US President Barack Obama and Mexican President Felipe Calderon have announced a new trucking pact that will be signed by both parties in June. The pack is said to increase Mexican trucking business throughout the United States. Since there are various tariffs at the border, Mexico is said to decrease or cancel these taxes if the US complies with the rules and regulates of the agreement. In addition, the agreement states that there will be no limit of how many truck companies can cross the border. The agreement is said to pass three phases until the trucks are permitted to drive across the borders. First and foremost, an application and inspection of all trucks crossing the border, it concludes with an authorization for business. Then, a three month period of through inspecting of all trucks. Lastly, the companies which have passed the first two phases are granted permission for 18 months of operation. This article is really interesting because it connects to what we have been doing in our classroom simulations. There have been a lot of agreements and alliances signed over the course of the simulation and also some countries have imposed tariffs for crossing the border. It is fascinating to see this play out in our make believe continent. In addition, I think this agreement will be beneficial to both the American and Mexican economy.

By: Jasmina Vukovic

http://www.cnn.com/2011/WORLD/americas/03/08/mexico.us.trucking/index.html