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To: Ilaine who wrote (5383)	6/27/2001 10:41:50 AM
From: Ilaine	Respond to of 74559

>>U.S.'s House Votes to Block Permits For Mexican Trucks Under Nafta Associated Press WASHINGTON -- In a surprising setback for President Bush and his plans to further open trade with Mexico, the House of Representatives voted Tuesday to block the Transportation Department from issuing permits that would let Mexican trucks operate throughout the U.S. By a 285-143 roll call, the House approved a provision by Rep. Martin Sabo (D., Minn.) that would scuttle the administration's plans to begin allowing thousands of Mexican trucks to begin shipping goods to and from any point in the U.S. beginning next January. The increased truck traffic was to occur under the North American Free Trade Agreement, which was enacted in 1993. The battle continued the fight between unions and business that has marked Congress' easing of trade barriers in recent years. Mexican trucks currently are restricted to commercial zones stretching north of the U.S. border into California, Arizona, New Mexico and Texas. Under Nafta, Mexican trucks were to have full access to U.S. roads by January 2000. Citing safety concerns and under union pressure, the Clinton administration blocked that from happening, but a Nafta arbitration panel ruled in February that the U.S. was violating the treaty. The final verdict, which upheld a preliminary decision in November 2000, meant the U.S. had to open its border to Mexican trucks or face a penalty that could reach as much as $2 billion a year. The Transportation Department said about 63,000 Mexican trucks crossed the border in 1999, the latest year for which data is available. In February, when an international trade board ordered the U.S. to allow the Mexican trucks on all roadways -- and President Bush agreed to do so -- the number was thought to be as high as 4.5 million. That figure was cited by the media and groups opposed to a policy change, and the Transportation Department never sought to correct it. Transportation officials say the confusion stemmed from trucks versus truck crossings. Mr. Bush had pledged to honor the treaty and proposed permitting Mexican companies that say they comply with American safety standards to operate here for 18 months while their claims are verified. During Tuesday's debate, Republicans said Mr. Bush's plan would work and said Democrats were out to prevent Mexican trade and truck traffic from growing. "There are interest groups here in the United States that don't want under any circumstances to have Mexican trucks driving on our highways," said Rep. Jim Kolbe (R., Ariz.). But Democrats said they preferred inspections of Mexican companies and vehicles before the trucks even enter the U.S. The House had voted 219-205, largely along party lines, to refuse to even consider those requirements. But then, in an effort to prevent his amendment from being ruled out of order, Mr. Sabo altered his proposal to simply prohibit the Transportation Department from spending money to process any applications from Mexican companies. "Nafta is a trade agreement, not a suicide pact," said Rep. David Obey (D., Wis.). "We are not required to allow unsafe trucks on America's highways." The issue pitted the International Brotherhood of Teamsters, representing truck drivers, against the American Trucking Association, representing trucking companies, and the businesses that ship goods with them. While the drivers face increased competition from their Mexican counterparts, American companies worry that Mexico would make it harder for them to do business there if U.S. restrictions on Mexican truckers were tightened.<< interactive.wsj.com