San Antonio Hispanic Chamber of Commerce Position Statement: Support for fulfilling NAFTA’s cross-border trucking issue with Mexico Eddie Aldrete Chairman Raúl Lomelí-Azoubel 2012 Chairman Norma Martinez Lozano Past Chairman 2011 Executive Committee Chairs Raul Lomeli-Azoubel Membership Noah Garcia Finance / Treasurer Sonya Medina Williams Marketing / Communications Donald J. Gonzales Business & Economic Development Jesse J. Hereford Government Affairs Anita Uribe Martin Small Business Albert Carrisalez Leadership Development Louis Barrios Education Johnny Hernandez Secretary Jorge Herrera Legal Advisor Honorable Hope Andrade Chair Advisor Fernando Reyes Chair Advisor Honorable Armando Ortiz Rocha Honorary Chair Ramiro A. Cavazos President & CEO BACKGROUND: Through the North American Free Trade Agreement (NAFTA), the United States agreed to grant Mexican trucks access to U.S. highways starting in 2000. Although a pilot program was not started until 2007, it operated successfully until it was terminated by Congress in the FY2009 Omnibus Appropriations Bill due to alleged safety and environmental concerns1. In response to the United States’ failure to adhere to the provisions of the NAFTA agreement, beginning in March 2009, the Mexican government imposed retaliatory tariffs on U.S. exports to Mexico. Since that time, U.S. exports into Mexico have faced additional tariffs of over $4 billion. These tariffs hurt our exports to Mexico, which in turn has cost us jobs in the U.S. In a recent meeting between President Obama and Mexican President Felipe Calderón, the U.S. pledged to begin taking the necessary steps to fulfill our commitment to grant access to U.S. highways for Mexican trucks. Fulfilling this commitment is not only vital to our relationship with Mexico, our second-largest export market, but also with the implementation of the NAFTA trucking provisions, San Antonio will be able to offer shippers an economical alternative for Mexico-related logistics and distribution related activities. HIGHLIGHTS: Cross-Border Trucking Agreement: Allows Mexican and U.S. Long-haul carriers to obtain permanent operating authority to deliver international cargo across both countries, as long as they comply with the pertinent rules and regulations Recognizes and credits the experience and safety record of Mexican carriers that participated in the previous demonstration program of 2009 Trade Sanctions imposed on US products will be suspended, yet Mexico reserves it’s right to reinstall the tariffs should the US fail to comply Allows for door-to-door delivery of international goods across our borders - once implemented, the cross border trucking provisions in NAFTA will allow shipments bound for Mexico to be consolidated in San Antonio and trucked without interruption directly to destinations in the Mexican interior Offers the possibility of eliminating significant inefficiencies in our trade transport that may lead to more jobs, safer roads, and greater competiveness for both nations and North American region RECOMMENDATION: The North American Free Trade Agreement (NAFTA) granted complete cross-border access for land transportation between Mexico and the United States and has created many jobs and economic development in the border region of Texas. Staff recommends that the Board of Directors of the San Antonio Hispanic Chamber of Commerce adopts the following position statement in support of NAFTA’s recent cross-border trucking agreement: STATEMENT: The San Antonio Hispanic Chamber of Commerce, the first Hispanic Chamber in the nation, representing 900 businesses in the greater San Antonio area, fully supports NAFTA’s cross-border trucking agreement, and calls on the United States government and President Obama to honor and comply with the NAFTA agreement in its entirety. IMPLEMENTATION: The San Antonio Hispanic Chamber of Commerce will communicate this position statement to leaders in our community as well as other officials and Hispanic Chamber members via our weekly membership newsletter, and on our website at www.sahcc.org. 1 Arizona Department of Environmental Quality, through EPA grants paid for Mexican truck owners to replace old mufflers with new catalytic converters that will reduce harmful diesel emissions by up to 30 percent. Funds came from Border 2012 grant by the EPA. Pearl Brewery – Full Goods Building 200 East Grayson Street, Suite 203, San Antonio,Texas 78215 Tel 210.225.0462 | Fax 210.225.2485 | www.sahcc.org