Panel Rejects Limits on Mexican Trucks

A North American Free Trade Agreement panel rejected a U.S. law limiting Mexican trucks’ access to the U.S. market, dealing a blow to the Teamsters’ bid to halt the trucks at the border, a Mexican official said.

Although the Clinton administration wouldn’t comment, saying the ruling isn’t final, the International Brotherhood of Teamsters called on the White House to maintain the 5-year-old limit.

The interim ruling brings to a head one of the most contentious trade disputes concerning NAFTA, the landmark 1993 agreement that virtually eliminated duties among the U.S., Mexico and Canada but has drawn fire from U.S. unions for threatening U.S. jobs.

Under NAFTA rules, if the U.S. refuses to lift the trucking restriction, the two countries must agree on the amount of financial damage it does to Mexico’s trucking industry. The U.S. could then pay equivalent compensation to the Mexican government.

If they can’t agree on compensation, Mexico could place sanctions on U.S. goods and services equal to the amount of the damage. Luis de la Calle, Mexico’s deputy trade minister, indicated that agricultural products, industrial goods and services are potential targets.

The ruling could clear the way for Mexican trucks to carry goods throughout the U.S. without having to submit to the same safety inspections required for U.S. hauling firms.