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NAFTA
- Transportation Related Provisions
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The North American
Free Trade Agreement (NAFTA), signed on December 17, 1992, is a
trilateral economic agreement among Canada, Mexico, and the United
States. The objective of NAFTA is to phase out barriers to trade in
goods and services in North America, eliminate barriers to investment
and strengthen the protection of intellectual property rights. Since
trucking is the principal means of commercial transportation between the
countries, the NAFTA includes a number of provisions which impact
current cross-border truck and bus operations. Currently:
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U.S. trucks are
not permitted to operate in Mexico, Mexican trucks are limited to
operations in the commercial zones along the border with the United
States.
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Mexico permits
no foreign investment in transportation companies based in Mexico.
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The United
States permits foreign investment, but limits Mexicans to a
non-controlling interest in truck and bus companies based in the
United States.
NAFTA
Transportation Provisions
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Trucks
ACCESS
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By December
1995, the United States and Mexico were to have allowed access to
each other's border states for the delivery and backhaul of cargo.
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By 2000, all
restrictions on cross-border trucking are to be lifted. U.S. trucks
will be able to conduct cross-border transportation to and from any
point in Mexico; Mexican trucks will be able to carry cargoes across
the border to and from any point in the United States.
INVESTMENT
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Mexico
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In December
1995, Mexico was to have allowed Canadian and U.S. investment of up
to 49 percent in carriers established in Mexico to transport
international cargo.
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In 2001,
investment of up to 51 percent will be permitted.
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In 2004, Mexico
will permit 100 percent foreign investment in truck and bus
companies.
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Mexico will not
lift restrictions on foreign investment in trucking companies that
carry domestic cargo.
INVESTMENT
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United
States
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By December
1995, Mexican carriers were to have been permitted to establish
Mexican-owned or controlled subsidiaries in the United States to
transport international cargo.
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The United
States does not lift operating or investment restrictions on
carriage of domestic cargo.
NAFTA
Transportation Provisions
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Buses
ACCESS
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In January
1994, Mexico and the U.S. lifted all cross-border restrictions on
charter and tour buses.
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In 1997, Mexico
and the United States were to have lifted all restrictions on
granting authority to carry passengers from one country to another
over regular routes in scheduled operations.
INVESTMENT
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Mexico
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By December
1995, Mexico was to have allowed Canadian and U.S. investment of up
to 49 percent in carriers established in Mexico to transport
international cargo and in bus companies.
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In 2001,
investment of up to 51 percent will be permitted.
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In 2004, Mexico
will permit 100 percent foreign investment in bus companies.
INVESTMENT
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United
States
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By 2001, the
United States will permit 100 percent Mexican investment in bus
companies based in the United States.
Leasing
:
Mexico has eliminated restrictions on carriers' use of leased
vehicles.
Current Status of
NAFTA Provisions
On December 18,
1995, the Department of Transportation announced a delay in the NAFTA
implementation schedule because of safety concerns associated with the
operation of Mexican motor carriers in the United States:
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Implementation
of the provision to permit Mexican trucks to operate in the U.S.
border states scheduled be become effective on December 18, 1995 was
postponed.
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Implementation
of the investment provision scheduled to go into effect on December
18, 1995, and the bus provision that was to have been effective on
January 1, 1997, were also delayed.
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