I am a Mexican Citizen, and my business is in the U.S. Can I apply for operating authority to transport cargo within the U.S.?
I am a Mexican Citizen, and my business is in the U.S. Can I apply for operating authority to transport cargo within the U.S.?
No. If the business is headquartered in the United States, but is owned or controlled (greater than 55%) by a Mexican citizen or resident alien, you may not apply for Motor Common Carrier of Property Authority to engage in point-to-point transportation within the U.S. However, you may apply for Motor Passenger Carrier Authority and/or for United States-based Enterprise Carrier of International Cargo Authority.
Background:
The Bus Regulatory Reform Act of 1982, and its Section 6 allows for a Presidential executive order prohibiting the issuance of certificates or permits to motor carriers domiciled in or owned by citizens of a contiguous foreign country (a moratorium}. The change from the moratorium and allowance of Mexican investment in U.S. trucking companies came about first by NAFTA but wasn’t officially allowed until a Presidential Executive Order in June of 2001. A July 27, 2004 internal memo from attorney Suzanne E. Newhouse explains “The Basics of Enterprise Authority:”
Present State of Enterprise Authority
As of January 1, 2004, the NAFTA obligated its participant countries to allow for Enterprise Authority. Enterprise Authority is the ability of investors in one NAFTA country to purchase up to 100% interest in a transportation company domiciled in another NAFTA country. The transportation company may provide passenger carrier services, such as inter-city bus services or tourist transportation services, or property carrier services, such as the transportation of international cargo between points in the domiciled NAFTA country.
Presently, the U.S. complies with this NAFTA obligation. Investment restrictions were lifted in June 2001, thus encouraging Mexican investors to purchase U.S. based carriers and provide transportation of international cargo between points within the U.S. Despite U.S. adherence to the NAFTA mandate for enterprise authority, Mexico has not taken the necessary actions to comply with this NAFTA requirement and U.S. investors cannot enjoy the same benefits Mexican investors have with U.S. companies.
The NAFTA treaty in 1994 allows for Mexican investors and for the transportation of international freight in the US. In 2001, the Presidential moratorium was lifted to specifically meet the provisions in the NAFTA treaty, but does not expand limits on international cargo only for Mexican investors in US companies.