The Dispute Between Mexico Ad United States Regarding...

Summary The case talks about dispute between Mexico ad United States regarding international trucking implemented by NAFTA. In year 1994, trade agreement was passed by NAFTA allowing trucks from Mexico to cross borders and deliver goods to their ultimate destination in USA to increase efficiency. Previously the trucks were not allowed to pass US border, the goods were unloaded and then loaded to American trucks, the process took lot of time and money. Two-thirds of the trade within NAFTA uses roadways, many people were in favor of the agreement as there will be more competition from Mexican trucking firms, which will lower transportation cost. The trade agreement was however opposed by Teamsters (labor union in America and Canada which†¦show more content†¦This time Mexico government did not spare United States and under the NAFTA agreement, imposed tariffs on some $2.4 billion of goods shipped from USA to Mexico. After witnessing several consequences, US promised to come up with new program that will address the problems, however nothing was in action till 2010. Problems- USA faced many problems under NAFTA agreement. These were due to Teamsters, Congress and lastly the effects US had to face because of increased tariff rates by Mexico. Each problem is summarized in detail- †¢ Teamsters - According to Teamsters Mexican trucks were old, dirty and were more dangerous than American drivers. The drivers had poor safety records and did not follow the safety and environmental standards. In America there are limited hours for driver which is ignored in Mexico. Because of the pressure from Teamsters, US had to pull its hand from NAFTA agreement. †¢ Congress – Congress was involved in thwarting the NAFTA agreement that was administered under President Bush. It was even involved in killing pilot program along with Teamsters in year 2007. †¢ Tariffs- After abandonment of NAFTA in 2009, Mexico imposed tariffs on some $2.4 billion of goods shipped from USA to Mexico. This act - Hit California, which was an important exporter - Tariffs on grapes rose to 45% - Tariffs on wine, almond, pears and juices were 20% - The raising of tariff costs about 26000 US jobs. Applications of key themes in the