North American Free Trade Agreement

Kirk Davenport (TX)Annual IFTA Business Meeting

July 20-21, 2007Chesterfield, MO

NAFTA Demonstration Project

Announced February 23, 2007

Up to 100 Mexican carriers to be approved

Up to 100 US carriers to be approved

Authority good for one year from the date the first provisional operating authority is issued

NAFTA Demonstration Project

First Pre-Authorization Safety Audits (PASA) or Inspections

Carrier required to obtain insurance from US-based company

Projected first authorities would be granted in 60 days

Few details provided regarding the process for selecting Mexico-domiciled carriers, number of vehicles, security for hazmat operations, or oversight and review of the demonstration project

Reaction to Demonstration Project

Congressional reaction swift Senate scheduled hearings March 8 House scheduled hearing March 13

Lawsuit seeking an injunction of cross-border program April 23

Owner-Operator Independent Drivers Association Sierra Club Public Citizen Environmental Law Foundation International Brotherhood of Teamsters Brotherhood of Teamsters Auto and Truck Drivers Local

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NAFTA Senate Hearing

Senate Appropriations Subcommittee on Transportation, Housing, & Urban Development

Secretary of Transportation Mary Peters FMCSA Administrator John Hill Related Federal Agencies Transportation Organizations Public Citizen Teamsters Union

Resulted in proposal to prohibit FMCSA to spend appropriated money to implement Demonstration Project

NAFTA House Hearing

House Transportation and Infrastructure Subcommittee on Highways and Transit

DOT Inspector General asked to: Investigate what checks are in place to ensure Mexican drivers are in compliance with U.S. hours-of-service laws, both while operating in the U.S. and prior to reaching the border;

Determine what oversight and control measures are in place to ensure that the Mexican carriers’ drug and alcohol testing programs are at least equivalent to the U.S. testing regime;

Identify the process by which carriers participating in the demonstration project obtain insurance issued by a U.S. company, and any challenges to such efforts; and

Report any problems with inaccurate or incomplete data on vehicles and drivers submitted by Mexico-domiciled motor carriers to DOT.

Safe American Roads Act (HR 1773)

Introduced March 29 – Pass by House May 15

Number of Mexico-domiciled trucks used in the Demonstration Program limited to 1,000

Requires program to be in place for US-domiciled carriers to operate beyond commercial zone in Mexico

Requires DOT Inspector General to verify mechanisms in place to apply US safety law and regulations to Mexico-based carriers

Requires Secretary of Transportation to publish demonstration project in Federal Register seeking public comment (published May 1, comment period ends May 31)

Establishment of independent review panel to monitor and evaluate the demonstration project

DOT Inspector General to report to Congress no later than 12 months after beginning of demonstration project

Secretary may carry out demonstration program for no more than 3 years

Terminates demonstration project if all provisions of the Safe American Road Act are not followed

NAFTA Trucking Safety Act (HR 1756)

Introduced March 29 – Referred to Subcommittee on Immigration, Citizenship, Refugees, Border Security and International Law

Publish list of FMCSA regulations & how Mexican carriers, trucks, & drivers will be required to comply

Publish list of enforcement tools & conditions required by law available to federal & state motor carrier safety enforcement personnel

Implement plan with Homeland Security to monitor and enforce immigration and customs regulations

Law enforcement access to driver, criminal and security data

DOT Inspector General must verify independently compliance with 22 Congressional requirements

Plan to enforce English language proficiency

NAFTA Border State Readiness

Each border state ready to receive applications for IRP & IFTA credentials

Training session presented in Monterrey and Mexico City for SCT personnel

Training sessions for Mexican carriers have been conducted at four US border cites

NAFTA Border State Readiness

FMCSA has funded extra positions in each border state

Question whether funding will expire before team is allowed to play a game

No agreement on bond amount but each jurisdiction will require bonds

QUESTIONS?