Trade expert: Inaction on Mexico is costing jobs

The dispute between the two countries stems from a 2009 decision by U.S. trade leaders to end a pilot program that allowed roughly 100 Mexican trucks to transport goods into the U.S. 

The result barred these trucks from crossing the border and promoted Mexico to retaliate by increasing tariffs on approximately 90 U.S.-made products. The move essentially made these products too expensive to compete with Mexican competitors. 

Today’s move by Mexico exacerbates the competitiveness issue and could add to the job loss in the United States as demand shrinks for domestic products. 

“Ignoring the trucking issue and failing to abide by our trade commitments has real economic costs,” Reinsch said in prepared remarks. “Given the state of the U.S. economy and the current trade deficit, the United States cannot afford to continue standing still on this issue while Mexico imposes new harmful tariffs, causing a shift away from U.S. goods.”

A new trucking programs is supposedly in the works, but has yet to materialize.

“The president has stated his willingness to address the trucking issue, and we urge him to work with Congress to develop a viable solution as soon as possible,” Reinsch said.