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North American Trucking Industry Keeps an Eye on U.S. Political Definition

The trade war and tariff policy could impact the trucking movement.

T21 Media by T21 Media
30 September, 2024
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CANCUN, Q. ROO. – Freight trucking dominates trade in North America. According to figures from the U.S. Bureau of Transportation Statistics (BTS) , last July, U.S. trade with its partners reached 134.2 billion dollars (mdd), of which 86.9 billion dollars were operated by trucking.

In a global environment where the United States has increased the protection of its market with new tariff schemes for China , but also due to the definition of the presidential elections in the United States, auto transport could have an impact.

Within the framework of the National Convention of the National Chamber of Cargo Transportation (Canacar) , representatives of the transportation industry in Mexico, the United States and Canada presented the challenges facing the activity , where the political scenario in the United States is one that will be most closely followed.

Bob Costelo, vice president of the American Trucking Association (ATA) , recalled that the commercial ties between Mexico and the United States mean that on average, each day, the trucking units that cross both countries transport more than 1.5 billion dollars.

For this reason, Costelo anticipated that he is concerned about the threats of border closures because of the impact it may have on trade. In his view, regardless of who wins the presidency of the United States, it is clear that both candidates do not agree with the current trade policy and the tariff tool that has been implemented.

In Costelo’s view, the imposition of tariffs on China will be reflected in increased movements of auto transport between Mexico and the United States, as well as in the Mexican economy, although he did not fail to recognize the threat posed by measures such as the recent one by Donald Trump and his intention to impose 200% tariffs on John Deere if it moves production to its facilities in Nuevo León and Coahuila.

Based on data from the United States Department of Commerce , in the cumulative period January – July 2024, Mexico remains the main trading partner of the United States with 486 billion dollars in the referred period, and which is the result of being the second importer only behind Canada, and the first exporter to that territory with 291 billion dollars.

In addition to the situation that may arise, representatives of the transportation industry recognized that trade at the borders must be streamlined , where inefficiencies impact regional productivity.

Manuel Sotelo, Vice President of the Northern Region of Canacar, emphasized that commercial streamlining requires the development of infrastructure , updating the current infrastructure and reviewing where necessary; the review technologies to be more precise in inspections; as well as the necessary personnel to meet operational needs.

In this regard, Martín Rojas, senior advisor for the Americas for the International Road Transport Union (IRU) , recalled that at one point a 24-hour pilot program was implemented at customs with Customs Border Protection (CBP) , however, there were no operations at times like 2 am.

Manuel Sotelo recalled that this type of program must have a broader horizon, since with a duration of six months it is difficult for companies to modify their operating structures in such a short time.

Comment and follow us on X:  @DidierRT / @GrupoT21

 

Tags: ATACanacarCANACAR CONVENTIONIRUMARTIN ROJAPRESIDENTIAL ELECTIONS

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