NAFTA Cross-Border Activities John Gray, FMCSA Jan Balkin, - PowerPoint PPT Presentation

NAFTA Cross-Border Activities John Gray, FMCSA Jan Balkin, TML/NADSF 1/7/2006 2006 Audit Workshop 1

NAFTA Overview � 1982 – Congressional moratorium on USDOT grants of authority to Mexican and Canadian carriers � 1992 – US/MX/CN sign NAFTA � 1995 – Operations throughout border states � 2000 – Operations throughout US 1/7/2006 2006 Audit Workshop 2

US/Mexico Truck Traffic on US Highway Network, 2020 (Tons) Federal Highway Administration Office of Freight Management and Operations 1/7/2006 2006 Audit Workshop 3

Ground Transportation - Responses Purchase majority ownership in Mexican � companies Interline agreements � FMCSA accepted Mexican carrier applications for � US authority but did not act on them Additional congressional requirements imposed � for safety considerations 1/7/2006 2006 Audit Workshop 4

Ground Transportation - Responses � 2001: USDOT begins planning for eventual opening – Working Group � Collaboration with Canada, Mexico, States, IRP/IFTA organizations � Formation of Working Group 1/7/2006 2006 Audit Workshop 5

NAFTA Fuel Tax and Registration Working Group � US Border States of Arizona, California, New Mexico, Texas � IRP Inc. � IFTA Inc. � USDOT � Secretariat of Communications & Transportation (USDOT-equivalent)/Economía (Commerce Dept- equivalent)/Hacienda (Treasury Dept-equivalent) � Transport Canada 1/7/2006 2006 Audit Workshop 6

How the Working Group Fits In � Facilitate cross-border operations � Based on 3-step framework � Long-term – Mexico joins IRP and IFTA � Interim – Mexican carriers base in border states � Short-term – Trip permit operations 1/7/2006 2006 Audit Workshop 7

Principles Adopted � Pursue vision of 3-step process � Develop timelines � Recognize constitutional and legislative limitations of each entity 1/7/2006 2006 Audit Workshop 8

Principles Adopted � Consistent with provisions of NAFTA, no impediment to commerce � No single state bearing an unreasonable administrative or financial burden on implementation 1/7/2006 2006 Audit Workshop 9

Schedule Targets � Interim solution: Summer 2006 (for planning purposes) 1/7/2006 2006 Audit Workshop 10

US Operational Issues Discussed � Assignment of Mexican registrants (IRP), licensees (IFTA) � Credentialing of Mexican carriers 1/7/2006 2006 Audit Workshop 11

Operational Issues, continued � Audit requirements � Fee/Tax Collections 1/7/2006 2006 Audit Workshop 12

Address operational issues to be implemented � Here to listen to audit discussions � Identify common concerns that may affect border states’ audit activities of Mexican carriers � Take back to Working Group to identify additional training, educational opportunities 1/7/2006 2006 Audit Workshop 13

Next Steps Internal state preparations � Continued collaboration between USDOT/SCT/TC � Training and educational opportunities for Mexican � carriers (use MX SCT, carrier “chambers” (trade associations) Track account volumes � Evaluation component � 1/7/2006 2006 Audit Workshop 14

Summary � Working toward interim solution � Continue US/Mexico/Canada cooperation � Address other issues as they arise � Be prepared to implement when border opens officially 1/7/2006 2006 Audit Workshop 15

1/7/2006 2006 Audit Workshop 16