Fifth Annual North American Agrifood Market Integration Consortium Workshop
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Fifth Annual North American Agrifood Market Integration Consortium Workshop New Generation of NAFTA Standards. OPTIONS FOR REDUCING CONGESTION AT THE MEXICAN BORDER. Juan Carlos Villa Texas Transportation Institute Texas A & M University System. Agenda. Background

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Fifth Annual North American Agrifood Market Integration Consortium Workshop

New Generation of NAFTA Standards

OPTIONS FOR REDUCING CONGESTION AT THE MEXICAN BORDER

Juan Carlos Villa

Texas Transportation Institute

Texas A & M University System


Agenda l.jpg
Agenda Consortium Workshop

  • Background

  • Commercial Vehicle Border Crossing Process

  • Agricultural Truck Movement Process

  • Opportunities and Recommendations

  • Concluding Remarks


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Background Consortium Workshop

  • Land Trade between U.S. and Mexico has tripled from $86 billion in 1994 to $262 billion in 2006

  • Two very different phases

Source: Bureau of Transportation Statistics, Transborder Surface Freight Data


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Background Consortium Workshop

  • Mexican exports of agricultural products -10% AAGR

  • Seasonality

  • Tomatoes - largest horticultural export

Source: USDA, Foreign Agricultural Trade of the United States Database.

Source: Servicio de Información Agroalimentaria y Pesquera-SAGARPA, Mexico.


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Background Consortium Workshop

  • Mexican vegetable exports are primarily done by truck

  • Concentration

    • Production

    • Ports of entry

Source: Servicio de Información Agroalimentaria y Pesquera-SAGARPA, Mexico.

Source: USDA, Foreign Agricultural Trade of the United States Database.


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Background Consortium Workshop

  • Elements for a potential storm

    • High growth in US/MX trade

    • Infrastructure not keeping pace

    • Concentration

      • Transportation mode

      • Ports of entry


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Unions, non-profit organizations and trucking associations. challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operations

E

V

E

N

T

S

The Mexican government contests the U.S. action before an international arbitration panel

U.S. Administration vows to comply with the arbitration’s panel conclusion, and includes 22 safety requirements in the Transportation Appropriations Act

USDOT and Mexico announce one-year Pilot Program

U.S. upholds the moratorium on direct long-haul trucking from Mexico

Supreme Court overturns Court of Appeals decision, Mexican carriers to apply for operating authority

The panel rules that U.S. could not under the NAFTA impose a blanket ban on the operation of trucks beyond the commercial zones

Demonstration Program

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

ORIGINAL

PLAN

Movement throughout U.S. and Mexican border states was to be allowed

Movement throughout the United States was to be allowed

Commercial Vehicle Border Crossing Process

US/Mexico NAFTA Trucking Provisions


Commercial vehicle border crossing process8 l.jpg
Commercial Vehicle Border Crossing Process challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operations

Drayage

Nogales

Nogales

Culiacan

Chicago


Commercial vehicle border crossing process9 l.jpg

2. U.S. Federal challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operations

2. U.S. Federal

3. State Safety

3. State Safety

1. Mexican Export Lot

1. Mexican Export Lot

Compound

Compound

Inspection Facility

Inspection Facility

Mexican export

Mexican export

CBP primary

Visual vehicle

Visual vehicle

documentation

documentation

Warehouse

inspection

Warehouse

Warehouse

CBP primary

verification and

verification and

safety

safety

/ Yard

/ Yard

(document

/ Yard

/ Yard

inspection

cargo inspection

cargo inspection

inspection)

inspection

inspection

selection

selection

Secondary

Secondary

Mexican

inspection

Mexican

inspection

Detailed state

Detailed state

export

export

VACIS, X

VACIS, X

-

-

truck safety

truck safety

cargo

cargo

Ray,

Ray, FMCSA

Others

inspection

inspection

inspection

inspection

Others

Mexico

Mexico

U.S.A.

U.S.A.

Commercial Vehicle Border Crossing Process

At least 3 potential inspections


Commercial vehicle border crossing process10 l.jpg
Commercial Vehicle Border Crossing Process challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operations

Border Security Programs

Free and Secure Trade

FAST

Segregation of Vehicles based on previously obtained information

C-TPAT


Agricultural truck movement process l.jpg
Agricultural Truck Movement Process challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operations

  • Agricultural exports have additional steps


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Agricultural Truck Movement Process challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operations

Military Roadside Inspections

  • At least in 3 inspection points before reaching Nogales

  • Delays could double the transit time

  • Inspections performed by military personnel

    • Contamination

    • Seal breaking


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Agricultural Truck Movement Process challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operations

Quality Inspections

  • Some products require mandatory quality inspection by USDA officials

    • Tomatoes

    • Grapes

    • Onions

    • oranges


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Agricultural Truck Movement Process challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operations

Driver and Cross Docking

  • Cruzadores – Drivers

    • Require U.S. issued visas

  • Truck reload to comply with US truck weight


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Opportunities and Recommendations challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operations

  • Number of Inspections

    • “Stops” delay shipments, increase chances for contamination and hamper security programs

  • Recommendations

    • Increase coordination

      • U.S.-Mexico

      • Fed-State

      • Public-Private

    • Coordination Areas

      • Procedures

      • Hours of operation

      • Sharing data


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Opportunities and Recommendations challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operations

  • FAST/C-TPAT Participation

    • Low participation

    • Underutilized infrastructure

    • Increase delays

  • Recommendation

    • Modify FAST to accommodate particular requirements of the agricultural products supply chain

    • Work with CBP/Aduanas/SAGARPA developing a pilot project


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Opportunities and Recommendations challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operations

  • Lack of Capacity

    • Physical Capacity

    • Human Capacity

  • Recommendations

    • Promote development of compliant carriers (truckers)

    • Sufficient drivers that can cross into the U.S.

    • Training programs (vehicle safety, security requirements)

    • Increase throughput modifying hours of operation during peak seasons, smoothing demand curve

    • Add FAST traffic lanes at crossings all the way to Mexico


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Opportunities and Recommendations challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operations

  • Inefficient Procedures within Mexico

    • Military inspections

    • Security procedures at origin

  • Recommendations

    • SENASICA to define non-intrusive inspection protocols and train inspectors

    • Work with CBP to C-TPAT certify producers

    • Create a “seal” protocol from origin


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Concluding Remarks challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operations

  • Identify low hanging fruit

  • Institutional framework already exists

  • Key stakeholders need to participate


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Gracias challenge legally the lift of the moratorium because of environmental reasons. Court of Appeals halts operationsThank you

Juan Carlos Villa

Manager Economics, Trade and

Logistics Program

Texas Transportation Institute

979-862-3382

[email protected]


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