This paper discusses trade and the impact of the North American Free Trade Agreement (NAFTA) upon transportation. It is noted that the U.S. will be a beneficiary in the automotive industry. The apparel industry will probably shift to Mexico. Total jobs lost in the U.S. economy over eight years could be half a million. However, most estimates expect a total net gain in jobs. NAFTA should open Mexico's market for international transport. U.S. firms can physically enter the Mexican market. They can set up international subsidiaries, wholly-owned new companies. They can make equity investments in existing Mexican firms. They can establish terminals, repair facilities, communications equipment, and other infrastructure. NAFTA will open up access of American trucking firms to business in Mexico. Railroads and intermodal companies are going to be able to market their services directly to the Mexican shippers and consignees. If a Mexican carrier wants U.S. operating authority or wants to haul loads in the U.S., he is under the jurisdiction of the U.S. Department of Transportation (DOT) National Highway Traffic Safety Administration (NHTSA) and all the other regulatory agencies. They have to operate under U.S. Environmental Protection Agency (EPA) regulations in terms of smog. Mexican carriers are going to have to modernize their fleet to ensure compliance with U.S. safety standards. The infrastructure is inadequate in Mexico, and current estimates of cost of improvement run from $300 million to $450 billion.

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  • Supplemental Notes:
    • This paper was presented in Forum Session "NAFTA'S Impact on Transportation: An Overview". These proceedings, Volume 8 of the TRF 36th Annual Conference, were funded by the UPS Foundation.
  • Corporate Authors:

    Transportation Research Forum

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  • Authors:
    • Cunningham, W
  • Conference:
  • Publication Date: 1994


  • English

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Filing Info

  • Accession Number: 00728806
  • Record Type: Publication
  • Report/Paper Numbers: Volume 8
  • Files: TRIS
  • Created Date: Nov 15 1996 12:00AM