The recent cross-border trucking resolution between the U.S. and Mexico now allows Mexican trucks to travel across the border and into the heartland of the United States as long as both the drivers and the trucks meet certain requirements. In turn, Mexico slashed tariffs on U.S. products with the likely effect of boosting U.S. exports to Mexico. The resolution came after nearly 20 years of dispute on the matter.
How will the resolution affect trade in the future? With Mexico being the third largest supplier of goods to the U.S., and the U.S. being the largest supplier to Mexico, the resolution definitely has mutual benefits. The graph below illustrates U.S. imports from Mexico by truck, rail, and pipeline. As talks pointed to a resolution nearing at the start of this year, the graph illustrates imports in the first quarter of 2011 jumping to the highest value seen in four years. It will take time on both sides of the border to implement the resolution, but the overall effects look to be positive, in terms of boosting trade, for both countries.