Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Mexican couriers seek changes to trade deal to access U.S. market

Published 10/25/2018, 06:32 PM
Updated 10/25/2018, 06:40 PM
© Reuters.  Mexican couriers seek changes to trade deal to access U.S. market

By Sharay Angulo

MEXICO CITY (Reuters) - Courier companies in Mexico seeking better access to the lucrative U.S. market are pressuring lawmakers to try to improve the terms of a trade deal struck on Sept. 30 with the United States and Canada, industry officials said.

U.S. firms, such as FedEx Corp (N:FDX) and United Parcel Service Inc (N:UPS), are allowed to operate in Mexico alongside domestic companies, but Mexican couriers, like market leader Estafeta, are barred from using their own vehicles for shipments between U.S. cities.

The new U.S.-Mexico-Canada Agreement (USMCA), due to replace the North American Free Trade Agreement, would keep those rules intact, in line with U.S. President Donald Trump's vows to protect U.S. jobs.

"We've always asked for a level playing field," said Manuel Armendariz, president of Mexico's packaging and courier association, which represents about 30 firms.

The industry was lobbying Mexican lawmakers to press for changes, Armendariz said.

Vanessa Rubio, a Mexican senator, said Mexico could address the issue through national legislation. She also noted that USMCA led to the creation of a transport committee with members from all three countries, which could consider complaints.

The U.S. Trade Representative's Office declined to comment.

Mexican freight forwarders are concerned about a clause the United States included in the new pact, which the three countries' leaders aim to sign by the end of November.

That clause could allow the United States to revoke authorization of Mexican freight-forwarders operating long-haul cross-border trips, such as from Tijuana to New York, if U.S. firms can show they are losing market share to Mexican rivals.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Mexican firms are upset they do not have the same right.

"If they can cancel without prior notice ... we also want this right," said Enrique Gonzalez, president of Mexico's National Chamber of Freight Transport (CANACAR).

CANACAR is seeking a side letter to the trade deal that would resolve the conflict, said its vice president, Jose Refugio Munoz.

Mexican carriers authorized to make international trips are a small percentage of the U.S. freight market.

The U.S. Department of Transportation said it authorized 41 Mexican companies to provide long-distance services, comprising 493 drivers. In the United States, there are about 3.5 million freight drivers, it said.

"We're very far from being (a threat)," Mexican Economy Minister Ildefonso Guajardo said in an appearance in front of lawmakers this week.

The Mexican Economy Ministry did not respond to a separate request for comment on the matter.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.