Martin Rojas Vice President, Security & Operations American Trucking Associations May 12, 2011

1. U.S-Mexico Chamber of CommerceTransportation, Infrastructure, Logistics and Security in North America Martin Rojas Vice President, Security & Operations American Trucking Associations May 12, 2011 Washington, DC

2. NAFTA Trucking

3. U.S.-NAFTA Surface Trade Billions MX CN Total Source: Bureau of Transportation Statistics Includes exports & imports for all surface modes, value

4. U.S.-Canada Surface Trade Billions Truck Rail Source: Bureau of Transportation Statistics Includes exports & imports for all surface modes, value

5. U.S.-Mexico Surface Trade Billions Truck Rail Source: Bureau of Transportation Statistics Includes exports & imports for all surface modes, value

6. NAFTA Trucking Provisions • ATA Policy: Supports NAFTA trucking • Improve border efficiency: Eliminate “drayage” system • NAFTA’s Trucking: “Investment” and “Access” • Investment: Fully implemented • Access: Not implemented since 1995 • Only international cargo: NO DOMESTIC CARGO!!! • Compliance with ALL U.S. regulations • Reality: no short/medium term change: • NAFTA trucking a piece of the border puzzle

7. NAFTA Pilot Program • Announced 4/8/11 • Duration: 3 years maximum • No limit on number of participating carriers • Complete OP-1MX, pass PASA, get insurance coverage • Strong enforcement initiatives: • Stage 1: provisional authority, check every truck every time 3 m • Stage 2: checks average border crossings, CVSA decal, Compliance Review w/18 months • Stage 3: permanent authority upon conclusion of pilot • No Hazmat • Pilot Oversight: MCSAC NAFTA subcommittee • Issues with Pilot Program • U.S. funds for EOBR on MX Trucks (Now EOBR or GPS) • Track MX trucks for HOS and Cabotage

8. Supply Chain Security

9. Multiple Security Requirements • Security Plans, Training & Screening • Hazardous Materials • Air Cargo • Maritime Facilities • Other Areas: Food/Ag, Pharma, Chemical, Military • Cross-Border

10. Free and Secure Trade (FAST)/Customs Trade Partnership Against Terrorism (C-TPAT) • FAST = Facilitate trade + secure supply chain • FAST/Exprés (N. Border - 12/02) & FAST/Express (S. Border - 9/03) • C-TPAT/PIP/Empresas Certificadas • Industry-Government Partnership • Highway Carrier Agreement • Minimum Security Criteria • FAST driver screening (US$50) • Seals: ISO 17712 • Further Developments: • Suspension/Restarting C-TPAT benefits • Mutual Recognition: C-TPAT, PIP, AEO

11. Automated Commercial Environment/ International Trade Data System • Critical process for Motor Carriers: • Electronic truck manifest • Deployed and mandated at all land-border POEs • Allow CBP screening and targeting • Compliance with Trade Act of 2002 S.343(a) • Non-FAST = 1 hour; FAST = 30 minutes • ITDS now part of eCustoms Partnership • Part of ITDS: DOT, Census, FDA, INS, CBP • 20-30 signed on; should have 70 to 75

12. Conclusions • NAFTA trucking: Much Ado About… Nada! • Trucks essential to NAFTA trade • NO DOMESTIC CARGO ALLOWED!!! • Mexican carriers must follow ALL U.S. regs • U.S. trucking companies very competitive • Security: Improve Coordination in N. America • One background check, many uses, i.e. TWIC • Risk-based, i.e. Security Sensitive Hazmat

13. Questions? Martin Rojas American Trucking Associations 950 N. Glebe Road Arlington, VA 22203 703 838-7950 mrojas@trucking.org