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A special presentation for the WMTA By: Jose Luis Quezada

Mexico-New Cross Border Trucking Decree. A special presentation for the WMTA By: Jose Luis Quezada. BACKGROUND. In accordance to NAFTA, international freight services were supposed to be progressively released over a determined time-frame.

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A special presentation for the WMTA By: Jose Luis Quezada

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  1. Mexico-New Cross Border Trucking Decree A special presentation for the WMTA By: Jose Luis Quezada

  2. BACKGROUND • In accordance to NAFTA, international freight services were supposed to be progressively released over a determined time-frame. • The restrictions were not released by the United States; therefore, Mexico filed a claim for United States’ default and a Panel of Dispute resolutions was created. • The Panel issued the corresponding recommendations GUTIERREZ, DIAZ, ESPARZA, S.C.

  3. BACKGROUND • As consequence of the above both countries implemented a demonstrative tryout program. • The tryout program started on April 2007; therefore the Mexican Department of Federal Transportation (Dirección General de Autotransporte Federal) published in the Federal Official Gazette dated July 7th, 2011, a Decree that creates the New International Freight Cross-Border Trucking Services  in Mexico GUTIERREZ, DIAZ, ESPARZA, S.C.

  4. WHAT IS THIS PERMIT? • It’s a permit authorizing American Trucking Companies to travel freely through the entire territory of Mexico, beyond the border area. • It’s a temporary permit (for 18 months) with possibility to become permanent. • Is issued by the Mexican Department of Federal Transportation with head offices in Mexico City. GUTIERREZ, DIAZ, ESPARZA, S.C.

  5. PURPOSE… • Maintain competitive advantages. • Adoption of policies to eliminate discriminatory treatment. • Take advantage of the proximity between markets.

  6. WHO CAN BE ENTITLED TO APPLY? American Carriers (Entities or Individuals) domiciled in the United States of America. GUTIERREZ, DIAZ, ESPARZA, S.C.

  7. RESTRICTIONS • It only allows International Shipments (between United States of America and Mexico). • The permit is temporary (18 months) with the possibility to become permanent. • The petitioner is not entitled to transfer or allow the use of the permit to third parties. GUTIERREZ, DIAZ, ESPARZA, S.C.

  8. ECONOMIC, LOGISTIC AND SECURITY BENEFITS. • Less time on goods mobilization: • The opening of this international freight service will give further possibilities to the mobilization of goods that the ones currently available.

  9. ECONOMIC, LOGISTIC AND SECURITY BENEFITS. • Cost reduction and intermediaries. • Help to reduce transportation costs by eliminating middlemen; therefore, American trucking companies will be entitled with their own trucking equipment to transport their goods and assure deliveries anywhere in Mexico by increasing efficiency in delivery times and quality standards.

  10. ECONOMIC, LOGISTIC AND SECURITY BENEFITS. • Increase the goods’ safety • Increase the security of the goods, trucks and drivers on the roads in both countries, with the certainty that they are traveling with trusted drivers and vehicles, employed by the same company, with own equipment to avoid mishaps or accidents, and increase the efficiency of their companies and / or the confidence of their customers.

  11. IN CONCLUSION… • This Decree which creates the new form of Temporary Permit Cross-Border Freight Trucking service facilitates trade, reducing transport times of goods without distances restriction. GUTIERREZ, DIAZ, ESPARZA, S.C.

  12. IN CONCLUSION… • Promotes regional economic activity in a safe and reliable environment; • Promotes efficiency in logistics, shipping and delivery of merchandise; • Security and reliability of both, drivers and vehicles, among other advantages. GUTIERREZ, DIAZ, ESPARZA, S.C.

  13. THANKS…

  14. GUTIERREZ, DIAZ, ESPARZA, S.C A special presentation for the WMTA By: Jose Luis Quezada jlq@nafta-law.com

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