A U.S. Supreme Court decision that paves the way for Mexican trucks to operate in the United States could help alleviate the truck-capacity shortage that continues to plague U.S. shippers. But that's not likely to happen anytime soon: Several industry groups as well as the Federal Motor Carrier Safety Administration (FMCSA) want safety issues to be resolved before those carriers do business in the United States.

Last year a coalition of environmental, labor, and consumer groups sued to block President Bush's 2001 executive order that Mexican motor carriers be allowed to handle cross-border traffic in compliance with the North American Free Trade Agreement. (NAFTA does not allow carriers to move domestic shipments in another country.)

Their suit contended that the U.S. government is required to conduct an environmental impact review before admitting Mexican trucks into the United States, on the grounds that Mexican vehicles are more polluting than their U.S. counterparts.

The 9th U.S. Circuit Court of Appeals in San Francisco sided with the plaintiffs, but last month the Supreme Court agreed with the Bush administration's position that the president had the power to act on foreign trade matters without interference from the courts or federal agencies.

That decision was met with mixed reviews. Some shipper groups applauded the decision, which could put more trucks on the road to haul their freight. "It's a tight transportation market," says John Ficker, president of the Arlington, Va.-based National Industrial Transportation League (NITL). "If we can add an ounce more of capacity, this would be a good thing."

But others say the court's decision could have unwanted consequences. Todd Spencer, executive vice president of the Owner-Operator Independent Drivers Association in Grain Valley, Mo., believes the entry of Mexican trucks won't solve the U.S. driver shortage, which in his view is tied to low wages and poor working conditions.

"Quite likely it will create another opportunity for a handful of motor carriers to tap into even lower-cost labor and depress rates," Spencer suggests. "That will make it harder for the rest of the carriers to keep and attract drivers."

Although the White House prevailed at the nation's top court, the ruling doesn't mean U.S. borders will open right away to Mexican carriers. Congress had previously imposed a requirement that the FMCSA conduct safety reviews of Mexican vehicles before they enter the country. "The next step is to complete arrangements with Mexican officials to conduct safety audits," says U.S. Department of Transportation spokesman Brian Turmail.

Discussions seeking permission for U.S. inspectors to conduct safety audits inside Mexico are underway between U.S. and Mexican officials. Turmail notes that they are also discussing a reciprocal arrangement that would allow U.S. motor carriers to operate within Mexico. American truckers have not operated south of the border since 1982.

It's too soon to tell whether the admission of Mexican truckers will help shippers or hurt U.S. motor carriers. "FMCSA has not finished the inspection procedures that carriers from Mexico will be required to undergo before they enter the United States," says Spencer. "I assume that it will be a period of months."

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