NAFTA: A deal’s a deal

News that the U.S. and Mexican governments have finally inked a Memorandum of Understanding on a new cross-border trucking program will be good for American shippers and, more importantly, save American honor on a promise made and kept.

By ·

News that the U.S. and Mexican governments have finally inked a memorandum of Understanding on a new cross-border trucking program will be good for American shippers and, more importantly, save American honor on a promise made and kept.

The National Association of Manufacturers (NAM) were among the first industry groups to applaud this move, noting that by bringing the U.S. into compliance with our NAFTA (North American Free Trade Agreement) commitments, shippers will face far fewer retaliatory tariffs on hundreds of products now being exported to this vital trading partner.

At the same time, LM readers will note that there’s been a growing trend to “near-source” goods as a hedge against disruptions in the global supply chain. While most multinationals will continue to rely on existing pipeline partners in distant parts of the world, having a manufacturing base and educated labor pool in this hemisphere represents a significant element of risk mitigation.

We are not suggesting, however, that NAFTA trucking is entirely without a potential downside. Shippers will have to be especially vigilant when it comes to choosing a 3PL partner and/or regional broker when dipping into cross-border trade for the first time.

For related articles click here.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

3PL · Global Trade · Trucking · All Topics
Latest Whitepaper
How Lean is your Lean Quality Program?
Avoid quality program bureaucracy that can sap logistics productivity and increase costs
Download Today!
From the September 2016 Issue
Indecision revolving around three complex supply chain elements—transportation, technology and organizational structure—finds many companies waiting to commit to a strategic path. However, waiting too long will only result in a competitive disadvantage that will be difficult to overcome in today’s fast-paced, global economy.
Time for Asia’s ports to rebuild
Is the freight recession upon us…again?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Supply Chain Best Practices: Visibility to In-Transit Inventory
During this webcast you'll learn on how various organizations have gained instant access to in-transit parcels and given access to this information to stakeholders.
Register Today!
EDITORS' PICKS
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...

Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....