Subscribe to our free, weekly email newsletter!



NAFTA: A deal’s a deal

By Patrick Burnson, Executive Editor
July 07, 2011

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

image
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 .(JavaScript must be enabled to view this email address).


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!

Recent Entries

In this new world of Omni-channel—profitable and efficient anytime, anywhere fulfillment is the goal.

The 19 ocean carrier members of the Ocean Carrier Equipment Management Association (“OCEMA”) have joined with six major East and Gulf coast ports to develop a common streamlined “Terminal Weighing Approach.”

Rail carloads, at 238,353 were down 11.4 percent annually, and U.S. containers and trailers were off 7.2 percent annually at 260,026.

This network is comprised of a multifaceted approach that will mesh its global logistics network with 3D printers at more than 60 U.S.-based The UPS Store locations and a collaboration with SAP to foster an end-to-end industrial offering that will mesh SAP’s supply chain offerings with Big Brown’s on-demand manufacturing services and global logistics network.

As global supply chains grow in size, reach, and complexity, they become more vulnerable to a myriad of threats and hazards that can damage businesses and threaten the global economy: terrorist attacks, natural disasters, corruption, labor disputes, and more.

Article Topics

Blogs · 3PL · Global Trade · Trucking · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA