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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.

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

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