NAFTA: A deal’s a deal

By Patrick Burnson, Executive Editor
July 07, 2011 - LM Editorial

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

The questions for the most recent Semiannual Economic Forecast, which was released last week, included: 1-has the strength of the U.S. dollar had a negative, negligible or positive impact on their organization’s profits?; 2-has the net impact of the depressed prices of oil and related commodities been negative, negligible, or positive for their organization’s profits; and 3-how would they characterize the combined impact of their organization’s profits on the strength of the U.S. dollar and the depressed prices of oil and related commodities.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico dropped 5.8 percent on an annual basis in March to $90.5 billion.

Shippers sourcing their goods out the Port of Oakland’s largest marine terminal will soon need to make an appointment drayage providers before their cargo is released.

U.S. Carloads fell 10.6 percent at 244,290, and intermodal containers and trailers were off 6.5 percent at 262,693.

Now that the deal, which had to clear several regulatory hurdles in multiple countries, is official, FedEx executives were able to speak a little bit more freely, albeit being somewhat guarded in regards to certain integration specifics at the same time.

Article Topics

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

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]

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