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 Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in March dropped 5.3 percent annually to $96.1 billion.

U.S. carloads were down 9.1 percent annually at 273,387, and intermodal volume was up 4.3 percent annually at 281,090 containers and trailers.

NRF's Jonathan Gold explains that the past year was replete with disruptions, slowdowns and partial shutdown, which can no longer be the norm, saying ports and dockworkers must adapt to ensure they provide shippers with the predictability and stability they need.

Last month, I gave a presentation to a group of senior transportation and supply chain executives. It was entitled “Predictable Surprises,” because it addressed how transportation and supply chain professionals can eliminate unpleasant surprises by looking at and evaluating issues in the transportation industry, and projecting how those issues will affect their companies.

The Port of Los Angeles (POLA) and the Port of Long Beach (POLB) said this week that they have formally established working groups, which they said will aim to seek new supply chain efficiencies, and focus on various aspects of port operations, including peak operations and terminal optimization in an effort to augment the San Pedro Bay port complex.

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. Patrick covers 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. Contact Patrick Burnson

Comments

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA