U.S. Transportation Secretary Mineta Implements President’s Order on Mexican Ownership Of U.S. Carriers
Topics: Norman Y. Mineta
U.S. Department of Transportation
June 6, 2001
FOR IMMEDIATE RELEASE
Wednesday, June 6, 2001
Contact: Ben Langer
U.S. Transportation Secretary Norman Y. Mineta today announced two modifications to the moratorium on new grants of authority to Mexican carriers in accordance with the North American Free Trade Agreement (NAFTA).
These actions will liberalize restrictions on investment by citizens of Mexico in U.S. truck and bus services. The Department’s Federal Motor Carrier Safety Administration (FMCSA) will now be able to process applications from Mexican carriers for authority to fully own and operate companies in the United States that transport international cargo between points in the United States and provide bus services between points in the United States.
“President Bush has made a firm commitment to implement the NAFTA provisions, and our action today is an important example of how we are moving to fulfill that commitment,” Secretary Mineta said. “Liberalizing investment opportunities in both the United States and Mexico will help promote economic growth and create new jobs in transportation services.”
The NAFTA permits citizens of Mexico to establish businesses in the United States to provide truck services for point-to-point transportation of international cargo in the United States as of December 1995, and for bus services between points in the United States as of January 2001. The United States had delayed implementation of these provisions until now. The U.S. Department of Transportation was prohibited from issuing new grants of operating authority to Mexican carriers under a moratorium imposed under the Bus Regulatory Reform Act of 1982 and continued by the Interstate Commerce Commission Termination Act of 1995.
By modifying the moratorium, the President authorized the Secretary of Transportation to accept and process applications for operating authority submitted by companies located in the United States that are owned by citizens of Mexico, effective June 5, 2001. Secretary Mineta, in turn, delegated authority to process applications to the FMCSA.
Mexican-owned companies established in the United States under this NAFTA provision will operate like any U.S. motor carrier: they will be subject to the same laws, regulations and procedures that apply to U.S. and Canadian motor carriers companies operating in the United States.
Consistent with NAFTA’s provisions, U.S. citizens are already permitted 51 percent ownership of similar Mexican companies. U.S. citizens will be permitted 100 percent ownership of these Mexican companies beginning Jan. 1, 2004.
Secretary Mineta said that the Bush Administration will modify the moratorium further in the future, so that authorized Mexican carriers, by the end of this year, will be permitted to move international cargo in cross-border services throughout the United States and authorized Mexican bus companies will be permitted to operate regular route services. These actions will be reciprocal.
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