Tag: Mexico

“Let Them [Safety Certified Mexican] Truckers Roll, 10-4”

OK, I took some editorial license on the line from the 1970s song by C.W. McCall about truckers bantering on their CB radios, but the spirit of the song applies to our ongoing dispute with Mexico over access to U.S. highways.

On Friday, the comment period will end in the Federal Register on a pilot program proposed by the Obama administration that would allow qualified Mexican trucks and their Mexican drivers to make long-haul deliveries within the United States. With the exception of a brief interlude from 2007 to 2009, the U.S. has banned Mexican trucks from serving destinations within the United States.

I explain why this is bad for our economy and our reputation as a nation in an op-ed this morning in the Washington Times and in my own comments filed with the Federal Register. As I wrote in the op-ed:

Despite the hundreds of complaints already posted in the Federal Register, the Mexican trucking issue has never been about safety. The proposed pilot program would require Mexican trucks entering the United States to meet all federal regulations on driver qualifications, truck safety, emissions, fuel taxes, immigration and insurance.

Experience from the previous pilot program in 2007-09 demonstrated that Mexican trucks and their drivers are fully capable of complying with all U.S. safety requirements.

An August 2009 report from the Department of Transportation’s Inspector General found that only 1.2 percent of Mexican drivers that were inspected were placed out of service for violations, compared with nearly 7 percent of U.S. drivers who were inspected. In February 2010, the Congressional Research Service reported that recent data provided by the Federal Motor Carrier Safety Administration found that “Mexican trucks are as safe as U.S. trucks and that the drivers are generally safer than U.S. drivers.” What the Teamsters and their congressional allies really object to is that these trucks will be driven by Mexicans.

The Obama administration deserves credit for its effort to end this dispute in the face of pressure from its union base. The sooner we allow more freedom and competition in the cross-border trucking sector, the better.

Tuesday Links

What’s Wrong with Imported Oil?

In a speech today at Georgetown University, President Obama called for a goal of cutting America’s oil imports by one-third within a decade. Like all efforts to wean Americans from big, bad imports, such a policy will mean we will all pay more than we need to for the energy that helps to power our economy.

I’ll leave it to my able Cato colleagues to dissect the president’s proposal in terms of energy policy, but in terms of trade policy, this is about as bad as it gets.

We Americans benefit tremendously from our relatively free trade in petroleum products. Like all forms of trade, the importation of oil produced abroad allows us to acquire it at a price far lower than we would pay if we had to rely more heavily on domestic oil supplies.

The money we save buying oil more cheaply on global markets allows our whole economy to operate more efficiently. Oil is the ultimate upstream input that virtually all U.S. producers use to make their final products, either in the product itself or for shipping. If U.S. manufacturers and other sectors are forced to pay sharply higher prices for petroleum products because of import restrictions, their final goods will cost more and will be less competitive in global markets. If households are forced to pay more for gasoline and heating oil, consumer will have less to spend on domestic goods and services.

The president talked in the speech about the goal of not being “dependent” on foreign suppliers, but most of our oil imports come from countries that are either friendly or at least not in any way an adversary. According to the U.S. Department of Commerce, one third of our oil imports in 2010 came from our two closest neighbors and NAFTA partners, Canada and Mexico. Another third came from the problematic providers in the Arab Middle East and Venezuela (none from Iran, less than one-third of 1 percent from Libya.) The rest came from places such as Nigeria, Angola, Colombia, Brazil, Russia, Ecuador and Great Britain.

Even if, by the force of government, we could reduce our imports by a third, there is no reason to expect that the reduction would be concentrated in the problematic providers. In fact, oil is generally cheaper to extract in the Middle East, so a blanket reduction would probably tilt our imports away from our friends and toward our real and potential adversaries.

In one speech, the president has managed to state a policy goal that is bad trade policy, bad security policy, and bad foreign policy.

Tuesday Links

  • Shifting America’s focus away from individual liberty is waging war on the future, not winning it.
  • U.N. “authorization” is the Emperor’s new fig leaf for war with Libya.
  • Why are we fighting Mexico’s drug war?
  • David Boaz remembers Geraldine Ferraro, who helped advance the war against gender discrimination in politics.
  • Chris Preble eulogizes the Weinberger/Powell doctrine against the backdrop of the Libyan war:

Obama’s Trip to Latin America

As Ted Carpenter notes below, President Obama is departing on an important trip to Latin America. The countries that he will visit exemplify the macroeconomic stability and advancement of democratic institutions now found in much of the region.

Brazil, by far the largest Latin American economy, has enjoyed almost a decade of sound growth and poverty reduction. Chile is the most developed country in the region thanks to decades of economic liberalization, a process that has also made it Latin America’s most mature democracy. And El Salvador is undergoing a delicate period in its transition to becoming a full-fledged democracy with its first left-of-center president since the end of the civil war in 1992.

In an era when most Latin American nations are moving in the right direction—albeit at different speeds, with some setbacks, and with notable exceptions—the United States can serve as a catalyst of change by contributing to more economic integration and the consolidation of the rule of law in the region.

Unfortunately, despite President Obama’s assurances that he’s interested in strengthening economic ties with Latin America, his administration is still delaying the ratification of two important free trade agreements with Colombia and Panama. President Obama also continues to support a failed war on drugs that significantly exacerbates violence and institutional frailty in the region, particularly in Mexico and Central America.

It’s good that President Obama’s trip will highlight significant progress in Latin America, but his administration’s policy actions still don’t match the U.S. goals of encouraging economic growth and sound institutional development in the region.

Obama’s Latin America Trip

President Obama’s trip to Latin America is likely to focus on economic topics, but two security issues deserve scrutiny during his stops in Brazil and El Salvador. 

Washington’s diplomatic relationship with Brazil has become somewhat frosty, especially over the past year.  U.S. leaders did not appreciate Brazil’s joint effort with Turkey to craft a compromise policy toward Iran’s nuclear program.  The Obama administration regarded that diplomatic initiative as unhelpful freelancing.  And when Brazil joined Turkey in voting against a UN Security Council resolution imposing stronger sanctions on Tehran, the administration’s resentment deepened.  Obama should not only try to soothe tensions, he should shift Washington’s policy, express appreciation for Brazil’s innovative efforts to end the impasse on the Iranian nuclear issue, and consider whether the milder approach that the Turkish and Brazilian governments advocate has merit.

In El Salvador, worries about Mexico’s spreading drug-related violence into Central America are likely to come up.  El Salvador and other Central American countries are seeking a bigger slice of Washington’s anti-drug aid in the multi-billion-dollar, multiyear Merida Initiative.  President Obama should not only resist such blandishments, he should use the visit to announce a policy shift away from a strict prohibitionist strategy that has filled the coffers of the Mexican drug cartels and sowed so much violence in Mexico, and now increasingly in Central America as well.  Prohibition didn’t work with alcohol and it’s not working any better with currently illegal drugs.

Another Dubious Record in Mexico’s Drug War

Mexico ends 2010 with 15,000 illicit drug-related murders for the year—a record for the Calderon administration that began its term four years ago by declaring an all-out war on drug trafficking. Drug war violence skyrocketed since Calderon took office, claiming more than 30,000 lives. Though it is an unwinnable war whose consequences also include the rise of corruption and the weakening of the institutions of civil society, it is being used by drug warriors and skeptics alike to push for pet projects ranging from increased development aid to more military cooperation.

A recent example comes from the Washington Post this week. It editorialized in favor of an Obama administration plan to stem the flow of arms to Mexico, and it ran a story the same day citing the claim that 90 percent of guns in Mexico’s drug war come from the United States (though the Post also noted that the Mexican and U.S. governments refuse to release the results of their weapons traces). My colleague David Rittgers notes here that the proposed gun regulation is unlawful and here he has explained that a more realistic figure for guns of U.S. provenance is about 17 percent. In a Cato bulletin earlier this year, former Mexican foreign minister Jorge Castañeda calculated a similar figure and explained why attempts at controlling the trade in U.S. arms are a waste of time:

In fact, we only know with certainty that about 18 percent of guns come from the United States, according to Mexican and U.S. sources. The rest is surely coming from Central America, countries of the former Soviet Union, and beyond. And as countries as diverse as Brazil, Paraguay, Somalia, and Sudan attest — all countries with a higher arms per capita than Mexico — you don’t need a border with the United States to gain easy access to guns. Nevertheless, the possibilities of really limiting the sales of weapons in the United States is not imminent, to put it mildly. Moreover, asking the United States to stop arms trafficking from north to south is like asking Mexico to control its border from south to north, whether it is for drugs, people, or anything else. It’s not going to happen.