Rep. Mike Thompson Calls on DOT to Stand Up for California Farmers

Congressman Mike Thompson (D-CA), a senior member of the House Committee on Ways and Means, today sent a letter to U.S. Transportation Secretary Ray LaHood expressing his support for the administration's pilot trucking program that could ease Mexico's punitive tariffs on California fruit and other U.S. goods. In California's First District, fruit growers have seen a deep decline in sales and market share as a result of these tariffs. Implementing the trucking program could give Mexico a concrete incentive to eliminate its harmful trade policies.

“The Department of Transportation has the power to ease the impact of harmful tariffs on California fruit growers and set the stage for their future prosperity,” said Rep. Thompson. “By approving this transportation program, the agency would not only provide a clear path toward the elimination of Mexico's tariffs, but the possible normalization of trade between our two countries. The program would also ensure that cross-border trucks adhere to our country's rigorous environmental and safety standards. I strongly support the implementation of this program and thank Secretary LaHood for his leadership on this issue.”

Background: In 2007, the Department of Transportation launched a pilot program that would allow commercial Mexican vehicles to operate across the U.S.-Mexico border. When the pilot program was terminated in 2009, the Mexican government retaliated by imposing tariffs on 99 U.S. products. In California's First District, fruit growers who had spent millions of dollars developing a market in Mexico and investing in shipping strategies have seen a deep decline in sales and market share. Implementation of the cross-border long-haul trucking pilot program would provide Mexico with a concrete incentive to eliminate these punitive tariffs and put California farmers on a path toward success. The program would also include important protections to ensure trucks crossing the border are operating safely on our roadways and under our environmental standards.

A copy of Rep. Thompson's letter to Secretary LaHood is available below:

“Dear Mr. Secretary,

“I am writing to you in support of the proposed United States-Mexico cross-border long-haul trucking pilot program published in the Federal Register on April 13, 2011. For more than two years, U.S. exporters have faced steep retaliatory tariffs imposed by the Mexican government on a wide range of products, putting farmers in my district at a strong disadvantage to foreign competitors.

“As you know, under international obligations, the U.S. granted Mexican commercial trucks full access to U.S. roadways. However, concerns about ensuring that those trucks operated safely and did not undermine our environmental protections led to a longstanding trade dispute between the two countries.

“In 2007, after many years of discussions about the specific terms and conditions of the program, the Department of Transportation launched a pilot program that would allow commercial Mexican vehicles to operate across the U.S.-Mexico border. When that program was terminated in 2009, the Mexican government retaliated by imposing tariffs on 99 U.S. products with a total export value of $2.6 billion.

“In California's First District, farmers have been disproportionately affected by these steep tariffs. Specifically, fruit growers who have spent millions of dollars developing a market in Mexico and have invested in innovative ways of shipping their products have seen a deep decline in sales and market share. These growers now face intense competition from South American competitors and an uphill battle in reclaiming market share and rebuilding their export volume. At a time when many of the rural communities where these growers operate face high unemployment, we must ensure they are not being put at a further disadvantage, hindering job creation potential and the financial viability of staying in business. Additionally, these tariffs are currently causing a great deal of uncertainty as we approach annual peak harvest for many California crops. We must ensure our producers can plan appropriately for the demand from the Mexican market.

“The proposal the Administration crafted includes important protections to ensure trucks crossing the border are operating safely on our roadways and under our environmental standards, allowing us to monitor and inspect vehicles before they are approved for cross-border trucking operations. I believe implementation of this revised pilot program provides a clear path toward the elimination of these harmful retaliatory tariffs and the normalization of trade between our two countries, while also ensuring the integrity of our roadways.

“Again, I express my support for this proposal and thank you for your leadership on this issue.”