Business
US To Open Roads For Mexican Truckers
Washington has unveiled a proposal to allow Mexican truckers to operate on United States highways, a move it hopes could end a long-running dispute that has seen the country hit with $2.4bn in trade sanctions.
According to the finanacialtimes.com last Friday, the draft plan, launched last Thursday by the US Department of Transportation, would create an inspection regime to test Mexican trucking companies and their drivers for safety records, driving qualifications, insurance and vehicle maintenance.
Mexico obtained a ruling in 2001 that the US was illegally preventing Mexican long-haul trucking companies from operating on US roads in violation of the North American Free Trade Agreement.
Mexico imposed $2.4bn in sanctions against US agricultural and industrial exports in 2009 after exhaustive negotiations and the failure of a pilot programme to permit some carriers to operate.
A transportation department spokesman said the new regime would equip trucks with on-board electronic monitoring devices to ensure the drivers were following US laws on hours of work, and to allow for checks on safety records.
Mexico welcomed the announcement but said it would examine the proposal carefully before deciding whether to lift the sanctions.
The Mexican communications and transport secretary, Ms. Juan Molinar said, “We’ve told our US colleagues we have every interest in resolving this issue and re-establishing the correct legal and operational conditions.”
The Teamsters labour union, which represents US truck drivers, criticised the announcement. Jim Hoffa, the union’s general president, said the decision was baffling, given the rising drug-related violence on the Mexican side of the border.
“Why would the DoT propose to threaten US truck drivers’ and warehouse workers’ jobs when unemployment is so high?” said Hoffa. “And why would we do it when drug cartel violence along the border is just getting worse?”
But Kevin Brady, the new Republican chairman of the trade subcommittee in the US House of Representatives, said that a resolution of the case was long overdue and that the US failure to comply had hurt the country’s businesses.
The announcement follows a recent decision by the US commerce department to amend its rules on imposing “anti-dumping” duties on imports deemed unfairly priced, which it said would address a World Trade Organisation ruling that the current US regime broke global trade rules.
The Emergency Committee for American Trade, a business association, also welcomed Thursday’s trucking announcement.
Calman Cohen, the president of the association, said: “This paper represents a highly important first step in coming to closure on this issue.”
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Sugar Tax ‘ll Threaten Manufacturing Sector, Says CPPE
In a statement, the Chief Executive Officer, CPPE, Muda Yusuf, said while public health concerns such as diabetes and cardiovascular diseases deserve attention, imposing an additional sugar-specific tax was economically risky and poorly suited to Nigeria’s current realities of high inflation, weak consumer purchasing power and rising production costs.
According to him, manufacturers in the non-alcoholic beverage segment are already facing heavy fiscal and cost pressures.
“The proposition of a sugar-specific tax is misplaced, economically risky, and weakly supported by empirical evidence, especially when viewed against Nigeria’s prevailing structural and macroeconomic realities.
The CPPE boss noted that retail prices of many non-alcoholic beverages have risen by about 50 per cent over the past two years, even without the introduction of new taxes, further squeezing consumers.
Yusuf further expressed reservation on the effectiveness of sugar taxes in addressing the root causes of non-communicable diseases in Nigeria.
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