International Trade Today is a service of Warren Communications News.

D.C. Circuit Upholds Mexican Truckers Pilot Over Challenge From Labor Unions

The U.S. Court of Appeals for the D.C. Circuit upheld April 19 the Department of Transportation’s pilot program that allows Mexican trucking companies to operate in the U.S., in the face of a challenge by the International Brotherhood of Teamsters and the Owner-Operators Independent Drivers Association.

Sign up for a free preview to unlock the rest of this article

If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.

The pilot program began in 2007, in response to a NAFTA ruling that the U.S. had to let Mexican and Canadian trucking companies operate in the U.S. Access had been suspended since a 1982 law, which itself passed due to concerns that Mexico and Canada were limiting access to U.S. companies. In 2009, President Obama signed a law withdrawing funding for the program, but reinstated funding after Mexico and Canada threatened retaliation. The Federal Motor Carrier Safety Administration restarted the pilot in 2011 (see 11071231).

The Drivers Association argued the pilot program is illegal because, among other things, U.S. law requires that truck drivers have licenses issued by U.S. states. Under the pilot program, Mexican drivers can operate trucks using their Mexican commercial driver’s licenses. But more recent U.S. laws allow for use of Mexican commercial driver’s licenses, the court said, evidencing Congress’ intent to allow their use.

The Teamsters put forward their own arguments, including that Mexican trucks aren’t required to display a decal certifying compliance with U.S. safety standards. The D.C. Circuit said the decals aren’t necessary, however, because the trucks aren’t imported. The trucks aren’t brought into the U.S. as commercial goods, meaning they’re more akin to vessels. Pursuant to a longstanding rule, vessels are subject to an entirely different set of laws than imported goods, the court said.

(See the ruling for the court’s concise rebuttals to eleven other arguments raised by the Teamsters and the Drivers Association.)

(International Brotherhood of Teamsters v. Department Of Transportation, D.C. Circuit Court Nos. 11-1444 and 11-1251, dated 04/19/13)