However, due to U.S. concerns about the safety of Mexican trucks and the adequacy of Mexico’s truck safety regulatory system, the United States postponed implementation of NAFTA’s cross-border trucking provisions and only permitted Mexican trucks to continue to operate in designated commercial zones within Arizona, California, New Mexico, and Texas. As of October 2001, fewer than 200 Mexican trucking companies had applied to DOT to operate in the United States beyond the border commercial zones. Regulatory and Economic Factors May Limit Mexican Carriers’ Willingness to Seek Access Beyond the Commercial Zones

A number of regulatory and economic factors may limit the number of Mexican carriers operating beyond the commercial zones in the near term. The officials noted that it would take time to develop these business relationships. Also, according to Mexican private industry representatives and U.S. researchers, congestion and delays in crossing the U.S.-Mexico border result in added operating costs for Mexican carriers. The United States and Most U.S. Border States Are Not Prepared to Ensure That Mexican Commercial Carriers Meet U.S. Safety Standards

DOT faces a number of challenges in implementing a coordinated truck safety system—including acquiring adequate infrastructure and deploying personnel—at the U.S.-Mexico border. It also has not fully integrated its inspection personnel and their activities with those of the border states. 3 and 4). The three border states without permanent truck inspection facilities at border ports of entry—Texas, Arizona, and New Mexico—are planning to build facilities at some crossings. Five of the 10 highest volume crossings must have weigh-in-motion scales, and the remaining 5 highest volume crossings must have such scales within 12 months; require federal and state inspectors to electronically verify the status and validity of the license of each Mexican commercial driver transporting certain quantities of hazardous materials, drivers undergoing specified inspections, and at least 50 percent of other Mexican commercial drivers; require Mexican commercial trucks to cross into the United States only where there is a safety inspector on duty and adequate capacity exists to conduct a sufficient number of meaningful safety inspections and accommodate out-of-service trucks; and require Level I inspections and Commercial Vehicle Safety Alliance (CVSA)  decals for all Mexican commercial vehicles that wish to operate beyond the commercial zones but do not display such decals. Mexico Has Taken Steps to Improve Commercial Vehicle Safety and Emissions, But Extent of Compliance With U.S. Standards Remains Unclear

The Mexican government has developed truck safety regulations and reports taking steps to enforce safety and air emissions standards but these efforts are relatively recent and it is too early to assess their effectiveness. With support from DOT, it has also developed key databases related to commercial vehicle safety and it has participated in trinational efforts to make U.S., Canadian, and Mexican land transportation standards more compatible. In addition, Mexico has entered into bilateral agreements with the United States on specific commercial motor vehicle safety issues.
Why GAO Did This Study

The North American Free Trade Agreement (NAFTA) allowed Mexican commercial trucks to travel throughout the United States. Because of concerns about the safety of these vehicles, the United States has limited Mexican truck operations to commercial zones near the border. Relatively few Mexican carriers are expected to operate beyond these commercial zones once the United States fully opens its highways to Mexican carriers. Specific regulatory and economic factors that may limit the number of Mexican carriers operating beyond the commercial zones include (1) the lack of established business relationships beyond the U.S. commercial zones that permit drivers to return to Mexico carrying cargo, (2) difficulties obtaining competitively priced insurance, (3) congestion and delays in crossing the U.S.-Mexico border that make long-haul operations less profitable, and (4) high registration fees. Over time, improvements in trucking and border operations may increase the number of Mexican commercial vehicles traveling beyond the commercial zones.

What GAO Found

GAO found that the Department of Transportation (DOT) lacks a fully developed or approved plan to ensure that Mexican-domiciled carriers comply with U.S. safety standards. DOT has not secured permanent space at any of the 25 southwest border ports of entry where commercial trucks enter the United States, and only California has established permanent inspection facilities. DOT also has not completed agreements with border states on how 58 federal inspectors and 89 state inspectors will share inspection responsibilities along the border. States are responsible for ensuring that Mexican trucks adhere to U.S. emissions standards. California is the only southwest border state with a truck emissions inspection program in place at the border. Although the Mexican government has developed truck safety regulations and taken steps to enforce safety and air emissions standards, these efforts are relatively recent and it is too early to assess their effectiveness. With DOT's support, Mexico has developed five databases on the safety records of its commercial drivers and motor carriers. As of October 2001, however, the commercial driver's license database covered less than one-quarter of Mexico's commercial drivers. Mexico has also participated in NAFTA-related efforts to make motor carrier safety regulations compatible across the three member nations. Mexican private industry has also sought to improve the safety of Mexican commercial vehicles.