The Teamsters vs. Mexico: Everybody Loses

The North American Free Trade Agreement (NAFTA) was negotiated in 1993 and signed and ratified by Canada, Mexico, and the United States as a commitment to protect and expand the free flow of trade among the three nations.  The purpose is to promote economic growth and provide all North American consumers with a wider choice and availability of products at lower prices.

NAFTA includes a commitment by the United States and Mexico to give their truckers freedom to operate in both countries.  U.S. truckers currently operate in Mexico.  Since 1993, the U.S. has not upheld its commitment to allow Mexican truckers to operate in the U.S. due to the efforts of the International Brotherhood of Teamsters and the U.S. Presidents, Senators, and Representatives who support the Teamsters agenda.  Mexico recently concluded that years of good faith attempts to resolve this with the U.S. would not be successful and imposed 15%-20% tariffs on a large assortment of U.S. exports to Mexico.  The Teamsters win a very shortsighted political victory which, for now, eliminates the competition of Mexican truckers operating in the U.S.

Overall, everyone loses.  Fewer, more expensive exports to Mexico mean less business activity and fewer jobs in the U.S., including Teamsters members.  If your state (or employer) has exports to Mexico, especially the states of California, Texas, Washington, and Wisconsin (there may be more), find out if the candidates who want your vote support the shortsighted Teamsters political agenda, or if these candidates support U.S. exports and jobs and support honoring the commitments the U.S. makes to its friends.

Teamsters Monopoly Means Higher Consumer Prices

U.S. truckers currently operate freely in Mexico as provided by NAFTA.  Mexico has negotiated in good faith, unlike the U.S., to get Mexican truckers operating freely in the U.S.  Except for a brief "pilot program" from September 2007 to March 2009 when it was killed by Barack Obama and the U.S. Congress, Mexican truckers have not been allowed to operate freely in the U.S.  Recently, Mexico concluded its good faith approach was unlikely to get a constructive response from the U.S. and imposed 15%-20% tariffs on a variety of U.S. exports to Mexico.

The stated reason given by the Teamsters, their Congressional patrons, and others is perceived safety issues with Mexican truckers.  This is probably useful as a scare tactic where those who use it are rarely asked to back up their accusations with facts.  For a more reasoned look at this issue, see Russell Roberts' article on the Library of Economics and Liberty Web site.

The actual reason for not allowing Mexican truckers to operate freely in the U.S. is much simpler.  The Teamsters do not want competition, and the Teamsters patrons in Congress and the White House are all too willing to comply with the Teamsters party line.  Mexican truckers are currently allowed to operate in the U.S. in a "commercial" zone within 20-25 miles of the Mexican border.  To move beyond that, goods must be unloaded from Mexican trucks and reloaded onto U.S. trucks driven by the Teamsters.  This adds unnecessary cost and time to shipping Mexican goods to the U.S. which is reflected in higher prices for U.S. consumers.

The Teamsters win, sort of, but everyone else loses:

• U.S. businesses and workers lose:  key U.S. exports become more expensive and less competitive in Mexico which means fewer U.S. exports and sales resulting in less U.S. economic growth and fewer U.S. jobs.
• Teamsters members lose:  with less economic growth and fewer jobs, there is less need for drivers to ship goods around the U.S.
• U.S. consumers lose:  U.S. consumers pay higher prices for much of what they purchase due to higher shipping costs.
• Mexican consumers lose:  they pay needlessly higher prices for products imported from the U.S.

Mexico Trucker Online provides a preliminary version of the U.S. exports for which there are now 15%-20% tariffs.  Take a look to see if products produced by your state or employer are on the list.

Project Vote Smart has a Teamsters Rating Report, conveniently sorted by state, which identifies how closely various Senators and Representatives align with the Teamsters agenda.  For example, no fewer than 8 representatives from California get perfect scores from the Teamsters.  Interesting, since many of the exports on the tariff list would seem to come from California.  Various senators running for reelection are similarly honored by the Teamsters.

When candidates ask you for your vote in November, find out whether they support the Teamsters narrow political agenda, or if they support free trade, more products, and lower prices for all North American consumers.