Message to the Congress on North American Free Trade Agreement Transportation Provisions Concerning Mexican Motor Carriers

To the Congress of the United States:

In November 1993, in preparation for the implementation of the North American Free Trade Agreement (NAFTA) on January 1, 1994, I informed the Congress of my intent to modify the moratorium on the issuance of certificates of operating authority to Mexican-owned or -controlled motor carriers that was imposed by the Bus Regulatory Reform Act of 1982 (49 U.S.C. 10922(l)(2)(A)). The modification applied to Mexican charter and tour bus operations. At that time, I also informed the Congress that I would be notifying it of additional modifications to the moratorium with respect to Mexican operations as we continued to implement NAFTA's transportation provisions. In this regard, it is now my intention to further modify the moratorium to allow Mexican small package delivery services to operate in the United States provided that Mexico implements its NAFTA obligation to provide national treatment to U.S. small package delivery companies.

Prior to its implementation of the NAFTA, Mexico limited foreign-owned small package delivery services, such as that offered by United Parcel Service and Federal Express, to trucks approximately the size of a minivan. This made intercity service impractical and effectively limited small-package delivery companies to intracity service only. Mexico has no similar restriction on the size of trucks used by Mexican small package delivery services. Because Mexico did not take a reservation in this area, the NAFTA obligates Mexico to extend national treatment to U.S. small package and messenger service companies. Mexico must allow U.S. small package delivery services to use the same size trucks that Mexican small package delivery companies are permitted to use.

Mexico, earlier this year, enacted legislation that addresses the small package delivery issue. Amendments to the Law on Roads, Bridges, and Federal Motor Carriers authorize parcel delivery and messenger services to operate without restriction so long as they obtain a permit from the Secretariat of Communications and Transportation and direct that such permits be granted in a timely fashion. The law includes no restrictions on the size and weight of parcels nor on the dimensions of the vehicles that small package delivery services will be permitted to use.

At the North American Transportation Summit hosted by the United States on April 29, 1994, Mexico's Secretary of Communications and Transportation Emilio Gamboa reaffirmed his government's commitment to permit unrestricted operations by foreign-owned providers of small package delivery services in Mexico. In return, even though the United States does not have a similar obligation under the NAFTA, Secretary of Transportation Federico Pena stated the United States Government's intention to grant Mexican small package delivery service companies reciprocal operating rights in the United States by modifying the moratorium imposed by the Bus Regulatory Reform Act. Mexico and the United States agreed to establish a joint working group to specify the details of this arrangement by September 1, 1994.

The U.S. small package delivery service industry is supportive of United States Government efforts to eliminate Mexico's restrictions on small package delivery operations. Provided Mexico implements its NAFTA obligation to extend national treatment to U.S. small package delivery companies, the U.S. industry would not object to a modification of the moratorium that would provide Mexican small package delivery companies reciprocal treatment in the United States.

Provided that Mexico meets its NAFTA-imposed national treatment obligation to allow U.S.-owned small package delivery services unrestricted operations, I intend, pursuant to section 6 of the Bus Regulatory Reform Act, to modify the moratorium imposed by that section to permit Mexican small package delivery services to operate in the United States in exactly the same manner and to exactly the same extent that U.S. small package delivery services will be permitted to operate in Mexico. The Bus Regulatory Reform Act requires 60 days' advance notice to the Congress of my intention to modify or remove the moratorium. With this message, I am providing the advance notice so required.

WILLIAM J. CLINTON

The White House,

October 6, 1994.