Northwest delegation, ag groups say they get 'runaround' from administration

By DAN WHEAT

Capital Press

Frustration with Obama administration inaction on Mexican tariffs is increasing among elected officials and people in industries hurt by the tariffs.

They blame the administration for playing politics with trade policy to mollify the Teamsters Union at the expense of ag industries and communities.

As part of the 1994 NAFTA agreement, the U.S. and Mexico agreed to let each other's trucks into the interiors of their countries to deliver and pick up goods. Trucks were not to compete with domestic trucking companies within the country.

The U.S. failed to allow Mexican trucks into the U.S. and Mexico won a NAFTA ruling in 2001. The U.S. was found in violation and Mexico was authorized to retaliate.

Retaliation was prevented by Bush administration efforts and finally a 2007 pilot program allowing some Mexican trucks to make deliveries to Chicago, according to the National Pork Producers Council.

The Teamsters Union strongly opposed the pilot program and on March 11, 2009, Congress cut funding and closed the program.

The Teamsters cited safety and job loss concerns.

"Under NAFTA, Canadian trucks operate in the U.S. The pilot data showed Mexican trucks were just as safe and used U.S. standards," said Mark Powers, vice president of the Northwest Horticultural Council in Yakima, Wash.

"I don't think it will cost us jobs in trucking. The cost right now is in real job losses in our region because of the tariffs, not hypothetical job losses in trucking," Powers said.

"The administration supposedly has a solution, but it hasn't been put forward. It hasn't been shared with Mexico," he said.

Powers and Desmond O'Rourke, a retired Washington State University agricultural economist, said it's a political issue.

"Democrats are in a very awkward position because they can't ignore the union prior to the election, but doing nothing annoys a lot of the agricultural industry," O'Rourke said.

In an Aug. 24 press conference, U.S. Rep. Doc Hastings, R-Wash., expressed his "extreme frustration" with Obama administration inaction. Hastings said he's repeatedly talked to almost every concerned party and is told by administration officials, "We're working on it."

Darci Vetter, USDA undersecretary for farm and foreign agricultural services, recently said as much in Idaho.

"The administration is continuing to work with Congress and with Mexico to try to find a way forward on the Mexican trucking issue," Vetter said.

"It's a long-standing issue and remains a difficult one, but we absolutely understand the impact on U.S. agriculture and other U.S. manufacturers. We are focused on this and hope to find a way forward, but I don't have a specific prediction on timing right now," she said.

Powers said an increasing number of people are frustrated by such responses.

"The Northwest congressional delegation and industries are basically getting the runaround from the administration, and that's been going on for 16 months," Powers said.

Todd Fryhover, president of the Washington Apple Commission, and Nick Giordano, vice president and counsel with the National Pork Producers Council, also said frustration is high.

"The time to solve this is now. The economy is not getting any better. Ignoring it is just hurting our industry and a lot of small businesses in our region that rely on the fruit industry to generate economic prosperity," Powers said. "What you hear is a lot of frustration out there."