1. U.S-Mexico Chamber of Commerce Transportation, Infrastructure, Logistics and Security in North America Martin Rojas Vice President, Security & Operations American Trucking Associations May 12, 2011 Washington, DC

2. NAFTA Trucking

3. Source: Bureau of Transportation Statistics Includes exports & imports for all surface modes, value U.S.-NAFTA Surface Trade MXCNTotal Billions

4. Source: Bureau of Transportation Statistics Includes exports & imports for all surface modes, value U.S.-Canada Surface Trade TruckRail Billions

5. Source: Bureau of Transportation Statistics Includes exports & imports for all surface modes, value U.S.-Mexico Surface Trade TruckRail Billions

6. NAFTA Trucking Provisions ATA Policy: Supports NAFTA trucking Improve border efficiency: Eliminate “drayage” system NAFTA’s Trucking: “Investment” and “Access” Investment: Fully implemented Access: Not implemented since 1995 Only international cargo: NO DOMESTIC CARGO!!! Compliance with ALL U.S. regulations Reality: no short/medium term change: NAFTA trucking a piece of the border puzzle

7. NAFTA Pilot Program Announced 4/8/11 Duration: 3 years maximum No limit on number of participating carriers Complete OP-1MX, pass PASA, get insurance coverage Strong enforcement initiatives: Stage 1: provisional authority, check every truck every time 3 m Stage 2: checks average border crossings, CVSA decal, Compliance Review w/18 months Stage 3: permanent authority upon conclusion of pilot No Hazmat Pilot Oversight: MCSAC NAFTA subcommittee Issues with Pilot Program U.S. funds for EOBR on MX Trucks (Now EOBR or GPS) Track MX trucks for HOS and Cabotage

8. Supply Chain Security

9. Multiple Security Requirements Security Plans, Training & Screening Hazardous Materials Air Cargo Maritime Facilities Other Areas: Food/Ag, Pharma, Chemical, Military Cross-Border

10. Free and Secure Trade (FAST)/ Customs Trade Partnership Against Terrorism (C-TPAT) FAST = Facilitate trade + secure supply chain FAST/Exprés (N. Border - 12/02) & FAST/Express (S. Border - 9/03) C-TPAT/PIP/Empresas Certificadas Industry-Government Partnership Highway Carrier Agreement Minimum Security Criteria FAST driver screening (US$50) Seals: ISO 17712 Further Developments: Suspension/Restarting C-TPAT benefits Mutual Recognition: C-TPAT, PIP, AEO

11. Automated Commercial Environment/ International Trade Data System Critical process for Motor Carriers: Electronic truck manifest Deployed and mandated at all land-border POEs Allow CBP screening and targeting Compliance with Trade Act of 2002 S.343(a) Non-FAST = 1 hour; FAST = 30 minutes ITDS now part of eCustoms Partnership Part of ITDS: DOT, Census, FDA, INS, CBP 20-30 signed on; should have 70 to 75

12. Conclusions NAFTA trucking: Much Ado About… Nada! Trucks essential to NAFTA trade NO DOMESTIC CARGO ALLOWED!!! Mexican carriers must follow ALL U.S. regs U.S. trucking companies very competitive Security: Improve Coordination in N. America One background check, many uses, i.e. TWIC Risk-based, i.e. Security Sensitive Hazmat

13. Questions? Martin Rojas American Trucking Associations 950 N. Glebe Road Arlington, VA 22203 703 838-7950 mrojas@trucking.org