1. North American Free Trade Agreement Kirk Davenport (TX) Annual IFTA Business Meeting July 20-21, 2007 Chesterfield, MO

2. NAFTA Demonstration Project Announced February 23, 2007 Up to 100 Mexican carriers to be approved Up to 100 US carriers to be approved Authority good for one year from the date the first provisional operating authority is issued

3. NAFTA Demonstration Project First Pre-Authorization Safety Audits (PASA) or Inspections Carrier required to obtain insurance from US-based company Projected first authorities would be granted in 60 days Few details provided regarding the process for selecting Mexico-domiciled carriers, number of vehicles, security for hazmat operations, or oversight and review of the demonstration project

4. Reaction to Demonstration Project Congressional reaction swift Senate scheduled hearings March 8 House scheduled hearing March 13 Lawsuit seeking an injunction of cross-border program April 23 Owner-Operator Independent Drivers Association Sierra Club Public Citizen Environmental Law Foundation International Brotherhood of Teamsters Brotherhood of Teamsters Auto and Truck Drivers Local 70

5. NAFTA Senate Hearing Senate Appropriations Subcommittee on Transportation, Housing, & Urban Development Secretary of Transportation Mary Peters FMCSA Administrator John Hill Related Federal Agencies Transportation Organizations Public Citizen Teamsters Union Resulted in proposal to prohibit FMCSA to spend appropriated money to implement Demonstration Project

6. NAFTA House Hearing House Transportation and Infrastructure Subcommittee on Highways and Transit DOT Inspector General asked to: Investigate what checks are in place to ensure Mexican drivers are in compliance with U.S. hours-of- service laws, both while operating in the U.S. and prior to reaching the border;

7. Determine what oversight and control measures are in place to ensure that the Mexican carriers’ drug and alcohol testing programs are at least equivalent to the U.S. testing regime; Identify the process by which carriers participating in the demonstration project obtain insurance issued by a U.S. company, and any challenges to such efforts; and Report any problems with inaccurate or incomplete data on vehicles and drivers submitted by Mexico- domiciled motor carriers to DOT.

8. Safe American Roads Act (HR 1773) Introduced March 29 – Pass by House May 15 Number of Mexico-domiciled trucks used in the Demonstration Program limited to 1,000 Requires program to be in place for US-domiciled carriers to operate beyond commercial zone in Mexico Requires DOT Inspector General to verify mechanisms in place to apply US safety law and regulations to Mexico-based carriers Requires Secretary of Transportation to publish demonstration project in Federal Register seeking public comment (published May 1, comment period ends May 31)

9. Establishment of independent review panel to monitor and evaluate the demonstration project DOT Inspector General to report to Congress no later than 12 months after beginning of demonstration project Secretary may carry out demonstration program for no more than 3 years Terminates demonstration project if all provisions of the Safe American Road Act are not followed

10. NAFTA Trucking Safety Act (HR 1756) Introduced March 29 – Referred to Subcommittee on Immigration, Citizenship, Refugees, Border Security and International Law Publish list of FMCSA regulations & how Mexican carriers, trucks, & drivers will be required to comply Publish list of enforcement tools & conditions required by law available to federal & state motor carrier safety enforcement personnel

11. Implement plan with Homeland Security to monitor and enforce immigration and customs regulations Law enforcement access to driver, criminal and security data DOT Inspector General must verify independently compliance with 22 Congressional requirements Plan to enforce English language proficiency

12. NAFTA Border State Readiness Each border state ready to receive applications for IRP & IFTA credentials Training session presented in Monterrey and Mexico City for SCT personnel Training sessions for Mexican carriers have been conducted at four US border cites

13. NAFTA Border State Readiness FMCSA has funded extra positions in each border state Question whether funding will expire before team is allowed to play a game No agreement on bond amount but each jurisdiction will require bonds

14. QUESTIONS?