Identifier
Created
Classification
Origin
06MEXICO3635
2006-06-29 22:30:00
CONFIDENTIAL
Embassy Mexico
Cable title:  

ECONOMIA OFFICIAL REACTS TO TRUCKING PROGRAM

Tags:  ECON MX 
pdf how-to read a cable
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DE RUEHME #3635 1802230
ZNY CCCCC ZZH
R 292230Z JUN 06
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 1936
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
C O N F I D E N T I A L MEXICO 003635 

SIPDIS

SIPDIS

STATE FOR WHA/MEX, DAS CMOORE, LRECHT, PLEASE PASS TO USTR
JMELLE, NSC FOR JHERRMANN, DOT FOR U/S SHANE AND JTRAINI

E.O. 12958: DECL: 06/29/2016
TAGS: ECON MX
SUBJECT: ECONOMIA OFFICIAL REACTS TO TRUCKING PROGRAM
POSTPONEMENT


Classified By: ACTING ECON CHIEF JKESSLER FOR REASONS 1.4(B) AND (D)

C O N F I D E N T I A L MEXICO 003635

SIPDIS

SIPDIS

STATE FOR WHA/MEX, DAS CMOORE, LRECHT, PLEASE PASS TO USTR
JMELLE, NSC FOR JHERRMANN, DOT FOR U/S SHANE AND JTRAINI

E.O. 12958: DECL: 06/29/2016
TAGS: ECON MX
SUBJECT: ECONOMIA OFFICIAL REACTS TO TRUCKING PROGRAM
POSTPONEMENT


Classified By: ACTING ECON CHIEF JKESSLER FOR REASONS 1.4(B) AND (D)


1. (C) Summary: On the side of a June 29 lunch meeting to
discuss DDA negotiations, Ken Smith Ramos, Economia Director
General of International Trade Negotiations under U/S
Villalobos, expressed to Econoff Economia's strong
frustration regarding the U.S. decision to postpone the pilot
trucking program. Smith feared this would have negative
political consequences for the Fox administration and for the
PAN, is bad timing given the imminent presidential elections,
and would likely be used by political opponents to push the
message that the U.S. is not prioritizing the bilateral
relationship or deepening of NAFTA. End summary.


2. (C) Smith warned that the U.S. decision could create a
Mexican backlash and cost both countries millions of dollars.
He said the GOM sees no relationship between the trucking
issue and the U.S. immigration debate, adding that Mexico is
disappointed by the series of delays which now appear
indefinite. He wondered what signal the U.S. decision would
have for SPP and the Council for Competitiveness, and said
some Mexicans would ask why they should move on intellectual
property or regulatory cooperation when the U.S. is not
willing to move on trucking.


3. (C) Smith requested a recommendation from the USG on how
to resolve this issue, and said the worst result would be
"radio silence" in which the U.S. gives no indication of how
this issue will move forward. He said that in future the two
governments should create a joint strategy to manage
political decisions affecting both countries' interests.
Where is the Plan B, he asked, suggesting that while a delay
of perhaps two to four weeks would be tolerable, a
postponement until November, when Mexico will be at the
height of its political transition, will result in a
non-implementable agreement.


4. (C) Comment: While Economy Secretariat officials expressed
their frustration with the U.S. decision, others in the GOM
may have breathed a sigh of relief because of internal
opposition to implementing a cross-border trucking program,
such as the trucking union, CANACAR (Camara Nacional Del
Autotransporte De Carga). Still, the U.S. could be accused
of not following through on a NAFTA promise, which may allow
this or the next Mexican administration to use the
cross-border trucking example as a reason not to comply with
certain NAFTA provisions. It is not clear whether there will
be a better time in future for the pilot announcement and,
following the elections, there may be declining Mexican
political will to move forward with the program.


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