WORKING GROUP ON TRANSPORTATION REPORT

November 12, 2003

BACKGROUND

Meetings of the U.S./Mexico Binational Commission have traditionally included discussion of the two countries' transportation relationship. The U.S. Department of Transportation (DOT) and Mexico's Secretariat of Communications and Transportation(SCT) have co-chaired these bilateral discussions, which have included the full spectrum of modal issues affecting cross-border operations as well as more general issues of bilateral transportation policy and related trade impacts.

ACCOMPLISHMENTS (year to date 2003)

The DOT and SCT Secretaries reviewed a broad range of transportation activities on which both countries are cooperating and affirmed that the close bilateral working relationship has produced a range of tangible benefits since the last Binational Commission meeting. Both Secretaries agreed that expanding trade had created a wide range of transportation challenges and opportunities for the bilateral relationship that they were anxious to explore.

In particular, the Secretaries discussed the status of implementation of the North American Free Trade Agreement (NAFTA) and reaffirmed their commitment to implement the Agreement's land transportation provisions as soon as possible, according to NAFTA and the resolution of the Arbitration Panel, under fair and equitable conditions. Both Secretaries agreed to deal with these issues and to consider mechanisms to assure smooth implementation of the NAFTA's provisions at the appropriate time.

Progress was noted on a number of border projects, including DOT's favorable review of the proposed new rail bridge at Brownsville-Matamoros, and there was discussion of a possible new rail crossing at the Colombia Bridge affecting the communities of Laredo, Texas and Nuevo Laredo, Tamaulipas. The two Secretaries expressed satisfaction with the use of Border Wizard technology that will serve to expedite cross-border commerce in an era of increased border security. Similarly, DOT reviewed its funding of new border vehicle inspection stations and other border infrastructure that will also serve to facilitate cross-border traffic as trade flows continue to grow, with the commitment to promote efficient traffic flows. The work of the bilateral Joint Working Committee on Transportation Planning (JWC) was also reviewed and the Secretaries noted the initiatives undertaken to deal with innovative financing, coordination of border operations, and the Binational Geographic Information Systems (GIS) project, which includes training programs focusing on transportation planning applications. SCT expressed its desire to see greater cooperation on innovative border infrastructure projects and cited cross-border airport facilities in the San Diego-Tijuana area as one example of such a project.

Mexico's Secretary expressed concern about certain provisions of the Bioterrorism Act, and new implementing regulations that fall under the purview of the Food and Drug Administration. The Secretaries agreed to jointly monitor the implementation of these rules in order to assess any adverse impacts on transportation at the border. The Secretaries further pledged close cooperation and communication on any problems identified in an effort to develop timely remedies.

Discussions moved forward on several aviation issues with SCT and DOT noting their recent discussions regarding a Bilateral Aviation Safety Agreement (BASA), which resulted in the signing of a Record of Discussion on November 3, 2003. The two Secretaries noted that the Record of Discussion provided a roadmap for future cooperative actions that, if achieved, will culminate in the BASA. The parties also discussed the prospects for widening of the existing bilateral air transport relationship.

The Secretaries concluded their discussions with a review of the concept of Short Sea Shipping, which offers the prospect of alleviating some transportation congestion at crowded land border crossings. The Secretaries noted the Memorandum of Cooperation signed at the Short Sea Shipping Conference in Sarasota, Florida on November 6, 2003, in which Mexico joined with Canada and the United States in agreeing to further evaluate expanded use of Short Sea Shipping practices in North America.

Deliverables: none

PLAN OF ACTION FOR BNC 2004
The parties agreed to continue their ongoing bilateral efforts to move forward on each of the issues discussed during the BNC meeting and to continue discussions aimed at expanding their relationship.

FUTURE PLAN OF ACTION PROJECTION

The Secretaries agreed that they share the goal of achieving the objectives set out in their BNC discussions. Looking ahead, the parties agreed that trade across the countries' common border would continue to grow and that they would continue to cooperate to expedite the flow of goods and people while strengthening important safety, environmental and security efforts. The future border will encompass new and improved physical infrastructure and incorporate new technologies. Similar improvements are anticipated in the area of aviation.

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