MemoMemorandumG.W. Bush · R Quiet signal

Presidential Memorandum

Determination Under the Interstate Commerce Commission Termination Act of 1995

President George W. Bush modified a long-standing moratorium to allow qualified Mexican-domiciled motor carriers to obtain U.S. operating authority for cross-border scheduled bus services and cross-border truck services, implementing NAFTA obligations effective immediately. The modification maintains the domestic-cabotage prohibition (no U.S. point-to-point services) and requires DOT to work with DOJ and homeland security agencies on application reviews.

Impact dates

  1. Modifications effective; DOT authorized to act on applications

Key directives

  • Modify moratorium to allow Mexican-domiciled carriers cross-border bus and truck operating authority
  • Maintain moratorium on U.S. point-to-point (cabotage) services
  • Authorize DOT to act on Mexican carrier applications immediately
  • Require DOT to coordinate with DOJ, Office of Homeland Security, and other agencies on security reviews
  • Ensure Mexican carriers subject to same federal/state laws as U.S. carriers
  • Direct Secretary of Transportation to publish memorandum in Federal Register

Who is ordered

Timeline

Immediate

  • Moratorium modified effective November 27, 2002
  • DOT authorized to act on Mexican carrier applications immediately
  • Cross-border bus and truck services permitted upon application approval

Near term (90d)

  • DOT application review process begins with interagency security coordination
  • Mexican carriers begin submitting applications for operating authority

Long term

  • Potential expansion of U.S.-Mexico surface transportation integration
  • Ongoing border security coordination framework between DOT, DOJ, and DHS predecessors
  • Precedent for NAFTA-related trade liberalization in transportation sector

Risks & tensions

  • Border security concerns elevated given 2002 post-9/11 context requiring explicit DOJ/Homeland Security coordination
  • Labor opposition from U.S. trucking unions likely given competition impact
  • Environmental and regulatory enforcement challenges with cross-border carrier compliance
  • Cabotage restriction preservation may create ongoing trade friction with Mexico
  • Vague 'expeditious action' determination under 49 U.S.C. 13902(c)(5) lacks specific processing timeline
Presidential Memorandum: Determination Under the Interstate Commerce Commission Termination Act of 1995 · Executive Orders