[Weekly Compilation of Presidential Documents Volume 30, Number 41 (Monday, October 17, 1994)]
[Pages 1980-1981]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Congress on Implementation of the North American Free 
Trade Agreement

October 6, 1994

To the Congress of the United States:

    In November 1993, in preparation for the implementation of the North 
American Free Trade Agreement (NAFTA) on January 1, 1994, I informed the 
Congress of my intent to modify the moratorium on the issuance of 
certificates of operating authority to Mexican-owned or -controlled 
motor carriers that was imposed by the Bus Regulatory Reform Act of 1982 
(49 U.S.C. 10922(l)(2)(A)). The modification applied to Mexican charter 
and tour bus operations. At that time, I also informed the Congress that 
I would be notifying it of additional modifications to the moratorium 
with respect to Mexican operations as we continued to implement NAFTA's 
transportation provisions. In this regard, it is now my intention to 
further modify the moratorium to allow Mexican small package delivery 
services to operate in the United States provided that Mexico implements 
its NAFTA obligation to provide national treatment to U.S. small package 
delivery companies.
    Prior to its implementation of the NAFTA, Mexico limited foreign-
owned small package delivery services, such as that offered by United 
Parcel Service and Federal Express, to trucks approximately the size of 
a minivan. This made intercity service impractical and effectively 
limited small-package delivery companies to intracity service only. 
Mexico has no similar restriction on the size of trucks used by Mexican 
small package delivery services. Because Mexico did not take a 
reservation in this area, the NAFTA obligates Mexico to extend national 
treatment to U.S. small package and messenger service companies. Mexico 
must allow U.S. small package delivery services to use the same size 
trucks that Mexican small package delivery companies are permitted to 
use.
    Mexico, earlier this year, enacted legislation that addresses the 
small package delivery issue. Amendments to the Law on Roads, Bridges, 
and Federal Motor Carriers authorize parcel delivery and messenger 
services to operate without restriction so long as they obtain a permit 
from the Secretariat of Communications and Transportation and direct 
that such permits be granted in a timely fashion. The law includes no 
restrictions on the size and weight of parcels nor on the dimensions of 
the vehicles that small package delivery services will be permitted to 
use.
    At the North American Transportation Summit hosted by the United 
States on April 29, 1994, Mexico's Secretary of Communications and 
Transportation Emilio Gamboa reaffirmed his government's commitment to 
permit unrestricted operations by foreign-owned providers of small 
package delivery services in Mexico. In return, even though the United 
States does not have a similar obligation under the NAFTA, Secretary of 
Transportation Federico Pena stated the United States Government's 
intention to grant Mexican small package delivery service companies 
reciprocal operating rights in the United States by modifying the 
moratorium imposed by the Bus Regulatory Reform Act. Mexico and the 
United States agreed to establish a joint working group to specify the 
details of this arrangement by September 1, 1994.
    The U.S. small package delivery service industry is supportive of 
United States Government efforts to eliminate Mexico's restrictions on 
small package delivery operations. Provided Mexico implements its NAFTA 
obligation to extend national treatment to U.S. small package delivery 
companies, the U.S. industry would not object to a modification of the 
moratorium that would provide Mexican small package delivery companies 
reciprocal treatment in the United States.
    Provided that Mexico meets its NAFTA-imposed national treatment 
obligation to allow U.S.-owned small package delivery services 
unrestricted operations, I intend, pursuant to section 6 of the Bus 
Regulatory Reform Act, to modify the moratorium imposed by that section 
to permit Mexican small package delivery services to operate in the 
United States in exactly the same manner and to exactly the same extent 
that U.S. small package delivery services will be permitted to operate 
in Mexico. The Bus Regulatory Reform Act requires 60 days' advance 
notice to the Congress of my intention to modify or remove the 
moratorium. With this mes- 

[[Page 1981]]

sage, I am providing the advance notice so required.
                                            William J. Clinton
The White House,
October 6, 1994.

Note: This message was released by the Office of the Press Secretary on 
October 7. This item was not received in time for publication in the 
appropriate issue.