Americas | Online

North American trucking gives first impressions on USMCA

24 Jul 2020 · Prosperity

IRU's first virtual dialogue for the Americas brought together North American industry leaders to discuss the recently implemented US-Mexico-Canada (USMCA) trade agreement and its potential impact on cross-border freight transportation services.

Webinar participants benefitted from insider perspectives on what USMCA means for the road transport industry from Derek Leathers, Vice Chairman, President and CEO of Werner Enterprises (USA), Jorge Casares López, General Director of Alianza Trayecto (Mexico) and Dan Einwechter, Founder and CEO of Challenger Motor Freight (Canada).

USMCA entered into force on 1 July 2020, replacing the North American Free Trade Agreement (NAFTA). The agreement is central to North American trade and it is therefore important that transport operators understand how it could alter their business environment. According to Derek Leathers, “the introduction of USCMA will allow operators to focus on efficiencies to be improved and environmental impacts to be lessened.”

All three industry insiders were optimistic about the continued growth of North American trade. Dan Einwechter welcomed USCMA as a “new framework for efficiency, which is particularly important in Canada as 40% of GDP relies on trade with the USA.” They also underlined the importance of efficient coordination and implementation for fluid trade procedures at border crossings.

Another key takeaway was the fact that growing commercial tension between the USA and China could increase manufacturing and production in North America. This increase would benefit regional supply chains, of which trucking is a key component.

USCMA presents both challenges and opportunities for transport operators. Participants in IRU’s webinar gained useful knowledge to enable them to face these challenges and grasp opportunities.