Mexican trucking

[Dave Backus @ NYU]

More than a decade ago, I put together a case about UPS's difficulties
in the trucking business in Mexico. UPS has long since abandoned
truck delivery there (I think they still have an air service), but 17
years since NAFTA established more open trade between the US and
Mexico, neither US nor Mexican trucks can enter the other country.
(Think to yourself: how is it those Xbox's etc get shipped?)
Evidently the politics of cross-border trucking is too hot to handle.
There was a similar issue with Canadian truckers, who were initially
allowed into the US but forced to return empty. They are now allowed
limited access to return business, under rules too complicated for me
to follow.

Apparently the case is still alive. Obama met last week with Mexican
president Calderon and "announced a breakthrough." Given the long
tortured history, I wouldn't hold my breath.

Links
* Last week: http://www.nytimes.com/2011/03/04/world/americas/04mexico.html
* Case: http://www.stern.nyu.edu/eco/B012303/Backus/case_ups.pdf