The U.S. and Mexican governments have signed a Memorandum of Understanding (MOU) on a new cross-border trucking program that will bring the United States into compliance with our NAFTA commitments. This is good news – if long overdue – for manufacturers in America.

For over 30 months, U.S. manufacturers have faced billions in retaliatory tariffs on hundreds of products they ship into Mexico as a result of our ban on Mexican trucks. Now with this MOU, those tariffs will be cut in half – and will be suspended completely once the first truck is certified under the new program.

The NAM strongly believes that all countries need to uphold their international obligations, and that includes commitments made by the United States.  We need to press other countries hard to live up to their agreements, but we cannot expect them to comply if we don’t. Resolution of the trucking dispute and removal of retaliatory tariffs is a very positive development.

Doug Goudie is director of international trade policy, National Association of Manufacturers.