In a recent spending bill signed by the President, Congress suspended a pilot program begun by the Bush administration that allowed long-haul Mexican trucks to deliver goods throughout the U.S. in compliance with the North American Free Trade Agreement (NAFTA). In response to the move, which the Mexican Economy Minister called “…protectionist and clearly in violation of (NAFTA),” Mexico placed tariffs (or taxes on exported goods) on 90 American manufactured and agricultural exports – nearly $2.4 billion worth of goods.

The dispute with the major trading partner is the first for the Obama administration, which has said it would work to create a new cross-border trucking program. Transportation Secretary Ray LaHood has already been in talks with other officials from the Office of the U.S. Trade and State Department to craft a new program to resolve the conflict, according to the Wall Street Journal. Mexican officials have indicated that they would rescind the tariffs if a new, satisfactory plan is developed.

While the American Trucking Associations and U.S. Chamber of Commerce both supported the program and opposed its withdrawal, some feel allowing Mexican trucks to operate in the U.S. is dangerous and could potentially stifle wages for American truck drivers. Others-including the Teamsters-believe Mexico needs to make sure their drivers and trucks are safe enough to operate on American roads before the U.S. opens the border again.