<h1><font size="2">"Will they do what other administrations have had to do
with a Democratic Congress and that's twist arms to get votes?" Mr.
Castellani says. "That's the real test."</font></h1><h1>Truck Dispute Previews Trade Battle</h1><h3 class="byline">By <a href="http://online.wsj.com/search/term.html?KEYWORDS=ELIZABETH+WILLIAMSON&bylinesearch=true">ELIZABETH
WILLIAMSON</a> </h3><p>WASHINGTON—As President Barack
Obama renews his focus on trade in a quest for job growth, a festering
dispute with Mexico hints at the political battles ahead. </p><p>Over
the past several weeks Mr. Obama has vowed to push for passage of
pending free-trade agreements with Korea, Panama and Colombia, and seek
other trade opportunities. Yet shortly after taking office, Mr. Obama
signed a bill with a provision that effectively bans Mexican trucks from
operating inside the U.S. The ban violates the North American Free
Trade Act, and prompted Mexico to impose punitive tariffs last year on
$2.4 billion in American products—from Christmas trees and potatoes to
wine. </p><p>Mr. Obama could reverse the ban without the approval of
Congress, but that would infuriate many Democrats and trucking and other
unions that are critical supporters in a tough election year.</p><p>On
Thursday, the two major business groups in the capital said progress on
the trucking issue would signal that Mr. Obama is moving beyond
rhetorical support for free trade.</p><p>"This is an important benchmark
of the administration's willingness to put some action behind its
stated goals of doubling U.S. exports," says Patrick Kilbride, director
of the Americas program at the U.S. Chamber of Commerce, which has
advocated for an end to the ban. </p> <p> John Castellani, president of the
Business Roundtable, which includes chief executives of the biggest
U.S. multinationals, said Thursday that while he takes Mr. Obama's
intentions to pursue trade opportunities "at face value," the proof of
the White House's seriousness will come when the fight to pass the free
trade agreements begins in Congress, a battle expected no earlier than
December. </p><p>"Will they do what other administrations have had to do
with a Democratic Congress and that's twist arms to get votes?" Mr.
Castellani says. "That's the real test."</p><p>The Mexican government is
using Mr. Obama's renewed pledges on trade to demand action now.</p><p>"If
we don't see a concrete proposal from the U.S. in the next few weeks,
Mexico will exercise its legal rights, which include expanding the list
of products subject to retaliation," a Mexican government official said
Thursday. </p><p>Mexico said it won't be enough to reinstate an expired
pilot program, a compromise that temporarily gave Mexican trucks access
to the U.S.</p><p>White House spokeswoman Jennifer Psaki said Thursday
that the administration is "committed to working closely with Congress
and with the Mexican government to find a resolution that addresses
legitimate safety concerns and complies with our international
obligations." A spokeswoman for Transportation Secretary Ray LaHood, who
said in March the government would act soon, echoed that statement. </p><p>Mr.
Obama has vowed for a year to resolve the dispute, but done little.
Free-trade advocates, including agricultural businesses hurt by the
tariffs, say U.S. law would apply to Mexican truckers, and the ban is
more a protectionist measure than a safety issue. </p><p>Advocates for
the ban, including the Teamsters union, say it is needed because Mexican
trucks and drivers are potentially unsafe.</p><p>"If we were to
'settle' this trucking dispute this would only increase the trade
deficit with Mexico, which is up to 59% in January through March," said
Robert E. Scott, senior international economist at the Economic Policy
Institute, which opposes passage of the free-trade agreements with
Korea, Colombia and Panama. </p><br>-- <br>Tim Robertson, Director<br>California Fair Trade Coalition<br><br>2017 Mission St., Suite 200<br>San Francisco, CA 94110<br>(415)255-7291(o)<br>(415)987-4870(c)<br><br>The California Fair Trade Coalition is a pro-trade, pro-democracy coalition of labor, immigrant rights, environmental, faith, family farm and women's interests working towards a balanced approach to international trade. Our goal is to reform U.S. trade policy and to promote economic justice, human rights, healthy communities, and a sound environment. <br>