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UPDATE 1-US House votes to end Mexican truck program

Tue Sep 9, 2008 9:47pm EDT

(Adds Mexican Embassy statement, paragraph 4,5)

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WASHINGTON, Sept 9 (Reuters) - The U.S. House of Representatives defied a White House veto threat on Tuesday by voting to end a controversial pilot program that gives long-haul commercial trucks from Mexico full access to U.S. highways.

The bill, approved 395-18, would reverse a decision by the Transportation Department to continue the program, which was begun last year under NAFTA, the North American Free Trade Agreement.

The Senate has yet to take action on the issue and unless Senate leaders can garner a veto-proof two-thirds vote against the program it appeared set to continue.

Still, the Mexican Embassy in Washington said it was "deeply concerned" about the House vote and welcomed the administration's intention to veto the measure.

"Mexico has fulfilled its NAFTA obligations and expects the U.S. do the same. Should the bill be enacted into law, the government of Mexico will consider taking all the appropriate actions, including remedies or countermeasures under the North American Free Trade Agreement," the embassy statement said.

Only a limited number of Mexican trucks have been granted full access because of U.S. political wrangling between congressional Democrats and the Bush administration.

Mexican trucks with U.S.-bound cargo have historically been confined to areas just over the border where they load their goods onto American trucks.

Labor unions, road safety and consumer groups have been the chief opponents to the new program. The administration extended it in August for up to two years even though the Democratic-led Congress was moving to shut it down.

The White House, in a statement earlier in the day warning that senior advisers would recommend a veto, said U.S. and Mexican officials had "effectively addressed" any safety concerns. The White House also said terminating the program would damage trade with Mexico as well as hurt U.S. trucking firms participating in the program. (Reporting by John Crawley, editing by Vicki Allen)



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