State the arguments given by: Mexico’s Government, U.S. Government, Canada’s Government, NAFTA Panel?

1. State the arguments given by: Mexico’s Government, U.S. Government, Canada’s Government, NAFTA Panel?

The US counter-argument was based on the fact that land transport safety standards in Mexico were much less demanding than US standards and that therefore the entry of trucks and truck drivers constituted a risk for the country's population. Even so, at no time did the United States invoke chapter IX: its defence was based on chapter XXI and curiously, in the same text of articles 1102, 1103, 1202 and 1203.

Mexico's argument was that the US was not in compliance with NAFTA Articles 1102, 1103, 1202 and 1203, since the date set out in Annex I for the withdrawal of US reserves from the market for cross-border motor vehicles of charges in respect of these articles. Mexico also advanced in saying that a possible US defence invoking Chapter IX would not be valid. This chapter stipulates that a party has the right to establish standards of conduct or quality standards to ensure the safety and well-being of the party's citizens.

The Panel made it clear that the Annex I timetable with respect to the liberalization of the market for cross-border freight transport was not conditional on any regulatory aspect of the sector and was in fact an unconditional timetable. Having eliminated subjective questions, chapter IX and Annex I, the analysis of the Arbitral Panel turned to articles 2101, 1102, 1103, 1202 and 1203.

1. How was the conflict resolved?

With the recommendation of the NAFTA Arbitration Panel, the US should have adjusted to the NAFTA text, liberalizing the market for cross-border trucking. However, that did not happen: for more than six years after the final report of the Arbitration Panel, nothing has materialized: "the governments of the United Mexican States and the United States of America, from the issuance of the final report of the arbitration panel made various steps within the sector affected by the measure declared incompatible by the arbitration panel with a view to achieving the opening of the cross-border transportation services provided for in NAFTA without obtaining the desired results "

Before April 2007, the first signs of a practical solution were made clear: "The governments of the United States of Mexico and the United States of America agreed to implement a Demonstrative Program of access to cargo haulage (Demonstration Program) which allowed a limited number of companies from both countries to provide cross-border transportation services with a duration of one year as of 6 September 2007”

1. Determine all the losers in this case? Explain why

In my opinion both were losers USA and Mexico because they made a argument of nothing if both accomplish the rules and stay in favour of what both started in a beginning anything of this would happen.

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