Thursday, March 31, 2011

The Power of Global Reach

"REALTrac Online is truly an industry breakthrough, and something none of NAI’s competitors can match. The process management and reporting system assures consistency and reduces cycle time, adding significant value."
- Cindy Poggiogalle, The Pepsi Bottling Group

The world is at your doorstep – whether you’re in Toronto, Tokyo or Texarkana. 

At NAI, our global market coverage is uniformly excellent. We have top-tier companies and deep-seated professionals in major and secondary markets. This level of coverage works exceptionally well for our clients because of the connections hardwired into our network, including standards of transaction management, information control and real estate technology that have always led the industry.

Best practices are shared throughout our network.

For more than a decade, NAI has gathered best practices by each industry specialty, codified these processes into our proprietary Strategic Transaction Administration and Reporting system (STARs), and trained our professionals using this global standard. STARs puts all the forms, processes and financial analysis to work for our clients, reducing cycle times up to 25%, cutting process costs, enhancing value and increasing speed to market.

Real-time information actionable inforamtion.

Because of our unique model, NAI has always put a premium on the early adoption of cutting-edge technology as a means of speeding communications, delivering the highest-quality services to clients and facilitating collaboration among our team. Our proprietary transaction management system, REALTrac Online, is recognized by the industry as one of the most significant technological innovations of the past 20 years. By combining the best people, processes and systems, the NAI network delivers proven results for our clients. 

NAI Rio Grande Valley is a focused commercial real estate brokerage, consulting, development and syndication firm serving the Rio Grande Valley and based in McAllen, Texas. Our mission is to transform real estate opportunities into profits for owners, users and investors.

NAI Rio Grande Valley advises it's customers and clients on how to maximize the value of their assets and utilize real estate to their long term advantage through comprehensive and strategic planning, execution and management.

Because of our proximity to the Mexico border, close ties to the business community in Mexico and a proven understanding of the unique economics of the U.S. - Mexico border area, NAI Rio Grande Valley is able to provide services to both international and domestic clientele.

Source: NAI Global

Wednesday, March 30, 2011

The Power of Connectivity

"When we need to get something done halfway around the world, our NAI Account Executive coordinates with the regional Managing Director to ensure that our objectives are met. Wherever our business takes us globally, NAI has that extra mile covered."
- Bob Burgholzer, Gillette

A difference in attitude. 

Our Managed network is a union of best-in-class local offices and businesses that are entrepreneurial in spirit and always enterprising on behalf of the client. NAI is highly selective. Only the most successful companies are invited to join our network,and to remain as members, companies must continuously perform at the highest level. An entrepreneurial spirit is the norm,which means that our entire network is geared towards innovation and taking the initiative on behalf of the client. And because of our unique model, we're able to maximize speed, cooperation and integration between all points. 

A difference in structure.

NAI is different by design. Because of the close strategic integration of NAI companies, relationships are tight-knit and communication is fluid between all partners. Uniquely, NAI employs a global management team of seasoned professionals who make sure that all NAI agents are trained to our network's global standards. These global directors, along with the client's dedicated transaction management team, guarantee premier quality service delivery on every assignment. Critical management staff also oversee each step of a transaction - from initiation through post-completion follow-up. This regional and project-based oversight guides transactions and clarifies critical issues such as currency, culture, politics and common practice in cross-border projects.  

A difference in approach.

At, NAI, we've built much more than a network of unmatched local market knowledge, we've built a collaborative, process-driven enterprise to assure the highest level of consistency and quality at every touch point. Every client assignment is initiated with a detailed road map and project timeline, outlining key milestones and success factors. We then employ our proprietary online transaction management system to manage each project in real-time. This process enables our team to handle hundreds of projects, locally and globally, with equal efficiency and transparency. As a client, knowing the exact status of every ongoing project helps you empower your decision-making and achieve superior results. 

NAI Rio Grande Valley is a focused commercial real estate brokerage, consulting, development and syndication firm serving the Rio Grande Valley and based in McAllen, Texas. Our mission is to transform real estate opportunities into profits for owners, users and investors.

NAI Rio Grande Valley advises it's customers and clients on how to maximize the value of their assets and utilize real estate to their long term advantage through comprehensive and strategic planning, execution and management.

Because of our proximity to the Mexico border, close ties to the business community in Mexico and a proven understanding of the unique economics of the U.S. - Mexico border area, NAI Rio Grande Valley is able to provide services to both international and domestic clientele.

Source: NAI Global

Hispanic owned South Texas transportation January sales up 32% in January alone-

Monday, March 28th, 2011

Business Category is a Key Recession Recovery Statistic

Rio Grande Valley, Texas – Bucking the national epidemic of near-stagnant growth, McAllen, Texas was recently recognized as the first city in the United States to reach pre-recessionary levels and one of the few metropolitan areas to have positive job growth throughout the entire economic downtown. Nowhere is this more evident than in the transportation industry, which has traditionally served as a chief indicator of how other key industries are fairing since trucks carry goods to a wide range of markets, suppliers and manufacturers across the country

Mike’s Loading Service based in Edinburg, Texas reported its January sales were up 32% versus the previous year. “The rate of growth we’re seeing is really satisfying for our company and very positive for our industry,” says Mike Castillo, President of Mike’s Loading Service, Inc. in Edinburg. “Economic recovery for our area is tied to companies like Mikes Loading.

They are progressive and focused on growth and we support them”- said Dan Lawless- President, Chase Bank, Rio Grande Valley Region With sales of $56.3 million in 2009 and $56.7 million in 2010, Castillo’s brokerage first felt the effects of the pending recession in June 2008 when sales were off by 35%. The first quarter of 2011, however, is proving to be an entirely different story. “Sales are already up ...

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Tuesday, March 29, 2011

SBA Loans for Commercial Real Estate Refinancing

Monday, March 28th, 2011

Agency will begin accepting refinancing applications as of Feb. 28 for 
small businesses facing maturing mortgages, balloon payments

Washington, D.C. – Small businesses facing maturity of commercial mortgages or balloon payments before Dec. 31, 2012, may be able to refinance their mortgage debt with a 504 loan from the U.S. Small Business Administration under a new, temporary program announced today. 

The new refinancing loan is structured like SBA’s traditional 504, with borrowers committing at least 10 percent equity and working with third-party lending institutions and SBA-approved Certified Development Companies in the standard 50 percent/40 percent split. A key feature of the new program is that it does not require an expansion of the business in order to qualify. 

SBA will begin accepting refinancing applications on Feb. 28. The program, authorized under the Small Business Jobs Act, will be in effect through Sept. 27, 2012.

“The economic downturn of recent years and the declining value of real estate have had a significant, negative impact on many small businesses with mortgages maturing within the next few years,” said SBA Administrator Karen Mills. “As a result, even small businesses that are performing well and making their payments on time could face foreclosure because of the difficulties they face in refinancing and restructuring their mortgage debt. This temporary program is another tool SBA can provide to help these small businesses remain viable and protect jobs.”

The SBA initially will ...

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Article from the March 2011 Issue of Texas Border Business

The Risks & Benefits of Triple-Net (NNN) Properties

by Ray Alcorn 

One of the most popular property types in commercial real estate are "triple-nets," also known as "NNN" deals. These are typically single-tenant retail properties leased to tenants with high credit ratings on "net, net, net" terms (hence the NNN acronym), meaning the tenant is responsible for real estate taxes, insurance, and all maintenance.

At first glance these deals appear to be the perfect investment. They are typically new or nearly new, have no management responsibilities, a long-term lease to a quality tenant, stable cash flow, attractive financing, and the unique tax benefits only real estate provides.

The advantages have fueled a tremendous growth in demand from investors on every level. They appeal to part-time investors looking for guaranteed income with no management responsibility, and they provide an attractive exit strategy for those with mature portfolios. As with any investment, there are many factors to consider in valuing and structuring the deal.

First, like frozen food, you "pay" for the convenience of no management duties and stable, long-term income in the form of lower returns than with a more hands-on, high-maintenance project. Prices start in the range of a 6% cap rate for the highest rated tenants, up to perhaps 8.5%–9% for lesser credit quality or those with short lease terms.

[Note: A cap rate is the percentage of return on the investment as if it were bought with all cash. The lower the cap rate, the higher the price. See this article: Deriving Your Cap Rate for more detail.]

Investors who use debt financing can produce leveraged returns in the 10% - 12% range. But as we will see, income is not the only determinant of value.

Second, and often overlooked, is the wide range of risk exposure for NNN properties, even those with investment grade credit ratings. Contrary to popular belief, these are not "risk-free" investments, and in fact require a level of understanding beyond that of more typical real estate investments.

Risk is always present
In evaluating any NNN deal, be aware that all

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McAllen MSA Ranked Top 20 Strongest Metros in 2011 by Brookings Institute

March 2011 — MetroMonitor: Tracking Economic Recession and Recovery in America’s 100 Largest Metropolitan Areas

McAllen Ranked top 20 strongest Metropolitan areas in recovery in the recession for average rank across a series of four indicators: employment change; unemployment rate change; gross metropolitan product change; and housing price index change.
As of the fourth quarter of 2010 (ending in December), the nation’s 100 largest metropolitan areas were seeing widespread and steady growth in economic output but only slow and inconsistent improvement in the labor market.  Job growth was sluggish and unemployment rates, although lower than at the end of 2009 in most large metropolitan areas, remained very high.  Housing market performance was mixed; house prices fell in nearly all large metropolitan areas, but the pace of foreclosures slowed.  As always, metropolitan economic performance varied greatly among the 100 largest metropolitan areas.
Nearly all those whose economies have suffered the least rely substantially on government (e.g., Washington and several state capitals), health care (e.g., Baltimore and Pittsburgh), education (e.g., Pittsburgh and Austin), or oil and gas (Denver). The map above shows how the 100 largest metropolitan areas rank on a combination of four economic indicators: percent job change from the peak quarter to the fourth quarter of 2010, change in the unemployment rate from December 2007 to December 2010, percent change in economic output (gross metropolitan product) from the peak quarter to the fourth quarter of 2010, and percent change in an index of house prices from the peak quarter to the fourth quarter of 2010.
Click here to read entire report
View all interactive maps, click here

Monday, March 28, 2011

Census Figures Count: Growth All Around Us

Monday, March 28th, 2011

The numbers from the U.S. Census Bureau are out, confirming what we see before our eyes - growth is all around us. From Brownsville to Roma,there is absolutely no mistake that the Rio Grande Valley is building an infrastructure that will help this area become the vanguard for the United States.

The U.S. Census Bureau reported Hidalgo County grew from 569,769 to 774,769 residents representing a 35 percent increase during the last decade. Cameron County grew from 335,227 to 406,220, a 21 percent increase, while Willacy County grew from 20,082 to 22,134, a 10 percent increase. Starr County also reported a gain from 53,597 to 60,968, which is a 13 percent increase

As the census data is being digested, Valley leaders are ...

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Get to Know Our Community

We've Been Busy!

View some our recent CLOSED deals by clicking on the below link.

Colorado Properties Priced for Quick Sale

Sunday, March 27, 2011

Everyone Has a Story...Here's Ours

NAI RGV Reintroduces Itself to the Market

Thursday, September 2nd, 2010

Mike Blum, NAI-Rio Grande Valley managing Partner
By Roberto Hugo Gonzalez

They find that the valley sold $1.1 billion in the food, beverage and hospitality industryin 2009 alone

In 2004 Mike Blum approached Charles Mueller owner of Synergies LLC, a multi-faceted Rio Grande Valley based company, with the idea of creating a real estate division. Mueller agreed and Synergis Realty Group was created.
“Almost at the same time of that creation the then NAI Global affiliate which was known as NAI RIOCO decided to give up its NAI flag,” Blum stated. Blum, who had been with NAI RIOCO since 1997, knew the unique opportunity and the numerous benefits that come with acquiring the NAI flag. Immediately, Mueller and Mike approached the NAI Global Corporation about becoming the NAI affiliate in the Rio Grande Valley.

“So in 2005 the deal was made and we became NAI Rio Grande Valley with over $100 million worth of listings that came over to our table,” Blum stated. With this affiliation, NAI Rio Grande Valley became the NAI Global Rio Grande Valley affiliate. NAI Global is the largest managed, network of commercial real estate professionals with over 5,000 professionals, 325 offices in 55 countries. This makes it possible for NAI Rio Grande Valley to help its clients around the corner and around the world. “We are no longer affiliated with NAI RIOCO, in fact, NAI RIOCO does not exist.”

Blum is the managing partner for the company. He is well known as someone who loves to study and understand the markets. He believes this is important because knowledge is power and markets are in a constant state of evolution. “We are a dynamic, growing community; the population has grown 30 to 40 percent during the last decade.” Blum continued, “Because there has been a significant change in the market it’s time to re-introduce us to everyone to reacquaint them with the uniqueness of our organization and the talent and skill of the people who make us up.”

NAI Rio Grande Valley has ...

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Audi to come to San Juan Corners | san, juan, audi -

SAN JUAN— Apparently enthusiastic about the start of a Mercedes-Benz dealership that opened in San Juan in December, its owners announced plans this week to open an Audi dealership in the city.

“We’re excited, this being our second successful negotiation with a luxury brand,” Economic Development Corporation Director Miki McCarthy said. “It definitely brings clout to our retail corridor.”

Boerne-based Ron Heller and Bill Bird, who own the Mercedes-Benz dealership along with Alfonso Cavasos, had been in discussions with the city about buying a second property since last May and closed on the 7-acre purchase in January.

The new dealership will be located in San Juan Corners, on the south side of U.S. 83, near Cesar Chavez Road. The much-touted city retail development, which has been in the works since 2007, has remained mostly stalled since then.

McCarthy said she hoped the placement of the dealership would help accelerate business development at San Juan Corners and said other projects in the area are under negotiation. Audi is expected to bring in ...

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Audi to come to San Juan Corners | san, juan, audi -

Friday, March 25, 2011

This could be the best year the real estate industry has seen in a while. Do you have the right mental attitude to take advantage of a turnaround?

This year is starting off with a bang!

As we head into the spring selling season, the passion for the business seems to be on the rise for our industry. The energy level of practitioners and buyers is higher than I’ve seen it in a while, and that’s certainly welcome news for all of us in real estate.

The attitude that you carry will affect your success. It’s easier to maintain a positive perspective early in the year, when you’ve typically just set goals and you’re getting new things going. The challenge comes when you get further into the year or when the transactions and problem clients start to drag down your attitude and energy. That’s when we really need a boost to stay our positive course.

Let me share a few tips on keeping your attitude high throughout 2011.

1. Your attitude is a choice: Attitude is something we choose each day. We can decide to have a positive or negative view of things. It sounds simple, but you can resolve to be one or the other each morning when you wake up. Before you get out of bed, make the decision and stick to it.

2. ... Click below link to read more

Blast Off: Dirk Zeller: Sales & Marketing: REALTOR Magazine

Thursday, March 24, 2011

The Power of Local Knowledge

"NAI brokers are local brokers who are all deeply knowledgeable about the markets they serve. That combination of local expertise and global exposure is something we have come to count on."
- Susan Reber, Air Products & Chemicals, Inc.

Intimate, real-time market knowledge. 

Your key to any market, large or small, is your local real estate professional. At NAI, our brokers' intimate knowledge of the market and special relationships with property owners, major tenants and government agencies gives our clients the edge. In multi-site acquisition and disposition, this inside market access is critical to success - so you'll know not only what is possible but also what might become possible in the future. 

No other firm can access this level of local depth.

When you do business with NAI, you connect with the best people in each local marketplace. Our firms are selected because they are established names in their markets, and our professionals grew up in their markets - they are part of their communities and are better connected because of it. With our deep roots in local markets worldwide, we provide you with instant access to knowledge and expertise on the ground in the markets that matter to you.

We focus on the relationship, not simply the "deal."

At, NAI, our model is designed to handle multiple, simultaneous projects across a broad range of geographies around the world. We are also able to manage projects, both large and small, and in major and secondary markets, with equal efficiency. In this way, we not only give our clients a close, intimate view of the local markets where they do business, we give them a long view of their portfolio. Doing "deals," therefore, is not our priority; doing the right "deal" and building lasting relationships is.

NAI Rio Grande Valley is a focused commercial real estate brokerage, consulting, development and syndication firm serving the Rio Grande Valley and based in McAllen, Texas. Our mission is to transform real estate opportunities into profits for owners, users and investors.

NAI Rio Grande Valley advises it's customers and clients on how to maximize the value of their assets and utilize real estate to their long term advantage through comprehensive and strategic planning, execution and management.

Because of our proximity to the Mexico border, close ties to the business community in Mexico and a proven understanding of the unique economics of the U.S. - Mexico border area, NAI Rio Grande Valley is able to provide services to both international and domestic clientele.

Source: NAI Global

New Data Shows Positive Outlook Through 2014

Several positive indicators point to a favorable outlook for commercial real estate through 2014, according to the PwC Real Estate Barometer in the 1Q11 PwC Real Estate Investor Survey. By analyzing historical and forecast stock data, the barometer measures inventory changes within the office, industrial, retail, and multifamily sectors over time in relation to the four stages of the real estate cycle.
“As investors become more confident about the long-awaited recovery of the industry, they are eager to get deals done. This bodes well for the industry as the volume of capital chasing deals is expected to increase in all sectors as investors work to deploy capital before interest rates rise, overall cap rates increase, and the industry shifts more in favor of sellers,” says Mitch Roschelle, partner and U.S. real estate advisory practice leader for PricewaterhouseCoopers.
With constrained supply and decreasing vacancy, the majority of the office sector will be in recovery by year-end, with 86.2 percent of the sector rising from the market’s bottom by year-end 2012, according to the report. Despite the nationwide rebound, hard-hit markets such as Chicago, Las Vegas, Los Angeles, and Tampa, Fla., will remain depressed through 2012.
Inconsistent consumer spending and inflation concerns will keep about 76.6 percent of the retail market in recession through 2012, with a more widespread recovery expected by year-end 2013. A few isolated markets such as Long Island, N.Y., and Nashville, Tenn., may see recovery by 2012, faring better than the national trend.
Availability rates for the industrial sector are expected to peak in 2011 as tenant demand strengthens due to ...

Tuesday, March 22, 2011

5 Tips For Buying Your First Piece of Commercial Real Estate

 By Jeremy Cyrier

Be careful to follow these 5 tips when you source, qualify, and acquire your first piece of commercial property so that it's not your last!

1. Research Your Market: Remember, 80% of your commercial property's performance will be market based. This means that you should have growth in jobs, demand for office and industrial space, household population growth, and increased demand for retail services and housing. If your market is trending the other direction, beware because the other 20% of the equation, your financials, may not equate to profits.

2. Identify Your Return Requirements: Pick your return requirement. Does the deal need to provide you with a cash on cash return (i.e., you invest $1,000,000 and want $100,000 back year after year)?
Or perhaps you want an overall internal rate of return that accounts for how long you hold the property and how much you sell it for? Some people target 12-30% for their yield on investment or their internal rate of return. And remember, just because a commercial investment has a good cap rate, doesn't make it a good deal.
Note: Your cap rate only tells you the first 12 months of the investment's potential story!

3. Identify Your Ideal Property Type: Commercial investments come in 4 types: Retail, Office, Industrial, and Multifamily. Which commercial investment type is right for you? Research the differences between them and you'll see that they all offer distinctive advantages and disadvantages when it comes to management, cash flows, hedging against inflation, maintenance, and growth in the real estate cycle.

4. Qualify the Seller and the Property: You think you're in the real estate investing business, but you're really in the people who own real estate business. Remember, too many people focus just on the property and not enough on the people who own the properties. These folks are the ones with the problems you can solve by buying their commercial property and providing them with a solution that offers you the opportunity for upside value and big profits.
You can make changes to the property now you that understand its position in the market and how to unlock its highest and best use (value) from Step #1.

5. Acquire the Property -- Make Sure You Understand Your Loan: Make sure you read your loan documents. They will be different than when you bought your home and traded those residential investments. Banks make commercial loans and know the tricks to maximize their returns while minimizing their risks when lending you money on your first commercial real estate purchase. Most commercial loans have a loan term, which means that the payments may be calculated on a 20 to 30 year amortization period, most banks want you to either pay off the loan via refinance or sale within 5-10 years.
Many first time commercial real estate investors miss this step and unfortunately discover later in their holding people that they haven't planned for a term maturity. They have to scramble to save their equity and their first building!

Jeremy Cyrier, CCIM trains and develops people who invest their own money in commercial real estate and believes that action in commercial real estate without meaning is worthless. Jeremy Cyrier, CCIM is the President of For more commercial real estate investing tips, visit: 

NAI Rio Grande Valley is a focused commercial real estate brokerage, consulting, development and syndication firm serving the Rio Grande Valley and based in McAllen, Texas. Our mission is to transform real estate opportunities into profits for owners, users and investors.

Saturday, March 19, 2011

Bass Pro Shops holds ground breaking ceremony in Harlingen

Bass Pro Shops holds ground breaking ceremony in Harlingen: "After much speculation, the Rio Grande Valley will finally see Bass Pro Shops in Harlingen. City leaders, Bass Pro Shops representatives and community members gathered Friday to break ground for the 150-thousand square foot outdoorsman's dream store."

Thursday, March 17, 2011

Valley's first toll road to open north of Brownsville

Love them or hate them, toll roads are becoming the new trend across the nation.
Even here in the Rio Grande Valley with a new told road opening up at Paredes Line and FM 511 in Brownsville.
“The idea in using the overpass is to avoid the congestion at the intersection of FM 511 and Paredes line and to avoid the rail road tracks” said Pete Sepulveda with Cameron County's Regional Mobility Authority.
The toll for State Highway 550 will be all electronic.
Cameras just above the overpass will acted as a toll booth, taking pictures of who’s on the road.
Drivers will then get a bill in the mail.
Transportation authorities say this is only phase one of a much larger project.
They are hoping to have more toll roads up and running by summer of 2012.
“When it’s all complete, the idea is to take you from Highway 48 to 77 without having to stop at any traffic lights or major intersection” said Supulveda.
The public will still have the use ...
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McAllen MSA Continues to Outperform at the National Level

McAllen – Unemployment in the McAllen MSA area rose slightly to 12.8 percent in January, up from 12.2 percent in December; still above the Texas unemployment rate of 8.5 percent and U.S. unemployment rate of 9.8 percent, both of which also marked an increase from December. The McAllen MSA area also posted an increase of 1,100 in the Civilian Labor Force in January, increasing by 5,900 since January 2010.
According to a recent study by the Brookings Institute; which profiled 100 of the nation’s largest metropolitan areas – home to three-fourths of the U.S. economy, the McAllen MSA is one of only four metropolitan areas that were among the top 20 metropolitan areas during both the recession and the recovery period.
“The local labor market has consistently showed positive signs. In spite of the current local unemployment rate, the Rio Grande Valley continues to grow and create jobs. I am encouraged job seekers will find good paying jobs and employers will continue to find qualified employees,” said Yvonne ‘Bonnie’ Gonzalez, Chief Executive Officer of Workforce Solutions. “Staff at the Office for Business Partnerships, and six Career Centers in the tri-county region, remain committed to assisting employers and job seekers.”
Workforce Solutions / Lower RGV is one of 28 local workforce development boards located throughout the state. This Board serves Starr, Hidalgo and Willacy counties through a network of partners in the tri-county region. The primary goal of Workforce Solutions / Lower RGV is to respond to the needs of employers, workers and job seekers, and provide the resources needed to succeed in an ever-changing world. All eligible employers, workers and job seekers are encouraged to take advantage of these services.
For more information Contact:
Victor M. de Leon, Public Information Officer – Workforce Solutions

Monday, March 7, 2011

Mike Blum, of NAI Rio Grande Valley named to NAI Global's 2011 Executive Committee!

Mike, the only representative from Texas, will represent the Valley with a strong voice for promoting growth and business for the area. He will provide additional leadership to this experienced and distinguished group.

The NAI Members' Leadership Board is comprised of representatives of NAI member firms and interacts with NAI Global to provide input and develop key strategic initiatives.

For more information about Mike and NAI Rio Grande Valley visit our website at You can also follow our Tweets and Posts on Facebook

U.S./Mexico Cargo Truck Agreement Expected To Create Jobs

U.S./Mexico Cargo Truck Agreement Expected To Create Jobs
From the office of US Congressman Henry Cuellar:
Washington, D.C. – Today, Congressman Henry Cuellar (TX-28) released the following statement after President Barack Obama and President Felipe Calderon announced an agreement has been reached between the United States and Mexico on cargo trucks:
“This agreement is great news for Texas producers and an important step to more open, transparent and efficient trade between the two countries. Lower tariffs mean more jobs in the 28th district and around the country.
“This agreement is one more way to create jobs and drive the U.S economy. Everyday, more than $1 billion in goods move across the U.S.-Mexico border. This historic and important agreement has far-reaching implications that will benefit both countries for years to come.”
The agreement reached today by President Barack Obama and President Felipe Calderon calls for the immediate lift of 50 percent of the tariffs to allow U.S. cargo trucks to travel into Mexico. The agreement also establishes a reciprocal, phased-in pilot program that allows Mexican trucks to operate inside the U.S. provided they comply with a series of safety and driver skills and language tests monitored by the U.S. Department of Transportation.
The remaining 50 percent of tariffs would be lifted when the first Mexican carrier receives authorization under the new program. The Office of U.S. Trade Representative, Ron Kirk, will ensure the tariffs are lifted as agreed.