MEXICAN TRUCKS CAN ROLL INTO USA - SAYS USA SUPREME COURT

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The U.S. Supreme Court ruled Monday, June 7, 2004, that Mexican trucks can enter and carry freight into the interior of the U.S. This NAFTA right had been delayed for almost ten years due to various political and environmental concerns.

This new U.S. opportunity creates new U.S. legal issues. Mexican trucks operating in the U.S. are subject to federal and each state's laws, including laws dealing with trademark, corporate, labor, licensing, and environmental matters.

For example, if a Mexican truck displays its owner's trade name (as it is required to do) and the trade name infringes the trademark rights of a U.S. trucking company, the U.S. trucking company will likely seek an injunction to keep the Mexican trucks out of the U.S. Therefore, when a Mexican company does business in the U.S., it should obtain its own U.S. trademark registrations.

Also, liability in the U.S. for traffic accidents can be enormous. A Mexican company sending trucks into the U.S. may wish to create a separate U.S. company to insulate the Mexican company from liability concerning accidents. The trucks certainly need U.S.-specific insurance coverage.

Likewise, individual Mexican truckers are subject to U.S. labor laws, need appropriate U.S. visas, and so forth.

Jackson Walker's international group is composed of attorneys from various practice areas including intellectual property, corporate, labor and employment, and immigration.   The group's multidisciplinary approach affords its clients full-service, high-quality legal service.   If you have questions concerning how to help your clients take advantage of this new opportunity, please contact Jackson Walker international transactions attorney James Prappas at (713) 752-4298 or jprappas@jw.com. 

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