After Motor Carrier Act of 1980, truckers could price freely within 15% up and down from current levels.
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The law produced higher level of competition which eventually resulted in lower prices and profit margins. Suddenly a large number of new non-union carriers showed up, and they were mostly new low-cost firms.
In the end, manufacturers reduced their inventories consumers benefited, but competition got really hard and become a permanent mark of US trucking industry in following years.
North American Free Trade Agreement (NAFTA) – 1990’s
Probably most important, and certainly the most controversial moment in trucking industry od 1990’s was, North American Free Trade Agreement (NAFTA), signed by Canada, Mexico and United States.
NAFTA’s impact have been subject of many relevant studies all over the world. These attempts were equally in favour and against the agreement, based on impact the agreement on national economies.
However, is seems that US benefited the most. According to US Chamber of Commerce, NAFTA increased trade with Canada and Mexico from $337 billion to $1.2 trillion in less than 20 years, after the agreement.
