A federal appeals court ruled Friday in favor of the Bush administration and against the Teamsters union, the Sierra Club and the nonprofit Public Citizen and decided that Mexican trucks are free to haul cargo anywhere in the United States. The 9th U.S. Circuit Court of Appeals has shown that the suit filed by the Teamsters and Sierra Club does not meet the legal requirements to allow the court to stop the proposed project.

The program is scheduled to begin Thursday and is part of the North American Free Trade Agreement which eventually will see all roads in the United States, Mexico and Canada opened to carriers from all three countries. Until now, Mexican trucks could travel only 20 miles inside the United States and only at certain border crossings, such as ones in San Diego and El Paso, Texas.

The project is overseen by the Federal Motor Carrier Safety Administration, which has lauded the decision. “We believe this program clearly breaks the law,” Teamsters General President Jim Hoffa said in a statement to the press. “We will continue to fight for safety and national security in the courts and in Congress.”

However, the U.S. government points out that Mexican drivers will pose no more of a risk than American truckers, because their parent Mexican carriers have to pass comprehensive safety audits and their drivers must also comply with all U.S. laws and regulations, just like their American colleagues.

"The court's prompt decision denying an emergency stay is welcome news for U.S. truck drivers anxious to compete south of the border and U.S. consumers eager to realize the savings of more efficient shipments with one of our largest trading partners," FMCSA said late Friday.

Under the deal, Mexico will also allow American truckers into the country.