Powering American Competitiveness Through U.S.-Mexico Border Collaboration

Jon Barela, CEO, The Borderplex Alliance

Fellow, North Capital Forum 2023

The U.S.-Mexico border serves as a vital asset that fosters cooperation in trade, growth, and security, benefiting Americans on a national scale. The deep connections between our two nations, manifested through trade, travel, and familial bonds, make the border a unifying force rather than a divisive barrier. By implementing well-crafted policies and investments, we can unlock the border's potential as a catalyst for U.S. prosperity and security. This policy outline focuses on the significant economic opportunities presented by the U.S.-Mexico border, particularly the border region encompassing El Paso, Texas; southern New Mexico; and Ciudad Juárez. Already, this region plays a pivotal role in facilitating bilateral trade and manufacturing, generating American jobs and consumer goods. Proposed solutions aim to expedite secure flows of commerce and travel, envisioning the Borderplex as an even more potent national asset by 2040. Collaborative efforts along the U.S.-Mexico border fortify American competitiveness.

Allies & Partners Already Boost American Growth

The United States and Mexico share a deep integration as partners, delivering widespread benefits to Americans. Mexico stands as the largest U.S. trading partner, with trade exceeding $614 billion in 2021, thereby supporting jobs across supply chains. Notably, Mexico ranks as the primary destination for U.S. exports, accounting for over $315 billion in American goods and services purchases in 2021. Additionally, the U.S. invested more than $107 billion in Mexico in the same year. This integration fuels growth along the 2,000-mile border, characterized by industry hubs with interconnected supply chains in binational metro areas. For instance, the El Paso and Ciudad Juárez region witnesses over 100,000 legal northbound border crossings daily, many for employment purposes. Several major companies operate integrated facilities, which provide employment opportunities for Americans. In essence, the collaborative efforts of border communities significantly contribute to bilateral trade and investment, further strengthening economic, social, and cultural bonds. Partnerships with Mexico and Canada uphold North America's strategic economic advantage.

Borderplex: Already a Hub for Manufacturing, Trade, and Jobs

Within the broader border context, the border region comprising El Paso, southern New Mexico, and Ciudad Juárez emerges as a unique epicenter of potential. This region, home to over 2.8 million individuals, fuels substantial cross-border trade and job creation. The Borderplex boasts integrated infrastructure and industries that facilitate seamless commerce, epitomizing the advantages of the border.

Ciudad Juárez has solidified its status as a manufacturing anchor, hosting more than 300 factories across sectors like automotive, aerospace, and medical devices. Leading companies operate here, exporting over 60% of their output duty-free to the U.S. This manufacturing prowess already sustains high-quality American jobs.

El Paso plays a pivotal role in providing essential transportation infrastructure that expedites this commerce. The city accommodates freight forwarders, brokers, and distribution centers, while the Union Pacific facility in Santa Teresa, New Mexico, adjacent to El Paso, handled over 550,000 shipping containers in 2021.

These infrastructure assets and supply chain integration position the Borderplex as an ideal destination for reshoring production to North America, potentially creating additional American jobs.

Expediting Secure Travel and Trade

To fully harness the Borderplex's potential, strategic upgrades are necessary:

  • First, land ports require infrastructure modernization to efficiently accommodate growing volumes of legitimate trade and travel, which ultimately benefit Americans. Increased capacity would alleviate congestion, while pre-clearance measures before reaching the border enhance both security and speed.

  • Second, U.S. Customs and Border Protection must ensure adequate staffing through the implementation of hiring incentives and local partnerships. An increase in the number of officers and support personnel would enhance security measures while improving travel times.

  • Finally, technology solutions, such as advanced traveler verification and customs data integration, hold the potential to bolster security while accelerating processing. These measures aim to meet the growing demand while simultaneously enhancing oversight. Legitimate traffic would flow seamlessly in this economically vital region.

Ambitious Yet Achievable Goals for 2040

Strategic investments could pave the way for ambitious yet realistic goals for the Borderplex by 2040:

  • Increase total trade volume to over $200 billion annually

  • Double air cargo throughput at El Paso International Airport

  • Significantly reduce peak northbound land port wait times

  • Expand enrollment in advanced traveler verification programs

  • Implement pre-clearance procedures for processing before reaching the border

Collaborative efforts spanning federal, state, local, and private sectors could transform these aspirations into tangible outcomes through innovative, technology-driven solutions that benefit communities across the nation.

Conclusion

The U.S.-Mexico border constitutes a strategic asset that elevates America's global competitiveness. The Borderplex region stands as a testament to the immense potential this region holds. By implementing intelligent policies and strategic investments, we can further catalyze economic growth, prosperity, and security. Defined by its connectivity, the border represents an advantage rather than a liability. Forward-thinking collaboration can unlock its full potential for all Americans. However, achieving this necessitates altering negative public perceptions of the border. Armed with facts and a spirit of cooperation, we can highlight how this vital region fortifies North American leadership on the global stage.

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