NAFTA and the State of the Border
U.S.-Mexico Chamber of Commerce Mid-America
NAFTA’s Impact on Regional Growth,
Trade and Prosperity ● November 7, 2013
2012 Total Goods Trade, Exports, and Imports
Top 15 U.S. Trading Partners (in billions of U.S. dollars)
Rank
Country
Exports YTD
Imports YTD
Total Trade
YTD
Percent of
Total Trade
---
Total, All Countries
1,547.1
2,275.0
3,822.2
100.0%
---
Total, Top 15 Countries
1,049.0
1,703.0
2,752.0
72.0%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Canada
China
Mexico
Japan
Germany
United Kingdom
Korea, South
Brazil
Saudi Arabia
France
Taiwan
Netherlands
India
Venezuela
Italy
292.4
110.6
216.3
70.0
48.8
54.8
42.3
43.7
18.1
30.8
24.4
40.7
22.3
17.6
16.0
324.2
425.6
277.7
146.4
108.5
54.9
58.9
32.1
55.7
41.6
38.9
22.3
40.5
38.7
36.9
616.7
536.2
494.0
216.4
157.3
109.8
101.2
75.8
73.8
72.4
63.2
63.0
62.9
56.4
52.9
16.1%
14.0%
12.9%
5.7%
4.1%
2.9%
2.6%
2.0%
1.9%
1.9%
1.7%
1.6%
1.6%
1.5%
1.4%
Source: U.S. Census Bureau, http://www.census.gov/foreigntrade/statistics/highlights/top/top1212yr.html#total and http://www.census.gov/foreigntrade/balance/c4621.html
U.S.-Canada Border
Source: National Post 9/12/11
Chicago’s North American trade
Source: Brookings Institute Report: Metros as Hubs of Advanced Industries and
Integrated Goods Trade,
http://www.brookings.edu/research/interactives/2013/metro-north-america
San Diego Optimism
“…The theme of the conference – three nations, two borders, one
economy – underscores the point that we need not surrender
sovereignty or erase borders to deepen economic integration. A
common NAFTA external tariff, regulatory harmonization, a
continental energy strategy, greater labour mobility and
enhanced public consciousness about our
interdependence can all be accomplished without merging into
one country.”
—Konrad Yakabuski, “CETA’s nice. But NAFTA is
essential.” The Globe and Mail, Oct. 28, 2013
San Diego Pessimism
“We have conflicting regulations, border security that’s become
quite militarized. We’ve got a witch hunt for illegal aliens going
on rather than having a dialogue about labor and mobility and
how do we get jobs to people who need them. A single North
American market has not been realized.”
—Christopher Sands, Senior Fellow, Hudson Institute
One FTA, Two Border Management Plans
• U.S.-Canada: Beyond the Border: A Shared Vision for Perimeter Security and Economic
Competitiveness (February 4, 2011)
• Key areas: Addressing Threats Early; Trade Facilitation; Economic Growth, and Jobs; Integrated Crossborder Law Enforcement; Critical Infrastructure and Cybersecurity
• Mexico-U.S.: Declaration by The Government Of The United States Of America and The
Government Of The United Mexican States Concerning Twenty-First Century Border
Management (May 19, 2010)
• Key areas:
• Enhancing economic competitiveness by expediting lawful trade, while preventing the transit of
illegal merchandise between their two countries,
• Facilitating lawful travel in a manner that also prevents the illegal movement of people between
their two countries,
• Sharing information that enhances secure flows of goods and people, and
• Disrupting and dismantling transnational criminal organizations and punishing their members
and supporters.
Overview: The State Of Trade, Competitiveness and
Economic Well-being In The U.S.-Mexico Border Region
Erik Lee and Christopher E. Wilson
• Well over a billion dollars’ worth of goods cross the
border each day.
• Long and unpredictable wait times at the border ports of
entry are costing the United States and Mexican
economies many billions of dollars each year.
• Improving trusted traveler programs could increase
border efficiency with minimal investments in
infrastructure and staffing.
Total
U.S.-Mexico
Trade,
1993-2012
(in millions of U.S. dollars, includes goods and services)
*Bilateral goods
and services trade
reached an
estimated $536
billion in 2012, a
new record.
Source: U.S. Census Bureau and U.S. Bureau of Economic Analysis. 2012 services numbers are
preliminary. http://www.census.gov/foreign-trade/statistics/country/ and
http://www.bea.gov/iTable/index_ita.cfm
U.S. Land Ports of Entry with Mexico
California
Arizona
New Mexico
Texas
San Ysidro
Otay Mesa Psgr.
Otay Mesa Comm.
Tecate
Calexico West
Calexico East
Andrade
Lukeville
Douglas
Naco
San Luis
San Luis II
Sasabe
Nogales - Mariposa
Nogales - DeConcini
Nogales - Morely Gate
Antelope Wells
Columbus
Santa Teresa
Paso Del Norte
Stanton Street
Bridge of the Amer.
Ysleta
Fabens*
Fort Hancock
Presidio
Amistad Dam
Del Rio
Eagle Pass
Eagles Pass II
Laredo-Columbia S.
Laredo-World Trade
Juarez-Lincoln
Falcon Dam
Roma
Rio Grande City
Los Ebanos*
Anzalduas
Hidalgo
Pharr
Donna
Progreso
Los Indios
Brownsville - B&M*
Brownsville - Gateway
Laredo - Convent Ave.
Entry points: 7
Passenger lanes: 63
Entry points: 9
Passenger lanes: 39
Entry points: 3
Passenger lanes: 5
Brownsville - Veterans
Entry points: 28
Passenger lanes: 144
Commercial lanes: 16
Commercial lanes: 14
Commercial lanes: 2
Commercial lanes: 61
Pedestrian lanes: 37
Pedestrian lanes: 14
Pedestrian lanes:
Pedestrian lanes: 54
Sources: Texas Transportation Institute, Border-Wide Assessment of Intelligent Transportation System (ITS) Technology—Current and
Future Concepts. Final Report, July 2012 and U.S. Customs and Border Protection website.
The Costs of Congestion
Border Congestion Could Get Worse
Investment at the POEs
v. investment between the POEs
Opportunity: Trusted Traveler Programs
21CB: U.S. Interagency Structure
21CB: Mexican Interagency Structure
Mexico’s Border Security:
High Variability from West to East
Conclusions
• Much accomplished, much left to do
• 1990s: Skyrocketing trade
• 2000s: Security trumps trade
• 2010s: Concerns over physical and economic security
• Great potential with trusted traveler programs, inter-regional dialogue
and advocacy, and public-private partnerships
• Processes to watch: Immigration reform, High Level Economic
Dialogue, expanded NADBank role in border infrastructure
Thank you. Let’s keep talking.
Erik Lee
Executive Director
North American Research
Partnership
Tel. 858.449.3798
erik@naresearchpartnership.org
naresearchpartnership.org