preview

Mexico Border Trade

Decent Essays

In the article by Lee and Wilson “The State of Trade, Competitiveness and Economic Well-being in the U.S.-Mexico Border Region” we are given an account how the border is braking economic growth. While the U.S.-Mexico border is a “major milestone of one-half trillion dollars,” it has received virtually no recognition (Lee et al, 2). The article goes on to say how port of entries have not kept up with the increased trade or border region border population growth. Therefore, in this paper will be providing an overview of the economic impact and discussing some of the proposed solutions presented by Lee and Wilson. They include: increasing capacity, increasing traveler and shipper programs, and via US and Mexican coordination and cooperation efforts. …show more content…

Each day there are over a billion dollars of commercial traffic crossing. 70% this is via trucks. Furthermore, after the introduction of NAFTA in 1994, trade has more than quintupled, with goods and services totaling close to half a trillion dollars annually. It has been estimated that six million US jobs and Mexican and Mexican jobs have been created as a result of this bilateral trade. However, besides the quantity of trade, the quality is unique. The US and Mexico engage is what is referred to as production sharing. This is when “materials and parts often cross back and forth between factories on each side of the border as a final product is made and assembled” (Lee et al, 5). Such a system has two important attributes. The first is that both countries tend to experience economic growth and recession together while the second deals with border crossing. That is, depending on border efficiency, goods create a multiplier gains and losses effect. Without question, the long waiting times come at a high cost for both countries. We now focus on our attention to the proposed …show more content…

Some examples of the said programs are: Secured Electronic Network for Travelers Rapid Inspection (SENTRI), Free and Secure Trade (FAST), Customs-Trade Partnership Against Terrorism (C_TPAT), and Nuevo Esquema de Empresas Certifcadas (NEEC). After 9/11, intelligence has played a pivotal role in managing border safety. However, this intelligence can be utilized in order to deal with border congestion. It is stated in the article that the aforementioned programs are a win-win-win. This is because they decreasing waiting time, enhance border security, and minimize staffing needs. While these programs have expedited passage for 18% of northbound traffic, there’s still a lot of untapped potential to be derived from

Get Access