In recent days, the border between Mexico and the United States, specifically at the point adjacent to Texas, has captured the attention of public opinion, since one of the gateways of Mexican foreign trade to our main trading partner has suffered considerable delays, protests and economic losses for Mexican exporters that affect various sectors.
In an attempt to stem the flow of migrants and illicit substances into the United States, last April 6, 2022, Texas Governor Greg Abbott, in response to the recommendations of the Center for Disease Control and Prevention, to curb deportations; He made the decision to implement a border security and control strategy, announcing that all tractor-trailers and passenger buses crossing into the state from Mexico would be subject to a new inspection plan implemented by state authorities, following the routine checks carried out by federal agents at the border crossing.
A controversial measure that, without a doubt, substantially affects international trade between both countries and the supply chain, since Mexican carriers have called on the authorities of both countries to reach a joint solution, as they are affected by having to wait in kilometer-long lines waiting between 20 and 30 hours to cross into U.S. territory, significantly increasing costs and generating millions of dollars in losses that directly affect strategic sectors of international trade.
The National Confederation of Industrial Chambers of the United Mexican States (CONCAMIN), the National Agricultural Council (CNA), the National Chamber of Cargo Transportation (Canacar), the National Association of Private Transportation (ANTP) and the National Council of the Maquiladora and Manufacturing Export Industry (INDEX) expressed their concern about this situation, as it represents a strong impact on trade between the two countries and the strategic sectors of the economy.
According to the latest data reported to the media by the Business Coordinating Council (CCE), losses of up to US$8 million per day are estimated; likewise, the council reports that among the main sectors affected are the technology sector, agriculture, perishable goods and the maquiladora industry established in the border region, an essential activity of said region; also among the affected sectors is the automotive industry, which showed a slight recovery after the decline it suffered in recent months due to the SARS-COV 2 virus pandemic.
While it is true that the Business Coordinating Council provides the aforementioned data, which were provided by the main players in international trade between Mexico and the United States, and given that a decrease in trade flow of up to 70% is estimated according to preliminary data, it would be too soon to have an exact amount of the impact caused by this crisis, so we must be alert in the coming months to have a clear picture and an exact figure of the damage caused, which I believe should set a precedent to consider in order to modify the supply chain and rethink logistical planning.
In view of the need to resolve this situation, on April 12, 2022, through the official media of the Ministry of Foreign Affairs, Foreign Minister Marcelo Ebrard Casaubón, issued communiqué No. 143 through which he pointed out that communication was established with the office of the Governor of the State of Texas with the purpose of jointly seeking alternatives to safeguard the security of the border crossing, without further harming binational trade stopped at the Texas bridges: Zaragoza-Ysleta; Córdova-De las Américas; Colombia-Laredo; Reynosa-Pharr, with a total trade flow of 442 billion dollars last year alone.
Similarly, the call to not obstruct the flow of trade between the two nations by Mexican government officials on Wednesday, April 13, 2022, was echoed by the Secretary of Economy, Tatiana Clouthier.
Finally, in response to the call of the authorities and the pressure exerted by carriers from both sides and by the President of the United States Joe Biden, who accused the Texas governor of boycotting bilateral trade, a situation that would also affect the economy of U.S. consumers due to an increase in the prices of various sectors, Greg Abbott reached an agreement of mutual collaboration in security matters with the governor of the State of Nuevo Leon; Samuel Garcia, who assured that surveillance will be strengthened with patrols from Nuevo Leon, with which inspections by Texas state officials were immediately suspended, however, this measure is only applicable to cargo trucks crossing the Colombia – Laredo bridge.
The next few months will be of utmost importance, hoping that, as the days go by, official communication will yield results and agreements will be reached to normalize the situation at the northern border and thus learn the real damage caused by this crisis and formulate precise strategies to prevent future situations at the international bridges with Texas.
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