The U.S. – Mexico Border: Integrated Economies (cont.)

Laredo, Texas
As noted earlier, the port of Laredo is ranked first among ports along the Southwest border and fourth among all U.S. land ports for the value of goods that are shipped through the area. In 2004, $130.8 billion worth of goods and merchandise passed through the port of Laredo, an increase of 13 percent over the previous year. Over 40 percent of northsouth traffic that crosses our international border with Mexico drives across one of the international bridges in Laredo.

Laredo’s primary industry is transportation and warehousing. In 2003, these industries contributed 16.2 percent of the total earnings of the area. ⁴ Crossing the Rio Grande River into Nuevo Laredo, one finds numerous maquiladoras. The Delphi and Sony manufacturing plants are the top two employers for all the maquiladoras in Nuevo Laredo.

El Paso
El Paso is the largest city along the Texas-Mexico border, and manufacturing is its number one industry in total earnings. El Paso’s neighboring city of Juarez, Mexico, has more maquiladoras than any other border city, employing more than 200,000 people.

Otay Mesa and San Diego, California
The Otay Mesa port of entry handles the second largest number of trucks (1.4 million crossings annually) and the third largest dollar value of imports and exports among all U.S.-Mexico land border crossings. ⁵ Nearly all of the trade traffic is related to regional manufacturing plants in Mexico and the agriculture industry. However, more than 14 million people also cross into the United States using this port.

In addition to the numerous maquiladoras across the border in Tijuana, the retail industry also has boomed along the California-Mexico border. Close in proximity to Otay Mesa is the San Ysidro international crossing, where the Shops at Las Americas outlet mall is located right on the border. Demonstrating how some border cities rely not just on truck traffic but also on passenger traffic, the project plans to expand with an international pedestrian crossing into the outlet mall.

McAllen, Texas
Retail is a major economic driver in McAllen as well and is the second largest industry after health care.McAllen draws from a consumer base of over 10 million people within a 200-mile radius in South Texas and northern Mexico. La Plaza Mall in McAllen boasts average sales of over $500 per square foot.

The Mexican border city of Reynosa, just south of McAllen and Hidalgo, is home to a number of manufacturing plants. Black and Decker, one of the more prominent maquilas in Reynosa, also has a logistics center in the McAllen Foreign Trade Zone.

A boon for U.S. border cities

While some may say that free trade agreements and foreign investment in Mexico provide no benefit for Americans, many U.S. cities on the southern border would argue otherwise. Transportation, warehousing and other logistics businesses, retail and manufacturing employment all have increased significantly along the southern border in the last decade.

Founded in 1986, the Border Trade Alliance (BTA) is a grassroots, non-profit advocacy organization that addresses key issues affecting trade and economic development in North America.Working with entities in Canada, Mexico and the United States, the BTA advocates on behalf of policies and initiatives designed to improve border affairs and trade relations among the three nations.

« Page 1

⁴Federal Reserve Bank of Dallas

⁵Otay Mesa Chamber of Commerce