A deeper integration between border communities in the United States and Mexico is required for the region to grow economically and live up to its potential, according to a new report.
Trade with Mexico exploded after the North American Free Trade Agreement and stands at more than half a trillion dollars a year, said Erik Lee, executive director of the North American Research Partnership.
But while about 80 percent of those billions in trade goes through land ports of entry, border communities feel they are left behind in reaping the economic benefits.
βBorder communities aspire to be more than a node on a transportation network,β Lee said. βTo be more than a βpass through economy,β where little value is added locally and too few jobs are added.β
Speaking as part of a panel before about 50 community leaders and economic development professionals at the Consulate of Mexico in Tucson, Lee said an integrated, binational approach β including partnerships between the public and private sectors β has to be in place.
Places in Southern Arizona, El Paso and South Texas are some of the poorest communities in the United States, he said.
The report, βCompetitive Border Communities: Mapping and Developing U.S.-Mexico Transborder Industries,β seeks to identify industries that are highly concentrated, dynamic and binational, and could be sources of growth.
In Arizona, the report identifies aerospace, medical devices and mining as the better-known opportunities, but also notes that emerging industries such as apparel manufacturing, investment pools, and boiler, tank and shipping container manufacturing were areas to be aware of.
In Pima County, aerospace, optics, biotech and mining are the key industries, said Supervisor Ray Carroll, who added that the county is reaching out to industry in Mexico.
βItβs about building relationships. Weβve tried to have boots on the ground, weβve tried to meet with Mexico City, Monterrey and Sonoran officials,β he said. βTrade relations can only follow communication and good political relations.β
The border between the U.S. and Mexico, and the communities along its 2,000-mile stretch, are too important to be allowed to falter, said Chris Teal, U.S. consul general in Nogales, Sonora.
βIf you think about the border from Baja California to the Gulf of Mexico, $1 million a minute of commerce is going back and forth on that border,β he said. βThis is an extraordinary relationship and making the border function is extraordinarily important.β
Other, recommendations in the report, include:
- U.S. and Mexican consulates should facilitate cross-border economic development efforts.
- Unite economic-development organizations along the border to share best practices and address shared challenges and opportunities.
- The U.S. and Mexican federal governments should further harmonize data collection across the border to allow for better analysis.
- Monitor emerging and dynamic industries, engaging with them and exploring what they need to foster further growth.
