The robust trade relationship between the United States and Mexico, consistently ranking among the top global partnerships for the U.S., is poised for even greater expansion. This comes as strategic infrastructure investments promise to alleviate supply chain bottlenecks and enhance the flow of goods across the border, particularly benefiting Texas as a key trade hub.
Despite global supply chain disruptions impacting numerous sectors since the onset of the COVID-19 pandemic, Mexico has maintained its position as a premier trading partner for the United States. This resilience underscores the critical importance of efficient and reliable international transport routes, a factor that is now being further strengthened by significant infrastructure developments.
Texas, with its extensive border with Mexico, stands to gain substantially from the recently enacted federal Infrastructure Investment and Jobs Act. Trade experts emphasize that Texas’ geographical advantage will solidify its economic prosperity as the nation’s leading exporter, capitalizing on the enhanced trade capabilities.
In 2021, the total value of two-way trade between the U.S. and Mexico exceeded $661 billion, according to data from the U.S. Census Bureau analyzed by WorldCity. A significant portion of this trade, approximately $243 billion, passed through the Laredo customs district, highlighting its pivotal role in the trade corridor. El Paso ports managed around $85 billion, with Pharr, Eagle Pass, and Brownsville also securing positions within the top ten ports for US-Mexico trade. This thriving trade relationship is a cornerstone of the Texas economy, supporting an estimated 1 million jobs, as reported by the Texas Economic Development and Tourism office.
The Bipartisan Infrastructure Bill earmarks almost $17 billion for upgrades to ports and waterways, including approximately $2.5 billion specifically aligned with the objectives outlined in Customs and Border Protection’s (CBP) 2021-2026 strategic plan. A key focus of this plan is the deployment of advanced technologies to bolster national security while simultaneously facilitating the seamless and secure movement of international trade. These technological advancements are intended to significantly reduce wait times at ports of entry and streamline customs processes, thereby promoting more efficient international transport.
Further investments within the infrastructure bill include $210 million allocated for road improvements at ports of entry and around $430 million for feasibility studies. These studies will be crucial in determining the allocation of funds for future infrastructure enhancement projects, ensuring a data-driven approach to optimize trade efficiency. The General Services Administration (GSA) is actively collaborating with CBP to finalize a comprehensive project plan, as confirmed by GSA press secretary Christina Wilkes.
“Beyond revitalizing America’s roads and bridges, the Infrastructure Investment and Jobs Act empowers GSA to modernize land ports of entry across the nation. This will enhance security and sustainability, create employment opportunities, and play a vital role in mitigating future supply chain vulnerabilities,” Wilkes stated. This modernization is crucial for ensuring robust and reliable international transport infrastructure.
Teclo Garcia, the Economic Development Director for the City of Laredo, underscores the broader impact of these improvements. “Anything that facilitates trade, involving collaboration across local and state agencies, will strengthen Texas’ trade partnership with Mexico and bolster the state’s economy,” Garcia noted. Efficient international transport is a collaborative effort, and these investments are a step in the right direction.
Highlighting the current trade volume, Garcia pointed out, “Between our World Trade Bridge and Colombia Solidarity Bridge, we recorded seven instances in November alone where over 10,000 trucks crossed southbound. These are record-breaking figures.” He added that over 5.2 million trucks utilized the port in 2021. “Infrastructure expansion at World Trade and Colombia, is paramount. It is a necessity for us,” emphasizing the critical need for continuous development to handle increasing trade volumes and maintain efficient international transport.
Ken Roberts, founder and president of WorldCity and former member of the Federal Reserve Trade & Transportation Advisory Board, anticipates Mexico maintaining its leading trade partner status, even surpassing previous dominant partners like China. “Mexico benefited from China’s challenges, but also demonstrated independent growth. U.S.-Mexico trade has shown remarkable resilience, even amidst the pandemic,” Roberts explained. This highlights the strength and reliability of the US-Mexico trade corridor for international transport.
Roberts also believes that Texas trade will further benefit from suppliers returning to just-in-time inventory models. This approach relies on timely and efficient international transport to deliver goods based on current demand, rather than stockpiling inventory for future needs, reducing warehousing costs and improving responsiveness to market changes.
“I anticipate a return to normalcy where supply chain disruptions are resolved, leading to a better equilibrium between supply and demand than we currently experience,” Roberts stated. Efficient international transport is key to achieving this balance and optimizing supply chain performance.
While expressing optimism about the infrastructure bill, Garcia cautioned that realizing its full benefits will require time and coordination, given the numerous agencies involved in international trade and goods movement. This includes highway management by the Texas Department of Transportation and bridge operations managed by the City of Laredo. The substantial $1 trillion investment necessitates a phased approach to allocate resources effectively.
“It’s a massive undertaking, requiring considerable effort and funding deployment,” he acknowledged. Building and maintaining a robust infrastructure for Super Transport International is a long-term commitment.
Roberts also emphasizes the mutual dependence in international trade, noting that Mexico’s role is as crucial as the United States’. “Close cooperation with Mexico is essential,” he stressed. “Significant investments on the U.S. side must be mirrored by comparable developments in Mexico to maximize the benefits. Without synchronized improvements, the overall impact on trade efficiency will be limited, requiring genuine bi-national coordination.” This collaborative approach is vital for building a truly “super transport international” system that benefits both nations.
