Opinion: Strengthening Cross-Border Commerce

Strengthening Cross-Border Commerce

Our  largest trading partner by far is Mexico, which accounted for $281 billion worth of trade just last year. Canada is out second top trading partner accounting for $75 billion. For 23 consecutive years, Texas has held the title of the nation's top exporting state, with nearly half of these exports going to Mexico and Canada. The U.S.-Mexico-Canada Agreement (USMCA) is the greatest trade deal negotiated in our nation’s history, and it’s critical for federal policymakers to champion measures that protect our North American trade bloc and maintain the Lone Star State’s position as a global trade leader.

About 3.6 million jobs in Texas are connected to trade, and about half of those are attributed to Mexico and Canada.

That’s why, earlier this month, TAB urged the U.S. General Services Administration (GSA) to reverse the previous administration’s ill-advised recommendation to eliminate all cargo traffic at the Bridge of the Americas (BOTA) in El Paso – one of our state’s most important trade arteries with Mexico. Commercial traffic at BOTA – which includes about 500 cargo trucks crossing the bridge daily – helps support Texas’ vibrant business environment, fueling economic growth, creating millions of American jobs and enhancing the competitiveness of Texas businesses on the global stage.

The Letter

As I wrote in the letter, the previous GSA leadership’s recommendation to end commercial traffic at BOTA would bring trade to a standstill at one of the most vital economic lifelines between our two nations:

“If implemented, this decision will have a significant negative economic impact on cross-border commerce between Texas and Mexico, our state and nation’s largest and most important trading partner. Furthermore, the implementation of this recommendation will lead to intense disruptions to supply chains vital to key industries in Texas and the entire United States. We strongly urge you to retract this misguided and hurtful recommendation.”

Rather than slowing the flow of commerce across the Texas-Mexico border, leaders at the federal level should be embracing ways to streamline the creation of new infrastructure to keep pace with growing business activity throughout the region. Last year, Texas Senators Ted Cruz and John Cornyn led the charge in passing bipartisan federal legislation to streamline the cross-border infrastructure permitting process – the most significant trade policy development since the passage of the USMCA. This reform was critical in expanding cross-border infrastructure along the Rio Grande, Without the support of the Texas delegation, efforts to expedite this reform would not have been stalled – jeopardizing the Lone Star State’s economic momentum and global competitive edge. Senators Cruz and Cornyn put it best when writing to then-President Biden:

“Mexico is a vital trading partner not only for Texas but for the entire United States. In 2023, $807 billion worth of goods moved across the U.S. southern border, making Mexico our country’s top trading partner.”

In addition to ensuring our cross-border infrastructure can efficiently facilitate international trade, it’s also critical we maintain the inherent strength of North America as the world’s preeminent trading bloc. That’s why TAB established the Texas Leads Trade (TLT) coalition – a strategic alliance dedicated to solidifying North America as an unrivaled force in global trade. With Texas as the backbone of North American commerce, TAB is committed to advancing tariff-free trade with Mexico and Canada, ensuring seamless economic exchange with our bordering neighbors. Now is not the time to backtrack on monumental agreements that benefit all Americans – we must prioritize a free-flowing channel of commerce to drive down costs on essential goods like groceries and gas – delivering tangible benefits for Texas businesses and families while reinforcing Texas’ role as the epicenter of North American Trade.

Whether it’s sustaining our cross-border infrastructure or ensuring that our nation’s trade policy continues to spur economic growth, TAB and the broader Texas business community are united in supporting efficient cross-border trade that impacts the economies of every single community across our great state. The Trump administration should continue to find ways to remove unnecessary barriers and ensure North American trade arteries remain open, efficient and tariff-free to support the continued economic growth of Texas, and positioning the U.S. to effectively compete with China and the rest of the world.

Glenn Hamer

President & CEO, Texas Association of Business

We hope you enjoyed today’s read!

Stay connected with TXLege News on X and LinkedIn!

🎙️We Have a Podcast! 🎙️

Bills and Business is your go-to podcast for conversations related to Texas legislation and business. Hosted by Laura Carr, Co-Founder of USLege—an AI-driven legislative tracking software—we bring you in-depth analysis on economic trends, impactful legislation, and key developments shaping Texas business.

Subscribe on Youtube and Spotify for weekly episodes!