From US Chamber of Commerce Press Release Jun 8, 2011:

U.S. Chamber Report Offers Recommendations for Creating a 21st Century U.S.–Mexico Border
Ridge Joins Donohue in Declaring ‘Commitment to Improving U.S–Mexico Border’

WASHINGTON, D.C.—At a press roundtable today, the U.S. Chamber of Commerce released a report outlining recommendations to make enhancements to trade and security mutually supportive along the U.S.-Mexico border. Steps to a 21st Century U.S.-Mexico Border makes a series of proposals addressing trade facilitation, supply-chain security, infrastructure, immigration, and travel issues that define the border and determine its efficiency.

“How we manage the U.S.-Mexico border is essential to our commercial partnership, security, supply chains, economies, and ultimately, jobs for our citizens,” said Thomas J. Donohue, president and CEO of the U.S. Chamber. “This relationship is too significant to allow delays and other inefficiencies at the border that erode the competitive advantage that NAFTA created.”

To release today’s report, Donohue was joined by Tom Ridge, the chairman of the U.S. Chamber’s National Security Task Force and the former Secretary of the Department of Homeland Security, and Ann Beauchesne, vice president for the Chamber’s Office of National Security and Emergency Preparedness. The report details a series of steps we must take to create a modern and efficient 21st century U.S. – Mexico border:

We must focus on security, but trade facilitation and security should be viewed as mutually conducive. No factor is more fundamental to future investment, economic growth and job creation than security and the rule of law. We must increase the investment in the Merida Initiative, a U.S.-sponsored $1.6 billion multi-year partnership with Mexico to address criminal organizations, and view the private sector as a partner in achieving the goals of the initiative.
We must facilitate the flow of trade at the border. We must better employ technology to manage congestion; allow shippers to participate in trusted shipper programs; grow staffing at the port of entry and government agencies should commit to measure border wait times and track them with benchmarks and defined goals.
We need to significantly invest in infrastructure. It’s essential we add capacity at ports and land crossings. We need to increase the number of lanes at border crossings and create more dedicated lanes for commercial traffic. Public investment can help supplement federal, state, and local dollars.
We need to pursue immigration reform. Immigration reform could help substantially alleviate the strain on our border, while adding to the economic vitality of our country. History shows an increase in the number of legal immigrants and temporary guest workers means a decrease in illegal immigration.
“The Chamber is committed to advance the recommendations in this report and we remain committed to working with the governments of Mexico and the United States to make our vision for a world-class border a reality once and for all,” Donohue said.

From Mexico, American Chamber of Commerce of Mexico President José Zozaya, added, “It is our hope that this joint border report will contribute to the ability of our governments, working with the private sector and other stakeholders, to overcome these challenges and make the most of our shared opportunities. We look forward to working with all parties in both countries who share this vision and these goals.”

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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Steps to a 21st Century U.S.-Mexico Border

Introduction

 Download the full report (PDF)

The United States and Mexico share a border of nearly 2,000 miles, a cultural heritage, and a desire to grow both our economies through cooperation and hard work. The two nations also share an obligation to address a series of complex issues. Of course, it is immigration and, more recently, drug-related violence that so often dominate any conversation related to the U.S.-Mexico border. However, economic considerations, such as trade facilitation, travel and infrastructure, are equally important.

Since the passage of the North American Free Trade Agreement (NAFTA), Mexico has become the third-largest U.S. trading partner behind Canada and China. However, it is the second-largest export market for U.S. businesses, and some 22 states depend on Mexico as their No. 1 or No. 2 export market. The trade relationship between our two nations is vast, with $397 billion worth of products being traded last year alone. Eighty percent of it is carried across the border by truck.

This means that more than $1 billion in cross-border commerce is taking place every day—$45 million an hour—and virtually all of it tariff free under NAFTA. Mexico purchased $163 billion in U.S. goods in 2010 alone. Mexico is also the United States’ thirdlargest foreign provider of petroleum and the largest foreign supplier of fresh fruits and vegetables. The trading relationship is strong, and each country has a fundamental stake in the success of the other.

Trade between the United States and Mexico creates and supports jobs for millions of Americans and Mexicans. In 2010, 13% of all U.S. exports were destined to Mexican markets. Overall, nearly 31 million American jobs are supported by trade. That translates into more than one in every five U.S. jobs linked to the import and export of goods and services. Furthermore, exports generated nearly half of U.S. economic growth in 2010, adding well over a percentage point to GDP growth.

The U.S. manufacturing industry depends on NAFTA, sending more than half of its exports to either Canada or Mexico. Since NAFTA began, U.S. manufacturers have boosted their output by more than 50%. Contrary to popular belief, 97% of all exporters are small and medium-size businesses. Considering that these same companies create the vast majority of job growth, it is imperative to improve their ability to compete in global markets.

Despite the significance of the U.S.-Mexico relationship, delays and other inefficiencies at the border erode much of the competitive advantage that was accrued from NAFTA. Inadequate infrastructure, improper staffing levels, immigration problems, and legitimate security risks create uncertainty that cost the U.S. and Mexican economies an estimated $7.2 billion in gross output and an estimated 62,000 jobs in 2007.

In President Obama’s 2010 State of the Union address, he expressed a goal to double exports within the next five years. Reaching this goal is going to require action from both the private and public sectors. NAFTA has already removed many of the statutory and regulatory impediments to trade across the U.S.-Mexico border. This means that the border represents a better opportunity for trade between the United States and Mexico, translating to job growth in both countries. Download the full report.

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