Measures imposed by Texas on Mexican carriers leave millionaire losses

The Mexican private sector stressed that due to Governor Greg Abbott's order to stop and inspect all tractor-trucks and buses crossing from Mexico to the United States, the economic impact is enormous

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Camioneros que regresan de Estados
Camioneros que regresan de Estados Unidos esperan cerca de sus remolques mientras están varados en una protesta de choferes mexicanos que bloquean el Puente Internacional Zaragoza-Ysleta que conecta Ciudad Juárez con El Paso, Texas, en contra de las inspecciones de camiones impuestas por el gobernador de Texas Greg Abbott. 11 de abril de 2022. REUTERS/José Luis González

The Mexican private sector estimated losses of up to $8 million a day (USD) due to the order of the Governor of the State of Texas, Greg Abbott, to stop and inspect all tractors and buses crossing from Mexico to the United States, on the grounds of strengthening immigration control measures and border security to prevent illegal trafficking of migrants and drugs.

In a statement signed by the Business Coordinating Council (CCE), the Confederation of Industrial Chambers (Concamin), the National Agricultural Council (CNA), the National Chamber of Freight Transport (CANACAR), the National Association of Private Transport (ANTP) and the National Council of the Maquiladora and Export Manufacturing Industry (INDEX); they assured that the action of the Texas governor - who seeks to re-elect himself - is generating an economic impact and operating cost overruns, mainly affecting the maquiladora, automotive, technology and perishable industries, among others.

“A situation that has caused delays of up to 20 hours at the crossing of cargo trucks and the drop of more than 70% in the flow of trade and that can cause a collapse in international trade across borders,” they warned.

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They recalled that Greg Abbott announced last week that all trade flow from Mexico would be subject to inspections by state officials after passing through a federal inspection at ports of entry for immigration containment purposes.

The tightening of these safety inspections is seriously impacting industry, logistics chains and the movement of fresh produce from Mexico to the American Union, in addition to generating economic impacts and operating cost overruns in the region with losses of up to $8 million a day, which has an impact directly on consumers, as well as on the productivity and competitiveness of the region”, they emphasized.

They emphasized that, in addition to this, the increase in crossing time “puts at risk the employment and quality of life of thousands of citizens who depend economically on the different activities that are affected”, since - they emphasized - transport is considered as an essential activity for goods and goods to reach the entire territory of North America.

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The statement underlined that the Pharr Bridge alone dispatched up to 3,000 trucks per day, for approximately 18,000 units per week. “As of the new measures in inspections in Texas, barely 500 to 700 trucks are dispatched per day,” he said.

The text concluded by noting that “CONCAMIN, as a consultative and collaborative body of the State, and as a representative of 118 Industrial Chambers and Associations of Mexico, whose companies represent 40% of the national gross domestic product and more than 48% of formal employment in our country, makes a careful and respectful appeal to government of the state of Texas to reconsider these measures and prioritize the welfare of families who depend on activities derived from trade between our nations, since about 70% of cargo trucks entering the United States do so effectively through this state,” he concluded.

For its part, the government of Mexico, through the Ministry of Economy (SE), sent a letter to the United States in which it warns of the importance of accelerating trade between the two countries.

Through her Twitter account, the Undersecretary of Foreign Trade of the Ministry of Economy, Luz María de la Mora, stated that the Mexican government has been following up on events on the Mexican-Texas border where trade has been affected by the Texan revisions. “We have closely monitored developments on the Mexico-Texas border,” he said.

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