Along the border of any two countries, interdependence is a natural state of affairs. From natural resources management to public health and security to trade and economy, whatever happens on one side has a significant impact on the other; this is the case with trade and economy along the US-Mexican border. Through co-production systems development, Mexico and the US manufacture goods together, but they do not just buy goods and services from one another. This has resulted in competitiveness and increased productivity of communities living along the border. For Texas, US’s side, international trade is now a big business; In fact, in 2021, it topped other states in exports for the 19th consecutive year, generating about $279.3 billion in revenue.[1]. With 28 border crossings, the cross-border trade between Mexico and the US is transforming Texas economically. Compared to other states, it has more miles of public road, airports, freight railways, highways, and foreign trade zones1. Therefore, there is a need to examine trade and economy along the US-Mexico border region. I will examine this theme using George Diaz’s book Border contraband and these two articles; Brandys et al. (2018) and Bartnik (2022).
In Border Contraband, Diaz explores the history of smuggling across the Rio Grande, focusing on the US-Mexico border trade and economy. He examines how people traversed the region to smuggle goods, half-realizing that they were breaking laws and risking their lives. Looking at customs records, Diaz reveals how “smugglers had been crossing the Rio Grande with human cargo since the eighteenth century”2. This illegal activity has always been a major part of the border economy. Smugglers enjoyed immunity from prosecution as no government could control them. By the mid-nineteenth century, it was common for Mexicans to carry large quantities of goods across the Texas border without any repercussions. The crossing of contraband goods has been a continuous source of tension between two countries that depend heavily upon one another for their economic livelihoods. He asserts that smuggling across the Rio Grande has become increasingly complex since the 20th century as the types of goods being exchanged continue to expand. However, despite its often negative connotation, smuggling has provided an invaluable economic boost for both countries over time. Most of the goods smuggled are legal in some areas. Still, not others, creating an interesting dynamic between Mexican and American authorities, who must cooperate to manage these cross-border exchanges without unduly infringing upon either nation’s sovereign rights. Diaz explains that although smuggling is not exclusive to this region, it does have unique implications here just because of geographical proximity and cultural similarities between Americans and Mexicans. Both countries have strong incentives for minimizing contraband but are limited by their resources; thus, much smuggling still occurs today under cover of night.[2].
The globalization of trade and the economy of the US-Mexican border is examined by Erik Lee and Christopher Wilson. They discuss how the increasingly dynamic nature of global economic trends has dramatically altered the cross-border relationship between the two countries. Starting from a discussion of trade policy, they note how it has shifted from a model of protectionism towards one that is more open to international cooperation and foreign investment. Lee and Wilson argue that these changes have brought about structural changes in both economies, increasing integration and competition for resources within them. They observe how investments in infrastructure for transportation across borders can bring mutual benefits for both countries economies by allowing for easier access to goods and services across national boundaries. This could increase economic growth and job creation opportunities on both sides of the border. Additionally, there is also evidence that both countries are beginning to recognize their mutual advantages, such as geographical proximity, because they seek to develop stronger economic ties. The authors also provide an alternative view by noting that while there have been improvements along the US-Mexico border regarding increased trade and investment, this growth has not always been equitable or beneficial to all populations on both sides. As such, they suggest that it is important for policymakers to address issues like poverty and unequal access to education and employment opportunities, specifically targeting those living along the border areas1.
The trade and economy along the United States-Mexico border have been a controversial issue for many years, as highlighted by Brandys et al. (2018). The construction of a wall along the US-Mexico border was intended to reduce illegal immigration, drug trafficking, and smuggling of contraband goods. Furthermore, it was anticipated that this infrastructure would stimulate economic growth for both countries by facilitating free trade. However, this vision of a more prosperous future has not come true since the costs of building such an extensive wall have been considerable. In addition to this financial burden, the authors also explain how military checkpoints on either side of the border have effectively hindered commerce from flourishing across its length by increasing transaction costs and creating bottlenecks at these points, which slow down people’s abilities to move products rapidly between markets. Despite these challenges, this border region has always been an important economic zone for both countries. For example, $1.4 trillion worth of goods were exchanged between the two countries in 20173. An estimated 6 million American jobs are supported by trade with Mexico, and Mexicans are one of the top markets for US exports worldwide3. The continuous flow of people and goods across this border also allows both nations to learn from one another and share culture, knowledge, and skillsets through programs such as Study Abroad Programs that allow students from both sides to engage with each other’s society firsthand.[3].
In conclusion, trade and economy along the US-Mexican border region is a complex, ever-evolving system that requires continuous consideration and evaluation. The relationship between the two countries is mutually beneficial and has become increasingly intertwined over the years. The economic growth and development, as well as challenges in this region, serve as an example to other international areas of how cooperation can be used to create a more prosperous future. Diaz (2015) explores how smuggled goods play a role in the region’s trade and economy; Lee & Wilson (2015) explore its aspects of globalization; and Brandys et al. (2018) assess the impacts of the wall on trade and the economy.
Bibliography
Brandys, Roy R., Nicholas P. Laurent, and Blaire A. Knox. “United States-Mexico Border Wall: The Past, the Present and What May Come.” Real Prop. Tr. & Est. LJ 53 (2018): 131.
Díaz, George T. Border contraband: A history of smuggling across the Rio Grande. Austin: University of Texas Press, 2015.
Lee, E., & Wilson, C. (Eds.). (2015). The US-Mexico border economy in transition. Woodrow Wilson International Center for Scholars.
[1] Lee, E., & Wilson, C. (Eds.). (2015). The US-Mexico border economy is in transition. Woodrow Wilson International Center for Scholars.
[2] Díaz, George T. Border contraband: A history of smuggling across the Rio Grande. Austin: University of Texas Press, 2015.
[3] Brandys, Roy R., Nicholas P. Laurent, and Blaire A. Knox. “United States-Mexico Border Wall: The Past, the Present and What May Come.” Real Prop. Tr. & Est. LJ 53 (2018): 131.
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