NAFTA@20: The role of the border economy
At a recent conference hosted by Mexico’s premiere maquiladora industry trade magazine, MexicoNow, Roberto Coronado, Assistant Vice President and Sr. Economist at the El Paso Branch of the Dallas Federal Reserve Bank, made a presentation which highlighted the impact of bi-lateral trade on the U.S. and Mexico border economy.
The presentation highlights border economy trade flows, as well as the role of the maquiladoras in driving economic activities on both sides of the U.S.- Mexico border. Superb informational graphics are provided that illustrate:
- Pre and post NAFTA U.S.- Mexico trade volumes
- The compostiton of U.S. – Mexico trade and its growth over time
- U.S. – Mexico economic integration patterns
- Border economy manufacturing and service industry data
- U.S. – Mexico commerical border crossing statistics
Coronado’s presentation reveals that Mexico is now the third most important trading partner of the United States, behind Canada, and that Mexico is a key trading partner for the border states of Arizona, California, New Mexico and Texas.
The border economy is particularly important in job creation in the State of Texas, where U.S.- Mexico trade activies account for a quarter of the jobs worked by residents of El Paso, one in ten jobs in the City of Laredo and Brownsvile and, in McAllen, a third of the border economy workforce is involved in business activities tied to bi-lateral commercial activities.
Given recent developments, Coronado emphasized the importance of Mexico in the North American automotive industry. He cites an article entitled, “The Growing Importance of Mexico in North America’s Auto Production,” from the May 2013 Chicago Fed Letter, when pointing out that, today, approximately twenty percent of light vehicles manufactured in North America originate in Mexico.
Roberto Coronado’s presentation can be accessed by click on the link provided below: