The increase in migrants attempting to cross from Mexico to the United States is also negatively impacting binational trade flows. The human drama also has an economic side. Railway companies were forced to halt their routes to prevent more immigrants from boarding the train cars, while authorities decided to close customs in Chihuahua, hampering the entry and exit of thousands of trucks full of goods. The country’s economic chambers have already estimated the impact of the recent immigration crisis, which has been going on for just over a week, at more than $1.2 billion.
The Mexican employers’ association Coparmex warns that the temporary closure of some border crossings with Texas is causing serious damage to companies that export and import across the country, especially in Chihuahua, Coahuila, Nuevo León and Tamaulipas. “A clear case is the Bridge of the Americas, which connects Ciudad Juárez with El Paso, Texas, where 1,500 trucks are still stuck. The impact on the national economy is enormous, with the temporary closures of the Bridge of the Americas alone causing daily losses of $35 million per day,” the employers’ association writes in writing. This important binational trade bridge has been closed for eight days so far. Last week, the city of Eagle Pass declared a state of emergency due to the arrival of thousands of migrants.
Faced with a growing number of migrants trying to enter the United States, the state of Texas has tightened customs controls at the northern border, slowing the passage of up to 10,000 trucks carrying exports and imports. According to the National Chamber of Cargo Transportation (Canacar), the halt of these exports last week represents an economic catastrophe of over 1.2 billion dollars. The union warns that transport companies are facing the closure of customs, especially in Chihuahua , have to look for new routes, which increases their logistics costs.
A migrant carries water near the border with the United States in Ciudad Juárez this Monday. JOSE LUIS GONZALEZ (Portal)
Although Mexico has always been a transit country for migrants, industrialists and freight drivers note that this wave has increased significantly in the last two weeks. Eduardo del Río, Canacar’s communications director, has stressed that the closure of customs offices to prevent these crossings has resulted in delays of 4 to more than 10 hours for freight drivers. “Cargo transportation accounts for 83% of the value of exports and imports with the United States. There are more than 1.2 million freight vehicles in the country and all of them have a calling to go north. It is still very difficult to get a complete quantification, but we will have it in the next few days,” explains the manager.
The ban on the transport of goods to the United States does not only apply to the transport of goods. Last week, Ferromex, Mexico’s main rail freight company, decided to halt about 60 trains bound for its northern neighbor because of harassment of more than 4,000 migrants trying to board its carriages. The people come mainly from Venezuela, Guatemala, Honduras, Ecuador, Haiti and El Salvador. At that time, the company, which is part of the conglomerate Grupo México, warned that given the high number of migrants, it was impossible to ensure safety on the tracks and at level crossings. Currently, the company has only moved these trains as far as possible.
On September 26, trucks stand on the border bridge that leads from Ciudad Juárez to Santa Teresa (New Mexico). JOSE LUIS GONZALEZ (Portal)
The National Migration Institute (Inami) was forced to meet with the company to propose an emergency plan in the face of the escalation of migrants. Inami has decided to integrate more federal immigration authorities on the train route, and at the same time the company has also increased private security elements. Analysts have already estimated the company’s daily losses at 40 million pesos.
Despite these measures, the flow of thousands of migrants continues to make its way through Mexico on its way to the United States. From the immigration offices full of asylum seekers in Tapachula (Chiapas) to the caravans of migrants stranded in Piedras Negras (Coahuila) waiting for the trains to run again. They are all images of a migrant exodus that has overwhelmed authorities in Mexico and the United States, causing an economic blow on both sides of the border in the process.
If the closure of customs and border bridges continues, the economic damage will reach the maquiladoras. According to some newspapers in the north of the country, the maquiladoras are already preparing alternative routes to transport their goods. Factories affected by the dry logistics paralysis include those that assemble household appliances, motorcycles and auto parts.
Inami agents conduct an operation to detain migrants on the banks of the Rio Grande in Ciudad Juárez on September 24. JOSE LUIS GONZALEZ (Portal)
The setback to binational trade due to the refugee crisis comes at a time when Mexico has positioned itself as the United States’ most important trading partner, surpassing even China and Canada. In the first half of this year, Mexican companies sent a record $236 billion in goods to the United States, a 5.4% increase compared to the same period in 2022, according to official United States figures.
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