The following is an opinion editorial provided by Dennis E. Nixon, CEO of International Bank of Commerce in Laredo, and chairman of the board of International Bancshares Corporation
In 1993, when NAFTA was adopted, unemployment rates along the Texas-Mexico border were in double digits. The trade agreement increased business activity, created jobs and brought economic prosperity to South Texas.
Now, at the dawn of a new era with the implementation of USMCA, the economies of South Texas are prosperous, which is what those of us who worked to pass the new agreement were fighting to protect. Considering the fact that 95% of customers who purchase U.S. goods and services live outside the United States, trade is our lifeline.
For the last two years, we have traveled with mayors, county judges, chamber of commerce leaders and trade advocacy groups all across North America to build support for USMCA. We have gone to the USMCA negotiating sessions in Canada, Mexico and Washington, D.C. We have had high-level meetings , starting with then-Mexican President Peña Nieto and current President Lopez Obrador. We have sat down numerous times with Mexican Ambassadors Geronimo Gutierrez and Martha Bárcena. We have held, hosted and attended countless strategy meetings with our friends in the Mexican private sector from the Consejo Coordinador Empresarial (CCE) to the Asociacion de Empresarios Mexicanos (AEM).
Some of the naysayers said it would be a "cold day" before we could get this trade agreement passed. Well, they were right. It was cold in Washington last week, but I felt nothing but a warm sense of accomplishment at the signing ceremony on the South Lawn of the White House.
Joining me were many other Texans who worked hard across partisan lines to advance a new trade agreement that will benefit all Americans. Our efforts paid off, with every single member of the Texas congressional delegation in the House and Senate voting in favor.
Bankers are economic developers by trade. Nothing flourishes in stagnation. Only in growth do we prosper and succeed. The office of Gov. Abbott recently cited a January 2020 economic forecast by the Perryman Group highlighting the future effects of USMCA on the Texas economy. The state's annual gross product is projected to be $17.6 billion higher with the ratification of the new trade agreement and experience an increase of 164,700 new jobs. These gains for the Texas economy augment the already 2.2 million jobs directly dependent on international trade and the state's $1.6 trillion annual gross domestic product.
Despite the ratification of USMCA, however, there is no time for a victory lap. The next stage is the implementation of this agreement. It does us no good to see increased trade at our ports of entry if we do not have the customs inspectors and infrastructure to process that trade. "Regulation" doesn't work unless it ensures the "regular" flow of goods and commerce. The longtime congestion that is costing billions of dollars to business and consumers must be solved to gain the full benefits from USMCA.
As the co-chair of the Trade Policy Working group of the U.S.-Mexico CEO Dialogue, I will be working with my Mexican counterpart, Moises Kalach, to ensure that we keep pushing our respective governments to put in place a system that can handle increased trade at our ports of entry. That means more staffing, facility enhancements, technology upgrades and a commitment to reducing bridge wait times.
Many people from different countries, different backgrounds and different parties came together for ratification of USMCA. With the same unity of purpose and mutual understanding, we can address these challenges, capitalize on the benefits afforded by USMCA and continue to enjoy the prosperity afforded by free trade to Texas, the United States and our North American neighbors.
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