Economists hopeful infrastructure bill will strengthen Texas’ trade relationship with Mexico

Mexico remains one of the United States’ top two worldwide trading partners despite supply chain issues that have plagued manufacturers and consumers since the COVID-19 pandemic began. With the recent signing of the federal Infrastructure Investment and Jobs Act, trade experts say Texas’ proximity to Mexico will continue to be an economic boon to the state as it is the country’s top exporter. In 2021, more than $661 billion in two-way trade passed between the United States and Mexico, according to U.S. Census data analyzed by WorldCity. The lion’s share of that, about $243 billion, passed through the Laredo customs district. Ports in El Paso accounted for about $85 billion, with ports in Pharr, Eagle Pass and Brownsville also in the top 10. Texas' trade relationship with Mexico helps sustain about 1 million jobs, according to the Texas Economic Development and Tourism office.

The federal legislation, commonly known as the Bipartisan Infrastructure Bill, provides nearly $17 billion for improvement to ports and waterways, which includes about $2.5 billion for goals and projects outlined in Customs and Border Protection’s 2021-2026 strategic plan. The plan includes deploying technology to “defend the United States and facilitate the secure flow of international trade” which would reduce wait times at ports of entry and adopt new technologies. There is an additional $210 million in the bill for road improvements at ports of entries, and about $430 million for feasibility studies that will determine what funding will be allocated for additional improvement projects. The General Services Administration is working with CBP to finalize a project plan, GSA press secretary Christina Wilkes said in a statement. “In addition to rebuilding America’s roads and bridges, the Infrastructure Investment and Jobs Act will allow GSA to modernize land ports of entry across the country, improving security and sustainability while creating jobs and helping to mitigate future supply chain challenges,” she said.