As of 27 December 2022, the negative impact on the international business community has been significant. Some estimates suggest a loss in revenue of $100 million per day. How did we reach this point, and what might be a viable path forward?
In Eagle Pass, Texas, reports on 26 December indicated that Customs and Border Protection were processing 9,600 immigrants. Federal agencies have redirected resources from commercial to personnel processing to manage the situation. Consequently, the reported crossing time in Eagle Pass has surged to over 15 hours. This delay hampers commerce, trade, and complicates political strategies from Washington. Representatives from the Department of State visited Mexico City this week for high-level talks, aiming to urge Mexico to allocate more resources to address the influx at the US border.
Mexico faces several challenges in allocating resources to this crisis. Firstly, the Instituto Nacional de Migración (INM), responsible for border control in Mexico, is inadequately funded. Moreover, it operates as an assistance agency rather than an enforcement one. According to the INM’s website, Mexico values the contributions of foreign individuals in various sectors, emphasizing both regular and irregular migration.
Migration has been normalized within Mexican culture for generations. It’s common for individuals to work and reside in the United States temporarily to support families in Mexico. In 2011, the Mexican Government enacted legislation promoting migration based on human rights principles, sparking debates within Mexico due to cultural considerations.
In the United States, the political landscape is equally contentious, with policymakers divided on solutions. Should the country invest billions in border infrastructure, potentially neglecting commerce, trade, human rights, and environmental concerns? Or should there be another amnesty program, similar to the one in 1986 under President Reagan?
Navigating these complexities requires stable political environments for business strategy planning. One potential solution, albeit ambitious, is fostering greater foreign investment. Addressing Mexico’s socio-economic needs and creating job opportunities could mitigate migratory pressures. Diplomatically, enhancing trade ties could also stabilize regions like Guatemala indirectly through Mexico. Such initiatives would demand comprehensive trade considerations among the US, Mexico, and secondary implications for Guatemala. Strengthening trade connections within North America could solidify its position as a dominant trade bloc.
Ultimately, enhancing trade relationships offers a tailored solution to bolster security and stability. Borders shouldn’t overshadow the intertwined cultural realities they separate. For many along the Southern border, it’s merely a checkpoint on the way to family gatherings or daily routines. Overlooking these cultural and economic interdependencies would be detrimental for both the United States and Mexico.
