No Time for a Victory Lap: Implementation of USMCA Must Start Now
February 06 2020 - 11:45AM
Business Wire
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200206005777/en/
Eddie Aldrete IBC Bank – International Affairs 210-518-2516
eddiealdrete@ibc.com
Carlos de Leon KGBTexas Communications 210-826-8899
carlosd@kgbtexas.com
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