Border Trade Alliance

In a letter to House of Representative Leaders, the Border Trade Alliance (BTA) urged Speaker Nancy Pelosi and House Republican Leader John Boehner to mirror draft economic stimulus legislation before the Senate that dedicates $301 million toward border inspection facility upgrades at U.S. land ports of entry.  As the leading tri-national organization representing border communities and trade, BTA previously advocated for both the House and Senate to increase federal funding for border infrastructure and resources at our nation’s land ports of entry to support nearly $800 billion in annual cross-border economic activity.

In the letter BTA called for the inclusion of critical federal investment in port infrastructure as part of pending legislation to address current national economic crisis by sustaining secure and efficient cross-border trade and its positive national economic impact.  Additionally, BTA warns that continued underfunding threatens a growing number of cross-border trade dependent jobs throughout the country in industries such as tourism, manufacturing, retail, and transportation.

The economic importance of sustaining and enhancing our nation’s gateways is significant.  Last year alone, U.S. land ports of entry facilitated nearly $720 billion in goods traded between the United States, Canada and Mexico.  According to federal data, international trade directly supports more than 12 million U.S. workers and farmers and contributes nearly 1/3 of our annual GDP.

An historic gap exists between growing levels of cross-border trade and a lack of federal funding to support it. Over time, this gap in funding, coupled with cross-border delays and inadequate staffing, have undermined U.S. global competitiveness. Too, inadequate infrastructure can be blamed for increases in the cost of doing business. Typically, such increases are passed along to the consumer in the form of higher costs at the cash register. 

The economic impact of cross-border, NAFTA trade is not confined to the border.   In 2007, 34 non-border states listed Canada, Mexico or both as their top two export markets.  According to the Wall Street Journal, many U.S. communities derive a significant part of their local GDP from exports; Peoria, IL (52.3 percent, $9.2 billion); Davenport, IA (20.6 percent, $3.4 billion); and Cincinnati, OH (14.7 percent, $12.7 billion) are among many of the specific examples.   A recent National Association of Manufacturers’ study also reported that U.S. export-oriented manufacturers added 119,000 jobs to their payroll during the past year alone.  The economic activity at our borders plays a significant role in supporting real job growth, working families and supports vital domestic industries like agriculture and manufacturing.

In its letter to House leadership, the BTA noted that the ongoing shortfall in land port infrastructure investment coupled with the current economic crisis is already impacting cross-border trade.  The BTA further stressed the importance of infrastructure investment toward enhancing security along our borders with Canada and Mexico.

…the nation’s lack of adequate border infrastructure is contributing to a slowing of growth in trade nationwide. According to the latest U.S. statistics, surface trade with our largest two export markets in Canada and Mexico increased to $72.3 billion for the month of August, up 0.9 percent from July, but at the slowest pace yet this year.

While an immediate investment in border port-of-entry infrastructure will not reverse our current economic situation, it will provide benefit to cross-border trade, a sector of our economy that directly contributed $360 billion to the U.S. economy last year. It also will provide critical resources required by CBP to protect our citizens and secure our borders.  The BTA appreciates your serious consideration of funding for border infrastructure. Such funding would support a tremendous amount of daily economic activity and improve the ability of the federal officers at CBP to protect our homeland.

Reaffirming the importance of added investment in border infrastructure, at a January 2008 field hearing of the House Homeland Security Committee in El Paso, Texas, CBP Assistant Commissioner Thomas Winkowski testified to the impact of outdated and overburdened infrastructure on federal homeland security operations at our nation’s 166 land ports,

“The average age of our facilities is 42-years-old and they were not designed for our current operations.  Since the terrorist events of September 11, 2001, CBP has been given the priority mission of preventing terrorists and terrorist weapons from entering the United States, along with maintaining our legacy missions.  These heightened responsibilities are stretching our physical resources well-beyond what they were ever designed to handle.  The vast majority of these facilities were not built to incorporate all of the enhanced security features that are now present at our ports of entry…Our facilities are stretched to the limit.”

The BTA continues to stress that beyond its economic benefit, additional land port infrastructure investment provides federal agencies critical resources to facilitate the growing volume of trade while ensuring the protection of our citizens.

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