Expedited Delivery of Critical Border Infrastructure Necessary to Sustain Positive Sector of National Economy
Monday, November 17, 2008, Phoenix, AZ - The Border Trade Alliance (BTA) urges Congress to support the recent call of border-state House members to include immediate funding for port and transportation infrastructure and resources as part of the economic stimulus package currently under consideration. U.S. ports of entry, the cash registers of our nation, along our borders with Canada and Mexico handle nearly $800 billion in trade each year. For decades, federal investment in infrastructure and resources at our ports of entry has not matched the need in order to sustain this growing level of trade.
Last week a group of bipartisan group of 11 House Members, including Representatives Henry Cuellar (D-TX), Silvestre Reyes (D-TX), Ciro Rodriguez (D-TX), Ruben Hinojosa (D-TX), Solomon Ortiz (D-TX), Bart Stupak (D-MI), Bob Filner (D-CA), John M. McHugh (R-NY), Gabrielle Giffords (D-AZ), Steve Kagen, M.D. (D-WI), and Raul Grijalva (D-AZ), sent a letter to House leadership urging inclusion of $5 billion in infrastructure investment to upgrade U.S. land ports of entry to support cross-border trade, to-date a positive sector in a troubled national economy. The BTA, as the leading tri-national organization representing border communities and trade, has long advocated for increased federal investment in support of cross-border trade and commerce and commends these Congressional leaders for raising border infrastructure as a national economic priority.
According to the President’s Export Council, nearly 1/3 of the $14 trillion U.S. economy is directly generated by trade. The United States’ two largest export markets are our NAFTA trading partners, Canada and Mexico. A recent National Association of Manufacturers (NAM) study reports that U.S. exports accounted for 61 percent of our national economic growth during the past year, despite our economic turmoil. According to the federal government 12 million American workers and farmers’ jobs are sustained by trade. 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. The direct national economic contribution of cross-border travel and exports conducted at the U.S. land ports of entry last year totaled more than $360 billion.
Growing cross-border delays, overburdened and outdated infrastructure, and inadequate staffing and associated resources threaten to undermine U.S. trade competitiveness as well as directly impacting the cost of doing business for manufacturers, transportation firms, and small businesses while raising the cost of U.S. consumer goods and reducing state and local sales tax revenue. BTA feels that decision makers in Washington should be alarmed by recent statistics that illustrate the economic impacts of inadequate border infrastructure and cross-border congestion. According to the Texas Transportation Institute’s 2007 Urban Mobility Report, congestion caused urban Americans to travel 4.2 billion hours more and to purchase an extra 2.9 billion gallons of fuel for a total estimated cost of $78 billion, with border regions being some of the most affected.
The BTA has continually recommended that federal resources must more closely match the economic contribution of our nation’s 166 land ports of entry. U.S. Customs and Border Protection has stated that it alone requires $5 billion over the next 10 years in infrastructure maintenance and upgrades to its facilities at land ports of entry in order to support its dual mission of facilitating legitimate trade and travel facilitation and providing security along our borders.
The BTA has also consistently urged policymakers to better leverage the limited federal border resources by:
- Ensuring that federal investment be re-focused on projects that alleviate the infrastructure bottlenecks at our ports rather than being directed to earmarks that have little if any national economic benefit.
- Eliminating red tape at the State Department currently results in a delay of 7-10 years before a new port of entry can be approved for construction, with similar delays for improving existing infrastructure at many ports of entry.
- Stressing the need for continual federal investment in low cost, high impact infrastructure and resource projects that serve to increase the efficiency of cross-border trade, travel and commerce while also improving public safety and security.
- Utilizing private sector investment in border infrastructure.
“It is not too late for our political leaders to address the roadblocks at our nation’s ports that are impeding the growth of our export economy, which threaten to exacerbate an existing economic crisis of nearly unparalleled proportions and relegate the United States to a second-tier player in the global economy.” says BTA President Maria Luisa O’Connell.
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