Bridge of the Americas Reopens for Business

Economy

Bridge of the Americas Reopens for Business

15 November, 2023• Economy

After a three-week closure, the Bridge of the Americas (BOTA) connecting Ciudad Juárez, Chihuahua, to El Paso, Texas, is once again open for cargo traffic. This decision was eagerly awaited by the business community. The United States Customs and Border Protection (CBP) has resumed cargo processing after temporarily suspending operations to assist in handling migrants crossing unofficial areas into the United States.


CBP has confirmed the reopening of the BOTA cargo facility on its regular schedule from 6 a.m. to 2 p.m., Monday through Friday, although with certain undisclosed operational adjustments.


Before the closure, BOTA processed approximately 500 northbound trucks daily. Despite the reopening, CBP continues to encourage the business community to explore other nearby facilities, such as the Ysleta, Marcelino Serna (Tornillo), and Santa Teresa ports.


However, it’s important to note that the BOTA closure and stringent truck inspections at other border crossings have caused significant delays for northbound trucks in recent weeks. The Mexican National Chamber of Trucking reported that over $1.5 billion worth of goods have been held at the Chihuahua-Texas border due to these rigorous inspections aimed at detecting illegal entries of migrants and narcotics.


Miriam Kotowski, President of Tecma Transportation Services, a logistics company that frequently uses commercial crossings between Ciudad Juárez and El Paso, is optimistic about the reopening of the Bridge of the Americas and how it will contribute to reduced crossing times. Nevertheless, she has highlighted that inspections by the Texas Department of Public Safety at other entry points are negatively impacting cross-border cargo traffic flow, considering them as trade impediments.


President López Obrador has expressed his intention to send a diplomatic communication to his U.S. counterpart expressing the Mexican government’s opposition to these truck inspections carried out by the Texas government. He asserts that these inspections harm both nations and affect economic activity and people’s mobility. The Mexican Ministry of Foreign Affairs (SRE) has communicated this concern to the U.S. government and requested the restoration of commercial flows through the affected border crossings. The Mexican government has reaffirmed its commitment to working towards fully restoring operations.


The reopening of the Bridge of the Americas is a positive step towards revitalizing trade between Mexico and the United States, and the business community enthusiastically welcomes this news. Nonetheless, challenges persist with rigorous inspections at other crossings, presenting an obstacle to the smooth flow of goods. The Mexican government is taking diplomatic measures to address this situation and ensure better commercial integration between both countries.

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Mexico and the U.S: A Shared Bet on Microchips

15 November, 2023• Economy

In the realm of international diplomacy, Mexico has played a strong card in its relationship with the United States: semiconductor production. Despite differing stances on matters like energy, corn, and labor, both nations are united in pursuit of a distinctive opportunity.

This strategy could strengthen the alliance between Mexico and the United States, allowing an expansion of their commercial and manufacturing relationship at a pivotal moment marked by the trade war with China and the global restructuring of manufacturing.

The invitation from the Joe Biden administration to the Andrés Manuel López Obrador government to join the microchip production plan is a significant milestone. Biden recently signed the Chips and Science Act, allocating $52 billion to boost chip manufacturing in the United States.

During a recent meeting in Washington, strategies were discussed to capitalize on this opportunity. The conversation centered on promoting investment in manufacturing, creating jobs, and fostering prosperity through these laws, which together allocate over $400 billion to strengthen regional microchip supply chains.

Raquel Buenrostro, Secretary of Economy, emphasized the importance of the microchip supply chain and its potential to have a positive impact on the economy of North America and the integration of the United States, Mexico, and Canada.

Recently, a Taiwanese delegation visited Mexico to explore investment opportunities in the Isthmus of Tehuantepec Interoceanic Corridor. Companies such as Chunghwa Telecom, Hon Hai Foxconn, and Delta Electronics showed interest in investing.

Although the details of the new microchip supply chain are still unclear, Armando Cortés Galicia, CEO of the INA, provided some insights. Mexico could focus on microchip programming and distribution in the region.

The COVID-19 pandemic has caused disruptions in production chains and accelerated the relocation of companies from China to other countries. In this context, Mexico has a strategic opportunity.

Despite existing differences, microchips represent a unique opportunity to strengthen the alliance between these two nations in the long run, promoting mutual benefit and contributing to regional development.

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