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Dr. Alejandro Díaz-Bautista, Economist and Researcher (PhD)
The border region between Mexico and the United States has long served as a laboratory for economic, social, and cultural convergence. Since 2000, commercial integration, regulatory reforms, and shifts in global value chains have deeply transformed both sides of the Rio Grande.
In Mexico, border states such as Baja California, Sonora, Chihuahua, Coahuila, Nuevo León, and Tamaulipas began diversifying beyond traditional maquiladora activities, incorporating high-tech industries, logistics, and export services. Simultaneously, in the southern United States—California, Arizona, New Mexico, and Texas—ties with the Mexican market were strengthened through migration flows and binational infrastructure projects.
The North American Free Trade Agreement (NAFTA) laid the groundwork for unprecedented trade flows. Between 2000 and 2018, bilateral trade rose from roughly $300 billion annually to over $600 billion. Mexican exports to the U.S. became specialized in automotive, electronics, and aerospace manufacturing, eventually leading to the implementation of the USMCA.
This trade expansion fostered the emergence of productive clusters in cities like Ciudad Juárez, Laredo, and Reynosa. Road and customs connectivity improved with new border crossings and logistics platforms, reducing clearance times and enhancing regional competitiveness.
The border became a magnet for foreign direct investment (FDI), concentrating around 40% of Mexico’s total FDI. Simultaneously, toll highways and rail corridors were developed to connect Mexican ports with distribution hubs in Texas and California. Investments in cross-border pipelines and liquefied natural gas processing plants strengthened energy security in both countries.
Remittances and cross-border incomes acted as social shock absorbers during times of crisis. However, shared water basins such as the Rio Grande and the Colorado River face increasing water stress.
The USMCA strengthened rules of origin and opened space for digital content and clean energy. The 2020–2021 health crisis temporarily slowed activity but also accelerated digitalization and the reshaping of supply chains.
These changes have reinforced the resilience of the border economy and laid the foundation for deeper integration in high-value-added sectors.
Dr.Alejandro Díaz-Bautista: Research Professor in International Economics at El Colef. Distinguished member of Mexico’s National System of Researchers (Conahcyt) and now part of the new Secretariat of Science, Humanities, Technology, and Innovation (Secihti).