Today, U.S. Secretary of Commerce Penny Pritzker spoke at the inauguration of the West Rail Bypass International Bridge in Brownsville, Texas. The bridge is the first new international rail crossing between the U.S. and Mexico since 1910 and connects Brownsville, Texas, and Matamoros, Tamaulipas.
During her remarks, Secretary Pritzker highlighted the rapid growth of commercial activity between the United States and Mexico, and the importance of the border region to the countries’ bilateral economic relationship. Today, nearly $1.5 billion of goods cross between the U.S. and Mexico each day and approximately 80 percent of U.S.-Mexico goods trade crosses our border via road and rail.
In order to foster our economic growth and remain globally competitive in the 21st century, we must replace outdated infrastructure and continue to develop a modern, efficient, and secure border. We cannot wait another 100 years before we inaugurate the next new bridge or road connecting our nations.
The West Rail Bypass bridge represents the Obama Administration’s commitment to the development and execution of border infrastructure projects under the U.S.-Mexico High Level Economic Dialogue.
Secretary Pritzker was joined at the event by Mexico’s Secretary of Finance and Public Credit Luis Videgaray Caso, Secretary of Foreign Affairs José Antonio Meade Kuribreña, Secretary of Communications and Transport Gerardo Ruiz Esparza, and Tax Administration Service Chief Aristóteles Núñez. U.S. Customs and Border Protection Commissioner R. Gil Kerlikowske, Brownsville Mayor Tony Martinez, U.S. Embassy Mexico City Chargé d’Affairs William H. Duncan, and Matamoros Mayor Leticia Salazar were also in attendance.
Remarks as Prepared for Delivery Thank you, Mayor Martinez, for your introduction and for hosting this historic event. Your commitment to economic development in Brownsville consistently recognizes the U.S.-Mexico border as a vehicle for growth for the people, workers, and businesses in this city.
I want to acknowledge Congressman Hinojosa, who joins us from his district just next-door. As a local business owner long before his time in Congress, he understands first-hand the importance of global trade and strong U.S.-Mexico ties to companies and communities across this region. I would be remiss if I did not mention Congressman Vela, who was unable to join us today and who has been a strong advocate in getting the West Rail facility open.
I also want to thank our U.S. government colleagues from Customs and Border Protection, the Department of State, and the Department of Transportation, and offer special thanks to our Mexican partners, including: Secretary Videgaray; Secretary Meade; and Secretary Esparza. Each of you and your departments were integral to the completion of the West Rail project. We could not have reached this momentous occasion without the concerted effort of you and your teams.
Everyone here today appreciates that the U.S. and Mexican markets are inextricably linked, and this region is the staging point for the vast majority of our bilateral commercial activity. Nearly $1.5 billion of goods cross between the United States and Mexico each day. Approximately 80 percent of U.S.-Mexico goods trade crosses our border via road and rail. And U.S. imports from Mexico contain 40 percent U.S. content, which means U.S. and Mexican-made goods often cross the border multiple times in the course of going from raw material to a final product.
Put simply, our shared border is already an essential artery of prosperity for both our countries.
Of course, one reason for the exponential growth in bilateral commerce is the North American Free Trade Agreement. Since the implementation of NAFTA, total trade between our countries has expanded nearly six-fold – from $100 billion in 1993 to $592 billion in 2014.
This rapid expansion has created jobs and opportunity on both sides of the border and made our region far more competitive in the global economy. However, the associated increase in commercial activity has also put an overwhelming strain on our transportation infrastructure and our land ports of entry.
Our commercial crossings were not modernized following the completion of NAFTA, which means we are still using infrastructure that was built for roughly a quarter of our current trade volume. And the congestion at our borders will only become more acute once we finalize and implement the Trans-Pacific Partnership.
The conclusion is obvious: in an increasingly globalized economy, our collective competitiveness depends upon our ability to replace outdated infrastructure and continue to develop a modern, efficient, and secure border.
That is why we are prioritizing the development and execution of border infrastructure projects under the U.S.-Mexico High Level Economic Dialogue (HLED). We have already made some progress in this effort. For example, at the port of entry between San Diego and Tijuana – the busiest land crossing in the world – we reduced wait times from 3 hours to roughly 30 minutes.
At the Nogales-Mariposa port of entry, we recently completed a project that more than doubles the facility’s capacity. The structure will now be able to handle as many as 4,000 trucks a day – up from about 1,600 – and process up to $35 billion of goods each year.
Today, we take another step forward as we inaugurate the West Rail Bypass, the first new railway crossing linking the United States and Mexico in more than a century. Completing this project required a herculean effort from U.S. and Mexican leaders at the federal, state, and local levels. Finishing this rail line took over a decade and required overcoming major hurdles. Our teams persevered, and we should all be incredibly proud of this project. But we cannot wait another 100 years before we inaugurate the next new bridge or road connecting our countries.
Secretary Videgaray knows this as well as anyone. In February 2014, we sat in his office, as the Secretary described the West Rail Bypass as “low-hanging fruit.” The two of us and many others here have deeply focused on driving this project to completion. But we need a process that is not driven solely by individual personalities.
We need a strategy that is coordinated, sustainable, and effective. We cannot take a decade to finish critical infrastructure projects; in the 21st century, our businesses need more efficiency from our governments.
We are working to develop this improved approach via the HLED, consistent with the goals articulated by President Obama and President Pena Nieto when they launched this new era of bilateral cooperation in 2013. To realize the vision of North America as the most competitive region in the world and to make it easier for our companies to do more business together.
Thank you all for being here to officially inaugurate the West Rail Bypass and for your commitment to keeping the United States and Mexico open for business together.
Source: U.S. Department of Commerce
