Mexico is our nation’s second-biggest trading partner, with more than $660 billion in goods crossing our borders last year. However, relations between the two countries have been strained in recent years.
Mexican officials have invited their U.S. counterparts to meet in order to address current differences, especially with regard to the energy market. We should take them up on their offer — not just to rebuild alliances that have been strained of late, but also to benefit the two countries economically even further.
Those benefits could directly help the Rio GrandeValley as well.
While our two countries continue to enjoy healthy levels of trade, several issues have arisen including the Trump administration’s imposition of tariffs, Mexico’s efforts to change existing agreements, and Texas Gov. Greg Abbott’s recent order to reinspect freight trucks entering from Mexico, a move that cost both countries billions in lost produce and missed deliveries.
Mexican President Andres Manuel Lopez Obrador is seeking to make his country more self-sufficient and reduce imports, which has prompted the U.S. and Canada to complain about the country balking on existing agreements.
Talks already have taken place in several sectors. For example, agricultural officials have been discussing Lopez Obrador’s order that banned certain pesticides and genetically engineered produce such as corn coming from the United States.
In addition, the three countries held talks over the summer regarding energy generation. Those talks ended in October with many issues unresolved, and several of Mexico’s top energy officials were replaced shortly afterward. Mexico now has indicated it is willing to renew them.
U.S Trade Representative Katherine Tai and Mexico’s Economy Minister Raquel Buenrostro met earlier this month in an effort to rekindle those negotiations; their visit dealt primarily with energy and fisheries disputes. All efforts to clarify matters of contention and improve trade even further would be welcome.
Mexico’s growing population and industry translate to a growing demand for energy. Its greatest source of fuel for energy production is natural gas, and although the country is one of the world’s largest oil producers it gets much of its fuel from the United States. In fact, 69% of Mexico’s natural gas consumption in June of this year was fed by the United States, according to Mexico’s National Committee on Hydrocarbons.
Several natural gas companies are looking to establish distribution sites in the Valley. If they are established, serving the Mexican market could be a boon to our local economy. One gas pipeline, originating in NuecesCounty, already runs through the Valley and into Mexico, and a proposed second line that would start at the Port of Brownsville already has passed environmental review from the U.S. Fish and Wildlife Service.
Our two countries have a long history of trade that has benefited both countries, and continued cooperation can only add to those benefits. With regard to energy generation, those benefits could help our Valley as well.
The sooner those talks resume, the better.
