Thousands of cargo trucks are stuck waiting for inspections at the Texas-Mexico border
Border bottleneck… This spooky szn, one line is way longer than the Haunted Mansion’s. After lengthy inspections rolled out last month, cargo trucks crossing from Mexico → US have been queuing at the border for up to 24 hours. The Mexican gov’t estimates 19K trucks carrying nearly $2B worth of goods have been stuck there, with reports saying the holdup has cost exporters $1.1B.
“Operation Lone Star”: Texas’ truck checks are part of Gov. Greg Abbott’s plan to intercept smuggled migrants and drugs as the US tightens control of its southern border. Last week, President Biden said he was expanding the physical wall in Texas.
Déjà view: When the Texas gov’t increased truck inspections last year, protesting businesses swayed it to shift into reverse within a week. On Monday, Mexico’s biggest trucking group called the inspections “absurd.”
Spoiled guac… Everything from cars and computer parts to oil and beverages (including tequila) is imported from Mexico… not to mention 80% of America’s avocados. Mexico recently surpassed China as the US’s No. 1 trading partner, with exchanges totaling $863B last year. Trade with Mexico is also an integral part of Texas’ economy, which imported $141B of goods from its neighbor last year.
Friction isn’t good for business… Idling trucks keep factories waiting for components, crimping US supply chains far beyond the Lone Star State. And there could be long-term biz implications: last year’s inspections led Mexico to nix plans to build a new trade corridor in Texas. Meanwhile, the Biden admin is pushing ahead with efforts to have more goods made in America as it pulls back on trade with its other big partner, China.