Report: Trade with Mexico supports 95,000 local jobs, but faces threats

Trucks line up at Otay Mesa to cross the demarcation into the United States in March File photo by Gregory Bull Associated Press A new review from the World Agreement Center of San Diego underscores the importance of cross-border business to the local commercial sector but warns of growing threats The overview identified that nearly of the billion in annual foreign exports from San Diego and Imperial counties is destined for Mexico supporting local jobs according to the latest facts This is due to the success of the North American Free Deal Agreement and later United States-Mexico-Canada Agreement USMCA which have created a binational economic system serving million people according to the overview s authors But they warned despite essential strategic and economic advantages the Cali Baja cross-border ecosystem faces headwinds from U S initiative shifts global arrangement uncertainty and infrastructure gaps that threaten its continued progress The World Transaction Center which is an affiliate of San Diego Regional EDC primarily used information from the World Bank from in preparing the review The examination was underwritten by Mexican solution company ITJ sponsored by the San Diego County and drew on research aid from SANDAG the Tijuana EDC UC San Diego and other partners Among the key findings Growing exchange between the United States and Mexico reduces reliance on China Mexico has emerged as a dependable highly technical manufacturing partner and is now responsibe for more pact with the U S than China Services constitute the fastest-growing sector in U S -Mexico agreement There is growing demand both for traditional sectors like IT sponsorship call centers and financial services as well as for high-value exercises such as engineering R D and utility growth Binational pact fuels jobs and economic increase in San Diego and Imperial counties especially in critical industries like aerospace curative devices and semiconductors Baja California is diversifying and moving up the value chain Beyond traditional maquiladoras and electronics the region now exports higher-value goods across multiple industries Tijuana alone is home to more than tool firms The Cali Baja region serves as a vital link in North America s automotive supply chain Major automakers like Ford GM Hyundai and Toyota leverage this proximity and the benefits of the USMCA to optimize production as exemplified by Toyota s Tacoma plant in Tijuana The summary didn t specifically mention the Trump administration s tariffs and economic threats against Mexico and Canada but warned that the USMCA must be preserved Supporting and strengthening the USMCA framework is urgent to ensure that North America remains globally competitive resilient and secure protecting jobs innovation and prosperity on both sides of the limit the authors wrote The USMCA is not exclusively a pact agreement it is the backbone of North America s competitiveness in a turbulent global financial sector