Mayors discussed the relationship between issues affecting cities in border areas and non-border cities and towns at the introductory meeting of the Cities and Borders Task Force chaired by Laredo Mayor Betty Flores on January 17.

Borders, NAFTA Instrumental in City, Business Development Nationwide

The diverse group of Mayors agreed that congestion related to and affecting the movement of goods and services in border areas is having a direct effect on economic development in cities throughout the country. Mayors also pointed out that US border infrastructure and development problems present serious obstacles to increased trade with both Canada and Mexico, and to the enhanced economic development and prosperity that follows directly from this trade activity. Mayor Flores said that trade between the US and Mexico has grown almost 250% percent since the passing of the North American Free Trade Agreement (NAFTA) in 1994. In addition US-Canada trade represents some $1 billion daily while US-Mexico trade now represents some $300 million. Flores also noted "trade relations with Canada and Mexico are key to the future economic growth of border and non-border cities. We need to redouble our efforts to ensure that our border areas permit this to occur."

Phil Potter, President of the NAFTA Institute, explained the nature of transportation and freight corridors and the pressures that cities and corridors are suffering as a result of increased NAFTA-related freight traffic. Potter also described the intense, rapid pace at which warehousing and distribution facilities in borders areas and traffic corridors are growing and the immediate need for more. Potter described both the economic impact and future potential of the combined US, Mexico and Canada marketplace to US city-based businesses.

North, South Borders, Transport Corridors Affect Cities Throughout Country

Mayors expressed that the conventional way of viewing the border as the border with Mexico to the exclusion of the Canadian border is unhelpful to national efforts to highlight critical border-related development needs in cities on major rail and road transportation routes and corridors traversing the country. These needs are a primary concern of cities on rail and highway transportation routes to and from ports and cities on both borders. Task Force Chair, Mayor Flores led discussions and noted that while cities like Laredo experience trade and freight traffic delays from bottlenecks and feel the effect immediately, those cities that are the destination or origin of the goods also directly suffer as a result of traffic and customs delays. Flores went on to add that the results of inadequate responses to border issues are far-reaching and impact city development on many fronts including social and economic, and especially affect business development and trade-related employment.

Better Border Infrastructure Means Stronger Local Business

Mayors also agreed that in order for them to provide for improved local economies, business development and quality of life for city residents, it is imperative that together they must emphasize change in the way the public views US borders. In particular they described the need to move away from the tendency to narrowly view border problems as problems for border area cities alone and promote a more accurate and comprehensive understanding of the nationwide impact of border issues. Mayor Flores and other mayors also noted that the failure to take account of the US-Canada border and trade traffic that transits the border impacts policy and harms local business and economic development in cities where US-Canada trade plays a significant role. Delayed financial transactions and penalties resulting from excessive delays on delivery of product affect the financial security of businesses beyond border areas including manufacturers and distributors exporting and importing via border and transportation corridors.

Customs, Local Business Development Play Key Roles

In addition to transportation and infrastructure development, attendees at the newly-formed task force meeting also discussed a variety of other border-related issues including customs and law enforcement activities and their contributions to relief from both border congestion and efforts to stem illegal drug traffic. San Bernardino Mayor Judith Valles noted the importance of Custom's and law enforcement's ability to combat illegal drug traffic to assist in reducing drug-related crime and social problems in the nation's cities. The location and modernization of US Customs Service facilities were also discussed in the context of relieving border area traffic congestion. Other Border and NAFTA related topics discussed were state funding allocations for highway and rail improvements, the development of alternate transport corridors, employer-assisted housing and the impact of NAFTA on trade with Big Emerging Markets, particularly China.

Al Zapanta, President of the US-Mexico Chamber of Commerce described in his remarks a series of government-sponsored programs designed to encourage and facilitate small and medium-sized business development in areas up to 150 miles from the US-Mexico border. Zapanta also described the Chamber's involvement in business programs for small and medium sized import and export related businesses with Mexico throughout the country and noted that cities in Mexican border areas can also learn from the development to date and past successes on the Canadian border. Mayors from non-border cities agreed that NAFTA-related businesses large and small, industries and local economies in their cities and towns suffer direct economic impact from inadequate border infrastructure and border area problems.

Border Issues are Non-Border City Issues

Several non-border city mayors including Grand Island (NE) Mayor Gnadt, Yuma Mayor Marilyn Young and others spoke in support of efforts to remedy the inability to effectively transit border cities efficiently. Fort Worth Mayor Barr pledged his support for enhancing border development noting that while Fort Worth is not a border city, businesses in his city are directly affected by delays and other effects of inadequate infrastructure and facilities in border areas. Barr also noted trade-related groups with similar concerns with whom the mayors' own concerns might converge and with whom the Task Force could share ideas.