For Immediate Release
MEDIA CONTACT: ANGELA HALE, 512.289.2995, angela@redmediagroupllc.com
Expanding Border Trade Brings 700,000 New Jobs & Nearly $70 Billion in Annual Gross Product in the United States and 100,000 New Jobs & $5 Billion in Annual Gross Product in Mexico
Washington D.C/Mexico City, February 6-7, 2018– A ground-breaking first of its’ kind study by renowned Texas economist Dr. Ray Perryman shows trade between the border states of the United States and Mexico is crucial to both nations and is a win-win for the economies of both nations. Maintaining NAFTA and continuing to expand the linkage among the 10 border states will create 700,000 new jobs and nearly $70 billion in annual Gross Domestic Product in the United States and 100,000 new jobs and $5 billion in annual Gross Domestic Product in Mexico if there is only a one-unit increase in the Economic Integration Index.
“If you take away our free trade, you take away our competitive advantage,” said Dr. Ray Perryman, President and CEO of the Perryman Group, an economic analysis firm based in Waco, Texas. “This groundbreaking study modeled in detail, for the first time, the trade potential of the border states and it shows enormous economic potential for both the United States and Mexico in the future with free trade, NAFTA, and continuing integration.”
If NAFTA is kept in place and there is a one-unit increase in the Economic Integration Index, a common measure linkage among economies that Dr. Perryman implemented at the state level in the border region, for US-Mexico border trade is realized, potential gains include nearly $70 billion in annual gross product in the US Border States and nearly $5 billion in gross product in Mexico border states (fully adjusted to reflect current trade status). Of these amounts, the potential gain in Arizona is $4.49 billion, with $38.29 billion in California, $1.32 billion in New Mexico, and $25.25 billion in Texas. The projected increase in annual gross product in Baja California is $0.42 billion, with $0.45 billion in Chihuahua, $0.83 billion in Coahuila, $1.83 billion in Nuevo Leon, $0.62 billion in Sonora, and $0.64 billion in Tamaulipas.
Gains in employment with a one-unit increase in the Economic Integration Index for US-Mexico border trade include approximately 702,420 jobs in US border states and 95,950 jobs in Mexico border states. Increases in employment by state include Arizona (63,650), California (386,950), New Mexico (16,510), Texas (235,300), Baja California (15,780), Chihuahua (15,670), Coahuila (13,300), Nuevo Leon (27,810), Sonora (11,800), and Tamaulipas (11,570).
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About the Bordernomics Alliance:
The mission of the Bordernomics Alliance is to increase economic prosperity and quality of life for the ten Border States through active public/private collaborations in advocacy, trade, networking and information. The Study depicts the most current trade relations between the US and Mexico. The study included twelve focus groups with leaders from the ten Border States to explore potential areas of improved cooperation, as well as obstacles to these efforts. The findings will serve as a foundation for the Bordernomics Alliance mission, aimed at raising awareness of an economically powerful mega-region that gives us a competitive advantage in the global market.