U.S.-Mexico Border Non-Essential Travel Restrictions Extended to January 20, 2021, Causing $4.9 Billion Economic Impact Loss to Texas Border Counties
By: Ricardo E. Calderon, Eagle Pass Business Journal, Inc., Copyright 2020
The controversial United States-Mexico border non-essential travel restrictions that were implemented by President Donald J. Trump in March 21, 2020 have been extended monthly by agreement among both countries are once again being extended to January 20, 2021, causing up to an estimated $4.9 Billion economic impact loss to Texas border counties according to a study by Dr. Jose Ivan Rodriguez-Sanchez at the Baker Institute Center for U.S. and Mexico at Rice University.
Initially implemented under the ruse of the COVID-19 pandemic, the U.S.-Mexico border non-essential travel restrictions have been documented as being nothing more than a Trump Administration anti-immigration policy to restrict legal immigration into the United States.
The City of Eagle Pass and Maverick County have been severely affected by these controversial non-essential travel restrictions at the U.S.-Mexico border as their economies heavily depend upon Mexican retail customers and tourists doing business at their retail and tourism-related businesses such as hotels, restaurants, gasoline stations, and others. The City of Eagle Pass loses approximately $450,000 to $600,000 per month alone on its International Bridge System’s general revenues, now totaling approximately $4,050,000 to $5,400,000 (million) during the nine months since these restrictions have been implemented. Both Eagle Pass and Maverick County have also lost considerable sales tax revenues and hotel occupancy taxes during this same period.
In a recent study on the economic impact of the U.S.-Mexico border non-essential travel restrictions on the nine Texas counties sharing the border with Mexico, including Maverick County, Dr. Jose Ivan Rodriguez-Sanchez at the Baker Institute’s Center for the U.S. and Mexico at Rice University in Houston, Texas estimated an economic impact loss of $4.9 Billion during the first eight months of these restrictions.
Dr.Rodriguez-Sanchez states ‘the retail and hospitality sectors have been hit hard by the current ban on non-essential travel meant to contain the spread of the [COVID-19] virus. This restriction has meant losses for these counties, as Mexican tourists and shoppers are unable to cross the border to buy goods and services. Mexican tourists and shoppers are a key component of these economies, and without them, the losses are likely to be unprecedented, causing an estimated reduction of nearly $4.9 Billion in the GDP of these border counties (representing 6.1% of their total GDP.”
Dr.Rodriguez-Sanchez adds that “the total retail sector could experience economic losses exceeding $2.0 Billion during these eight months of restricted travel. This has put immense pressure on retail stores on the border, causing many of them to go out of business already. Finally, the purchase of goods and services generates revenue for the state of Texas through taxes. But with retail sales plummeting, the state will likely lose around $242.6 Million in tax revenue.”
Dr. Rodriguez-Sanchez concludes “it seems that non-essential Mexican travelers are, in fact, essential to the border counties of Texas.”
