Lack of Mexican tourists disrupts El Paso’s economy

The Department of Homeland Security (DHS) announced on Sunday that the closure of the land border for non-essential travelers – mainly Mexican tourists – from Mexico to the United States will be extended for another month, until July 21.

This measure, which will be 16 months after its implementation, in March 2020, with the aim of preventing Covid-19 infections, has had a strong economic impact on the border region.

In particular, El Paso’s commercial sector, which is largely dependent on Mexican buyers, has been affected. Community members, business leaders and local academics urge the reopening of the border as soon as possible, warning that full recovery will take up to five years.

Tom Fullerton, an economist at the University of Texas at El Paso (UTEP) assures that the economy will hardly return to normal if the borders are opened in the coming months.

“From a short-term business cycle point of view, there would be a very marked commercial rebound during the first 90 days. However, from a long-term structural point of view, world history indicates that the economic ruptures of pandemics require around 5 years to heal ”, he specified.

He added that, historically, pandemics almost always cause 24 months of business cycle disruption and that is seen with the current pandemic.

“In this region, bifurcated economic behavior is also observed with weak trade and more stable industrial expansion,” said the UTEP economist.

He explained that it depends on progress with vaccines and public health for the borders to open; however, the reopening would not be enough to reactivate the economy as a whole.

“In El Paso, the achievements with the anti-Covid vaccines are very positive, but there is a very large lag for Ciudad Juárez and the rest of the state of Chihuahua. As long as the region’s human capital remains at risk, the economy will not be able to return to normal, ”he commented.

“The main difficulties will continue to be commercial. In general, regional efficiency decreases due to facing this institutional obstacle. However, the risks associated with the coronavirus and its variants are very serious and this measure affects both the border between the United States and Canada and the border with Mexico, ”said Fullerton.

Elemento vital: Borderplex

Jon Barela, executive director of The Borderplex Alliance, an organization that promotes development between Juárez, El Paso and Las Cruces, issued a statement in which he assures that cross-border travel is the lifeblood of our regional economy.

“After more than a year of restricted travel, it is time to reopen our southern border to non-essential travel. Vaccination rates are increasing, infection rates are decreasing, ”said Barela.

“However, for our economy to fully recover and grow, it is essential to reopen our border with Mexico. Mexico is our most important business partner and a continuous source of economic growth and opportunities for our local, state and national economies. We will continue to urge the Administration to work with our allies in Mexico to make the reopening of the border a top priority, ”he added.

Dayana Esquivel, a Juarense who traveled to El Paso up to three times a week to buy products for the care of her baby, assured that with the 15-month extension of the restrictions, she has had to “get used to” other products that she cannot find. in Mexico”.

“I would cross up to 3 times a week to see my friends who live there or just to do my shopping. There are items that you find there and not here, for example, baby diapers or clothes, ”said Esquivel.

“I have had to adapt to finding similar products or things on this side or if I really like something from there, ask someone if they can buy it for me and cross it. But it has affected me, I could say that in relation to the material because, for example, most of my clothes or my baby’s I bought them there and, the truth is, it seems to me of better quality and price ”, explained the Juarense.

Esquivel said that, in addition to shopping and products, he misses “getting out of the routine” that one lives in Ciudad Juárez.

“I was excited about the possibility that they would open up because I do miss many things to cross, including food or simply being able to walk on that side,” he concluded.

Sanitary aspects

On Sunday night, DHS confirmed the extension of the restrictions for one more month, with the aim of reducing Covid-19 infections and protecting the community from possible spikes.

“To reduce the spread of Covid-19, the United States is extending restrictions on non-essential travel on our land and ferry crossings with Canada and Mexico until July 21, while ensuring access for essential travel and commerce,” it was reported in a statement from the Department of Homeland Security.

Likewise, it was reported that DHS has observed positive developments in recent weeks and “is participating with other US agencies in the White House expert working groups with Canada and Mexico to identify the conditions under which restrictions can be relieved from safe and sustainable way ”, reads the report.

El Paso County Judge Ricardo Samaniego has insisted on the goal of reaching “herd immunity” in order to relax restrictions and reopen the borders as soon as possible in order to boost the local economy.

“Our goal is to have herd immunity. Get 75 percent of the population of El Paso vaccinated and thereby reactivate the economy, ”said Samaniego.

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