TREND: Total merchandise trade through the US-Mexico border has largely recovered, with the majority of the top ports of entry (PoE) exceeding both their 2020 and 2019 numbers. Each of the top ten ports exhibited increases in the January to July 2021 period compared to the same period in 2020. Seven of the top ten ports also increased merchandise trade during the January to July 2021 period when compared to the January to July 2019 period.
•Total merchandise trade remained steady in its rebound and recovery across the top ten US-Mexico border ports of entry, with each exhibiting increases in the January to July 2021 period compared to the same period last year. The largest increases took place at the top four ports of Laredo PoE, El Paso PoE, Otay Mesa PoE and Hidalgo PoE. During the first seven months of the year, the top ten ports in total increased trade by roughly $69.2 billion (27.3%) compared to the same period in 2020.
•Trade at seven of the top ten ports of entry also increased during the January to July 2021 period when compared to 2019 numbers. Laredo PoE led the increases with a gain of about $5.5 billion (4.1%), followed by El Paso PoE with a gain of roughly $4.4 billion (9.5%) and Otay Mesa PoE with a gain of about $3.1 billion (11.2%). The three ports to decrease compared to 2019 were Santa Teresa PoE (-$2.4 billion or -13.4%), Nogales PoE (-$1.6 billion or -9.4%), and Del Rio PoE (-$399 million or -12.8%). In total, the top ten ports increased by about $15.0 billion (4.9%) compared to the first seven months of 2019.
•Nevertheless, seven of the top ten ports decreased in July on a month-over-month basis. Laredo PoE, Nogales PoE and El Paso PoE decreased the most, falling cumulatively by roughly $1.1 billion (-4.9%), $448 million (-20.4%) and $214 million (-2.9%), respectively. Santa Teresa PoE increased by $384 million (17.6%) and Eagle Pass PoE increased by $110 million (3.9%). On a year-over-year basis, eight of the top ten ports increased in July, with the top six ports increasing by over four billion dollars. Laredo PoE increased by approximately $2.8 billion (15.8%) and Otay Mesa PoE increased by $755 million (18.2%). Nogales and El Paso were the only two ports to decrease compared to July 2020, down $252 million (-12.6%) and $135 million (-1.8%), respectively.
Top 10 US-Mexico Border Ports of Entry for Total Trade with the World, Million USD
NOTE: Top ten in 2020. El Paso PoE includes Ysleta PoE. YoY denotes year-over-year; MoM denotes month-over-month.
SOURCE: Hunt Institute calculations using data from the US Census Bureau.
•Each of the top six US-Mexico border ports of entry for total trade increased in imports on a year-over-year basis in July. Otay Mesa PoE exhibited the largest relative increase in imports at $385 million (13.5%). Hidalgo PoE and Santa Teresa PoE had the next highest relative increases at $185 million (11.0%) and $126 million (9.4%), respectively. However, Hidalgo PoE and Santa Teresa PoE were the only ports of the top six to remain down in comparison to July 2019 at -$71 million (-3.6%) and -$8 million (-0.5%), respectively.
Top US-Mexico Border PoE for Imports from the World, Billion USD
NOTE: Top six ports in total trade. El Paso PoE includes Ysleta PoE. Shaded area indicates recession as defined by the National Bureau of Economic Research (2020 recession began in February and ended in April).
SOURCE: Hunt Institute calculations using data from the US Census Bureau.
•Of the top six US-Mexico border ports of entry for total trade, El Paso PoE and Santa Teresa PoE were the only two to decrease in exports on a year-over-year basis in July. El Paso PoE dropped by $308 million (-9.4%) and Santa Teresa dropped by $6 million (-0.6%). Hidalgo PoE and Eagle Pass PoE had the highest relative increases at $375 million (43.1%) and $235 million (36.8%), respectively.
•Compared to 2019, Santa Teresa PoE was the only port to be down in July at -$128 million (-10.5%). Eagle Pass PoE exhibited the largest relative increase in exports compared to July 2019 at $205 million (30.9%), followed by Otay Mesa PoE at $200 million (13.7%) and El Paso PoE at $260 million (9.6%).
Top US-Mexico Border PoE for Exports to the World, Billion USD
NOTE: Top six ports in total trade. El Paso PoE includes Ysleta PoE. Shaded area indicates recession as defined by the National Bureau of Economic Research (2020 recession began in February and ended in April).
SOURCE: Hunt Institute calculations using data from the US Census Bureau.
TAKEAWAY: Total merchandise trade has largely recovered following the recession in 2020. The top ten ports as a whole processed increased merchandise trade throughout the first seven months of 2021 compared to 2020 and 2019. In the coming months, however, it will be important to monitor the three ports which remain below 2019 levels. If they persist below, potential changes to the structure and ordering of the top ports will need to be examined.
* Since 2014, the Hunt Institute for Global Competitiveness at The University of Texas at El Paso has provided economic analysis of the Paso del Norte Region that includes the binational communities of El Paso, Texas; Las Cruces, New Mexico; and Ciudad Juárez, Mexico. The mission of the Hunt Institute is to produce high-quality market analysis tools that can strengthen regional and binational cross-border economic and social development. Twitter: @HuntPasoDeNorte
