TREND: Recovery from Covid-19 disruptions continues at ports of entry (PoE) on the U.S.-Mexico border. Each of the top ten U.S.-Mexico border PoE recorded an increase in total trade gains through the first three quarters of 2021 over the same period in 2020. Seven of the top ports also recorded increases compared to the first three quarters of 2019. Merchandise trade through Santa Teresa PoE, Nogales PoE and Del Rio PoE remains below 2019 levels.
•Total merchandise trade registered gains across the top ten U.S.-Mexico border PoE during the January to September 2021 period on a year-over-year basis. During the first three quarters of 2021, the top ten PoE as a whole processed more than US $418.6 billion in trade, an increase of nearly US $81.7 billion (24.2 percent) compared to the first three quarters of 2020. Once again, the top four ports of Laredo, El Paso, Otay Mesa and Hidalgo led the way with the largest increases compared to 2020.
•In total, the top ten ports recorded an increase in trade of about US $22.8 billion (5.8 percent) compared to the first three quarters of 2019. Seven of the top ports recorded increases during the January to September 2021 period compared to 2019. Laredo, El Paso, Otay Mesa and Hidalgo ports of entry exhibited the largest trade gains with increases of approximately US $8.2 billion (4.7 percent), US $6.7 billion (11.3 percent), US $4.4 billion (12.0 percent) and US $3.3 billion (12.1 percent), respectively. Once more, Santa Teresa PoE (US -$3.2 billion or -13.7 percent), Nogales PoE (US -$1.7 billion or -8.1 percent) and Del Rio PoE (US -$543 million or -13.7 percent) were the only ports to decrease in trade volume compared to the January to September 2019 period.
•On a month-over-month basis, the only ports to exhibit increased trade in September were Santa Teresa PoE (US $170 million or 8.6 percent), Nogales PoE (US $139 million or 7.6 percent), Hidalgo PoE (US $35 million or 1.1 percent) and Eagle Pass PoE (US $24 million or 0.9 percent). Laredo PoE, El Paso PoE and Otay Mesa PoE decreased in trade by about US $519 million (-2.4 percent), US $240 million (-3.0 percent) and US $229 million (-4.6 percent), respectively, compared to August.
Top 10 US-Mexico Border PoE for Total Trade with 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 U.S. Census Bureau.
•On a year-over-year basis, Del Rio PoE (US -$83 million or -21.7 percent) and Eagle Pass PoE US -$10 million or -0.4 percent) were the only ports of the top ten to decrease in September. The largest increases were recorded at Laredo PoE (US $1.5 billion or 8.0 percent), El Paso PoE (US $1.3 billion or 19.7 percent) and Brownsville PoE ($589 million or 37.7 percent).
•On a year-over-year basis, five of the top six U.S.-Mexico border ports of entry for total trade recorded gains in imports in September. Santa Teresa PoE (US $240 million or 23.4 percent) and El Paso PoE (US $489 million or 12.4 percent) recorded the largest relative increases in imports, while Eagle Pass PoE (US -$241 million or -11.4 percent) was the only port of the six to decrease compared to September 2020.
•Compared to September 2019, however, Santa Teresa remained down in imports by nearly US $19 million (-1.5 percent). The other five ports each increased with the largest relative gains in imports recorded at El Paso PoE (US $661 million or 17.5 percent) and Otay Mesa PoE (US $383 million or 13.7 percent).
Top US-Mexico Border PoE for Imports from the World, billion USD
NOTE: Data as of September 2021. Top six ports in total trade. El Paso PoE includes Ysleta PoE. Shaded area shows recession as defined by the NBER (2020 recession began in February and ended in April).
SOURCE: Hunt Institute calculations using data from the U.S. Census Bureau.
•Each of the top six ports exhibited an increase in exports processed on a year-over-year basis in September. Hidalgo PoE, Eagle Pass PoE and El Paso PoE registered the largest relative increases in exports with gains of about US $330 million (32.7 percent), US $231 million (32.4 percent) and US $776 million (31.3 percent), respectively.
•As with imports, Santa Teresa PoE has not regained the export volume through the first three quarters of 2021 that it processed in 2019. Santa Teresa PoE (US -$230 million or -20.7 percent) was the only port of the top six to remain down in exports in that comparison. Eagle Pass PoE (US $402 million or 74.4 percent) exhibited the largest relative increase, followed by El Paso PoE (US $515 million or 18.8 percent).
Top US-Mexico Border PoE for Exports to the World, billion USD
NOTE: Data as of September 2021. Top six ports in total trade. El Paso PoE includes Ysleta PoE. Shaded area shows recession as defined by the NBER (2020 recession began in February and ended in April).
SOURCE: Hunt Institute calculations using data from the U.S. Census Bureau.
TAKEAWAY: Total merchandise trade through the top ten ports exceeded both 2020 and 2019 values in the first three quarters of 2021. The top four ports of Laredo, El Paso, Otay Mesa and Hidalgo led the increases in both cases, while Santa Teresa PoE, Nogales PoE and Del Rio PoE were the only three ports to remain below 2019 levels. The 2021 trend of increasing trade volume at some ports at the seeming expense of declining trade volume at other ports may indicate a structural change in how trade moves through the U.S.-Mexico border.
* 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
