Ornada – US border closures left $55 billion in losses: Konkanaco

The Federation of National Chambers of Commerce said the extension of the border closure between Mexico and the United States will have economic and social impacts on both countries, as there were economic losses in that region as of July that exceeded $55 billion. Services and Tourism (Konkanaku Servetor).

The head of the private sector authority, Jose Manuel Lopez Campos, noted that the restrictions on non-essential land traffic implemented by the US authorities to prevent the spread of the Covid-19 virus are “really unsustainable for many lines of business”, both in Mexico. American side.

Lopez Campos said that a study conducted by the Analysis Laboratory in Trade, Economics and Business (Lacen) of UNAM indicates that until last July the closure of land borders had left economic losses, in the trade and tourism sectors, for more than 55 thousand. 300 million dollars.

He added that UNAM warns that if the border restrictions continue for a longer period, the economic losses within a month could reach more than 2.5 billion dollars for companies on both sides of the border.

He considered that this would be a “severe blow to the economies of the two regions, as it puts many institutions and jobs at risk.”

He commented that Mexico’s northern border is very important to the national economy, and therefore, it will be a priority for the Mexican government to reach agreements with the United States, in order to lift restrictions and revitalize the economic dynamics of that region. As soon as possible, the stability of thousands of families that depend on the activity of the third sector in that region is in danger.

Lopez Campos added, referring to the Lassen study, that before the pandemic, consumer tourism between the borders was between 5 and 6 million dollars, which boosted the economy of the cities and provinces of the two countries.

The Konkanaco President warned that if the border crossing continues to be closed until October according to statements by US government officials, that region will be at risk of permanent closure of many businesses that can no longer be sustained, so it is necessary to implement urgent strategies that ensure the operation of businesses and compliance with the protocols that Prevent the spread of coronavirus and apply.

94 Mexican cities and 48 North American provinces converge on the northern border. Because of the health emergency, it has been closed for more than 17 months, “a situation that was very negative for cities that had daily trade and service exchange, considering the many Mexicans crossing over to work or to buy certain products.”

The business leader noted that many Americans traveled overland to border cities for work, medical advice, tourism, and access to some goods or services.