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Commercial border inspections by Texas will impact consumers

Commentary:

On April 27, the Texas Department of Public Safety (DPS) announced that it would reinstate enhanced safety inspections on northbound commercial trucks crossing the border from Mexico into the U.S at the Ysleta Port of Entry in east El Paso and the Bridge of the Americas in central El Paso. Texas DPS has conducted these inspections several times during the past few years. Ostensibly, these inspections are for vehicle safety checks, and Texas DPS has no authority, other than witnessing something suspicious, to inspect cargo. However, previously the Texas governor’s office has made it clear that these are checks for contraband and undocumented migrants.

Many people might view this move by the State of Texas as extra boots on the ground that is merely increasing security at the border. In reality, this is not the case. The previous times that Texas DPS conducted these safety inspections they found very little contraband or undocumented migrants, to the point that no public announcements of confiscations or apprehensions were made. That the inspections were not wildly successful makes sense. By the time the northbound trucks and their cargo are inspected by Texas DPS, they have already been inspected by Customs and Border Protection (CBP) at the port of entry. Essentially, Texas DPS is inspecting pre-inspected trucks and cargo.

Every time these superfluous inspections happen, I feel sorry for the supply chain managers that keep companies’ supplies and finished products moving. Texas DPS did not say how long the inspections would last, but some previous inspections lasted weeks, while others lasted months. This uncertainty complicates a supply chain manager’s job, because they don’t know whether to adjust their supply chain for the short-term or long-term. Some companies may choose to use air freight rather than ground freight, which is more expensive.

And although Texas DPS is only doing these inspections at the two El Paso ports, it is sure to cause disruptions in global supply chains. The $76.5 billion in trade that passed through Ysleta Port in 2023 ranked it second only behind Laredo, in terms of overall trade. The slowdown in crossings at Ysleta will put a strain on the other ports of entry in the El Paso/southern New Mexico region, as companies seek alternatives. The Santa Teresa Port of Entry in New Mexico will add another two hours in the evening from Monday through Friday, and will temporarily be open from 6 am to 10 pm for commercial crossings. The port is not normally open for commercial crossings on Saturdays, but will now temporarily be open from 6 am to 4 pm. The Tornillo Port of Entry, east of El Paso, is normally open Monday through Friday from 8 am to 4 pm, but will now be temporarily open from 8 am to 8 pm, and Saturday and Sunday from 8 am to 8 pm.

In addition to supply chain disruptions, there is a human toll. Most of the busiest ports of entry on the border are understaffed, and many CBP officers are working overtime. Now, they will be working even longer hours to accommodate the disruption in traffic. These officers do an incredible job protecting the U.S. from illegal contraband and crossings. However, longer hours mean more exhausted officers who can make mistakes. This can make the border more unsafe.

These inspections are also extremely hard on the commercial truck drivers as they attempt to cross into the U.S. The inspections are causing trucks to wait up to eight hours to cross. Sometimes, drivers who have waited eight hours in their rigs have to be switched for fresh drivers. Short-haul, drayage companies that make multiple daily deliveries into the U.S. for their clients in Mexico are now only making one or two entries into the U.S., thus causing financial losses. When Texas DPS did previous inspections, it was estimated that they caused billions of dollars in losses for companies.

Texas Governor Abbott is directly hurting not only Texas companies, but companies that come from all over the world to locate their production/distribution operations in the El Paso-Juarez-southern New Mexico region. The fluidity of the supply chain in El Paso could become an issue for companies interested in locating their operations there, and other regions such as New Mexico could be favored over El Paso. When a governor can randomly disrupt a supply chain, this can become a factor in the site selection process.

So why is Governor Greg Abbott’s administration continuously doing these inspections? Its root is most likely bully politics. El Paso is more than 81 percent Hispanic and votes predominantly Democratic. El Paso leans away from conservative Texas politics, and Abbott’s policies pertaining to abortion, DEI (diversity, education, and inclusion) and other issues are not popular.

In the meantime, expect the supply chain disruptions caused by the Texas inspections to cause shortages of products on shelves, components for aircraft and automobiles, and items such as medical products. The big loser in this unfortunate situation is the everyday consumer. We can all expect higher prices and sustained inflation.

Jerry Pacheco is the President of the Border Industrial Association. Jerry Pacheco's opinions are his own and do not necessarily reflect the views of KRWG Public Media or NMSU.

Jerry Pacheco is President of the Border Industrial Association and Executive Director of the International Business Accelerator.