By Rick Oltman, April 2, 2019
Last week, President Trump threatened to close the border with Mexico if the Mexican government doesn’t do more to stop the waves of illegal aliens flooding across our southern border. Closing the border is probably the only way to convince the Mexicans to stop illegal immigration into our country because it will impact them hard economically. And not only Mexico will feel the effects.
Imports from Mexico into the United States exceed $270 billion annually, and the products are from a lot of sources.
According to Wikipedia there are over 1,000 maquiladoras, employing over 3 million Mexican workers.
A maquiladora is a company that allows factories to be largely duty free and tariff free. These factories take raw materials and assemble, manufacture, or process them and export the finished product.
“Duty free and tariff free” is a big incentive for foreign companies to ship parts for their goods to Mexico, where they are then assempled and shipped across the border into the United States.
Here are just a few of the foreign companies who use Mexican mazuiladoras: Bayer, BMW, Daewoo, Honda, Hyundai, Matsushita, Mercedes-Benz, Mitsubishi, Nissan, Pioneer, Samsung, Sanyo, Sony, Toshiba, VW.
The most important exports from Mexico include:
Vehicles: $74 Billion (Passenger cars, Vehicle parts)
Electrical Machinery: $63 Billion (Flat screen TVs, Electrical Generators, Monitors)
Machinery: $49 Billion
Crude Oil: $14 Billion
Medical Instruments: $12 Billion
Fresh Vegetables: $4.8 Billion (Avocados, Tomatoes)
Fresh Fruits: $4.3 Billion
Alcoholic Beverages: $2.7 Billion (Beer, Tequila)
Rubber: $2.4 Billion
Snack Foods: $1.7 Billion
Processed Fruits and Vegetables: $1.4 Billion
In addition to imports, the traffic into our country every day is enormous. San Ysidro, California, the busiest port of entry in the country, has 70,000 north bound vehicles and 20,000 north bound pedestrians every day. Much of that traffic is workers who earn their salary in California, and then take their pay home to spend in Mexico. That port of entry is a huge cash cow for Mexico.
If the border is closed, and that should include both regular and commercial traffic, workers, business owners and corporations from Europe to Asia will feel the economic impact. And President Trump already knows that the Mexicans are concerned about the impact on their economy if the border remains closed for any length of time.
Mexican President Andrés Manuel López Obrador will be hearing from business leaders from all over the world 24/7 suggesting, telling, and pleading with him to do what’s required to get those Ports of Entry opened.
And President Trump made it very clear when he tweeted:
If Mexico doesn’t immediately stop ALL illegal immigration coming into the United States through our Southern Border, I will be CLOSING the Border, or large sections of the Border, next week.
I somehow think the Mexican President will be motivated to act.
You have enemies? Good. That means you’ve stood up for something, sometime in your life. [Winston Churchill.]
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