May 15th, on an informal BlogTalkRadio show the discussion was with John Brown, a logistics expert in Tucson and Edgardo Cabrera a Mexican logistics expert on the commercial transportation between Mexico and the US. They discussed the issue of trucks, trains and water transportation between the two countries and what is working and what needs more attention.

From the table below you can see the progress of the surface transportation, truck, rail and pipelines. Obviously, trucks are the majority of methods of transport. There is an expected increase in pipeline over the coming years due to liquid natural gas (LNG) ports being developed. I also added the second table to show how the destinations go far beyond the border region.

Table 6. U.S. Merchandise Trade with Mexico by Surface Modes of Transportation

(millions of dollars)

Mode		2005	2006	2007	Percent Change 2005-2006	Percent Change 2006-2007
All Surface Modes	Imports	135,400	155,205	167,713	14.6	8.1
	Exports	104,277	116,749	118,758	12.0	1.7
	Total	239,677	271,954	286,472	13.5	5.3
Truck	Imports	112,268	126,464	137,037	12.6	8.4
	Exports	83,341	92,992	93,047	11.6	0.1
Rail	Imports	20,782	25,864	27,060	24.5	4.6
	Exports	15,748	17,271	19,340	9.7	12.0
Pipeline	Imports	0	55	169	NA	204.5
	Exports	543	707	787	30.2	11.4

Source: BTS TransBorder Surface Freight Dataset, http://www.bts.gov/transborder/

Note: The value of all surface modes is not equal to the sum of truck, rail and pipeline modes. The value of trade for all surface modes includes shipments made by truck, rail, pipeline, mail, foreign trade zones, other and unknown modes of transportation. For additional detail refer to the TransBorder Surface Freight data “Sources and Reliability” statement: http://www.bts.gov/ntda/tbscd/srfin.html; Numbers may not add to totals due to rounding.NA – not applicable

Table 7. Top 10 States Trading with Mexico by Surface Modes of Transportation in 2007, Ranked by Surface Trade Value

(millions of dollars)

Rank	State	2007
1	Texas	87,782
2	California	49,198
3	Michigan	30,783
4	Arizona	10,177
5	Illinois	10,133
6	Ohio	6,911
7	Tennessee	6,487
8	North Carolina	5,448
9	New York	5,229
10	Pennsylvania	5,196

We all have read and heard about border issues such as immigration, drugs and violence. What many fail to realize is that the proposed and deployed remedies for these issues have an effect on commerce. Half day waits and the certification of drivers on both sides are two of the major issues. This has effected delivery dates and creates all types of logistic issues. John Brown, on the broadcast, discusses how Tucson-Nogales has streamlined things a bit and that is a start. There are also strategies on using other types of transport more, but as we learned from the broadcast, these as issues as well.

The threat is real for both sides. For the United States there is the threat of loss of trade with Mexico, you can see from the tables below, this is substantial trade. For Mexico, they will be forced to look at other trading partners. China’s trade with Mexico is now at $11B annually and growing. In fact there are many cross country programs in effect right now. Relations with other countries are growing as well.

The show discusses some of the issues and solutions that both countries need to deal with now. This region is the fastest growing region for both countries. It is so amazing that while the rest of the United States continues to deal with media pressure, the border is forced to deal with the real issues that have real consequences to the United States.

Month	Exports	Imports	Balance
January 2008	11,878.3	17,019.6	-5,141.2
February 2008	12,220.1	17,717.2	-5,497.1
March 2008	11,717.5	17,691.9	-5,974.4
TOTAL	35,816.0	52,428.6	-16,612.7

NOTE: All figures are in millions of U.S. dollars.

Month	Exports	Imports	Balance
January 2007	10,745.0	15,327.4	-4,582.5
February 2007	10,056.4	15,136.9	-5,080.5
March 2007	11,573.6	18,284.7	-6,711.1
April 2007	10,988.8	16,203.4	-5,214.6
May 2007	12,054.6	17,925.7	-5,871.1
June 2007	11,616.8	18,002.5	-6,385.7
July 2007	11,186.2	16,805.4	-5,619.2
August 2007	12,302.3	19,248.9	-6,946.6
September 2007	11,326.3	17,628.3	-6,302.1
October 2007	12,356.0	19,820.6	-7,464.5
November 2007	12,103.4	19,672.6	-7,569.2
December 2007	10,231.9	16,742.6	-6,510.8
TOTAL	136,541.3	210,799.0	-74,257.8

• ‘TOTAL’ may not add due to rounding.
• Table reflects only those months for which there was trade.
• CONTACT: Data Dissemination Branch, U.S. Census Bureau, (301) 763-2311
• SOURCE: U.S. Census Bureau, Foreign Trade Division, Data Dissemination Branch, Washington, D.C. 20233

Trade with Mexico : 2006

NOTE: All figures are in millions of U.S. dollars.

Month	Exports	Imports	Balance
January 2006	10,503.4	15,227.9	-4,724.5
February 2006	10,050.8	14,820.1	-4,769.3
March 2006	11,968.0	17,363.4	-5,395.5
April 2006	10,772.5	15,665.3	-4,892.8
May 2006	11,569.6	17,154.6	-5,584.9
June 2006	11,714.6	17,787.3	-6,072.8
July 2006	10,408.1	15,464.5	-5,056.4
August 2006	11,735.3	18,038.7	-6,303.5
September 2006	11,009.0	16,897.5	-5,888.5
October 2006	12,409.9	17,515.2	-5,105.4
November 2006	11,776.5	17,246.6	-5,470.0
December 2006	10,061.2	15,072.1	-5,010.9
TOTAL	133,978.8	198,253.2	-64,274.3

• ‘TOTAL’ may not add due to rounding.
• Table reflects only those months for which there was trade.
• CONTACT: Data Dissemination Branch, U.S. Census Bureau, (301) 763-2311
• SOURCE: U.S. Census Bureau, Foreign Trade Division, Data Dissemination Branch, Washington, D.C. 20233

---

Trade with Mexico : 2005

NOTE: All figures are in millions of U.S. dollars.

Month	Exports	Imports	Balance
January 2005	9,217.1	12,073.9	-2,856.8
February 2005	9,010.1	12,607.1	-3,597.0
March 2005	9,914.4	14,114.4	-4,200.0
April 2005	9,840.0	14,281.7	-4,441.7
May 2005	9,929.3	14,413.5	-4,484.1
June 2005	10,113.5	14,848.6	-4,735.1
July 2005	9,220.3	12,710.2	-3,489.9
August 2005	10,665.2	14,895.6	-4,230.4
September 2005	10,284.5	14,517.6	-4,233.1
October 2005	10,961.0	15,720.3	-4,759.3
November 2005	10,978.6	15,499.1	-4,520.5
December 2005	10,230.7	14,426.7	-4,196.0
TOTAL	120,364.8	170,108.6	-49,743.8

Mexico, China to push forward bilateral investment agreement

From: CHINA VIEW
March 23, 2007 13:01 Beijing Time

MEXICO CITY, March 22 (Xinhua) — Mexico and China will seek important progress towards signing a reciprocal investment promotion agreement before the end of 2007, Mexico’s Secretary of Economy Eduardo Sojo said in the opening session of the 15th Mexico-China Plenary Meeting on Thursday.

“There is a great deal of interest for the current government to achieve this agreement with the Asian nation,” Sojo said in the meeting, organized by the Mexican Council to promote foreign trade, investment and cooperation in technology.

“We are just beginning the negotiation process with China, hoping for a second meeting next July,” Sojo said.

He said Mexican state governments are negotiating with Chinese provincial governments on some auto projects to receive investments this year.

Official figures show that the bilateral trade volume has increased from around 13 million U.S. dollars in 1972 when Mexico-China ties were formed to more than 11.4 billion dollars in 2006.