Border Rail Closures Trigger Concerns for Ag Exports

By Andi Anderson

The temporary suspension of two international rail crossings by the U.S. Customs and Border Protection (CBP) in Texas, at Eagle Pass and El Paso, has sparked immediate opposition and concerns within the agricultural community and manufacturing sectors. Predictions of severe consequences have accompanied the swift response to this decision.

Opponents swiftly voiced their concerns following CBP's announcement to close these rail crossings, fearing that it could exacerbate economic conditions in Mexico, leading to an upsurge in illegal border crossings.

Expressing strong opposition, the Ag Transportation Working Group (ATWG), a collective comprising 46 major U.S. agricultural commodity, trade, and retail organizations, highlighted the detrimental impact of the closures. They underscored that the closures have already caused disruptions in the rail system, potentially leading to significant losses in agricultural exports, particularly affecting grain exports estimated at nearly 1 million bushels daily.

Despite CBP's rationale for the closure related to addressing migrant smuggling through freight trains, the ATWG emphasized the adverse repercussions on agricultural trade. They urged CBP to allocate the necessary resources to resume rail operations, citing the significant role of these crossings in maintaining crucial trade relationships, notably with Mexico, the second-largest agricultural export market for the U.S. in 2022.

Echoing similar concerns, a coalition of business associations from 17 states highlighted the staggering economic losses due to the closures. They emphasized the indispensable role of these crossings for American rail carriers, estimating daily economic losses amounting to $200 million and the embargo of goods on numerous trains and rail cars.

The closures, affecting various industries from grain to electronics, have sparked calls for immediate action from both sides of the border. Amidst concerns about the escalating humanitarian crisis, industry groups advocate for addressing the migration issue without impeding critical commerce with Mexico, emphasizing the broader economic repercussions and the need for a balanced approach to the situation.

As the closures persist, both U.S. and Mexican entities call for a prompt resolution, underscoring the potential economic damage and urging swift action to alleviate the impacts on trade and economic activity between the two nations.

Photo Credit: train-istock-imaginegolf