Cargo and business leaders in Juárez say another farmers’ strike could further disrupt border trade

CIUDAD JUÁREZ, Chihuahua (KVIA) -- Mexican farmers and agricultural workers south of the border protested across the country and in Chihuahua against the proposed new National Water Law, which will ultimately take water away from the courtside and reassign it for discretionary use. They argued that it threatens their livelihoods and the work they do every day.

The vice president of the Mexican Chamber of Cargo Transportation (CANACAR) in Northern Mexico, Manuel Sotelo Suárez, told ABC-7 that during the last two blockades, which happened within two weeks, border trade had $2 billion dollars worth of shipments impacted. He added that it is almost impossible to know exactly how much was affected.

According to Sotelo, about 3,500 Mexican exports cross into the U.S. each day, and roughly 3,500 imports cross into Juárez daily, each averaging $65,000. During those two protests, nearly 40,000 exports didn't make it into the U.S. in the El Paso-Juárez region.

The Santa Teresa Port of Entry extended its hours, closing at 10 p.m. instead of 8 p.m., and also operated on Saturdays to clear the cargo that got stuck during the protests.

"The difference between the first blockade and the second is that in this second blockade, they didn't block the highways, so it allowed us to go to other locations," Sotelo said. "In my case, at the company I represent, we had to handle import and export shipments through Nogales, Sonora, and Nogales, Arizona; we're talking about 750 kilometers (around 466 miles) from here to Nogales, and another 750 kilometers from Nogales, Arizona, to El Paso, Texas."

"So, something that should have cost, I don't know, $150 or $200 to do through Juárez, I think cost more than 100,000 Mexican pesos," Sotelo added. "I don't know how much the American side charged, but it was more than 100,000 pesos to do something we normally do here in two or three hours at a much lower cost."

This disruption not only affected industries and maquiladoras but also impacted the salaries of dozens or even hundreds of truck drivers who couldn't deliver their cargo on time or cross into the U.S. Other industries also faced fines from their clients in the U.S. for late deliveries.

ABC-7 reported last week that Mexico's Chamber of Deputies passed the proposed Water Law, which is set to ban all private transfers of water concessions nationwide. The Mexican Senate approved it yesterday.

"And today, well, today we realize that the Senate didn't pass what the farmers and agricultural workers wanted, and that's it," Sotelo said. "We've learned through the press that they're (farmers) already threatening to block the customs offices and highways again next Tuesday, December 16th."

"Well, it's catastrophic. I mean, having two blockades in 15 days and a third one a week later—this is catastrophic; we all lose," Sotelo added. "For example, during the first blockade, Ciudad Juárez couldn't receive or leave shipments from the north, and I'm not just talking about industry, but all the food supplies and consumables we need."

Sotelo also told ABC-7 that they heard some gas stations didn't have gasoline, partly because the Juárez region couldn't receive anything from the south or send anything south.

"So, we were very close to shortages—not just of gasoline but of other essentials that we Juárez residents depend on," Sotelo said.

For local businesses, industry, trade, and cargo transport leaders, the Mexican federal government needs to resolve this issue by reaching an agreement with farmers and agricultural workers to avoid further economic impacts along the border. Sotelo noted that during these two blockades, the Juárez-El Paso border was the only affected region.

"On one hand, the Mexican government allows these blockades and disruptions, but on the other hand, it doesn't solve anything or reach agreements with the protesters," Sotelo said. "We don't stop to consider whether they are right or wrong; we just know that something is affecting the economy—not just in Ciudad Juárez but throughout the region. If this happens again, it will impact us severely."

If these trade disruptions and protests continue, Sotelo believes the industry may consider crossing cargo through other border regions or even outside Mexico and the U.S.

"If the farmers protest again, the industries will ask for a plan B," Sotelo said. "We don't know if plan B involves finding other borders because we don't know if they'll close roads too. If they shut down customs, it's impossible. The only option then is air freight, which is very expensive."

During the previous two protests, several freight and cargo businesses opted to cross their goods and merchandise through the Juárez International Airport to other destinations in the U.S., but the costs and capabilities were very disproportionate.

"They (the industries) don't have as many planes as we do with the ground transportation we have here, so it becomes quite difficult; when there's a situation like this, nobody wins, everyone loses."

"We have to wait and ask the government to act to resolve this situation in the best way possible and in a way that doesn't affect just one state and one border crossing," Sotelo added.