U.S. businesses feeling the pinch of weaker peso

 

EL PASO – Six months after the downward slide of the peso in Mexico began squeezing the pocketbooks of Juarez residents, El Paso is starting to feel the sharp impact of less goods being sold on this side of the border, officials say. “I mainly come to El Paso to buy clothes for my son, the jeans and shirts he likes are cheaper here,” said Dona Maria Guadalupe Pacheco, a resident from Ciudad Juarez, who comes to El Paso to buy the items she needs. “I cross the bridge twice a week, I shop here in downtown El Paso. Due to the high price of the dollar, I cannot spend as much money as I used to spend before, I remember spending 50 dollars, now I only spend 20 dollars.” The value of the dollar in the last year has increased about 27.33 percent against the Mexican peso, according to the United States Federal Reserve Bank.

PiktoChart graphic by Maria Esquinca showing countries in the TPP

New U.S. international trade deal raises concerns about shadowy negotiations

EL PASO — Clouded in secrecy, the United States is negotiating a trade agreement with 11 other countries throughout the Asia-Pacific region, including Mexico, known as the Trans Pacific Partnership (TTP). TPP has been compared to the North American Free Trade Agreement (NAFTA), a trade agreement between Mexico, the U.S, and Canada that was signed by President Bill Clinton in 1993 and came into effect in 1994. Critics of TPP have referred to it as NAFTA on steroids. The other countries involved in the agreement are Australia, Canada, New Zealand, Peru, Singapore, Vietnam, Brunei Darussalam, Chile, Malaysia and Japan. Negotiations for the treaty have been conducted behind closed doors with no public or congressional input.

Mexican crafts sold at El Paso Saddleblanket. (Robert Brown / Borderzine.com)

NAFTA links 450 million persons in a $17-trillion market

EL PASO – The North American Free Trade Agreement, (NAFTA) created 18 years ago spawned millions of jobs in Mexico, sending $160 billion in business south of the border. “Never did we expect during the negotiations the success that NAFTA has had,” said Dr. Herminio Blanco, founder of Soluciones Estratégicas and former Minister of Trade and Industry for Mexico. Speaking to students and faculty at the The University of Texas at El Paso February 7, Blanco said, “Mexico has been able to attract $160 billion. Never would we have thought that possible.” The number of jobs created in Mexico by NAFTA is difficult to establish, he said, “…but definitely we’re speaking about at least 2 million families that have jobs directly created by investments that came to Mexico because of NAFTA.”

NAFTA now links 450 million people producing $17 trillion worth of goods and services. The other NAFTA countries (Canada and Mexico) were the top two purchasers of U.S. exports in 2010.

J.C.Penney, one of the preferred places of Mexican shoppers at El Paso. (Mariel Torres/Borderzine.com)

Mexican pesos ring up holiday sales in U.S. border cities

ELPASO – As the holidays approach, stores around the world compete to attract the most customers, but merchants in U.S. border cities have the advantage that many Mexican customers cross the border to do their Christmas shopping here. According to study presented by the El Paso branch of the Federal Reserve Bank of Dallas, Mexican nationals spend approximately $1.4 billion a year in El Paso. The study conducted by economist Roberto Coronado released in June 2011 shows the huge impact of cross-border retail activity on El Paso’s economy. Adrian Mijares has managed the J.C. Penney store in downtown El Paso for more than two years. Like many downtown merchants, his store’s success is directly linked to shoppers from Mexico.

Downtown El Paso as seen from the Paseo del Norte International Bridge. (Sergio Chapa/Borderzine.com)

Downtowners Express Their Hopes for El Paso

EL PASO— A taxi driver, a shopper and merchants from downtown El Paso share their perspectives of the city’s history and their hopes for its future. The following video, audio and slideshow presentations were produced by the following participants in of the Dow Jones Multimedia Training Academy held recently at the University of Texas at El Paso (UTEP): Jessica Retis, Bradford Owen, Mark Albertson and instructor Doug Mitchell. Downtown El Paso Merchants Tell Their Story