The U.S.-Mexico Border Environment

by Amy T. Mignella

Evaluating NAFTA's impact

part 2 of 2

This article points to evidence that NAFTA has helped improve border environment conditions, despite criticisms that the agreement fosters even more problems. Part 1 focused on environmental infrastructure needs. —Editor

Border Programs

Since the passage of NAFTA, the U.S. and Mexico have rejuvenated the ailing Border XXI program, a binational governmental initiative that seeks to identify and resolve border environmental problems relating to hazardous waste, emergency services, water, solid waste, environmental health, environmental enforcement, and natural resources along the international border.

Although this program originated under a separate international agreement predating NAFTA considerably, it is NAFTA that appears to have brought it new life. Newly expanded participation by state regulatory officials and a broadened program scope have served to encourage those who previously doubted the program would ever produce any results for either country.

Industry

There are currently over 2000 maquiladoras border-wide. Maquilas are being held accountable for much, if not all, of the damage and disrepair to the border environment. Historic practices within a portion of the industry of failing to openly address public concerns have contributed to the negative image maquilas currently engender in the minds of many North Americans. While most individuals will openly acknowledge that problems exist within the industry, not all operations have been historically problematic. Furthermore, current trends indicate that practices are improving.

Many maquilas are implementing model internal practices such as ISO 14000 environmental programs so that public concerns surrounding the adequacy of Mexican legal standards and enforcement are reduced. Sanyo Corporation, for example, expects to receive ISO certification for all six of its facilities in Tijuana, Baja California by December of this year.

Maquilas routinely hire U.S. environmental consultants to assist with facility upgrades and designs so that their operations function at maximum efficiency, producing substantially less waste products than processes used previously. A recent study by the Commission for Environmental Cooperation, a trilateral agency created under a NAFTA side agreement, indicates that Mexico’s industrial sector is increasingly focusing on the environment, especially regarding waste reduction methods and environmental skill levels of facility personnel.

In addition, some companies that operate maquila facilities have made enormous efforts to reverse the consequences of a lack of infrastructure in border communities. General Motors recently launched a program to ultimately construct 7,000 housing units for its employees in seven Mexican cities where facilities are located. The company also recently began utilizing a membrane filtration system in its Toluca plant that is designed to reduce 30,000 gallons of oil-laden wastewater generated daily to less than 200 gallons.

The Nogales Maquiladora Association in Sonora and executives of ACCO World helped launch a housing project for community workers through an independent foundation, La Esperanza. A consortium of companies pay into the foundation, but program access is not based on employer participation. Employees are ranked according to their existing housing situation and income level so that those with the worst circumstances receive top priority. The required down payment of $2,111 is paid for by the foundation, and the $8,000-$10,000 balance is carried by a Mexican government agency. Employees who accept the housing must pay the government an amount equaling at least one day of regular wages (bonus amounts are excluded) as a mortgage payment each week. Another 2,750 housing units are planned in addition to the 750 housing units already constructed at the site.

Again, NAFTA has brought a new and broader audience to the border region. Issues previously perceived as regional and typically unknown away from the border are now piquing the interest and concern of people around the world. It is no coincidence that groups of international business and government representatives visiting the U.S. through a variety of federal and foreign programs have repeatedly requested visits to the U.S.-Mexico border. Many nations are currently facing international border issues due to increasing economic interdependence.

The various binational and NAFTA-created initiatives make our shared border the current role model for the world. Ultimately, this attention should result in adoption of socially and environmentally conscious business practices border-wide.

Conclusion

NAFTA has elevated the significance of border issues in the minds and agendas of both Mexican and U.S. government officials; it has also brought these problems to the attention of citizens and consumers world-wide. Border environmental problems are the product of decades of regional activities and circumstances.

While the programs and institutions currently positioned to resolve these issues may need adjusting, they can ultimately be effective. To scrap existing approaches and start anew now would only waste precious financial resources needed for infrastructure itself and delay progress toward resolution of these problems. Alternative or substitute programs would also experience initial difficulties requiring considerable attention before work on actual projects could advance.

Furthermore, difficulties within Mexico’s economy and their associated fallout should not be blamed on or linked to NAFTA. Rather, NAFTA represents an effective vehicle by which Mexico can reemerge from these problems.

This is evident from the expansion of Mexico’s industrial sector since the agreement was passed. Otherwise, national stability concerns from the financial crisis would likely have overridden many decisions within the private sector to increase investments there.

Finally, all the attention legitimately directed at the seriousness of border issues should not be allowed to foster the misguided notion that extreme actions such as sanctions will help resolve the problems any faster. Creating the mechanisms for economic sanctions against Mexico would only serve to threaten U.S.-imposed economic losses on a country already making enormous efforts to reform in the midst of its own crises. Threats of sanctions or the imposition of sanctions against Mexico by the United States would cause permanent damage to what are now strong regional relations, harm the international image of the United States, and ultimately jeopardize U.S. economic status and well-being.

Amy T. Mignella is Environment Project Director at the National Law Center for Inter-American Free Trade.