Migrant spike at US-Mexico border slows trade as Washington seeks answers

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© Reuters. Migrants wait at a processing center in Eagle Pass, Texas, U.S., December 19, 2023. REUTERS/Cheney Orr
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By Cheney Orr, Laura Gottesdiener and Ted Hesson

EAGLE PASS, Texas (Reuters) – Railroad companies and business groups are pressing the U.S. government to reopen trade routes on the Texas-Mexico border after authorities closed two crossings in response to a rise in migrant crossings in recent days.

U.S. Border Patrol apprehended about 10,800 migrants at the southwest border on Monday, according to an internal agency report reviewed by Reuters, a tally several current and former officials said was near or at a single-day record high. About 40% were families or unaccompanied children.

Acting U.S. Customs and Border Protection (CBP) Commissioner Troy Miller said in a statement on Tuesday that illegal crossings were “presenting a serious challenge” and that CBP was using all available resources to ensure agent and migrant safety.

Business groups and railroad operators are urging authorities to reopen rail bridges in Eagle Pass and El Paso, which U.S. border authorities closed on Dec. 18 in order to “redirect personnel” to process migrants crossing the border.

“Shutting down rail traffic through Eagle Pass and El Paso will inflict significant economic harm,” Neil Bradley, chief policy officer of the U.S. Chamber of Commerce, said in a statement to Reuters. “Halting the legal movement of commerce will do nothing to secure the border.”

In October, total rail freight between the El Paso and Eagle Pass ports topped $3 billion in both directions, according to the U.S. Department of Transportation. That accounted for some 4% of total trade across the U.S.-Mexico border that month.

Total rail freight between the U.S. and Mexico, in both directions, in October accounted for $8.4 billion, according to the U.S. Department of Transportation. That compared with $51.2 billion carried by trucks.

“The urgency of reopening these crossings and restoring rail service between the two nations cannot be overstated,” the president and CEO of the Association of American Railroads, Ian Jefferies, said in a statement on the trade group’s website.

“Every day the border remains closed unleashes a cascade of delay across operations on both sides of the border, impacting customers and ultimately consumers,” Jefferies said.

The increase in migrant crossings comes as Democratic President Joe Biden, who is running for reelection in 2024, has sought to strike a deal with Republican lawmakers that would pair increased U.S. border security with military aid for Ukraine and Israel.

But a bipartisan group of senators negotiating a compromise have so far failed to reach a deal as a Christmas break approaches.

Eagle Pass and El Paso have received thousands of newcomers in recent days, as migrants – including many families with young children – make their way to the border by bus, atop cargo trains, on foot and even by bicycle.

On Wednesday morning in Eagle Pass, several hundred migrants wrapped themselves in Mylar blankets to keep warm after spending the night in an outdoor holding area. Dozens more lined up to be processed alongside concertina wire near the Rio Grande.

Some 270 U.S. Immigration and Customs Enforcement (ICE) agents have been pulled from their jobs handling migrant deportations and international investigations to help with migrant processing at the border, a Department of Homeland Security (DHS) official told Reuters, requesting anonymity to discuss internal operations.

The agents are assisting with migrant transportation and security, but also enrolling some migrants in electronic monitoring programs, the official said.

Union Pacific (NYSE:UNP) and Berkshire Hathaway (NYSE:BRKa)’s BNSF Railway, two of the nation’s largest freight railroad companies, warned of supply chain disruptions ahead of the Christmas holiday due to the railway bridge closures.

“Every day of closure increases the impact to the supply chain for critical commodities, including automobiles, industrial products and grain,” Lena Kent, spokeswoman for BNSF Railway, said in a statement to Reuters.

BNSF declined to comment on the value of goods affected by the closings.

Union Pacific said in a statement on its website that a range of products – including grain, beer, metals, cement and automotive parts – have been halted due to the closures. The closed bridges account for about 45% of its cross-border shipments and that the overall economic impact of the closure will be more than $200 million per day.

Union Pacific did not respond to an email seeking comment.

On Tuesday, Mexico’s top farm lobby CNA also expressed concerns over “huge losses” expected for agricultural trade due to the closure.

In addition to the railroad crossing closures, U.S. border authorities this month have closed a busy pedestrian crossing near San Diego, California, and another crossing in remote Lukeville, Arizona, to free up workers to process arriving migrants.