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Thursday, Mar 28, 2024
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Policies May Put Cali-Baja Connections at Risk

Bob Watkins

Usually in American politics, the period between a presidential election and a new administration taking office is typically calm, excluding the freeing of hostages as in the Reagan transition. But President-elect Trump is up-ending that tradition and inflaming longstanding relationships globally. Most closest to home is that of our relationship with Mexico and in particular the region along the border from San Diego/Tijuana to Mexicali/Imperial Valley known as the Cali Baja Binational Mega Region.

The Cali-Baja Mega Region enjoys a population of 6.6 million, and GDP of more than $260 billion. The interdependence of our two countries and the working relationships are an example of how foreign direct investment and years of relationship building work to benefit a binational region.

Fueling Uncertainty

The rhetoric may have shifted from building walls to placing tariffs on repatriated manufactured goods and services and stopping outsourcing, but it still only fuels uncertainty for those who live and work in this highly productive region.

There may be adjustments necessary in NAFTA or the trade and regulatory policies of the United States, and they should be done with consideration, not the READY, AIM, FIRE noise we hear out of Trump Tower. Taking aim at the movement of jobs to offshore locations maybe an appropriate step for the U.S. to take; however, placing tariffs on repatriated goods and services is counter to what the Trump campaign stated in his new tax reduction policies. Tariffs are taxes, and the U.S. consumer will be the beneficiary of those new taxes. You cannot have it both ways Mr. Trump!

Global trade is here to stay. Careful consideration to preserve a positive economic balance and tightening up our trade agreements for a more even playing field certainly is a better way than the contradictory, inflammatory messaging that ignites controversy and unrest.

Guest Workers

Additionally, saber rattling on immigration continues to exacerbate uncertainty even as it has focused on H1B and H2A guest worker programs. Those programs can be managed with appropriate accountabilities and better enforcement policies and at the same time provide our corporations with the solutions to meet their workforce needs.

Software outsourcing to Mexico is coming of age, and the quality supply of talent in Mexico is a solution for many U.S. corporations; it’s the same time zone, close in proximity, language is not an issue and meets a shortage of talent in the U.S. Stopping outsourcing will not only stall technology advancement, it won’t solve our domestic talent shortages.

When it comes to jobs going “out,” consider jobs coming “in.” During the past three years more than 450,000 jobs have been created in California from the inward investment by foreign companies. Another 1 million jobs have been created in Texas, Pennsylvania and Illinois. Additionally, research and development expenditures in the U.S. by foreign companies exceed $70 billion annually, which created more domestic jobs.

Part of the jobs issue is recognizing that advanced manufacturing and automation have made the American workplace the most productive in history. How do we deal with those new jobs created and what to do with those who may be impacted is more important than worry about some jobs that would be terminated or as Trump says moved to Mexico. As with Carrier those jobs would be going anyway.

Use Influence Now

For those of us in the Cali-Baja Binational Mega Region, we must codify our collective advocacy efforts and meet with the new administration to minimize uncertainty. We must use our influence now rather than wait for the policies to be determined after the train has left the station.

In Sun Tzu’s book “Art of War,” “Victorious warriors win first, then go to war, defeated warrior’s go to war then seek to win.” Many of the tenets of this book are descriptive of the “Art of the Deal” by Mr. Trump; if we are to conserve the balance of the region we must act now, with diplomacy and tact. Not try to act out a reality show at the expense of our regional economy and its people.

Bob Watkins is the founder and immediate past chair of the Cali-Baja Binational Mega-Region Association.

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