@article{Fox:332783,
      recid = {332783},
      author = {Fox, Alan and Londono-Kent, Pilar},
      title = {Border Crossing for Trucks Twenty Three Years after NAFTA},
      address = {2016},
      year = {2016},
      note = {Presented at the 19th Annual Conference on Global Economic  Analysis, Washington DC, USA},
      abstract = {Despite the liberalization achieved by the North American  Free Trade Agreement (NAFTA), and substantial investments  in infrastructure, technology, and equipment, significant  barriers to efficient truck transport remain between the  United States and Mexico.  We present the practical and  economic implications of changes to the NAFTA border  crossing system put in place after the terrorist events of  September 11, 2001.  Security measures have “thickened”  NAFTA’s borders, increasing costs and delays associated  with border crossings. These measures have a global impact  on the logistics chain, since they are applied to all  countries that source goods to the United States.  We  review literature on costs and impacts of border delays due  to enhanced security and build on our earlier research on  these institutional peculiarities and their impacts of the  US-Canada- Mexico border crossing system.   We discuss  procedures used today and note changes to border processing  since our earlier work. Based on interviews and review of  the literature, we present the institutional context in  which barriers exist and border authorities’ rationale for  establishing new barriers or continuing of pre-existing  ones.  Based on this information and the time and costs  associated with cross-border freight movements, we estimate  the welfare effect of these measures on the NAFTA economies  in a CGE framework.  Our counterfactual assumes the  implementation of a “seamless freight flow” system similar  to Europe’s Transport International Routier (TIR) system,  and calculates the time and cost differentials between such  a system and the status quo.  We estimate net annual  welfare gains for the NAFTA countries accruing from the  streamlining of the U.S.-Mexican brokerage system and find  that NAFTA-wide annual welfare could rise by $7.5 billion.  Extending the simulation to include streamlining  intra-NAFTA security-related delays could add an additional  $14.7–28.6 billion to annual welfare across the region.},
      url = {http://ageconsearch.umn.edu/record/332783},
}