A Different Approach

While most Americans will admit we have an immigration problem, a trade problem, and a drug problem few, that I am aware of, have thought of these as a singular issue.  What if there was a way to bring about major improvements in all these areas with a singular approach?  Think about that for a moment while I provide a bit of background on my thoughts.

·       China is a major manufacturing center for much of our commerce since they can provide those goods and services at a lower cost, even considering the cost of transportation across the Pacific Ocean.

·       Energy costs are significantly higher in China than in North America

·       Drug wars and poor living conditions in Mexico, and Central and South America have created a desire among many to migrate to the U.S. for jobs and a better life.

·        A 40-foot container from China costs close to $7,500.  The same container costs about $2,500 when shipping from Mexico.

·       Intellectual property theft is a significant problem in dealing with China and the courts there are slow to respond if they respond at all.

What if we negotiated a trade agreement with Mexico whereby the U.S. would build, in a joint venture, manufacturing factories, and industrial plants in Mexico designed to replace the industry now in China.  These plants and factories would employ Mexicans and others from Central and South America.  The U.S. would provide venture capital, design and development expertise, and half the management staffing when facilities are operational.  Mexico would provide land, labor, and half of the management personnel once operational.  Mexico would provide all government services under contract to the industrial sites and surrounding communities with tax support.  The U.S. would also build low-cost housing and communities to provide the infrastructure to support that manufacturing effort.  Profits would be divided between the Mexican and American business alliances in accordance with their contributions to the construction effort.  The Mexican government would be allowed reasonable taxes as outlined in the agreement to support their efforts and their overhead supporting these facilities.  Intellectual property rights would be protected as part of the agreement.

This would have the following desirable effects:

·       It would provide jobs and housing to the population centers south of our border thus lessening a need to cross our borders looking for work or a better life.

·       It would lower our dependence on China for low-cost manufacturing.

·       Labor, manufacturing, and transportation costs for goods made in Mexico would be lower than they would be if the same products were made in China.

·       It would provide an alternative for many to work safely in manufacturing than in the drug trade.

·       It would improve our relations with Mexico where they would be incentivized to assist the U.S. with curbing the drug trade.

·       It would lessen our losses of intellectual property.

·       It would improve the economies of both the U.S. and Mexico.

What if we were to build productive factories, plants, and communities in Mexico and not some unproductive steel wall?  What if we had a real dealmaker in Washington who could think of creative solutions instead of coming up with simplistic ideas that don’t address the causal factors of our many problems?  It’s time to think outside the wall.