Trade Tensions: Mixed feelings on NAFTA among companies at US-Mexico border

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The US, Canada and Mexico say talks on the North American Free Trade Agreement will move ahead despite Washington's steel and aluminum tariffs. But recent tensions between the US and Canada are casting doubt on whether a deal on NAFTA is possible. CGTN's Steve Mort reports.

At this warehouse in the U.S. border city of El Paso, materials are processed for shipment to factories in Mexico. Tomorrow, these products will be delivered to their destination. Allen Russell's company depends on those shipments being tariff-free under NAFTA. He rejects President Trump's claim the trade deal is the worst ever made.

K. ALLEN RUSSELL CHIEF EXECUTIVE, TECMA "It is not the worst trade deal. It has done more for North America than anybody could even have anticipated."

Russell's company provides U.S. corporations with manufacturing facilities employing around 8,000 people in Mexico where labor costs are lower. He fears without NAFTA his cost of doing business will rise.

K. ALLEN RUSSELL CHIEF EXECUTIVE, TECMA "The American consumer is going to pay the bill. The product is just going to be more expensive. It doesn't mean anybody is going to move from Mexico to the US to produce the product."

This is one of the largest international border regions in the world. It has a population of around two-and-a-half million people, and an economy to match. Mexico is Texas' largest export market. Cross-border trade is worth hundreds of billions annually for the state. And more than a fifth of that trade crosses the border right here in El Paso, at border crossings like this one.

''We are two cities that are separated by a river without water''.

Thomas Fullerton studies the region's economy, and the potential impact should NAFTA talks fail.

THOMAS FULLERTON UNIVERSITY OF TEXAS AT EL PASO "It will throw a monkey wrench into how things operate rather seamlessly at this point. Existing operations will probably remain in place but the level of investment and the rate of business formation will plummet."

But not everyone is so sure. Nicole Grado's company sells packaging. Up to 90 percent of her customers ship internationally. She's looking for ways to diversify her business, and says she's confident other US companies could thrive without NAFTA.

NICOLE GRADO CEO, AMERICAN PACKAGING "There would be changes but I think that, it's like everything, you adjust to those changes and you adapt. And you figure out ways to continue moving forward."

While the outcome of the NAFTA talks remains far from certain, business on the border continues. El Paso's economy is projected to grow two percent this year.

But most here hope a long-term deal can be reached soon, to avoid the lingering uncertainty hanging over this region's economy. Steve Mort, CGTN, El Paso, Texas.