Mixed feelings on NAFTA among companies at US-Mexico border

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02:22

The US, Canada and Mexico said 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.

Mexico is Texas' largest export market, and as one of the largest international border regions in the world, cross-border trade between them is worth hundreds of billions annually. However, Thomas Fullerton studies the region’s economy and stated the potential impact should NAFTA talks fail: “We are two cities that are separated by a river without water.”

"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," Thomas added.

Allen Russell, chief executive of Tecma, rejected President Trump's claim the trade deal is the worst ever made since his company depends on those shipments being tariff free under NAFTA. Meanwhile, without NAFTA, the cost of the company doing business will rise.

VCG Photo

"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," said Russell.

However, some companies still are optimistic about the further development. Nicole Grado, CEO of American Packaging, is confident that other US companies could thrive without NAFTA.

"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," said Grado.

While the outcome of the NAFTA talks remains far from certain, business on the border continues. But most here hope a long-term deal can be reached soon, to avoid the lingering uncertainty hanging over this region's economy.