Customs, the new battlefield of the U.S.-Mexico trade war
The latest statement from Donald Trump in reference to trade with Mexico demanded that the latter “immediately terminate its Non Tariff Trade Barriers,” that is to say, the various mechanisms that affect the import and export of products between the two countries. In large part, these boil down to customs, a filter that has been questioned by the U.S. president and is now a policy priority for Mexico. Director General of Customs Investigation Alex Tonatiuh Márquez is currently under scrutiny for supposedly having embezzled nearly $14 million. This is not the first time that customs have been in Mexico’s political crosshairs. President Claudia Sheinbaum’s administration has been looking into fraud and abuse in the department for months, and has revoked some licenses granted to customs agencies. As economy minister Marcelo Ebrard said at the end of last year, “The party’s over.”
It’s important to remember that Mexico and the United States share a 1,954-mile border running from Matamoros to Tijuana, a fact that greatly contributes to their status as each other’s favorite trade partner, with around $800 billion in goods crossing the border each year. But the span is also the site of some of the pair’s biggest problems when it comes to international relations, like arms and drug trafficking, key factors behind high rates of violent crime. Beyond the issue of tariffs, new threats loom over Mexico as a result of President Trump’s demands, with non-tariff barriers such as customs having become important sources of friction. International organizations like the Latin American Confederation of Customs Agents have denounced extortion and threats directed at the customs officials that handle these commercial transactions. But some customs operations are also hampered by corruption. The Mexican government is reviewing the situation, and the Mexican Chamber of Commerce Agents (CAAAREM) has proposed measures to Ebrard meant to combat smuggling and fraud.
Mexico’s National Customs Agency (ANAM), where Márquez is employed, reports to the country’s ministry of finance, but the economy ministry is also involved in its operations, and Ebrard is taking the lead on the current investigations. The minister has pointed out that no country can completely review everything that enters and leaves its borders, which is why it is important that customs agencies and agents licensed to act as intermediaries in these exchanges do their job well. This certainly applies to Márquez’s agency, which is responsible for analyzing which goods may pose a risk, so that they can be monitored more closely. Due to difficulties at the border, Mexico inspects around 3% to 10% of products, which is similar or higher to percentages in other countries. Such reviews require agent honesty and sufficient infrastructure.
Midway through the last presidential administration, control of customs was turned over to the military. The area had always counted with support from the armed forces, but their duties were largely limited to security, rather than the administrative tasks they now assume. “That has made the work more complex, because they had to be trained and for some time now, customs has been operating on a delay due to the use of technology, the digitalization of services and daily operations, which are not supported by military staff due to a lack of flexibility,” says Jesús Carrillo, an economic analyst. “On the Mexican side, there are few border crossings, with more being built in Tijuana. In addition to infrastructure saturation, there is also the question of institutional capacity,” he continues. And on top of all that, there is fraud and corruption. “The poor functioning of customs is also a tariff barrier, and we will probably hear more about that from Ebrard and perhaps, from President Claudia Sheinbaum,” says Carrillo.
The issue is bound to be the subject of more discussion, because tariff delays mean money lost, and border security is important to the United States, not only because of drug trafficking, but also due to the ease of entry of goods like medicine, vegetables and livestock. In addition, Trump uses these “non-tariff barriers” to “reduce or increase the flow of trade, just as with tariffs,” says Sergio Barajas, a partner in the foreign trade and customs department of Basham, a specialized law firm. The United States can play this tool to its advantage, both to restrict certain imports into the country and to favor its own exports to Mexico. “The fact that Trump has turned his attention to these non-tariff regulations indicates that they are another option for modulating the flow of trade,” adds Barajas, who believes that the Mexican government’s investigation of customs agents “seeks alliances in the fight against fraud.”
Barajas explains that it is difficult to measure the effectiveness of anti-fraud measures by the amount of customs fees that are collected, because international trade is uneven and varies year to year, depending on needs for products like vaccines and livestock. However, it is evident that curbing fraud is good for Mexico’s finances. At her Tuesday press conference, Sheinbaum reported that customs revenue this year has increased by 25% compared to 2024, to more than $7 billion. In regards to Márquez, the president has only said that the case is in the hands of anti-corruption authorities.
“I feel like there is still a long road ahead when it comes to customs, a lot of work to do. The new customs law that will soon be up for debate could be an opportunity,” says Barajas. For his part, Carrillo thinks that Mexico “needs a lot of investment in logistics, from airports to customs, and the private sector could also be brought on board.” Add to that U.S. pressure, which provides a great incentive to combat fraud and streamline negotiations. There is still much to be done in terms of trade with the United States, particularly with the renegotiation of the USCMCA free trade agreement coming up around the corner.
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