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Best of TwoWorlds

Staff Report

      El Pasoans have been trading with Mexicans for more than four centuries. It is an arrangement that provides residents the best of both worlds.

     Four centuries later, modern El Paso is most assuredly intertwined with its Mexican neighbor, Ciudad Juárez.

     “The dominant economy around here is Juárez without a doubt,” says El Paso Mayor Ray Caballero. “How we integrate with that economy is very important to our future. The beautiful thing about El Paso is we have everything you have in the United States , plus, after 400 years of doing business with Mexico , we should know everything there is to know about Mexico .”

     Over the years El Paso has transitioned from an economy reliant on manufacturing jobs to one more oriented towards services. The service sector has seen an increase in health care, professional, and business services. This increase most likely results from a growing need for services to support the rapidly expanding border region.

     At the same time, manufacturing employment has fallen as El Paso ’s once large textile and apparel industry suffers from a relocation of garment industry jobs to Mexico . El Paso ’s challenge is to figure how to better benefit from the neighboring maquila industry.

     Caballero notes many El Paso businesses are familiar with doing business on both sides of the border.

     “There are very few places you can go where the people understand Mexico ,” he says. “What this community has is an unusual number of these people. That is our value piece.”

     El Paso has other value pieces as well. Juárez, across the Rio Grande from El Paso , is Mexico ’s fourth-largest city and number 1 in terms of maquila employment. El Paso companies can provide Just-In-Time delivery with ease. Additionally, plant management still uncomfortable living in Mexico can live in El Paso and commute daily to the manufacturing operation.

  NAFTA opportunities

     NAFTA and the maquila industry have created new opportunities for suppliers and capital-intensive manufacturing in El Paso . Since 1980, the number of maquiladora plants in Mexico has more than quintupled, and there are more than 300 in Juárez, employing more

 

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