San Diego, CA, November 28, 2025
Cross-border trade between San Diego and Mexico is vital for the local economy, supporting approximately 95,000 jobs. Nearly 97% of the $34.5 billion in annual exports from San Diego and Imperial counties are directed to Mexico, highlighting the importance of a stable trade framework. However, challenges such as policy shifts and infrastructure gaps threaten this relationship, making it essential for local stakeholders to strengthen agreements like the USMCA to ensure economic resilience.
San Diego, CA
Trade with Mexico supports 95,000 local jobs, but faces threats
Recent analyses reveal that cross-border trade between San Diego and Mexico is instrumental in supporting local economic growth, securing about 95,000 jobs in the region. As local entrepreneurs continue to thrive in this binational environment, there is a growing awareness of potential challenges that could disrupt this robust relationship. Recognizing these opportunities and threats can help to foster a resilient economy in San Diego County.
The significance of trade with Mexico cannot be overstated as it accounts for nearly 97% of the annual foreign exports from San Diego and Imperial counties, which totals approximately $34.5 billion. This substantial flow of goods not only drives employment but also underscores the importance of a stable and supportive trade framework to ensure continued economic vitality.
Key Findings
- Trade Volume: Nearly 97% of the $34.5 billion in annual foreign exports from San Diego and Imperial counties are destined for Mexico.
- Job Support: This trade supports approximately 95,000 local jobs.
- Economic Integration: The North American Free Trade Agreement (NAFTA) and the United States-Mexico-Canada Agreement (USMCA) have fostered a binational economy serving 7.1 million people.
Potential Threats
- Policy Shifts: Changes in U.S. trade policies could disrupt established trade patterns.
- Global Trade Uncertainty: Fluctuations in global trade dynamics may affect cross-border commerce.
- Infrastructure Gaps: Insufficient infrastructure could hinder the efficiency of trade operations.
Recommendations
The report highlights the need for proactive support and strengthening of the USMCA framework, crucial to enhance North America’s global competitiveness, resilience, and security. Advocacy for maintaining this agreement benefits job creation, innovation, and sustainable prosperity on both sides of the border.
Background
The report analyzed by the World Trade Center of San Diego has been fundamental in outlining the economic landscape. Supported financially by the Mexican software company ITJ and the San Diego County, the study leverages research data from reputable entities including the World Bank and SANDAG. This collaborative approach underscores the commitment to economic growth through cross-border integration.
Conclusion
In summary, trade with Mexico is a cornerstone of San Diego’s economy, supporting tens of thousands of jobs and facilitating significant economic interaction. However, the potential challenges outlined in the report necessitate a thoughtful approach to preserve and expand this cross-border relationship. Engaging with local policy discussions and supporting frameworks like the USMCA can help maintain the momentum of San Diego’s economic future.
FAQ
- What is the main finding of the report?
- The report highlights that nearly 97% of the $34.5 billion in annual foreign exports from San Diego and Imperial counties are destined for Mexico, supporting approximately 95,000 local jobs.
- What are the potential threats to this trade?
- The potential threats include policy shifts in the U.S., global trade uncertainty, and infrastructure gaps that could disrupt established trade patterns.
- What recommendations does the report provide?
- The report recommends supporting and strengthening the USMCA framework to ensure North America’s global competitiveness, resilience, and security, thereby protecting jobs, innovation, and prosperity on both sides of the border.
- Who prepared the report?
- The report was prepared by the World Trade Center of San Diego, an affiliate of the San Diego Regional Economic Development Corporation (EDC), using data from the World Bank from 2022. The study was underwritten by Mexican software company ITJ, sponsored by San Diego County, and drew on research support from SANDAG, the Tijuana EDC, UC San Diego, and other partners.
- What is the significance of the USMCA in this context?
- The USMCA is crucial as it provides a framework that supports and strengthens North America’s global competitiveness, resilience, and security, which is essential for maintaining and enhancing the benefits of cross-border trade between San Diego and Mexico.
Key Features
| Feature | Details |
|---|---|
| Trade Volume | Nearly 97% of the $34.5 billion in annual foreign exports from San Diego and Imperial counties are destined for Mexico. |
| Job Support | This trade supports approximately 95,000 local jobs. |
| Economic Integration | The North American Free Trade Agreement (NAFTA) and the United States-Mexico-Canada Agreement (USMCA) have fostered a binational economy serving 7.1 million people. |
| Potential Threats | Policy shifts in the U.S., global trade uncertainty, and infrastructure gaps could disrupt established trade patterns. |
| Recommendations | Support and strengthen the USMCA framework to ensure North America’s global competitiveness, resilience, and security, protecting jobs, innovation, and prosperity on both sides of the border. |
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