Rep. Patricia Lundstrom| Las Cruces Sun-News
No matter your political leanings, all can agree that we are living in an unprecedented and uncertain time for international trade. While the full implementation of new federal tariffs has been delayed, New Mexico stands ready with an innovative solution that will help our economy and our communities weather supply chain disruptions.
As a geographically large, border state with key thoroughfares, New Mexico has much to offer to the national and international trade markets. Yet, for too long, we have been a “bridge state,” where cargo typically passes across our highways and railways with little or no benefit to our communities.
The Trade Ports Development Act is a pragmatic solution to these missed opportunities. It builds on New Mexico’s existing strengths and resources to stimulate trade in the state, strengthen our economy, improve local infrastructure, and create good-paying jobs for New Mexicans along the way. This proposal, which passed the legislature with broad bipartisan support and was just signed into law by the Governor, will be an incredible economic boon for New Mexico in a time of federal uncertainty.
The Act allows the Economic Development Department to establish designated “trade port districts” to facilitate the movement, storage, and distribution of goods and commodities through the state. These hubs will be established in strategic locations with access to transportation infrastructure, including airports, railyards, and interstate highways. Rural, tribal, and economically disadvantaged communities will be prioritized as potential locations.
Development of the infrastructure for these trade hubs, as well as their ongoing maintenance, will be facilitated through Public-Private Partnerships. These partnerships leverage private investments to enhance the impact of public dollars, while maintaining government oversight. This will create construction, trade, and telecommunications jobs for New Mexicans in local communities to facilitate both the initial construction and ongoing maintenance of the trade ports.
Trade ports will open vast opportunities for economic development and local infrastructure improvement in communities across New Mexico. They will also strengthen supply chain resiliency, helping mitigate rising costs and protect access to vital goods not just for New Mexicans, but for the entire country.
History has taught us that protectionist trade policies do not work and often exacerbate the economic challenges they aim to address. The United States learned this in the 1930’s when the Smoot-Hawley tariffs on imported goods, which sought to protect American industries, ultimately led to retaliation from foreign governments, weakened confidence in Wall Street, and a sharp decline in international trade that drove our country deeper into the Great Depression.
To protect ourselves from the mistakes of the past, our focus here in New Mexico must be on strengthening and insulating our local economies. House Bill 19 empowers the Secretary of New Mexico’s Economic Development Department to establish our own state-level regulations and best practices to guide the trade taking place here. This proactive and thoughtful approach will build our state’s economy and our trade power, regardless of what happens at the federal level.
While tariffs may cause significant disruptions in international trade in the months ahead, New Mexico is ready. Trade ports are a smart and strategic solution that will help our economies and communities withstand international trade challenges.
