of wastewater infrastructure. Although the North American Free Trade Agreement (NAFTA) (ratified in 1994) has boosted economic and trade opportunities in the U.S.-Mexico border region, investment in water and wastewater infrastructure in the area still lags. An injection of capital into this sector would further drive economic development, as well as protect the environment and promote the public health of local communities.

Cross-Border Trade

Currently, Mexico is the second largest trade partner of the U.S. (after Canada), and the U.S. is the largest export market and largest source of foreign direct investment flows into the Mexican economy.2 This commercial and financial relationship benefits both countries, particularly in the border region. On the U.S. side, border counties experience the largest trade surplus with Mexico, and Texas, Arizona, and California are, unsurprisingly,among the largest state exporters from the U.S. to Mexico. Similarly, the largest volume of exports from Mexico to the U.S. comes from Mexican states nearest to the border. Trade corridors and free trade zones located in the border region have allowed some border cities, such as San Diego and Tijuana, and El Paso and Cuidad Juaréz, to generate substantial wealth.

Economic Disparity in Border Region

Despite enhanced economic opportunities at the broader level, significant income disparity exists in the border region. The economic boom witnessed in cities such as those mentioned above is not evident in many smaller towns and rural areas in the border area. Five of the 20 poorest counties in the U.S. are U.S.-Mexico border counties. Over 25% of families in border counties in the U.S.