Policy Proposal
The Binational Customs Agency
A Vision for US-Mexico Joint Customs Operations
$800B+
Annual US-Mexico bilateral trade (2023)
7.3M
Cargo trucks crossing the border annually
76M
Total vehicles crossing annually
$1T
Projected bilateral trade within the next decade
Dr. Daniel Covarrubias
Texas Center for Border Economic and Enterprise Development | TAMIU
Gerónimo Gutiérrez Fernández
Former Mexican Ambassador to the United States (2017–2018) | Former Managing Director, NADBank
February 2025
The Challenge
Two Systems, One Border
The US-Mexico border operates under two fundamentally different customs philosophies. U.S. Customs and Border Protection (CBP) prioritizes security and law enforcement — preventing terrorism, narcotics trafficking, and illegal immigration. Mexico's National Customs Agency (ANAM) operates primarily as a revenue-generating body, collecting nearly $59 billion in 2023, with a focus on tax enforcement and compliance. These parallel but separate systems increasingly fail to provide the seamless border operations that deeply integrated economies demand.
The institutional divide goes deeper than mission. CBP is a civilian agency with 68,069 authorized positions (FY 2025). Mexico recently militarized its customs operations through ANAM — deploying military personnel who often lack specialized customs expertise, creating operational challenges in processing trade flows. This organizational mismatch makes bilateral coordination difficult at every level.
Meanwhile, infrastructure hasn't kept pace: no new commercial bridge has been built in 24 years, despite trade volumes hitting historic highs. When Mexico's computer systems fail (which happens periodically), operations at the World Trade Bridge in Laredo halt — stopping 18,000+ trucks per day and costing millions in lost revenue.
| U.S. (CBP) | Mexico (ANAM) | |
|---|---|---|
| Primary Mission | Security & Law Enforcement | Revenue Collection |
| Structure | Civilian agency | Militarized (recent) |
| LPI Customs Rank | 11th globally | 54th globally |
| FY2025 Positions | 68,069 authorized | Staffing challenges |
Shared Security
The Convergence of Threats
Northbound: The fentanyl crisis — over 70,000 synthetic opioid overdose deaths in 2022 in the United States. DHS has defined fentanyl trafficking as its number one operational challenge. Unlike plant-based drugs, synthetic opioids rely on widely traded chemical precursors with legitimate commercial uses, making customs detection extraordinarily difficult.
Southbound: Weapons trafficking — the vast majority of weapons in the hands of Mexican crime organizations come from the United States. Estimates range up to 500,000 weapons entering Mexico annually from the U.S. A very small proportion is actually stopped at the border.
Security concerns have become justification for trade disruptions (IEEPA tariffs, 25% tariffs on Mexican goods). The BCA proposes separating security enforcement from commercial facilitation — solving both problems simultaneously rather than using one as a weapon against the other.
Northbound Threats
- Fentanyl & synthetic opioids
- Chemical precursors
- Narcotics trafficking
The BCA addresses both directions simultaneously
Southbound Threats
- Weapons & firearms
- Ammunition
- Bulk cash smuggling
The Solution
A New Institutional Framework
The BCA builds on two proven models of US-Mexico bilateral cooperation.
Model 1
International Boundary and Water Commission (IBWC)
- Treaty-based framework operating since 1944
- Distinct U.S. and Mexican Sections maintaining jurisdiction within their territories
- Formal "minutes" system for documenting agreements
- Has survived decades of political cycles while managing shared resources
Model 2
North American Development Bank (NADBank)
- Joint U.S.-Mexico institution with equal ownership and governance
- Shared funding, staffing, and operational independence
- Professional standards maintained across political transitions
The BCA takes the IBWC model for its initial structure (separate sections, sovereignty protections) with the NADBank model as its evolution pathway (deeper integration as trust builds).
Governance Structure
Board of Directors with equal representation from both nations
Two co-directors (one from each country)
Advisory council including private sector stakeholders
Independent oversight committee for transparency and accountability
Organizational Structure
Five Specialized Divisions
The Path Forward
From Concept to Reality
Phase 1
Build Momentum Through Existing Mechanisms
- U.S.-Mexico High-Level Economic Dialogue (HLED) — cabinet-level conversations
- 21st Century Border Initiative — operational blueprints
- USMCA Trade Facilitation and Competitiveness Committees — stakeholder engagement
Phase 2
2026 USMCA Review
- Formalize discussions during the joint review
- Incorporate BCA into the modernization of North American trade architecture
- Side letter or additional commitment (avoids need for full legislative approval)
Phase 3
Initial Operations
- Distinct national sections with clear sovereignty protections (IBWC model)
- Pilot at 2–3 major ports of entry
- Build operational trust between partners
Phase 4
Deeper Integration
- Evolve toward NADBank-style shared operations
- Potential expansion to include Canada → North American Customs Agency
Proof of Concept
This Already Works — at Small Scale
Unified Cargo Processing (UCP)
Joint CBP-SAT cargo inspections already operating at select ports of entry.
Laredo International Airport
Mexican Customs officers review air cargo on-site for auto, electronics, and aerospace industries.
Mesa de Otay
CBP pre-inspection of US-bound agricultural shipments (USDA National Agriculture Release Program).
San Jerónimo / Santa Teresa
Only UCP facility south of the US-Mexico border. CBP and SAT officers work side-by-side. FAST lanes eliminate duplicate inspections. Supports Foxconn's 10,000-employee campus in Ciudad Juárez.
Cross Border Express (CBX)
San Diego-Tijuana airport connection. First discussed in 1989, operational since 2015. Full coordination of Mexican and U.S. authorities. Proof that "this-will-never-happen" proposals can become reality.
Part of a Larger Framework
The BCA Within USMCA 2.0
The Binational Customs Agency is one of three institutional pillars proposed for modernizing North American trade governance.
SECURITY
Binational Customs Agency (BCA)
Enhanced Security
You are hereAbout the Authors
Dr. Daniel Covarrubias
Texas A&M International University
- Director, Texas Center for Border Economic and Enterprise Development
- A.R. Sanchez, Jr. School of Business, Texas A&M International University
- Leads the Logistechs Living Lab
- Research: cross-border trade, logistics technology, US-Mexico economic integration
- Media: Wall Street Journal, Texas Standard, PBS
Gerónimo Gutiérrez Fernández
Former Mexican Ambassador to the U.S.
- Former Mexican Ambassador to the United States (2017–2018)
- Former Managing Director, North American Development Bank (NADBank)
- Senior positions in Mexico's Ministries of Economy, Foreign Affairs, and Finance
- Currently Senior Advisor at Covington & Burling, LLP
- Managing BEEL Infrastructure; serves on multiple advisory boards focused on bilateral relations
Read the Full Proposal
Download the complete paper or connect with the Texas Center for Border Economic and Enterprise Development for speaking and media inquiries.