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
Since publication · Updated September 2026
The trade the proposal was built for kept growing.
The paper came out in February 2025. These are the first full-year figures since. The proposal below is unchanged.
In 2026, Mexico's customs overhaul took effect in January and Washington signed its own in June, with no coordination between them. That's the gap this agency would close. Read “Two Capitals Rebuilt Customs the Same Way, Six Months Apart”
Sources: Census Bureau and BEA, U.S. International Trade in Goods and Services, July 2026 release of September 3, 2026, exhibits 20 and 20a (annual, balance of payments basis, including the June 2026 annual revision). Bureau of Transportation Statistics, Border Crossing Entry Data, trucks, US-Mexico border, January to December of each year.
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 |
Bridges ANAM's revenue focus with CBP's security mandate
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
Joint Operations Division
Unified command centers at major ports of entry with integrated inspections.
- Unified command centers at major ports of entry
- Integrated risk assessments and coordinated inspections
- "Single-stop" model: one comprehensive inspection by joint US-Mexican teams
- Replaces current duplicative inspection process
- EU precedent: integrated customs reduced processing times by up to 60%
Technology and Innovation Division
Eliminating the "Digital Wall" with standardized platforms and AI-powered processing.
- Eliminates the "Digital Wall" separating US and Mexican customs systems
- Standardized digital platform connecting operations between both countries
- Real-time risk assessment, automated data analysis, shipment tracking
- Blockchain for immutable record-keeping (automotive, aerospace supply chains)
- AI-powered processing: pilot programs show reduction from 3–4 hours to ~5 minutes with 99.5% accuracy
Revenue and Compliance Division
Bridging ANAM's revenue focus with CBP's security mandate.
- Bridges ANAM's revenue focus with CBP's security mandate
- Harmonized documentation requirements
- Seamless integration of both nations' tax collection systems
- Reduces redundant audits, enhances coordination
- Context: Nuevo Laredo Customs alone collected MX$111.7 billion (US$5.8 billion) Jan–Jul 2024, 16.9% of Mexico's total customs revenue
Professional Development Division
Joint training academy modeled on CBP's proven structure.
- Joint training academy based on CBP's proven structure (120 hours comprehensive law program)
- Three training pillars: integrated legal framework, technical competencies, cultural integration
- Addresses expertise gap from Mexico's militarization of customs
- Modeled after EU Customs Program benchmarks (nearly 100% system availability)
Infrastructure Planning Division
Coordinating facility development and technology alignment between nations.
- Coordinates facility development and technology alignment between nations
- US committed $3.4 billion (Bipartisan Infrastructure Law) for 26 land ports of entry
- Mexico committed $1.5 billion for port modernization (2022 Biden-López Obrador summit)
- Key projects: World Trade Bridge expansion (Laredo), Puerto Verde Global Trade Bridge (Eagle Pass), Bridge 4/5 (Laredo), San Luis I modernization (Arizona)
- CPKC new rail bridge in Laredo: $100 million investment doubling cross-border rail capacity
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
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