Mexico and the United States share a 3,145 km border with approximately 60 crossing points for people and goods. Around 80% of bilateral trade is conducted by land, involving the transportation of goods via trucks and trains.
The border region is unique, hosting individuals who cross daily for work or commercial reasons, fostering intense social and cultural integration. In addition to the movement of people and commercial goods, the border dynamics encompass migration, labor, water, energy, and security issues.
Constellation Brands (CB) is a company that produces beer in Mexico using 100% Mexican labor exclusively for the U.S. market. CB’s brands include Corona, Modelo Especial, Negra Modelo, Victoria, and Pacífico.
The Mexico-U.S. border forms the regional base of CB’s operations. CB utilizes two of the 60 border crossings: Piedras Negras, Coahuila, with Eagle Pass, and Nogales, Sonora. In Nogales, CB transports inputs from the U.S. to Mexico and finished products from Mexico to the U.S.
The southern U.S. border has been the main route for irregular migration, primarily from Central America and Mexico. Significant migrant flows have occasionally led to the closure of some border crossings, such as Eagle Pass, a key access point for our product exchange. In December 2023, we worked with various authorities and the private sector to request the reopening of this crossing.
From this experience, we learned the importance of close collaboration with federal and local authorities in both countries to find political solutions and regulatory frameworks that promote safer and more efficient trade for legitimate businesses. Border crossings must be modernized to improve commercial processes, and the flow of migrants should not negatively impact them. Keeping borders open and avoiding disruptions ensures the supply chains that support thousands of jobs on both sides of the border remain intact.
The U.S. and Mexico are main trade partners, and authorities in both countries must work closely to maintain an integrated economy. The USMCA provides the guidelines and tools needed to resolve disputes. Maintaining open communication and constant cooperation between authorities ensures compliance with trade agreements, reducing the risk of changes in commercial regulations, tariffs, taxes, and other government measures that could affect the flow of products and raw materials across the border, as well as labor and operating costs. Imposing tariffs and foreign trade taxes should also be avoided.
CB is an example of nearshoring. In the coming years, an increase in the movement of people and goods is expected, which for CB will mean working closely with governments and allies in both countries to ensure greater availability of talent, infrastructure, water, and energy to contribute to a highly competitive border. Nearshoring presents challenges and opportunities in terms of talent, social mobility, and economic pressure to expedite border trade. We have the opportunity to create a strategy that considers the necessary mechanisms to ensure sufficient water and energy, security, and infrastructure.
For CB, operating at the border means working in a naturally complex environment with risks and multiple challenges, but also with enormous opportunities.
- We are committed to long-term goals, including water and environmental stewardship as part of CB’s operations;
- Our interest is to offer a high-quality product that represents Mexico;
- CB has the will and capability to create opportunities for everyone, generate community welfare, and grow alongside our employees and communities.
The jobs created to produce and transport our beer are in Mexico. Our employees are the true strength of the company; their voices are a fundamental value. Constellation Brands is a competitive company with a workplace culture based on inclusion and diversity of thought. The most important value for CB is the people, including those who work directly or indirectly in our breweries and offices, as well as their families, neighbors, friends, and communities.
One of the concerns for industries near the border is the shortage and turnover of employees, which hinders the ability to retain labor. The availability of talent at all levels is a significant challenge, especially for basic positions. Many companies struggle to find personnel with the specific skills required. Another major challenge is attracting and strengthening the workforce, ensuring the availability of talent.
In 2026, the first review of the USMCA will take place, involving new administrations in Mexico and the U.S. This review will analyze the implementation and monitoring of the adopted agreements.
In the labor sector, the review will highlight Chapter 23 and the two rights established in Annex 23-A: authentic collective bargaining and freedom of association, which aim to provide greater certainty for workers. Beyond economic benefits, social benefits must be ensured. The treaty also includes mechanisms to guarantee labor rights, such as the rapid response mechanism. This review is a challenge for the three involved countries but also an opportunity to ensure the proper functioning of supply chains.
In the Mexican Congress, there are pending legislative proposals that, if approved, would impact workers’ lives and companies’ activities. These include:
- Increasing the minimum wage above inflation.
- Increasing the Christmas bonus from 15 to 30 days.
- Right for people over 65 to receive a pension equal to their last salary.
- Reducing the workday.
- The “Chair Law,” which prohibits workers from being required to stand for the entire workday.
- Paternity leave.
If these proposals or parts of them are approved, the business sector must find new ways to adapt to the new legal framework while respecting workers’ rights and remaining competitive in the region for the benefit of all. Achieving these goals requires close and ongoing collaboration with authorities in both countries and the establishment of necessary strategies and protocols to ensure that operations are not hindered.
Finally, in response to environmental and social challenges in the border region, efforts to collaborate with federal and local authorities in both countries must be intensified to build and maintain partnerships that address the water crisis and other environmental issues. Each company must take necessary actions to maintain environmental care and social welfare.
The future of companies operating in the Mexico-U.S. border region will be influenced by their ability to adapt to changes.
Challenges can represent objectives, stimuli, and risks for us; but opportunities represent the moments that call for action, this is the moment to act.
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