A Texas city along the Mexican border is spending more then $1 million in tax dollars to improve the Mexican side of a Rio Grande Valley bridge. McAllen city officials want to take advantage of the traffic from the maquiladoras that export materials into the states.
McAllen city officials claim they will get the $1 million back and more.
McAllen, Texas is located in Hidalgo County across from the Mexican city of Reynosa. The city is reported to want to be part of meeting the needs of the trade industry, or maguiladoras, and monies that can be earned from the traffic.
A maquiladora is a manufacturing plant that imports materials that are duty-free and tariff-free. Most of these are located in northern Mexico. Once the goods are assembled, the products are then exported. According to a paper done by a professor at Mount Holyoke College, these companies are able to use low-cost workers and then pay duty only on the “value added” which is calculated by taking “the value of the finished product minus the total cost of the components that had been imported to make it.”
A new lane will be added to the Anzalduas International Bridge. Improvements will also be made to the terminal where inspections are made on the Mexican side, reports KRGV in McAllen.
City officials say that have a plan to recover some of those funds and are very sure they will get the funds back that they invest. McAllen city officials are claiming the city will make more money than it has to invest. They site as an example, $22 in fees which are charged to drivers of 18-wheelers that cross the Pharr International Bridge. They want to get some of that traffic on the Anzalduas Bridge and make revenue.
McAllen city officials are reported to claim that they will put 1o0 percent of the tolls in the bank until the expenses in improving the bridge are regained. After costs are recouped, they will have to share revenues with Reynosa but McAllen will get 80 percent of the revenues charged.
Lana Shadwick is a writer and legal analyst for Breitbart Texas. She has served as a prosecutor and judge in Texas. Follow her on Twitter @LanaShadwick2