North America must ‘join forces’ to compete as global trade fragments, expert says

SAN ANTONIO — North America’s ability to compete with China and other global economic powers will increasingly depend on deeper regional integration and stronger coordination between the U. S. and Mexico, according to economic and city leaders speaking at the 2026 NADBank Summit.

Agustín Carstens, former governor of the Bank of Mexico and one of Mexico’s most prominent economists, urged the U. S. , Mexico and Canada to pursue what he called “smart integration” as the global economy confronts geopolitical fragmentation, inflationary pressures, artificial intelligence and less resilient supply chains.

El Paso Mayor Renard Johnson and Ciudad Juárez Mayor Hector Ortiz also said closer cooperation between their cities will be critical to keeping cross-border trade moving as advanced manufacturing, aerospace, technology and data center investment expand across the Borderplex.

The comments came Thursday during the North American Development Bank Summit in San Antonio, an annual gathering of government officials, businesses, financial institutions, academics and infrastructure experts from the U. S. and Mexico. This year’s summit focused on strengthening binational cooperation and financing infrastructure projects along the border.

Carstens: North America needs ‘smart integration’ Carstens, whose keynote was titled “North American Integration and Global Trends,” described the North American Free Trade Agreement as a watershed in the economic relationship among the U. S. , Mexico and Canada.

NAFTA also produced NADBank, which Carstens said represents a tangible example of the two countries working together to solve problems along what he repeatedly called “our border.” “It’s our border, but it’s also our problem,” Carstens said, arguing that binational institutions can produce collaborative solutions to problems shared by both countries.

Carstens, who served as governor of the Bank of Mexico from 2010 to 2017 and later headed the Bank for International Settlements, framed North American integration against what he described as major structural changes in the global economy. Agustín Carstens, former governor of the Bank of Mexico and one of Mexico’s most prominent economists, urged the U. S.

, Mexico and Canada to pursue what he called “smart integration” during his keynote address on Aug. 27 at the 2026 NADBank Summit. (Photo: NADBank) For decades, globalization, integrated supply chains, technological advances and expanding labor markets allowed producers to respond efficiently to growing demand, Carstens said.

Mexico was one of the biggest beneficiaries, evolving from an economy heavily dependent on oil exports in the early 1980s into the United States’ largest trading partner. But that economic environment has changed.

Pandemic disruptions, geopolitical conflicts, higher energy costs, protectionism, trade tensions with China, labor constraints and insufficient investment have made global production less flexible, Carstens said. The result is an economy more vulnerable to inflation and slower growth.

At the same time, governments have less room to rely on fiscal and monetary stimulus to overcome economic shocks, he said. “We see more inflation and less economic growth, a little bit similar to stagflation,” Carstens said.

The answer, according to Carstens, includes structural reforms that expand productive capacity, investment in infrastructure and workforce skills, along with renewed regional cooperation.

“I think that we need to reintroduce smart integration, smart regional developments, join forces and move forward,” Carstens said, adding that North America needs to think about “our competitiveness as a region with respect to the rest of the world.”

Carstens also warned that artificial intelligence, while potentially delivering major productivity gains, could create the same kinds of economic dislocation that accompanied earlier waves of globalization and technological change.

Governments should prepare workers with more flexible skills and education while investing in infrastructure that removes constraints on economic growth, he said. “For many, many decades we have abandoned infrastructure,” Carstens said. “We see it here on the border. It goes at a piecemeal approach, especially in terms of transportation.”

Those transportation bottlenecks restrict productive capacity and ultimately constrain growth, he said, arguing that NADBank could play a larger role in addressing them. “Let’s think big about NADBank,” Carstens said. “Let’s modernize this institution because there is a lot that can contribute.”

El Paso, Juárez market themselves as one economic region The need for regional integration was echoed later in the summit by Johnson and Ortiz, who described El Paso and Juárez not as competing municipalities divided by an international boundary, but as pieces of a single economic region.

Johnson said El Paso, Juárez and the surrounding area increasingly market themselves as a market of roughly 2. 7 million residents rathe