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Friday, December 6, 2024
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Jorge Torres of Interlink and the Evolution of U.S.-Mexico Trade 

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By Roberto Hugo González

Jorge Torres, founder and president of Interlink Trade Services, has dedicated his career to customs brokerage and international trade. With over 30 years of experience, Torres has become a well-respected figure in the industry, navigating complex regulations and ensuring seamless cross-border operations between the United States (U.S.) and Mexico. His insight into the challenges and opportunities in this sector has shaped his company and contributed to broader discussions about the future of international trade, nearshoring, and infrastructure on the U.S.-Mexico border.

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Since the founding of Interlink Trade Services in 2005, Torres has overseen the company’s growth from a regional player to an influential actor in international shipments. The company, headquartered in McAllen, Texas, handles everything from truck, rail, ocean, and air freight to the intricacies of U.S. customs regulations. “We’ve positioned ourselves as facilitators,” Torres explains. “By helping companies navigate complex regulations, we enable them to focus on their core business while we take care of import/export transactions, trade compliance, and logistics.”

Interlink Trade Services manages goods from various industries, including automotive, medical devices, telecommunications, electronics, metals, and furniture, providing trade compliance services essential for successful imports and exports. “Each of these industries requires a detailed understanding of U.S. and foreign regulations,” says Torres. “Our job is to ensure compliance while minimizing delays, which can be costly in today’s competitive markets.”

Torres highlights the critical role that U.S. Licensed Customs Brokers play in the global supply chain. “Customs brokers are the gatekeepers,” he says. They ensure that shipments comply with U.S. regulations, including taxes, duties, and safety standards. “It’s not enough to move products across borders; you need to ensure they’re compliant and that everything from valuation to classification is accurate.” As Torres points out, these elements are fundamental in avoiding costly penalties or seizures by U.S. Customs.

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Given the notoriously difficult customs broker licensing exam, with pass rates frequently below 10%, Torres’ success in passing the test on his first attempt demonstrates his expertise. “The exam is a rigorous test of knowledge,” Torres recalls. “It’s not just about understanding regulations—you have to anticipate how those regulations will be applied in real-world scenarios.”

Despite his optimism, Torres acknowledges several key challenges facing the customs brokerage industry today, including regulatory pressures and infrastructural limitations. “There’s been a tightening of regulations in recent years,” he says, pointing to policies like anti-dumping duties and enforcing restrictions on forced labor practices from certain countries, particularly China. “Brokers must stay on top of these developments to help clients avoid penalties.”

Another pressing issue is technology. “The Automated Commercial Environment (ACE), the U.S. Customs’ system, is vital for processing transactions, but it’s not without issues,” says Torres. System outages or congestion can cause shipment delays, impacting businesses. Torres suggests investing in system redundancies to ensure smooth operations. “We need systems that are reliable and capable of handling the increasing volume of trade.”

One of the most critical issues Torres faces is the growing strain on cross-border infrastructure, particularly at significant trade gateways like the Pharr-Reynosa International Bridge. “This bridge is a lifeline for U.S.-Mexico trade,” he emphasizes, “but the volume of goods moving through it has increased beyond its capacity.” Torres advocates for expanded infrastructure, particularly new entry points, to manage the influx of goods driven by nearshoring trends.

As for nearshoring itself, Torres sees it as a major growth driver in U.S.-Mexico trade. “Manufacturers are moving closer to the U.S. to avoid the complexities and costs of far-flung supply chains,” he explains. “Mexico is a natural choice because of its proximity and its established industrial base.” This shift has been particularly beneficial for industries such as automotive, electronics, and medical devices, all of which Interlink Trade Services works with regularly.

Beyond the immediate business impact, Torres believes nearshoring presents a broader opportunity for regions like the Rio Grande Valley. “With the growth of nearshoring, regions like ours can become major hubs for logistics and trade,” he says. However, this will require not only infrastructure upgrades but also regional cooperation. “It’s essential that local governments, trade associations, and the business community work together to attract investment and create an environment where businesses can thrive.”

Torres also sees potential in expanding Foreign Trade Zones (FTZs), such as the one in McAllen, Texas, where Interlink Trade Services is located. “FTZs offer significant tariff benefits, which can reduce business costs and encourage more trade activity,” Torres notes. By reducing the financial burden of importing raw materials or finished goods, FTZs can stimulate local economies and drive further growth.

Looking ahead, Torres is focused on solutions to the industry’s challenges. He advocates for regulatory reforms that streamline the trade process without compromising safety. “There’s a fine balance between ensuring compliance and enabling efficient trade,” he explains. Simplifying customs communication and compliance requirements could significantly improve the flow of goods across borders.

Torres also stresses the need for technological advancements. “Investing in technology is critical,” he says, “especially when upgrading customs systems like ACE. Delays due to system failures can devastate businesses relying on timely shipments.” By modernizing these systems, he believes the trade process can become more reliable and efficient.

Torres is a vocal proponent of new bridge projects on the infrastructural front, particularly in Texas’ Hidalgo County, which includes McAllen. “We need more capacity to handle the growing volume of cross-border trade,” he insists. With projects proposed in areas like Donna, Brownsville, and Rio Grande, Torres sees a chance to alleviate the pressure on overburdened existing facilities and create new trade opportunities.

Ultimately, Torres envisions a bright future for the U.S.-Mexico customs brokerage industry, even as it navigates significant challenges. His leadership at Interlink Trade Services demonstrates the critical role that customs brokers play in the global supply chain, and his advocacy for regulatory reform, technological upgrades, and infrastructure investment reflects his forward-thinking approach.

“The future of trade is promising,” Torres concludes. “But it will require collaboration and innovation to overcome today’s hurdles. We’re committed to being at the forefront of that effort, ensuring our clients and region are ready for the opportunities ahead.”

Jorge Torres has proven to be an invaluable asset to the customs brokerage industry, contributing expert insights that have shaped strategic discussions and informed decision-making. His expertise was instrumental in the development of three key articles: “The Impact of Mexico’s New Government on Trade Relations with the U.S.,” “Understanding Nearshoring: Jorge Torres on The Impact of Nearshoring on South Texas,” and “Section 232 for Steel and Aluminum Imports into the U.S.: Implications for Mexico under Biden’s Presidential Proclamations.” These pieces have provided critical guidance for industry professionals navigating the complex dynamics of trade, nearshoring, and evolving import regulations. Jorge’s deep knowledge and thought leadership have helped industry stakeholders anticipate and adapt to emerging trends, making him a cornerstone of expertise in the field.

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