Otay II Border Crossing MoU

October 24, 2022

Institutional Context

In June 2021, Mexico and the United States agreed through a Memorandum of Understanding (MoU) on opening a new gate in the Otay Mesa East Port of Entry that would require a toll fee. Otay Mesa East, also known as the Otay II Project, is meant to help reduce wait times at existing border crossings, and is projected to provide an economic boost of $1.8 billion annually. Initially, Otay Mesa East will have five lanes for vehicles and five more for commercial trucks, with the option for these to be interchangeable depending on the time and demand.

Otay II Border Crossing Agreement

The signing ceremony of the MoU on Collection and Income Distribution Agreement of the new Otay Mesa East Port of Entry was held in Mexico City, on October 24th. This ceremony was a follow-up on the MoU signed in June 202 by both nations, that established the intention of to collaborate in the implementation of a strategy for the administration of traffic congestion and revenue collection based on variable tolls, whose fee will be collected both north and south, through a single collection point that would be located in the state of California, United States.

With the signing of this MoU, both parties made agreements regarding the distribution of the toll fee in an equitable manner, as well as the operation and maintenance of the Port of Entry. For this purpose, it was also agreed to create a Binational Working Group that serves as a non-governmental administrative body to determine the processes related to the setting of tariffs, the collection and distribution of income, this with the support of the North American Development Bank.

In representation of the Mexican Government attended Undersecretary of Infrastructure and Head of the Secretariat of Infrastructure, Communications and Transport, Jorge Nuño, as well as the Head of the North American Unit, Roberto Velasco. In representation of the U.S. Government attended California Lieutenant Governor, Eleni Kounalakis, and Mayor of San Diego and Vice President of the San Diego Association of Governments, Todd Gloria.