Laredo Panel with Maria Eugenia Calderon-Porter, Dr. Federico Schaffler, and Carmen Dickinson: International Trade and Local Development

Introduction

Laredo is the gateway through which a vast amount of trade between the U.S. and Mexico flows. It handles immense logistical operations that directly benefit San Antonio's economy. However, understanding Laredo's role and challenges can enhance our appreciation and foster greater empathy and collaboration. Without this perspective, how can we expect to unite and uplift all of South Texas?

The Better Futures Institute, in collaboration with the City of San Antonio, has initiated a series of conversations aimed at exploring the future of cities. One of these sessions, "International Trade and Local Development," provided invaluable insights into the complexities and opportunities surrounding trade in the South Texas Triangle.

Background on Experts

During our panel, we had the opportunity to talk to three guests who are deeply involved in the industries that make Laredo unique in managing international trade. We were joined by Maria Eugenia Calderon-Porter, Dr. Federico Schaffler, and Carmen Dickinson.

Maria Eugenia Calderon-Porter is the TAMIU Assistant Vice President for Global Initiatives. Before this role, she had an accomplished career in interior design. She eventually decided to return to school to study public administration. She sees immense virtue in TAMIU’s proximity to Mexico, as well as its role as a hub for international trade.

Dr. Federico Schaffler is the Laredo International Airport Foreign Trade Administrator. He has a Ph.D. in Urban Policy from Tecnológico de Monterrey and is recognized for his accomplishments in literature.

Carmen Dickinson is the Machinery Center Assistant Center Director, playing a pivotal role in managing trade operations.

Key Insights and Takeaways

From the discussion, we have organized our thoughts into several different categories to provide an understanding of the bigger picture and next steps.

1. Key Themes

Having heard the perspectives of those managing international trade in Laredo, we can pinpoint several main areas of concern and takeaways:

• Enhanced Logistics and Supply Chain Management: The need for improved logistics infrastructure to support efficient supply chain operations is evident. Laredo's experience highlights the critical role of infrastructure in facilitating trade.
• Cross-Border Economic Development Programs: Initiatives that boost economic ties and trade activities between U.S. and Mexico border communities are essential. These programs strengthen economic resilience and foster mutual growth.
• Sustainable Development Practices: The long-term benefits of sustainable construction methods for infrastructure projects are crucial. Laredo's efforts in this area can offer valuable lessons for San Antonio.
• Policy and Regulatory Frameworks: Analyzing existing policies and recommending changes to support growth and efficiency in trade is vital. Laredo's policy landscape provides a rich case study.
• Technological Integration in Customs and Border Control: Exploring new technologies to enhance customs clearance processes and reduce bottlenecks is a priority. Laredo's advancements can guide similar efforts in San Antonio.

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2. Promising Practices

With these takeaways in mind, it is reassuring to see that there are already many practices in place that are uplifting Laredo:

• Centers of Excellence: These centers provide expertise and can communicate with different ports of entry in real-time. They are strategically placed based on the port of entry and type of import, like Detroit for automotive imports.
• Success of NAFTA and USMCA: The success of NAFTA followed by the USMCA agreement, which is reevaluated every five years to keep up with the changing landscape.
• Twin Plants: These benefit industries on both sides of the border.
• Development of the Self-Sustaining City of Talise: This city will provide new opportunities for the community and will be pivotal in the expansion of the trucking industry in Laredo.
• Development of Industrial-Sized Warehouses: Terraforming the landscape to be flat allows for the construction of 100,000-square-foot warehouses to store trucks and the goods they carry.
• Free and Secure Trade for Commercial Vehicles (FAST): A policy by the GSA and CBP to create a fast pass lane for vetted and trusted companies.
• Hazard Safety Systems on the World Trade Bridge: Adding these systems allows for the transportation of hazardous materials across the bridge.
• Preparations for Increased Truck Traffic: Increased truck traffic leaving the Laredo-Colombia Bridge due to the rise in industries manufacturing in Monterrey.
• Expansion of the World Trade Bridge: Plans to add more lanes in the next few years.

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3. Critical Challenges

Speaking with those whose daily lives are affected by the everyday things American citizens and corporations purchase was very enlightening. We had the chance to hear about problems and consequences we didn’t know existed. We were able to pinpoint several areas of frustration:

• Culture of Consumerism: There is a prominent frustration with the culture of consumerism in the United States as it causes an exhaustion of our resources and government.
• Consumer Responsibility: There is a responsibility for consumers to investigate the legitimacy, safety, and reputability of companies when making purchases, but this responsibility is not taken seriously to the extent necessary. Additionally, consumers are often unaware of the possible consequences of their purchases, such as child labor, unsafe working conditions, and poor wages.
• Wage Disparities: Despite USMCA ensuring higher wages for automotive workers (40-45% of auto content must be made by workers making at least $16/hr), it may not significantly increase wages in Mexico. NAFTA did not significantly increase average wages in Mexico.
• Water Challenges: The Rio Grande reservoirs (Amistad) have been operating with record low water levels, reaching as low as 24% full in late June 2024.
• Potential Political Issues: The coming election could cause issues in Laredo if Trump is elected due to his plans for tariffs.

Conclusion

San Antonio's proximity to the border is a strategic advantage that comes with a responsibility to understand and support our neighboring cities like Laredo. By participating in initiatives like the Better Futures Conversations, we can learn from Laredo's experiences, address common challenges, and celebrate the diverse stories that shape our region. Together, we can build a future that is informed, inclusive, and resilient.

Understanding the environment of South Texas is essential for progress and growth. Engaging with those who work in the field is crucial. If you are interested in collaborating or participating in further developing this research with us, sign up below to learn more about how you can contribute and benefit from this ongoing research.

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