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Session 3 – Laredo Panel: Maria Eugenia Calderon Porter, Asst. VP Global Initiatives, Texas A&M International University, Dr. Federico Schaffler, Foreign Trade Administrator, Laredo Airport, and Carmen Dickinson, Assist. Center Director, Centers Of Excellence,
Better Futures Institute
www.bfinstitute.org
This white paper synthesizes insights from the Laredo Panel discussion featuring Maria Eugenia Calderon-Porter, Dr. Federico Schaffler, and Carmen Dickinson. The session focused on the intersection of international trade and local development in Laredo, a major trade hub on the U.S.-Mexico border. Several key themes emerged from the conversation, including the importance of enhanced logistics and supply chain management, the role of cross-border economic development programs, the need for sustainable development practices, and the critical role of technological integration in customs processes.
Key Recommendations:
The Civic Tech Scholars Program, hosted by the Better Futures Institute, convened a panel discussion with experts from Laredo to explore the complex relationship between international trade and local development. Laredo, as one of the largest land ports of entry between the U.S. and Mexico, plays a critical role in facilitating trade between the two countries. The panel focused on the challenges and opportunities arising from Laredo's strategic position as a trade hub, with particular attention to issues related to logistics infrastructure, supply chain management, and cross-border economic collaboration.
As Laredo continues to grow in importance as a key player in U.S.-Mexico trade, understanding its economic and logistical challenges is essential for sustainable development. This white paper provides an overview of the key themes discussed during the panel and offers actionable recommendations based on the insights provided.
These white papers mark the first step in a collaborative research initiative aimed at gathering feedback from multiple stakeholders. The process began with formulating deeper questions based on key themes identified during discussions. Small groups compiled key insights, identified promising practices, and highlighted critical challenges.
The next phase involves developing a consultation plan to engage stakeholders and community members. This plan will include surveys, community meetings, and online platforms to gather feedback that will inform future policy recommendations and guide further research.
The importance of logistics and supply chain management was a central theme of the panel discussion. As one of the busiest land ports in North America, Laredo plays a critical role in the movement of goods between the U.S. and Mexico. The panel highlighted the need for significant improvements in infrastructure to ensure that supply chains operate efficiently and without disruption.
Key Data:
Key Opportunity: Enhancing infrastructure at key points such as the World Trade Bridge and Laredo-Colombia Solidarity Bridge can reduce traffic congestion and improve trade efficiency. Expanding lanes and improving hazard safety systems are essential steps to managing increased truck traffic.
The panel emphasized the importance of cross-border economic development programs to foster economic growth on both sides of the U.S.-Mexico border. Programs that boost trade activities and develop industries in border regions are critical for enhancing economic resilience and mutual growth.
Key Data:
Key Opportunity: Expanding cross-border economic programs, such as the development of twin plants and centers of excellence, can improve collaboration between industries on both sides of the border and create a more resilient economy.
Sustainable development was identified as a crucial consideration for Laredo's future growth. As infrastructure is expanded to meet the demands of increasing trade, adopting sustainable construction methods can reduce environmental impact and ensure long-term economic stability.
Key Data:
Key Opportunity: Laredo can serve as a model for sustainable infrastructure development by integrating green building practices into future projects, reducing environmental strain while meeting the demands of a growing trade hub.
The regulatory environment plays a pivotal role in facilitating or hindering trade. The panel discussed the need for updated policies and regulations that support trade efficiency and address the evolving needs of industries on both sides of the border.
Key Data:
Key Opportunity: By analyzing and updating policies related to customs, transportation, and wages, Laredo can strengthen its position as a key player in international trade and improve the well-being of workers in the region.
The use of advanced technology in customs clearance and border control processes is essential for reducing bottlenecks and improving the speed and security of cross-border trade. The panel highlighted Laredo’s success in integrating Free and Secure Trade (FAST) lanes and the use of hazard safety systems on the World Trade Bridge as examples of technological advancements that enhance trade efficiency.
Key Data:
Key Opportunity: Investing in further technological integration, such as AI-based cargo inspection and blockchain systems for customs documentation, can reduce delays and improve the security of cross-border transactions.
Laredo has already implemented several promising practices to address the challenges of international trade and local development:
Despite these promising practices, Laredo faces significant challenges in managing the impact of international trade on local development. The panel discussion highlighted several critical challenges:
The panel emphasized the culture of consumerism in the United States, which places immense pressure on Laredo’s infrastructure and resources. The increasing demand for consumer goods strains supply chains and causes resource exhaustion.
Key Data:
Panelists discussed the need for consumer responsibility in making ethical purchasing decisions. Consumers often overlook the consequences of their purchases, including child labor, unsafe working conditions, and wage disparities.
Key Data:
Although USMCA has set wage requirements for certain industries, such as the **automotive sector**, wage disparities remain between U.S. and Mexican workers. The panel emphasized that despite USMCA provisions, wage increases in Mexico have not been as substantial as expected.
Key Data:
Water shortages in the Rio Grande Valley are a growing concern. The Amistad Reservoir has seen record low water levels, exacerbating water access issues for both agricultural and industrial uses.
Key Data:
The panel expressed concerns about potential political shifts, particularly with the upcoming U.S. presidential election. Policies related to tariffs, trade agreements, and immigration could directly affect Laredo’s role in U.S.-Mexico trade.
Laredo should prioritize investments in logistics infrastructure to support the rising demands of international trade. Expanding the World Trade Bridge and improving hazard safety systems are key steps to managing increased truck traffic and ensuring efficient cross-border movement of goods.
Strengthening cross-border programs, such as twin plants and centers of excellence, will improve economic resilience and create mutual growth opportunities for industries on both sides of the U.S.-Mexico border.
Laredo should continue to adopt sustainable development practices in its infrastructure projects to reduce environmental impact and ensure long-term viability. Implementing green construction techniques will help mitigate the environmental strain from growing trade activities.
Investing in technology such as AI-based customs inspection systems and blockchain for customs documentation will reduce delays and improve the security of cross-border trade processes, benefiting both businesses and government agencies.
Laredo should advocate for stronger enforcement of USMCA wage provisions and promote consumer education campaigns to encourage ethical purchasing decisions, particularly in industries with known labor exploitation risks.
Laredo’s position as a major hub for U.S.-Mexico trade presents both significant opportunities and complex challenges. By investing in logistics infrastructure, fostering cross-border economic programs, adopting sustainable practices, and improving technological integration, Laredo can strengthen its role in international trade while ensuring sustainable local development. The insights from the Laredo Panel discussion provide a roadmap for addressing these challenges and building a more resilient, efficient, and equitable future for Laredo and its surrounding regions.
