BINATIONAL TEXAS - TAMAULIPAS ECONOMIC ALLIANCE

1. “TWO STATES, TWO NATIONS, ONE FUTURE- A SHARED VISION OF INTERNATIONAL COOPERATION AND SUSTAINABLE DEVELOPMENT” BINATIONALTEXAS - TAMAULIPAS ECONOMIC ALLIANCE April 17, 2007

2. Why is this important? • Geography • Economics • Globalization Sustainable Development

3. Geography

4. Geography

5. International Crossings Rio Grande City Los Ebanos Brownsville Los Indios Matamoros Lucio Blanco Laredo Falcon Hts. Roma Reynosa Hidalgo/Pharr Progresso

6. International Bridges and Border Crossing

7. Texas Points of Entry • There are a total of 23 points of entry in the Texas – Mexico border. • 13 of the 23 points of entry (57%) of all points of entry with Mexico are located in the Texas – Tamaulipas Border. • 2 New points of entry will be completed within the next 3 years.

8. Proposed New Points of Entry • Anzalduas Bridge • Mission, Texas – Reynosa, Tamaulipas • Status: • Presidential Permits on both sides have been approved. Scheduled for construction on December 2006 and can be operational September 2008. Source: McAllen Economic Development Authority • Donna Bridge • Donna, Texas - Rio Bravo, Tamaulipas • Status: • Presidential Permits on both sides have been approved. Currently in the design phase. Scheduled for construction on January 2007 and can be operational in mid-2008 . Publication: The Monitor; Date:2005 Oct 14; Section: Front Page; Page Number: 1A

9. Texas Profile • Population of 22,859,968 • Consists of an area of 261,797 square miles • Chief Industries • Manufacturing • Trade • Oil and gas extraction and services • Important manufacturing goods: • Industrial machinery and equipment • Foods • Electrical and electronic products • Chemicals and allied products and apparel • Major Crops • Cotton, Grain, Sorghum grain, Vegetables, Citrus and other fruits, peanuts • Livestock • Cattle / Calves

10. Tamaulipas Profile • Population of 3,024,238 • Consists of an area of 30,734 square miles • Important manufacturing goods: • Automotive parts assembly • Electronic • Textile and preparation • Chemical • Oil production • Acrylic fiber, plastic resins, synthetic rubber, and polymers • Major Crops • Corn, cotton, and wheat • Livestock • Cattle / Calves

11. Economics

12. Top 10 States Trading with Mexico by Surface Modes of Transportation in 2005, Ranked by Surface Trade Value Surface transportation consists largely of freight movements by truck, rail and pipeline

13. 2005 Exports Texas to Mexico Provided by the Office of Trade and Industry Information (OTII), Manufacturing and Services, International Trade Administration, U.S. Department of Commerce.

14. U.S. Surface Imports (Via all U. S. Ports) from Mexico with Texas $21,422,683,553 Mexico to Texas via All U.S. Ports $34,026,509,444 Source: U.S Department of Transportation Bureau of Transportation Statistics

15. Trade Exports Texas to Tamaulipas (By All surface modes, January 2005 to June 2006) $3,849,930,684 $6,526,370,980 Surface transportation consists largely of freight movements by truck, rail and pipeline Source: U.S Department of Transportation Bureau of Transportation Statistics

16. Trade Imports Tamaulipas to Texas • Specific trade information data not available • Imported goods detail is not available

17. Map U. S. – Mexico Top State Flow forMerchandise Trade by Truck SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics, Transporter Surface Freight data, special tabulation, December 2000.

18. Globalization

19. Globalization • Development of trading blocks • European Union - 1957

20. European Union

21. Globalization • Development of trading blocks • European Union - 1957 • North American Free Trade Agreement (NAFTA) - January 1, 1994 • Free Trade Area of the Americas (FTAA) - Ongoing

22. Free Trade Area of the Americas

23. Texas – Tamaulipas Alliance • Goals • “Texas – Tamaulipas International Trade and Research Center”

24. Texas – Tamaulipas International Trade and Research Center • Clearinghouse of Information • Current and accurate information • One Stop Center for International Trade Assistance • Inventory of existing resources available in each state • Inventory of existing infrastructure • Database of Available Industrial Buildings • Database of Economic Incentives Available

25. Binational Texas – Tamaulipas Alliance • Goals • Creation of a “Texas – Tamaulipas International Trade and Research Center” • Clearinghouse of Economic Development leads • Facilitation of leads to members, of companies wanting to relocate • Spokesperson for Texas – Tamaulipas Alliances • Increase economic activity between states • Act as facilitator between two governments • Influence Public Policy

26. Technology • Dedicated Website • Central Information Collection Site • Internet based information collection portal • Communities will be able to provide and update information through the central website • Accessible & Accurate up to date information: • Statistical information • Industrial Buildings Database • Available Economic Incentives offered by respective state and communities • Geographical and Trade Corridors with detailed maps

27. Technical Assistance • Assistance to communities in the creation of economic profiles • Showcasing community resources • Demographic information • Existing Infrastructure • Economic Indicators • Assistance to communities in identifying grant opportunities • Facilitation of International Trade Data and Research Assistance to Companies conducting feasibility studies

28. Conceptual Framework • Existing Entities • North American Development Bank (NADBank) • 10 Board of Directors • 5 From the Country of Mexico • 5 From the Country of the United States • Binational entity formed to address NAFTA related issues • Border Environmental Cooperation Commission (BECC) • 10 Board of Directors • 5 From Mexico • 5 From the United States • Binational entity created to address Infrastructure issues in the U.S. / Mexico Border

29. OrganizationalStructure Membership Consisting of Mayors or (City Commission Representative) from Texas/Tamaulipas communities Board of Directors 4 Board of Directors elected from the Tamaulipas Alliance Group 4 Board of Directors elected from the Texas Alliance Group

30. OrganizationalStructure Binational Board of Directors (8 Directors) CEO COO WORKING GROUPS INFRASTRUCTURE ECONOMIC DEVELOPMENT ENVIRONMENTAL TECHNOLOGY

31. Current Developments • October 5, 2006 – Kingsville, TX - First organizational meeting of the Binational Alliance - Appointment of Board of Directors - Appointment of Executive Director

32. October 5, 2006 Kingsville, Texas

33. October 5, 2006 Kingsville, Texas

34. Current Developments • October 24, 2006 – Austin, TX - Invited to provide a briefing of the Binational Alliance to the Senate International Relations and Trade Committee

35. Support from theState of Texas

36. Current Developments • January 26, 2006 – Reynosa, Tamaulipas - Board Meeting - Agenda Items -Binational Environmental Summit -Binational Economic Development Summit

37. Importance of Binational Alliance • The United States is Mexico’s largest trading partner • Mexico is the United States second largest trading partner • Trade between the two countries reached $290 billion in 2005, averaging about $795 million a day

38. Importance of Binational Alliance • U.S. Exports to Mexico in 2005 were over $120 billion • U.S. Imports from Mexico were over $170 billion • Exports to Mexico have more than double since the passage of NAFTA in 1994, when U.S. exports to Mexico were over $50 billion

39. Importance of Binational Alliance • Foreign direct investment from the United States of $7.3 billion constituted over 40% of all foreign direct investment received by Mexico in 2004 • Texas is the top trading partner with Mexico by Surface Trade Value, with surface transportation consisting of freight movements by truck, rail and pipeline. Texas ranks as the top trading partner with over $77 billion worth of trade. The State of California is a distant second with just over $44 billion in trade

40. RESOLUTION OF SUPPORT

41. “TWO STATES, TWO NATIONS, ONE FUTURE- A SHARED VISION OF INTERNATIONAL COOPERATION AND SUSTAINABLE DEVELOPMENT” BINATIONALTEXAS - TAMAULIPAS ECONOMIC ALLIANCE April 17, 2007