Exporting Texas
August 8, 2007
Few of us probably know what Texas' secretary of state does, but if newly appointed Phil Wilson does the job right, he can help us benefit from stronger economic relationships with four bordering Mexican states
Written by Editorial, Dallas Morning News
Few of us probably know what Texas' secretary of state does, but if newly appointed Phil Wilson does the job right, he can help us benefit from stronger economic relationships with four bordering Mexican states.
The flow of trade with those states is important for two reasons.
1. The fence being constructed between parts of Texas and Mexico is designed to curb illegal immigration, but it's not intended to curb legal economic flows. In dollars, exports from Texas to Chihuahua, Nuevo Leon, Tamaulipas and Coahuila have risen since 1995.
The impact goes well beyond border cities like El Paso. Texas companies ship goods from auto parts to electronics to Mexican factories along the border. And they get returned to Texas for sales here and around the world.
2. Nevertheless, Texas is losing market share in those four Mexican states. As the accompanying graphic shows, the percentage of imports from Texas has gone down in each.
Our share is being challenged by other U.S. states that realize Mexico is a good market. Consider New Mexico, whose governor and agency executives meet regularly with their counterparts in Chihuahua. Their work soon will bear fruit thanks to a new mega-highway around Ciudad Juarez that will link cargo-bearing trucks to a New Mexican port of entry. New Mexico will benefit from the tolls, warehousing and complicated exchange work that makes up border commerce.
Mr. Wilson comes into the picture because his office is responsible for a large share of Texas' border work. There's an underused state commission just waiting to accelerate that work, too.
Texas legislators established the Texas-Mexico Strategic Investment Commission in 2005, but it only meets annually and doesn't seem to involve economic development officials from neighboring states like Chihuahua.
By using the commission to work more directly with Mexican interests, Mr. Wilson could help Texas benefit economically from its proximity to Mexico. We have much to gain from keeping the Texas brand alive and well.
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