were to co-manufacture goods and
sell them to the world and try to com-
pete with China, Japan, and Europe.
iF: Which we need to be together to
do.
Garcia: Some creativity and high
quality should be done here. Which
is why we have these high payrolls.
Some of the labor costs we can get
done in Canada, is that going to move
jobs around? It could … but look at
what automation has done. Some jobs
are being done by computers and ro-
bots.
iF: If someone wants to start
doing business with Mexico, they
would come to you, right?
Garcia: We are kind of the land-
ing spot. Our membership has inter-
national attorneys, international ac-
countants, CPAs and representatives
from a variety of industries. Mexico
is the number one country for pa-
tients seeking medical care, so we
have a couple of hospitals as mem-
bers. We are a logistic hub with the
airports, the Port of Houston, and rail
travel. Actually, Kansas Railroad runs
the Mexican rail service. Highway
— 69 the NAFTA highway — runs
from Laredo, through Houston, to
Canada. We are the port for the en-
tire middle of the U.S. The Ports of
Mexico are not very large, so we are
the Port for Mexico even though we
32 iF Magazine | September 2018
are not in Mexico. Goods are brought
into Houston by air, trucks, or rail and
shipped to Mexico. Texas manufac-
tures and exports 17% of everything
the United States exports anywhere.
That is more than the next fou states
combined. Texas is the largest manu-
facturer and exporter of the 50 states.
Most people do not know that. It is
part of my job to make sure that they
learn the value of trade. That is why
we are supporting the initiative with
the Global Trade Conference.
give a little.
Some people think 100% of the cars
are made in Mexico. That’s not true.
According to NAFTA, the current
agreement, 60% of any car manufac-
tured in Mexico must have original
parts manufactured in the United
States. The U.S. wants that 60% raised
to a whopping 85%. That would in-
crease the price of vehicles, because
the labor costs would go up. Another
point they want to make is to have
the agreement expire in five years and
What a Chamber of Commerce is be renegotiated. Imagine if you sug-
supposed to do is to help companies gested to a business that they build
1) build their business, and 2) help in Mexico if you can only guarantee
them to build relationships. Like we five years, no company is going to do
said, Mexico is Texas’ number one it. In the original agreement there is
trade partner, Canada is number two. a clause that allows for arbitration if
That is why we had the Canadian there is a problem with one point in
Consul at our Board Meeting pre- the agreement.
senting Canada’s view of NAFTA.
As a Chamber of Commerce and the
U.S. Chamber of Commerce, we feel
iF: What is Canada’s view on
that trade agreements are beneficial
NAFTA?
for companies.
Garcia: One thing they do not like I think the economic power Houston
is being left out of the conversation.
The administration decided to nego- has created is finally being identified.
tiate with Mexico first. They are on a We are finally saying that one of the
fast track to try to get it done 1) be- reasons Houston has done so well is
fore the mid-term elections, and 2) because of our diversity. What brought
before the new leftist president comes the diversity here was the oil indus-
into play. Even if they get it approved, try. Everybody in the World needs oil.
they need 90 days before the mid- The diversity generates creativity and
term. That means that they have only opportunity. I applaud Val for creating
a few weeks to meet those deadlines. this Global Conference. We are proud
Like any negotiations, someone has to to be a part of it.