International Focus Magazine Vol. 3, #8 | Page 32

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.