1. Border 2020 ~ Secure Fast Smart Economic Development Committee Border Legislative Conference Santa Fe, New Mexico, July 9, 2004 A New Vision for the Border Dip. Jesus Bustamante Machado, Son. Dip. José Rodrigo Gastelum Ayon, Son. Dip. Ricardo A. Castro Lopez, Chi. Dip. Gabriel Ramos Rivera, Co. Dip. Raul Mario Mireles Garza, N.L. Dip. Cesar Santos Cantu, N.L. Dip. Javier Villarreal Teran, Tam. Assemblymember Marco Antonio Firebaugh, Cal. Sen. Mary Jane Garcia, N.M. Rep. Mary Helen Garcia, N.M. Chair - Sen. Eliot Shapleigh, Tex. Dip. Jesus Bustamante Machado, Son. Dip. José Rodrigo Gastelum Ayon, Son. Dip. Ricardo A. Castro Lopez, Chih. Dip. Gabriel Ramos Rivera, Coa. Dip. Raul Mario Mireles Garza, N.L. Dip. Cesar Santos Cantu, N.L. Dip. Javier Villarreal Teran, Tam. Assemblymember Marco Antonio Firebaugh, Cal. Sen. Mary Jane Garcia, N.M. Rep. Mary Helen Garcia, N.M.

2. The U.S.-Mexico Border at a Glance Two Countries and 10 States The border extends along the southern boundaries of California, Arizona, New Mexico, and Texas on the U.S. side, and the northern boundaries of Baja California, Sonora, Chihuahua, Coahuila, Nuevo Leon, and Tamaulipas in Mexico. 25 U.S. Counties Adjacent to Mexico 79 Mexican Municipios 27 U.S. Federally Recognized Indian Tribes 14 Pairs of Sister Cities © Senator Eliot Shapleigh, July 2004

3. Border Region Population © Senator Eliot Shapleigh, July 2004

4. Border Region Population Growth The U.S. border region is growing at a much faster rate than the rest of the United States © Senator Eliot Shapleigh, July 2004

5. U.S.-Mexico Trade Growth Over the past 15 years, U.S. trade with Mexico has increased 400 percent - from $48 billion to $239 billion © Senator Eliot Shapleigh, July 2004

6. Overseas Outsourcing Threatens the Border Economy Need to Promote Border Region Economy China now makes 80% of all toys sold in America. In Shenzhen, China the legal minimum wage is $0.33. Employers are not required to pay laborers pension or medical insurance. No labor contracts required. Source: "The World's Sweatshop: The Etch a Sketch Connection." The New York Times (December 7, 2003). © Senator Eliot Shapleigh, July 2004

7. Foreign Investment in Maquilador sector down 7.5 percent 2002: $2.43 billion invested in maquiladoras 2003: $890 million invested in maquiladoras Employment in Maquilador sector down 257,147 people between 2000 and 2003 Since 2000, 183 maquiladoras have closed In 2003, 35% of Ciudad Juarez faced unemployment Sources: "Se hunde inversion extranjera." El Diario (October 2, 2003). "Panorama aterrador." El Diario (February 8, 2004). Need to Promote Border Region Economy

8. Integrate strategies to develop secure, fast, smart manufacturing sectors, anchored by a secure defense industry, to improve the border region's economic competitiveness. Develop a single message, clear policies, and strategic alliances between federal, state and local governments in U.S. and Mexico. A New Vision for the Border Secure Fast Smart © Senator Eliot Shapleigh, July 2004

9. A New Vision for the Border Secure – identify and build on strategic relationships and incentives to induce critical defense manufacturers to invest in border region Fast – efficient, rapid and intelligent transport across the border Smart – broadband technology and state of the art business practices permeate the region and the business community to reduce the cost of doing business Secure Fast Smart © Senator Eliot Shapleigh, July 2004

10. “One-Stop” border inspection facility: Co-locating the myriad state and federal agencies with inspection and regulatory responsibilities at the border and integrating the various processes into one streamlined, technology driven approach Secure Manufacturing Along the Border Secure © Senator Eliot Shapleigh, July 2004

11. Secure Manufacturing Along the Border Secure

12. Secure Manufacturing Along the Border Secure

13. Secure Manufacturing Along the Border to reduce costs, create special manufacturing zones that utilize tax incentives to produce defense related product that guarantees the secure flow of strategic goods to the U.S. economy Develop a strategic approach to adding value to trade – Promoting Value Added Trade Secure © Senator Eliot Shapleigh, July 2004

14. Moving people and product faster and safer is essential to developing a Fast Manufacturing Zone. –reduce the wait time at border crossings for people, product, and vehicles; –create a technology driven system for frequent crossers to by-pass repetitive checks; and –develop a system in which sovereign nations, national leaders, and border crossers can trust the ease, security and efficiency of crossing the border. Fast Manufacturing Along the Border Fast 10 Minute Goal © Senator Eliot Shapleigh, July 2004

15. Issue "smart cards" to border citizens, the most frequent travelers across border points of entry Authorize border mass transit projects at key border metroplexes Invest in border rail routes to shift cargo from commercial vehicles and lines to rapid rail and just-in- time markets Increase personnel at border crossings to allow 24 hour port access Fast Manufacturing Along the Border Fast © Senator Eliot Shapleigh, July 2004

16. Access to broadband technology, effective opportunities for growth, and a growing, vibrant labor force will increase opportunities to expand and streamline operations and lower the cost of doing business. Create smart supply lines - Industry leaders will be drawn to an area where operating costs are low; by shortening supply lines, we can reduce operating costs for industry and manufacture in a safe zone free from external threats. Create incentives in the defense clusters to guarantee secure manufacturing in a time of insecurity. Smart Manufacturing Along the Border Smart © Senator Eliot Shapleigh, July 2004

17. Border As High Technology Production-Sharing Center Michie, Donald A., Ph.D.. "Testimony Beofre Senate Committee on Internation Relations and Trade, 78th Legislature." El Paso County Courthouse, El Paso, Texas. March 5, 2004. U.S. -Mexico border communities' logistics – international trade services, transportation routes, distinct trade areas High technology in area with research laboratories, innovative manufacturers, and high-tech defense manufacturers Lower cost production sharing manufacturing of higher technology products Smart Manufacturing Along the Border Smart © Senator Eliot Shapleigh, July 2004

18. Creating Business Clusters Chihuahua Local Suppliers Material Key Local Suppliers (Actual) Commodity Plastic Rubber Chip Board Suppliers Security Plastic, Advance Dial Co. Sei Woo Stone Container Potential New Local Suppliers Commodity Coils LCD PWD Plastic Thermoform Printing Suppliers Coilcraft Varitonics WUS Hartzell Industrial 'de Plastico Imprenta Ochoa Smart Manufacturing Along the Border Smart © Senator Eliot Shapleigh, July 2004

19. Banking on the Border – Laredo's Financial Community Since 1970 when total assets only reached $102 million, the Laredo region's banking community has flourished. Laredo bank assets rose from $102 million in 1970 to $1.7 billion in 1988, and by the end of 1994 the city of Laredo attained the status of a "$4 billion plus" banking center. Increase Transnational Lending Opportunities Laredo Banks include: International Bank of Commerce Laredo National Bank Wells Fargo Falcon National Bank First National Bank South Texas National Bank Smart Manufacturing Along the Border Smart © Senator Eliot Shapleigh, July 2004

20. Smart Manufacturing Along the Border In Arizona, Sonoran Bank formed to meet the needs of Hispanic business owners. Inspired by the growth of minority owned businesses, the bank was formed to focus on the Hispanic bilingual market. The bank will open in early 2005 and will focus on business loans in the $50,000 to $500,000 range. Smart Support Local Lending Opportunities © Senator Eliot Shapleigh, July 2004

21. Border 2020: Secure Fast Smart Questions and Discussion Senator Eliot Shapleigh 29th Senatorial District El Paso County www.shapleigh.org Austin: 512-463-0129 or (800) 544-1990 El Paso: 915-544-1990