Beyond Borders: Expanding Economic Collaborations Across Texas and the Region

Session Overview

South Central Texas (San Antonio/Austin) is a rapidly evolving innovation ecosystem and a key reason why Texas is the second fastest-growing economy in the United States. Drivers of economic development from across the state highlighted how Texas is expanding its regional innovation identity through a strategic vision, greater collaboration, and increased investment. The Interstate 35 corridor (that connects the St. Lawrence Seaway/Great Lakes to Mexico) is a backbone of innovation zones in Texas. Industry sectors including automotive, aerospace, chips, and food rely on this geographic artery for R&D and the movement of goods, services, and labor.

Key Session Insights

Mr. Glenn Hamer, President and CEO of the Texas Association of Business, opened the discussion by advocating for free trade, which he said is fundamentally good. “We try to make the case at the Chamber that trade is good.” Texas’ economy surpasses both Russia and Italy, and this achievement is driven by the gains that Texas has made from trading with Mexico. The U.S.-Mexico-Canada Agreement (USMCA) has propelled Texas into a position as one of the country’s leading economic powerhouses.

Mr. Luis Rodriguez, President and CEO of the San Antonio Hispanic Chamber of Commerce, celebrated the economic power of the Hispanic community, stating, “Hispanic GDP is the 7th largest GDP according to the U.S. Hispanic Chamber of Commerce.” He argued that the strength of Texas’ trade with Mexico supports job creation and economic growth, making tariffs a direct threat to this region’s productivity and prosperity. Sharing insights from his recent meeting with the Mexican ambassador, Mr. Rodriguez noted that U.S. trade policies significantly impact both Mexico’s and the United States’ economic outlook. “The United States is not as successful without a partnership with Mexico.”

Mr. Rodriguez pointed to the automobile manufacturing sector as a prime example of how the Texas-Mexico partnership drives productivity. He warned that any disruption to this partnership, such as the imposition of tariffs, would harm manufacturing industries reliant on efficient supply chains. Mr. Rodriguez also noted that U.S. trade with Mexico is particularly beneficial for small businesses, enabling them to expand their customer base and attract more bilingual clients. Furthermore, San Antonio Councilwoman Marina Alderete Gavito also spoke on the importance of collaboration between Texas and Mexico, stressing that San Antonio needs to take full advantage of this growing partnership. Leaders in both Texas and Mexico must continue to invest in infrastructure and workforce development to ensure that both regions can effectively accommodate and capitalize on the expanding tech-driven economic relationship.

Mr. Hamer further reinforced the argument against tariffs by framing tariff-free trade as a patriotic approach that secures long-term economic prosperity. He warned that policies such as imposing a 25 percent tariff would cause havoc in the auto industry and severely disrupt supply chains. Beyond economic concerns, he argued that maintaining and expanding trade relationships with Mexico and Canada reduces U.S. dependence on China. Strengthening North American economic ties, he suggested, enhances national security and resilience in the face of great power competition.

Despite the benefits of free trade, tariffs are an increasingly likely reality. In the face of protectionist policy, how can the economies of Texas and Mexico continue to work together? The technology sector provides exciting opportunities for Texans and Mexicans that goes beyond borders and tariffs. Mr. Carlos Serna, Deputy Secretary of Promotion and Innovation and Secretariat of Economy for the State of Nuevo Leon, Mexico, pointed out that technology, software, and remote work are not subject to tariffs, making them key industries to continue Texas and Mexico’s economic partnership in this new political reality. Nuevo Leon is committed to strengthening its relationship with Texas through investments in infrastructure, education, and programs that support the tech sector. “The tech industry can fly through the legal and political circumstances that affect other industries.” According to Serna, intellectual and technological advancements are not constrained by traditional trade barriers.

Drawing upon Mr. Serna’s discussion, Councilwoman Gavito argued that the tech industry not only has no borders, it is also accessible across all levels of society. While San Antonio continues to face challenges such as a high poverty rate, Councilwoman Gavito believes that coding and programming can act as an equalizer, offering individuals a chance to improve their lives. Learning coding, which can be done from home, provides an alternative pathway to good jobs, bypassing for some the need for a traditional college degree.

To harness the benefits of the tech industry for the San Antonio community, policymakers must ensure that communities have clear pathways to this industry.Councilwoman Gavito stressed that expanding internet access across San Antonio is critical to enabling more people to participate in the tech economy. Furthermore, investing in the local workforce is crucial, and leaders should take particularly care to ensure that that this tech talent pool is both diverse and inclusive. Drawing from her own experience as a woman in tech, Councilwoman Gavito advocated for equal access to training for both men and women, and pointed to institutions like the University of Texas at San Antonio as a major resource in ensuring tech skills are accessible for all.

To support San Antonio’s burgeoning tech industry, the city must create an environment that both fosters and attracts talent. Crucially, Councilwoman Gavito advocated for the city to focus on attracting a "creative class of workers.” As she defined it, creative workers are the ones who foster ideas that drive the technology sector, and these innovators not only drive the tech industry but also create numerous job opportunities in other sectors. A single tech worker, Councilwoman Gavito pointed out, can bring many other job opportunities with them from the demands created by a growing tech sector. A significant part of attracting talent and encouraging business activity is ensuring that the city can provide core services — from education to upskilling and retraining — while addressing issues like public safety and crime.

As the discussion concluded, the panelists reflected on the importance of maintaining and strengthening the Texas-Mexico relationship in the face of rising political tensions around free trade. While tariffs and protectionist policies create challenges, there are still abundant opportunities to build on this partnership, particularly through the tech sector. Looking ahead, both Texas and Mexico must invest in their infrastructure, workforce, and innovation to ensure this relationship continues to thrive, delivering prosperity and stability to both sides of the border.