BiNATIONAL BORDER ECONOMIC DEVELOPMENT Action Plan

BiNATIONAL BORDER ECONOMIC DEVELOPMENT (BiNED) ACTION PLAN An ECONOMIC BORDER WALL for TRANSORMING OUR BORDER ECONOMY From Brownsville to McAllen and Reynosa to Matamoros

Regional Economic Context Largely a factor driven/pass-through (low value added) economy Amongst the lowest Per Capita Income in the US Amongst the lowest education levels in the State Lagging in competitiveness Fastest population growth rate in the State over the next 35 years (Texas Water Development Board)

Implications Will need more streets, more water, more jobs, more schools How will we pay for these needs? Even more importantly, if trends continue: More unemployment Lower wages and productivity More government dependency Continued insecurity and illegal immigration not only along the US- Mexico border but throughout the State

Rio South Texas Region at a Crossroads Rio South Texas Region at a Crossroads Quality of Life Inadequate Infrastructure High Unemployment & Low Wages Inadequate Healthcare Increasing Crime Leadership Foster a Regional Binational Community Leverage Assets Open to Innovation & Entrepreneurship Education & Training High Drop Out Rates Dead End Careers Little Post-Secondary Education Business & Industry Emphasize Education & Knowledge Asset Invest in Knowledge-Based Industries Binational Technology Entrepreneurship & Career Development Create Wealth Towards Regional & Binational Decline Towards Regional & Binational Prosperity Education & Training Enhanced Education Access More Graduate Degree Programs Research & Development Business & Industry Emphasize Land & Physical Assets Dependent on Tourism & Service Industries Limited Career Growth Quality of Life Leadership Promote Competition between Communities Colonialism Mentality which Resists Outside Input Infrastructure Serves the Population Recruit, Grow, and Retain Talent Civic and Social Entrepreneurship Innovative Healthcare Systems Shared Prosperity From: IC2

Path Forward BiNED Initiative CREATES INTEGRATED ECONOMIC REGION from Brownsville to McAllen, to Reynosa to Matamoros BASED on a world class ADVANCED/INTELLIGENT MANUFACTURING Cluster FEATURES BiNED INTERNTATIONAL Manufacturing FREE TRADE ZONES CHANGES DIALOGUE of the BORDER and MEXICO SECURE to SECURE AND PROSPEROUS BORDER BARBARIANS as the GATE to BUSINESS PARTNERS BORDER WALL to ECONOMIC DEVELOPMENT WALL

Why Advanced Manufacturing? Supporting Trends Reshoring and nearshoring of manufacturing back to North America Wages vis- -vis China Shipping time Intellectual property rights Mass customization/Time to market Shared manufacturing platform Brexit: From globalization to smaller continental/regional economies NAFTA Economy self sustaining global leader

Challenge: Reshoring mostly going to interior. But Timing is Right for the Border INTEGRATED Economic Regions are the FUTURE BiNED creates the SCALE needed to create an effective regional economy NO BETTER PLACE to bring together the Best of the US and Mexico than on THE BORDER Innovation: Engineering/R&D and Manufacturing under one roof Integrated Culture Binational, bilingual and bicultural Low cost utilities, energy and logistics Location, location, location BiNED Zones Existing Pre-Inspection Pilot Programs Nuevo Laredo Dual Customs Airport Foxcon Facility in Chihuahua

BiNED Strategy: A Single Economic Development Plan for the BiNED Region ECONOMIC DEVELOPMENT PLAN MATRIX: Creating a COMPETITIVE BORDER REGION Retention and Evolution of Existing Firms Recruit Outside Firms Build New Companies Competitive Factors Technology Talent/Education Capital/Business climate Infrastructure Leadership (public and Private) Quality of life/Security

COMPETITIVENESS GOAL: Provide A TOTAL OPERATING COST VALUE PROPOSTION vis- -vis other regions Security Leadership Infrastructure Capital Talent Technology Total Operating Cost Region Site 1 Region Site 2 Region Site 3 Competitiveness is not just about low labor costs, or short waiting times at bridges and lower border crossing transaction costs

BiNED strategy 1: Leadership Collaborative private and public sector structure: BiNED Coordinating Board (501(c)(3)) BiNED Academia Research/ Education/ Training Public Sector Support Groups Private Sector BiNED Manufacturing Alliance/Council (501(c)(6)) Leadership Institute

BiNED Strategy 2: Talent/Technology Employers BiNED Strategy: Education/Technology University/ R&D Facilities SINGLE COORDINATED WORKFORCE training program for the entire BiNED region Entrepreneurship/Incubation programs Internship/Apprenticeship programs Network of University R&D/Technical Education facilities Educational Path with multiple career pathways Bottom Line: World Class Educational Training Program Technical Colleges ISD

BiNED Strategy 3: Infrastructure Create a low cost-high service efficiency water, energy and transportation binational infrastucture system Regional/Binational water/wastewater facilities and planning Regional/Binational energy facilities and planning Regional/Binational transportation facilities and planning

BiNED Strategy 4: Capital/Business Climate Credit enhancements for border projects Tax credits for border manufacturing projects Tax credits for private R&D facilities on the Border Binational Free Trade Innovation Zone (Engineering/R&D under same roof as manufacturing line) Innovation driven: Best of the US and Mexico under one roof I N T E R N A T I O N A L B R I D G E U.S. Manufacturing facility I n t e r m e d i a te G o o d s U.S. Port of Entry Mexican Customs Preclearance S e r v i c e s Rio Grande River Mexican Manufacturing Facilities Mexican Port of Entry U.S. Customs Preclearance BiNED International Free Trade Zone

Next Steps Finalize BiNED Coordinating Board bylaws and funding mechanism Manufacturing Summit Complete BiNED Supply Chain Integration Study/Economic Development Plan Initiate legislative efforts and seek support for: BiNED Workforce development strategy BiNED International MSA BiNED Leadership Institute BiNED University R&D facilities BiNED International (manufacturing) Free Trade Zone

Rio South Texas Region at a Crossroads Rio South Texas Region at a Crossroads Quality of Life Inadequate Infrastructure High Unemployment & Low Wages Inadequate Healthcare Increasing Crime Leadership Foster a Regional Binational Community Leverage Assets Open to Innovation & Entrepreneurship Education & Training High Drop Out Rates Dead End Careers Little Post-Secondary Education Business & Industry Emphasize Education & Knowledge Asset Invest in Knowledge-Based Industries Binational Technology Entrepreneurship & Career Development Create Wealth Towards Regional & Binational Decline Towards Regional & Binational Prosperity Education & Training Enhanced Education Access More Graduate Degree Programs Research & Development Business & Industry Emphasize Land & Physical Assets Dependent on Tourism & Service Industries Limited Career Growth Quality of Life Leadership Promote Competition between Communities Colonialism Mentality which Resists Outside Input Infrastructure Serves the Population Recruit, Grow, and Retain Talent Civic and Social Entrepreneurship Innovative Healthcare Systems Shared Prosperity From: IC2