Since the passage of the NAFTA trade agreement in 1994, trade has been big business in the Lone Star State. Last year Texas exports accoun ted for some $112.4 billion in business, an astounding 12.6 percent growth from the previous year. "This phenomenal growth of exports benefits Texas in the form of new job growth and business expansion," says Jeff Moseley, executive director of the Texas Dept. of Economic Development.
      Mexico is the destination of 46 percent of all Texas exports. Last year, Texas exports to Mexico grew by more than $10 billion to a new annual record of $52 billion. Texas officials agree that the cross-border trade is now a vital and integral part of the Lone Star State's economy. "These numbers point to the importance of positive trade relations with Mexico and close relationships with Mexican officials," adds Moseley.
      In consideration of the huge importance of the flow of goods between the Lone Star State and Mexico, Gov. Rick Perry proposed in his budget a $30 million border transportation initiative. Upon voter approval, a bond program would be established to fund a border road program. Lines at border crossing areas are always long, and Texas officials hope to speed up the process with new automated systems. Texas Sen. Eddie Lucio, D-Brownsville, has proposed increasing border efficiency by including Texas' ports-of-entry into the Texas Dept. of Transportation funding and planning process. Lucio also has proposed providing greater funding to the border region and to direct the Texas Dept. of Transportation adjust its funding formulas to take into consideration certain fluctuations in international traffic.
      The majority of exports to Mexico are electronic equipment and industrial machinery components. Many of these items are assembled into other products in Mexico and shipped back across the border. Texas border communities have benefited with investments in distribution-warehousing and manufacturing. "Our goal is not only to increase the exports and sales of existing companies but also to assist communities in attracting new investment and relocation prospects to their areas," says J. Armando Garza, a trade adviser with the Texas Dept. of Economic Development.
      Penske Logistics opened early this fall an additional 100,000 sq.-ft. (9,290 sq.-m) distribution center in Los Indios, west of Brownsville. Penske had opened early this summer a 208,000-sq. ft. (19,323-sq.-m) center. The new space will handle distribution and management of Panasonic's manufacturing operations in Mexico. "This capability," says Dave Topp, national account executive with Penske, "enables us to provide valuable services to customers doing business along the international border."
      Within the next 15 years, Texas and Mexican officials predict a "seamless" border, in which gas, electricity and data will flow. Firms are hoping to capitalize on this growing trade and investment. Texas officials recognize the importance of developing new relationships with the Mexican government. In March, the Texas Railroad Commission opened dialogues with the Mexican Comision Reguladora de Energia to address these issues. "There are enormous economic opportunities for Texas in Mexico, and likewise, for Mexico in Texas," says Charles R. Matthews of the Texas Railroad Commission. "Establishing this relationship will be very productive for the state of Texas and to companies interested in doing business with Mexico."