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Session 3 – Laredo Panel: Maria Eugenia Calderon Porter, Asst. VP Global Initiatives, Texas A&M International University, Dr. Federico Schaffler, Foreign Trade Administrator, Laredo Airport, and Carmen Dickinson, Assist. Center Director, Centers Of Excellence,
Written and edited by: The Better Future Institute’s Civic Tech Scholars
The Civic Tech Scholars, a program by the Better Futures Institute, hosted a panel discussion with experts from Laredo to explore the complex relationship between international trade and local development. Laredo, as one of the largest land ports of entry between the U.S. and Mexico, plays a critical role in facilitating trade between the two countries. The panel focused on the challenges and opportunities arising from Laredo's strategic position as a trade hub, with particular attention to issues related to logistics infrastructure, supply chain management, and cross-border economic collaboration.
As Laredo continues to grow in importance as a key player in U.S.-Mexico trade, understanding its economic and logistical challenges is essential for sustainable development. This white paper provides an overview of the key themes discussed during the panel and offers actionable recommendations based on the insights provided.
These white papers represent the first step in a collaborative research initiative aimed at gathering feedback from multiple stakeholders in Laredo. The process began with the formulation of deeper questions based on key themes identified during discussions. Small groups at the panel compiled core insights, proposed promising courses of action for Laredo’s economic development and trade facilitation, and highlighted critical challenges the region still faces.
The next phase in this research initiative involves developing a consultation plan to engage Laredo stakeholders and community members. This plan will include conducting surveys, community meetings, and developing online platforms to gather feedback that will inform future policy recommendations and guide further research.
The importance of logistics and supply chain management was a central theme of the panel discussion. As one of the busiest land ports in North America, Laredo plays a critical role in the movement of goods between the U.S. and Mexico. The panel highlighted the need for significant infrastructure improvements to ensure that supply chains operate efficiently and remain resilient to disruptions such as customs delays, outdated facilities, and increased inspections tied to shifting border policies.
This urgency is underscored by the scale of operations at Port Laredo: approximately 4 million trucks a year cross the border, about 14,000 commercial trucks each day, making it the largest inland port in the U.S.-Mexico Border (Texas Think Global, 2017). Reflecting this volume, a 2024 report by the Laredo Economic Development Corporation noted that trade at Port Laredo was valued at $87.03 billion, an increase of 8.90 percent through March, with trade with Mexico rising 8.69 percent to $84.73 billion.
Key Opportunity: Enhancing infrastructure at key points such as the World Trade Bridge and Laredo-Colombia Solidarity Bridge can reduce traffic congestion and improve trade efficiency. Expanding lanes and improving hazard safety systems are essential steps to managing increased truck traffic.
The panel emphasized the importance of cross-border economic development programs to foster economic growth on both sides of the U.S.-Mexico border. Programs that boost trade activities and develop industries in border regions are critical for enhancing economic resilience and mutual growth.
This point is supported by a study from the Wilson Center (2015), which found that the existence and continuing participation of bilateral, federal, and border-wide institutional development programs in the border economic arena is, and will continue to be, critically important for a region that functions as a facilitator for half a trillion dollars in NAFTA trade.
The long-term impact of such agreements is evident: because of NAFTA and the USMCA, regional trade increased sharply over the treaty’s first two decades, from roughly $290 billion in 1993 to more than $1.1 trillion in 2016. Cross-border investment also surged during this period, with U.S. foreign direct investment (FDI) stock in Mexico rising from $15 billion to more than $100 billion (Council on Foreign Relations, 2020).
Key Opportunity: Expanding cross-border economic programs, such as the development of twin plants and centers of excellence, can improve collaboration between industries on both sides of the border and create a more resilient economy.
Sustainable development was identified as a crucial consideration for Laredo's future growth. As infrastructure is expanded to meet the demands of increasing trade, adopting sustainable construction methods can reduce environmental impact and ensure long-term economic stability.
The urgency of this shift is reflected in data from the UN Environment Programme, which reported in 2022 that construction activities contribute 21% of global greenhouse gas emissions. They’re also responsible for 34% of global energy use and 37% of process-related carbon emissions.
In response to these challenges, Laredo has made significant progress in sustainable development, with initiatives like the construction of industrial-sized warehouses using sustainable materials to support the trucking and logistics industries.
Key Opportunity: Laredo can serve as a model for sustainable infrastructure development by integrating green building practices into future projects, reducing environmental strain while meeting the demands of a growing trade hub.
The regulatory environment plays a pivotal role in facilitating or hindering trade. The panel discussed the need for updated policies and regulations that support trade efficiency and address the evolving needs of industries on both sides of the border.
One example of such policy advancement is the USMCA labor provision agreement. According to the Bureau of International Labor Affairs, the agreement prioritizes labor obligations by including them in the core of the agreement and making them fully enforceable, greatly benefitting American workers and businesses by holding Mexican manufacturers to the same labor standards as employers in the United States, supporting trade efficiency across the border.
Key Opportunity: By analyzing and updating policies related to customs, transportation, and wages, Laredo can strengthen its position as a key player in international trade and improve the well-being of workers in the region.
The use of advanced technology in customs clearance and border control processes is essential for reducing bottlenecks and improving the speed and security of cross-border trade. The panel highlighted Laredo’s success in integrating Free and Secure Trade (FAST) lanes and the use of hazard safety systems on the World Trade Bridge as examples of technological advancements that enhance trade efficiency.
Supporting this, the U.S. General Services Administration notes that the implementation of FAST lanes for pre-vetted commercial vehicles will speed the flow of traffic and reduce wait times by diverting pre-approved, low-risk commercial carriers to the newly designated lanes for expedited processing.
The scale and effectiveness of these technological efforts are further underscored by KGNS’ news report on the World Trade Bridge, which states that the bustling port has emerged as the nation’s premier trade hub for the first time, boasting over $300 billion in trade with the world.
Key Opportunity: Investing in further technological integration, such as AI-based cargo inspection and blockchain systems for customs documentation, can reduce delays and improve the security of cross-border transactions.
Laredo has already implemented several promising practices to address the challenges of international trade and local development:
Despite these promising practices, Laredo faces significant challenges in managing the impact of international trade on local development. The panel discussion highlighted several critical challenges:
The panel emphasized the culture of consumerism in the United States, which places immense pressure on Laredo’s infrastructure and resources. The increasing demand for consumer goods strains supply chains and causes resource exhaustion.
Panelists discussed the need for consumer responsibility in making ethical purchasing decisions. Consumers often overlook the consequences of their purchases, including child labor, unsafe working conditions, and wage disparities.
Although USMCA has set wage requirements for certain industries, such as the automotive sector, wage disparities remain between U.S. and Mexican workers. The panel emphasized that despite USMCA provisions, wage increases in Mexico have not been as substantial as expected.
Water shortages in the Rio Grande Valley are a growing concern. The Amistad Reservoir has seen record-low water levels, exacerbating water access issues for both agricultural and industrial uses.
The panel expressed concerns about potential political shifts, particularly with the upcoming U.S. presidential election. Policies related to tariffs, trade agreements, and immigration could directly affect Laredo’s role in U.S.-Mexico trade.
Laredo should prioritize investments in logistics infrastructure to support the rising demands of international trade. Expanding the World Trade Bridge and improving hazard safety systems are key steps to managing increased truck traffic and ensuring efficient cross-border movement of goods.
Strengthening cross-border programs, such as twin plants and centers of excellence, will improve economic resilience and create mutual growth opportunities for industries on both sides of the U.S.-Mexico border.
Laredo should continue to adopt sustainable development practices in its infrastructure projects to reduce environmental impact and ensure long-term viability. Implementing green construction techniques will help mitigate the environmental strain from growing trade activities.
Investing in technology such as AI-based customs inspection systems and blockchain for customs documentation will reduce delays and improve the security of cross-border trade processes, benefiting both businesses and government agencies.
Laredo should advocate for stronger enforcement of USMCA wage provisions and promote consumer education campaigns to encourage ethical purchasing decisions, particularly in industries with known labor exploitation risks.
Laredo’s position as a major hub for U.S.-Mexico trade presents both significant opportunities and complex challenges. By investing in logistics infrastructure, fostering cross-border economic programs, adopting sustainable practices, and improving technological integration, Laredo can strengthen its role in international trade while ensuring sustainable local development. The insights from the Laredo Panel discussion provide a roadmap for addressing these challenges and building a more resilient, efficient, and equitable future for Laredo and its surrounding regions.
