· · · · · ·ADVISORY COMMITTEE MEETING - OCTOBER 23, 2018 ·1
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·4· · · · · · · · · · · TRANSCRIPTION OF
·5· · · · · · ·TEXAS DEPARTMENT OF TRANSPORTATION
·6· · · · · ·BORDER TRADE ADVISORY COMMITTEE MEETING
·7· · · · · · · · · TUESDAY, OCTOBER 23, 2018
·8· · · · · · · · · · · · · 9:00 A.M.
·9· · · · · · · · · · · ·GREER BUILDING
10· · · · · · · · · · 125 EAST 11TH STREET
11· · · · · · · · · · ·AUSTIN, TEXAS 78701
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25· REPORTED BY:· PAIGE S. WATTS, TEXAS CSR NO. 8311 · · · · · ·ADVISORY COMMITTEE MEETING - OCTOBER 23, 2018 Page 2 Page 4 ·1· · · · · · · · · · · · ·APPEARANCES ·1· · · · · · · · · · · ·MEETING AGENDA ·2 ·2· 9:00 to 9:10 - Welcome and Introductions ·3· 9:10 to 9:15 - Adoption of July 24, 2018, Meeting ·3· ADVISORY COMMITTEE MEMBERS PRESENT: · · · · · Minutes ·4· Texas Secretary of State Rolando Pablos, Chair ·4 ·5· Rafael Aldrete, Texas A&M Transportation Institute · · 9:15 to 10:15 - United States-Mexico-Canada Agreement ·6· Julian Alvarez, III, Texas Workforce Commission ·5· · · · (USMCA) ·6· 10:15 to 11:00 - Texas-Mexico Border Transportation ·7· Jon Barela, Borderplex Alliance · · · · · Master Plan ·8· Luis Bazan, Pharr International Bridge ·7 ·9· Gabriel Gonzalez for Chris Boswell, Harlingen MPO · · 11:00 to 11:15 - Texas-Mexico Border Strategic 10· Eduardo Campirano, Port of Brownsville ·8· · · · Transportation Blueprint U.S.-Mexico Joint Working 11· Linda De La Fuenta for Andrew Canon, Hidalgo MPO · · · · · Committee (JWC) ·9 12· Ramsey Cantu, City of Eagle Pass · · 11:15 to 11:45 - Committee Membership 13· Paul Cristina, BNSF Railway 10 14· Juan Antonio Flores, Port San Antonio · · 11:45 to 12:00 - Open Discussion - Future Meeting Topics 15· Josue Garcia, Cameron County International Bridge System 11· · · Texas Transit Statistics Report. (Action) 12· 12:00 - Adjourn 16· Jake Giesbrecht, Presido International Port Authority 13 17· Lisa Loftus-Otway, UT-Center for Transportation Research 14 18· Bruno Lozano, City of Del Rio 15 19· Ivan Jaime for Brenda Mainwaring, Union Pacific Railroad 16 20· Alfonso Vallejo for Tony Martinez, Brownsville MPO 17 18 21· Jose Landeros for Vincent Perez, Guadalupe-Tomillo POE 19 22· Jesus Reyna, Donna International Bridge 20 23· Henry Sauvignet for Gerry Schwebel, IBC Bank 21 24· Paul Stresow, El Paso International Bridge System 22 23 25· Tommy Taylor, Fasken Oil and Ranch LTD 24 · · · · · ·ADVISORY COMMITTEE MEETING - OCTOBER 23, 2018 25
Page 3 Page 5 ·1· · · · · · · · · · · · ·APPEARANCES ·1· · · · · · · · ·CHAIRMAN PABLOS:· Let's get started, ·2 ·2· please.· Good morning, everyone.· The time is 9:03.· At ·3· ADVISORY COMMITTEE MEMBERS PRESENT: ·4· Sam Vale, Starr-Camargo Bridge Company ·3· this time, I would like to call today's meeting of the ·5· Juan Olaguibel for Rigoberto Villareal, Anzalduas ·4· BTAC to order.· I would like to first and foremost just · · · ·International Bridge ·5· take up the adoption of the minutes, and then we'll -- ·6 ·6· I'll have some comments, some introductory comments. · · Roger Williams, El Paso MPO ·7· · · · · · · · ·Did everyone receive the minutes from the ·7 · · Claudia Lagos, State of Tamaulipas ·8· last meeting?· Does anyone have any comments, ·8 ·9· suggestions, changes? · · Roberto Russildi, Nuevo Leon, Mexico 10· · · · · · · · ·Hearing none, I would like to entertain a ·9 11· motion to adopt the minutes from our July 24th meeting. 10 12· · · · · · · · ·MR. GARCIA:· Move to approve. 11· TxDOT EMPLOYEES PRESENT: 12· Timoteo Juarez, Jr. 13· · · · · · · · ·CHAIRMAN PABLOS:· So moved. 13· Peter Smith 14· · · · · · · · ·MR. VALE:· Second. 14· Caroline Mays 15· · · · · · · · ·CHAIRMAN PABLOS:· Second.· Any further 15· Commissioner Alvin New 16· discussion on this item? 16 17· · · · · · · · ·Hearing none, I would like to take this 17 18· up for a vote.· All those in favor, please signify by 18· BY TELEPHONE: 19· Ambassador Carlos Gonzalez Gutierrez 19· saying aye. 20 20· · · · · · · · ·(Chorus of ayes) 21 21· · · · · · · · ·CHAIRMAN PABLOS:· Any opposed? 22 22· · · · · · · · ·Okay, that carries.· Thank you. 23 23· · · · · · · · ·MR. VALE:· Mr. Secretary, I did read 24 25 24· them.· They didn't come to us until -- · · · · · ·ADVISORY COMMITTEE MEETING - OCTOBER 23, 2018 25· · · · · · · · ·CHAIRMAN PABLOS:· I know.· Look, we're Page 6 Page 8 ·1· going to endeavor to do -- ·1· · · · · · · · ·MR. RUSSILIDI:· My name is Roberto ·2· · · · · · · · ·MR. VALE:· But they are important, so I ·2· Russilidi, Secretary of Economy and Labor for the State ·3· did read it. ·3· Nuevo Leon, Mexico.· I've been only three months in the ·4· · · · · · · · ·CHAIRMAN PABLOS:· Well, thank you for ·4· position.· Previously, I was Secretary for State of ·5· taking a look at them at the last minute.· That is ·5· Nuevo Leon, Development. ·6· certainly something that we need to work on in getting ·6· · · · · · · · ·MR. GOTES:· My name is Gerardo Gotes, ·7· these minutes out to you a little sooner.· Did you find ·7· Secretary of Infrastructure of the State of Coahuila. ·8· anything that wasn't factual, Sam, or -- ·8· Thank you for this second invitation, Secretary. ·9· · · · · · · · ·MR. VALE:· No. ·9· · · · · · · · ·MS. LAGOS:· Hello.· Good morning, 10· · · · · · · · ·CHAIRMAN PABLOS:· -- all good? 10· Mr. Secretary.· Thanks for the invitation.· Claudia 11· · · · · · · · ·MR. VALE:· No.· In fact, they were very 11· Lagos representing the State of Tamaulipas. 12· factual. 12· · · · · · · · ·MR. VALE:· Sam Vale, Starr-Camargo Bridge 13· · · · · · · · ·CHAIRMAN PABLOS:· Okay, good.· Well, 13· Company.· The smallest and most progressive bridge on 14· thank you very much, and we'll work on that.· You know, 14· the border.· The only one in Texas that's got real 15· it's been a crazy last few months, especially at TxDOT; 15· unified cargo processing, 100 percent.· That's the 16· and so please bear with us as we try to get these 16· commercial. 17· minutes out to you-all.· But we'll do a better job next 17· · · · · · · · ·MS. LOFTUS-OTWAY:· I'm Lisa Loftus-Otway 18· time. 18· with the Center for Transportation Research. 19· · · · · · · · ·So good morning, everyone.· You know, I'm 19· · · · · · · · ·MR. CAMPIRANO:· Good morning, everyone. 20· really happy today because, you know, as I've been 20· Eduardo Campirano, Port Director and CEO, Port of 21· saying for many months -- actually, since I started as 21· Brownsville. 22· Secretary of State -- that we need to really, really 22· · · · · · · · ·MR. STRESOW:· Good morning.· Paul 23· focus on working as a region, Texas-Mexico, especially 23· Stresow, City of El Paso International Bridges. 24· as it relates to trade and infrastructure.· And in 24· · · · · · · · ·MR. REYNA:· Good morning.· This is Reyna 25· working with the TxDOT Commissioners and staff, we have 25· with the Donna International Bridge, Bridge Director.
Page 7 Page 9 ·1· tried to figure out a way where we can institutionalize ·1· · · · · · · · ·MR. ALDRETE:· Rafael Aldrete with the ·2· the concept of regional binational collaboration, ·2· Texas A&M Transportation Institute in El Paso. ·3· cooperation, and coordination.· This is, I think, the ·3· · · · · · · · ·MS. DE LA FUENTE:· Good morning, ·4· first time where we actually now have official ·4· everybody.· Linda De La Fuente with Hidalgo County MPO, ·5· representation from all four states and today, we have ·5· on behalf of Andrew Canon. ·6· Secretaries from each state -- chihuahua, Coahuila, ·6· · · · · · · · ·MR. GONZALEZ:· Good morning.· Gabriel ·7· Nuevo Leon, and Tamaulipas -- with us today.· And so I'm ·7· Gonzalez here representing Mayor Boswell. ·8· honored to receive the Secretaries because the hope is, ·8· · · · · · · · ·MR. GARCIA:· Good morning.· Josue Garcia ·9· is that they will become part of this committee.· You ·9· with Cameron County Bridge System. 10· know, we'll talk a little bit a later on about the 10· · · · · · · · ·MR. GIESBRECHT:· Good morning.· My name 11· efforts of expanding this committee, adding members of 11· is Jacob Giesbrecht.· I'm with PIPA, Presido 12· various industries, and also adding members from the 12· International Port Authority. 13· Mexican government, both at the State and Federal level. 13· · · · · · · · ·MR. BAZAN:· Good morning, Mr. Secretary, 14· · · · · · · · ·So at this time, I would like to do this 14· members of the committee.· Luis Bazan, Pharr 15· very quickly.· If we could just go around the table and 15· International Bridge Director. 16· make some self introductions, I would appreciate it. 16· · · · · · · · ·MR. CRISTINA:· I'm Paul Cristina, BNSF 17· And I would like to ask Secretary Alejandra de la Vega 17· Railway. 18· and Secretary of Russilidi for the State of Chihuahua to 18· · · · · · · · ·MR. BARELA:· Good morning.· Jon Barela, 19· please start. 19· CEO of the Borderplex Alliance Group. 20· · · · · · · · ·MS. DE LA VEGA:· Thank you, Rolando. 20· · · · · · · · ·MR. ALVAREZ:· Good morning, everyone.· My 21· · · · · · · · ·Alejandra de la Vega, Secretary of 21· name is Julian Alvarez.· I'm with the Texas Workforce 22· Innovation and Economic Development for the State of 22· Commission. 23· Chihuahua.· And I just want to thank you for the 23· · · · · · · · ·MR. LANDEROS:· Good morning, Mr. Chair, 24· opportunity to be here and share some ideas and 24· members of the committee.· Jose Landeros with El Paso 25· thoughts. 25· County, the County's Director of Planning and Page 10 Page 12 ·1· Development, sitting in for Commissioner Vince Perez. ·1· in getting out there.· They invest a lot of their own ·2· · · · · · · · ·MR. VALLEJO:· Good morning.· Alfonso ·2· personal resources/corporate resources to be in the mix, ·3· Vallejo, Brownsville MPO, on behalf of Mayor Martinez, ·3· to be part of the NAFTA negotiations not only with Jose ·4· Brownsville, Texas. ·4· (foreign language), but also with the U.S. Chamber and ·5· · · · · · · · ·MR. OLAGUIBEL:· Good morning, Juan ·5· all of the related entities.· And so at this time, what ·6· Olaguibel, Anzalduas International Bridges and the ·6· I had asked Gerry and Henry to do is to give us a brief ·7· McAllen-Hidalgo International Bridges, on behalf of Rigo ·7· presentation of what this new NAFTA looks like -- ·8· Villareal. ·8· whatever name they're going to ultimately give it -- you ·9· · · · · · · · ·MR. WILLIAMS:· Good morning.· Roger ·9· know, if we can just have a general sense of it.· I know 10· Williams, Interim Executive Director with the El Paso 10· that each of you has followed this with great interest; 11· MPO. 11· but I thought that having a presentation would get us 12· · · · · · · · ·MR. TAYLOR:· Good morning.· Tommy Taylor 12· all on the same page and after a meaningful discussion, 13· with Fasken Oil and Ranch in Midland, Texas. 13· we can identify areas where we can recommend to Governor 14· · · · · · · · ·MR. SAUVIGNET:· Henry Sauvignet with IBC 14· Abbott to look into, if that's needed.· And so I would 15· Bank, here representing Gerry Schwebel. 15· like to hand the mic over to Henry Sauvignet. 16· · · · · · · · ·MAYOR LOZANO:· Good morning, everybody. 16· · · · · · · · ·MR. SAUVIGNET:· Thank you very much, 17· Mayor Lozano from Del Rio, Texas. 17· Mr. Secretary.· Good morning, everyone. 18· · · · · · · · ·MR. JUAREZ, JR.:· Good morning.· Tim 18· · · · · · · · ·So, again, apologies from Gerry Schwebel. 19· Juarez with TxDOT, Freight and International Trade. 19· He's in Mexico City right now.· In fact, he's rarely in 20· · · · · · · · ·MR. SMITH:· My name is Peter Smith, 20· Texas nowadays because he's usually in Washington or 21· Director of Transportation Planning and Programming at 21· Mexico City or Canada, keeping abreast and participating 22· TxDOT. 22· in what we're doing in terms of NAFTA and its evolution 23· · · · · · · · ·MS. MAYS:· Caroline Mays with TxDOT, and 23· and it moving to the next steps.· He's there right now 24· welcome. 24· with the Border Trade Alliance working on a couple of 25· · · · · · · · ·CHAIRMAN PABLOS:· Well, thank you.· It 25· updates and providing information to individuals about
Page 11 Page 13 ·1· looks like we have a quorum.· Is that correct, Caroline? ·1· an important meeting that occurred two weeks ago in ·2· · · · · · · · ·MS. MAYS:· Yes. ·2· Washington and that's the U.S. Chamber of Commerce's CEO ·3· · · · · · · · ·CHAIRMAN PABLOS:· Okay.· Well, thank you. ·3· dialogue meeting in which 25 CEOs from the United States ·4· · · · · · · · ·I would like to make special mention of ·4· and 25 CEOs from Mexico, meet to discuss and comment on ·5· not only a great leader, but a very good friend ·5· issues related in this case to NAFTA 2.0, so to speak, ·6· representing the Mexican government here in Austin, ·6· and its future and what comments the private sector has ·7· Ambassador Carlos Gonzalez Gutierrez.· So, Ambassador, ·7· related to the discussions. ·8· thank you for everything that you do.· Thank you for our ·8· · · · · · · · ·Let me see if I can get a -- if you can ·9· friendship.· Thank you for what you do for your ·9· go ahead and move it to the next slide.· Thank you. 10· community. 10· · · · · · · · ·This is just for illustrative purposes; 11· · · · · · · · ·There are 11 consuls in Texas.· We 11· but I think it's important to show how, you know, 12· have -- from the State of Texas, we have an excellent 12· recent -- and we call it recent political history in 13· relationship with each of them.· We're working together 13· terms of international trade -- where we see the various 14· on many different topics.· The Ambassador and I get 14· agreements from the 1930s forward and how it moves in 15· together on a regular basis and discuss relevant topics 15· terms of the United States' participation in 16· as they relate to not only our diplomatic relationship 16· international trade.· You know, most of the chart -- 17· with Mexico, but also our commercial relationship with 17· 1930 to about the 1970s -- is the first little part, but 18· Mexico. 18· you can see it begins to increase in velocity in terms 19· · · · · · · · ·So, Ambassador, thank you for being here 19· of the activities of what's going on after -- in about 20· today.· I really appreciate it. 20· 1984.· Where in '86, you see that Mexico joins GATT. 21· · · · · · · · ·Okay.· So without further ado, what I'd 21· Then in '89, there's a Canada/U.S. Free Trade Agreement 22· like to do is move on to the next item.· I had asked 22· that Uruguay Round in '93, NAFTA in '94.· GATT is 23· Gerry Schwebel and Henry Sauvignet -- given that they 23· replaced by the World Trade Organization in '95, 24· are really our point on any and everything related NAFTA 24· etcetera, etcetera, all the way to 2017 when the new 25· negotiations.· You know, IBC Bank does a tremendous job 25· NAFTA talks begin. Page 14 Page 16 ·1· · · · · · · · ·And I'm going to make this presentation ·1· direction. ·2· from the point of view of the private sector.· We hear a ·2· · · · · · · · ·And most importantly the very last one is ·3· lot in terms of participation and discussion from the ·3· engaging the private sector.· So if you imagine all ·4· government's point of view and the interests that ·4· discussions occurred -- let me describe three rings, if ·5· governments are trying to protect and promote; but also ·5· you will.· So, you know, you have the U.S. trade ·6· what was of a great concern in the United States, in ·6· representatives and the representatives from the Federal ·7· particular, was that the private sector have a strong ·7· governments all discussing the subject and having a ·8· and active voice in the development of the next ·8· point of view of what they were working with.· When they ·9· iteration of NAFTA. ·9· reached certain points in discussions and ideas that 10· · · · · · · · ·So if I could ask you to go to the next 10· they were working on, then they would consult with the 11· slide, please? 11· professionals or the cabinet members or the various 12· · · · · · · · ·And so here are private sector 12· government organizations that were experts in those 13· objectives.· There were a few private sector objectives 13· areas that were being discussed. 14· in the process.· One was to make sure that NAFTA 14· · · · · · · · ·Then the third ring, if you will, was a 15· remained a trilateral trade agreement.· You'll recall in 15· private sector.· Mexico had a section there, the United 16· the news, there's quite a bit of discussion of perhaps 16· States and Canada, which then the government officials 17· maybe this evolving into two trade agreements:· One with 17· turned to and asked what-if questions.· What if this 18· the United States and Mexico and one with the United 18· implemented?· What if we tried this?· What if we propose 19· States and Canada.· And I think from the private sector 19· this?· What would be the repercussions? 20· perspective, this was not the most useful way of moving 20· · · · · · · · ·And I think this was a very important 21· forward in terms of the evolution of NAFTA.· It should 21· voice there.· IBC was very clear in trying to represent 22· remain a trilateral agreement. 22· the interests of the border -- in particular, Texas -- 23· · · · · · · · ·It was agreed, the private sector 23· in particular because as you know, the CEO dialogue, 24· 100 percent, that we needed to strengthen and modernize 24· we're talking about 25 companies that were on the CEO 25· a three-country region to successfully compete against 25· dialogue from throughout the United States.· Two banks
Page 15 Page 17 ·1· Europe and Asia.· The idea here being that as a ·1· were in this group in order to discuss financial issues: ·2· continent and as a unit, we could more effectively work ·2· Chase and IBC Bank.· So it was important that Gerry be ·3· in promoting the prosperity of three countries, the ·3· at all of these rounds to be representing the interest ·4· security of three countries; and from the private ·4· of the border because he understood the trade industry, ·5· sector's perspective, economic security equals security ·5· the cross-border crossing and things of that nature. ·6· in general.· The three countries working together also ·6· · · · · · · · ·Next slide, please. ·7· support each others security interests beyond the ·7· · · · · · · · ·So modernization of NAFTA, these were the ·8· economic sense. ·8· areas that were of concern to -- no, I'm sorry.· Could ·9· · · · · · · · ·The do-no-harm point was important in ·9· you go back one?· Back?· There. 10· that we didn't want this to be a step back.· We needed 10· · · · · · · · ·These were the areas that we were working 11· it to be a step forward and so attacking or eliminating 11· on in terms of the modernization of NAFTA:· Energy, U.S. 12· any part of the agreement that would send us moving 12· Customs, and commercial port efficiencies, 13· backward in terms of the trade and the relationship we 13· telecommunications.· If you look at environmental and 14· have -- for example, not interrupting the supply chain 14· human capital -- and I use them as an example -- you'll 15· that exists -- automotive supply chain that exists 15· recall when NAFTA was first -- the first NAFTA was 16· between Canada and the United States and Mexico. 16· passed, it had side agreements, two side agreements that 17· · · · · · · · ·Act quickly.· So we're talking about a 17· were passed that were necessary in order to get support, 18· year and a half so far.· Certainly, that's been pretty 18· Congressional support of the United States.· That was 19· quick.· I think we've just been seeing information on 19· the labor issue and the environmental issue. 20· the news over and over on the subject.· Amend the 20· · · · · · · · ·Now, this was important to the parties 21· agreement.· So it's not going to be an amendment.· It is 21· participating; but because they were side agreements, 22· going to be a new iteration; but the idea was that if we 22· they were agreements, so to speak, without teeth.· And 23· could simply amend it, then it would be easier to move 23· so what happens now in this round, in this iteration of 24· forward, but this is one that the private sector 24· NAFTA, we've incorporated the environmental and the 25· understands was not necessarily moving in that 25· labor issues into the new agreement so that now issues Page 18 Page 20 ·1· related to the environment and human capital or labor ·1· · · · · · · · ·And here is the -- this is a ·2· issues are part of the agreement itself.· They're no ·2· presentation -- the next slide, thank you.· Yes. ·3· longer outside of the agreement or a parallel agreement. ·3· · · · · · · · ·And I'm sorry if that's a little ·4· · · · · · · · ·Now, let's go to the next slide on ·4· difficult, but I can provide copies of this; but this is ·5· political climate then and now. ·5· the slide that we've introduced recently to the ·6· · · · · · · · ·This one is very illustrative in terms of ·6· discussion, which is a summary.· Obviously, there are so ·7· many people recall that back in '93, we had three ·7· many issues to discuss on NAFTA, but I wanted to ·8· Presidents or three country leaders that supported ·8· highlight a few points here of what has changed in the ·9· NAFTA.· They were in agreement that we needed to do this ·9· agreement. 10· and move things forward.· There was in United States, 10· · · · · · · · ·So let's take the first point: 11· Congressional support for this.· Just as a reminder, you 11· Automotive Parts Contents.· And what's been changed here 12· can see here in the House of Representatives, the number 12· is the percentage of content needed to qualify for zero 13· of Republicans and Democrats that voted for NAFTA and in 13· tariffs.· Under NAFTA, the old NAFTA, it was 14· the Senate, the number of Republicans and Democrats that 14· 62.5 percent that was needed to qualify for zero 15· voted in favor of NAFTA. 15· tariffs.· Under the proposed USMCA, it's 75 percent. 16· · · · · · · · ·What can truly be said, it was a 16· This is a positive for the industries in all three 17· bipartisan effort.· That's going to be the heavy lift 17· countries because you've moved up the content portion 18· this time around.· We don't know that that kind of 18· there, but the big question here was:· Would the 19· bipartisan support is there.· Why was some of that 19· automotive firms be able to meet with these 20· bipartisan support there?· You'll recall in the United 20· requirements? 21· States, President Bush initiated the process of NAFTA. 21· · · · · · · · ·I'm sure most of us have already read 22· It was concluded by President Clinton.· So you had a 22· some of the news that's come out on that subject; and in 23· Democratic and Republican support of the issue. 23· a positive move, we know that approximately 50 percent 24· · · · · · · · ·Today in 2018, we see that it's going to 24· of the automotive industry in the three countries that's 25· be a little more -- excuse me -- more difficult.· More 25· involved with the supply chain where products move up
Page 19 Page 21 ·1· difficult because of the political reality in Congress. ·1· and down between countries, almost 50 percent of the ·2· Also, our leaders -- three country leaders -- are not ·2· companies involved already meet the 75 percent content. ·3· necessarily all in agreement with the issues related to ·3· So there is another 50 percent that's going to have to ·4· NAFTA.· Although, now maybe I should update this ·4· move and change a bit to adapt, and there will be a ·5· particular slide because the leaders have come to an ·5· period of transition; but we know we're not starting ·6· agreement.· That's why we have the new agreement that ·6· from zero.· Not all the three countries or companies -- ·7· has been proposed now. ·7· the companies and the three countries were working at ·8· · · · · · · · ·I'll just briefly go to the next slide, ·8· exactly the 62.5 percent.· They had already been going ·9· the top negotiators and you can see who the top ·9· up as that moved along. 10· negotiators for the United States, Mexico, and Canada 10· · · · · · · · ·The next point is automotive labor, and 11· are.· Mexico's -- the last person in the slide on 11· here was a discussion on workers' wages.· Notice that I 12· Mexico, Jesus Seade Kuri, came in once Lopez Obrador was 12· mentioned that labor was a side agreement in the old -- 13· elected. 13· the first NAFTA.· So under this agreement -- and so 14· · · · · · · · ·Go to the next slide, NAFTA 2.0. 14· there was no labor requirement in terms of wages.· But 15· · · · · · · · ·We'll see a couple of important points 15· under USMCA, there is going to be a change that 16· here.· Trade negotiations between Canada and the United 16· 30 percent of the workers should be making 16 point -- 17· States and Mexico were successfully completed on 17· 16 plus an hour, rising to 40 percent by 2023.· This is 18· September 30th.· So the outcome represents an updated 18· believed -- this was more a demand by United States and 19· trade agreement that's an intent as an acknowledgment 19· Canada to bring the issue of what they called unfair 20· that trade has evolved in the 20-plus years since NAFTA 20· practices or a disadvantage in practice in terms of 21· came into force.· The Secretary was referring to the 21· labor.· And so Mexico has agreed, in particular to this 22· names of the NAFTA.· So in the United States, we're 22· point here, that now it's enforceable because it is 23· calling it the USMCA or the United States-Mexico-Canada 23· within the new agreement. 24· Agreement.· In Mexico, it's being called T-MEC or the 24· · · · · · · · ·Intellectual property was an important 25· Tratado-Mexico Esados Unidos Canada. 25· one, especially since NAFTA had evolved since the 1990s; Page 22 Page 24 ·1· and technologically, we hadn't necessarily moved up with ·1· · · · · · · · ·Currency manipulation was another strong ·2· those standards.· So under the old agreement, it ·2· topic there.· There was no discussion of currency under ·3· provided some broad protections; but under USMCA, it ·3· NAFTA and under USMCA.· There is a commitment.· It's not ·4· provides tougher protection for patents and trademarks ·4· a regulation.· There's not a penalty involved.· It's ·5· updated to today's economy.· This is particularly ·5· just a commitment by the three countries to maintain ·6· important in the United States to high-tech companies ·6· market-based exchange rates and also a commitment to ·7· and bio-tech companies.· In particular, bio-tech ·7· refrain from devaluations. ·8· companies that want to protect their developments and ·8· · · · · · · · ·So let's go ahead and go to the next ·9· their products. ·9· slide, next steps. 10· · · · · · · · ·Dispute resolution, so this is the 10· · · · · · · · ·So Congressional -- in the United States, 11· process to challenge another country's tariffs if you 11· Congressional approval will probably come in February or 12· have a question related to that.· You'll recall that 12· March of 2019.· There's been some talk about moving this 13· this was probably a very important point of contention 13· forward before December; but as you've heard, McConnell 14· between all three countries.· Under NAFTA, the existing 14· has -- the Senate has said that this will not be 15· Chapter 19 was ruled by a panel from each country and 15· happening.· We won't be addressing the issue until 16· it -- in a short summary, basically Chapter 19 remains. 16· February or March.· But this is not a bad thing, and it 17· The U.S. sought its elimination and Canada, in 17· gives us an opportunity to also get our ducks in order 18· particular, fought to keep it.· Mexico, if you'll 18· or in line. 19· recall, remained neutral on the subject.· It said we 19· · · · · · · · ·The second point is a private sector 20· could keep it or leave it, so you-all discuss it.· And 20· coalition is necessary to effectively promote the 21· so in the final discussion between Canada and the United 21· approval, and here is where we've done a lot of work. 22· States, it was kept in its form. 22· The governments have come quite far, but now it's a 23· · · · · · · · ·Another point that you'll probably recall 23· matter of convincing and working with the public to 24· that was important to the discussion between Canada and 24· understand that they need to support this.· I think 25· the United States, was dairy market access.· The United 25· everybody breathed a sigh of relief when we came to
Page 23 Page 25 ·1· States felt there was a restriction there in terms of ·1· agreement -- the three countries came to agreement.· But ·2· access to the market.· It had a very complex -- Canada ·2· the truth of the matter is it now requires Congressional ·3· had a very complex formula related to the percentage of ·3· approval in all three countries, and it's not going to ·4· a market it could afford, at what levels and tiers it ·4· be an easy carry.· It's going to take the private sector ·5· came in, etcetera, etcetera.· And most of this remained ·5· discussing this with their elected officials at the ·6· in place; except that under the new agreement, Canada ·6· local level, state level, and federal level to ·7· has upped the percentage of U.S. participation or able ·7· understand that this is important for business. ·8· to participate within the dairy market in Canada.· And ·8· · · · · · · · ·I always remember there's some of us that ·9· so this is seen as a positive for U.S. farmers. ·9· were around during the first NAFTA discussions.· You 10· Canadian dairy farmers are not pleased with this 10· know, at that time I was working with the City of San 11· particular point in the agreement. 11· Antonio and as part of the City of San Antonio's team, 12· · · · · · · · ·Sunset clause, so this is the idea of 12· we were rotating traveling up to D.C.· We basically had 13· reviewing the agreement every so often to decide whether 13· a team of three to four people that every week would go 14· the countries want to continue to be within the 14· up there.· There was a team of about 20, so that every 15· agreement.· There was no requirement under NAFTA.· And 15· month the group was up there walking the halls, speaking 16· under USMCA, it's agreed that this will terminate in 16 16· to Congressional leaders, etcetera.· We were teaming up 17· years if not actively renewed at meetings every six 17· with the private sector that was leading the initiative 18· years.· So basically what it is, it is a rolling review 18· and traveling the country to promote this. 19· of the agreement and if one of the countries agrees -- 19· · · · · · · · ·One of those individuals was Gerry 20· disagrees and does not want to participate within the 20· Schwebel.· Gerry Schwebel was going into what could best 21· USMCA, they can give notice and you have a six-year 21· be called "hostile" country very often.· In one meeting, 22· period to remedy the situation or then pull out of it. 22· he had tomatoes thrown at him because this was not a 23· So it makes it a little more -- it makes sunset 23· popular issue.· It was a heavy lift.· A lot of people 24· possible, a review possible; but not a pull-out, an 24· remember NAFTA romantically in some senses; but it was 25· immediate pull-out a reality. 25· not an easy lift back then, and it's not going to be one Page 26 Page 28 ·1· here.· And private sector engagement is going to be very ·1· the Secretary of State's Office to express and ·2· important in working to build coalitions.· Coalitions ·2· understand their investment in the State of Texas in ·3· that will work with the U.S. Chamber of Commerce, the ·3· terms of the billions of dollars -- not in the millions, ·4· Texas Association of Business, the Texas-Mexico Trade ·4· billions of dollars -- that these 14 major companies ·5· Coalition, and I mentioned the private sector ·5· represented in Texas in terms of investment, foreign ·6· individuals.· Obviously, we have to work with the public ·6· direct investment, job creation, and the trade that was ·7· sector on this and I'm going to mention what we've done ·7· going on. ·8· in cooperation with the State officials here; but we ·8· · · · · · · · ·Mr. Secretary, I don't know if you want ·9· talk about trade coalitions in the Business Roundtable, ·9· to add anything to the particular meeting. 10· the National Foreign Trade Council, the National 10· · · · · · · · ·CHAIRMAN PABLOS:· Well, you know, if you 11· Association of Manufacturers, and we're also working 11· look at things in context, that was during a difficult 12· with think tanks:· The Wilson Center, the Baker 12· time in the relationship, given the new President 13· Institute, the Peterson Institute, the Cato Institute, 13· stepping in; you know, uncertainty about NAFTA; talk 14· etcetera. 14· about the wall and all those things.· And so for us, it 15· · · · · · · · ·So the next few slides I would like to go 15· was very important to reach out to the private sector, 16· through are lobbying and promotion.· So we go to the 16· especially those that are invested in Texas.· I mean, 17· first -- the next slide.· You see here Gerry Schwebel 17· just in that meeting, we counted 20 billion dollars in 18· with the Mexico's Ambassador of the United States 18· investment.· I mean, Mexichem has a billion-dollar 19· Geronimo Gutierrez.· So he was head of the NAD Bank for 19· polyethylene cracker plant in Corpus and we can go on 20· a long while, where he was a friend to many of us here 20· and on.· We've got CEOs and everybody else in that 21· in Texas; and so he becomes a strong supporter and 21· photo.· And so for the Governor, it's very important to 22· strong ally in Washington, who we've been working with 22· ensure that, you know, all the rhetoric was viewed as 23· during this process. 23· just noise and not as something that could be attributed 24· · · · · · · · ·Let's go to the next slide.· We also see 24· to Texas.· And so I traveled to Mexico City several 25· Mexico's visiting with U.S. officials there.· It's not 25· times, met with (foreign language) and then we were able
Page 27 Page 29 ·1· only the United States, it's Mexico; and in that picture ·1· to lock in this meeting.· We had representatives from ·2· visiting with the Senator Cornyn, you see Moises Kalach. ·2· the U.S. side, as well.· And so, you know, all of those ·3· Moises is a strong person and a strong leader in Mexico ·3· efforts, especially at the beginning of the Trump ·4· who has been helping from the private sector perspective ·4· administration, were very important to ensure that the ·5· moving this forward in Mexico with the private sector. ·5· relationship stayed strong and that our foreign direct ·6· · · · · · · · ·We'll go to the next slide, and here is ·6· investment from Mexico continued to grow.· So that was ·7· the U.S.-Mexico CEO dialogue that we've been referring ·7· really the purpose of that. ·8· to, which was coordinated through the U.S. Chamber of ·8· · · · · · · · ·MR. SAUVIGNET:· Thank you. ·9· Commerce and includes key business leaders from the ·9· · · · · · · · ·And then the next slide shows an 10· United States and Mexico.· I'll just excuse the 10· organization that IBC works closely with, the 11· commercial; but I'll point out the bookends there are 11· Texas-Mexico Trade Coalition, which is a subdivision of 12· Dennis Nixon, IBC CEO, and Gerry Schwebel, your fellow 12· the TAB, the Texas Association of Business; and we're 13· board member, committee member. 13· working very closely here with Judge Jeff Moseley, who 14· · · · · · · · ·The next slide is Mexico CEO meeting with 14· heads TAB, and this was during one of our visits to 15· the Texas Governor's Office, and I think this was an 15· Washington in meeting with the Secretary of Commerce 16· important meeting that would not have occurred had we 16· Wilbur Ross.· It took three or four meetings in D.C. to 17· had not had the support of the Secretary of State.· So 17· discuss the issues that are related to the border, the 18· what happened at this particular meeting, which is very 18· importance of the border, what the border represented 19· key, it was early on in the process where we needed to 19· for the United States. 20· work and help convince elected officials in the State of 20· · · · · · · · ·I think we all remember that evolution 21· Texas -- and I use this in a very general term because 21· that the daunting, so to speak, that came as companies 22· there were quite a few elected officials that needed 22· and organizations and states started to realize how much 23· more information and everything -- and what IBC did, it 23· trade they actually had with Mexico and/or Canada, which 24· worked with bringing 14 CEOs from Mexico to Austin to 24· I think the general public was not as aware of and then 25· speak and meet with the Governor in coordination with 25· when businesses became more aware of it and the idea Page 30 Page 32 ·1· that this may be interrupted or lost, the support -- ·1· is important to you, and I want to also thank you for ·2· again, a grassroot support, private sector support was ·2· hosting us today and let you know that you have a ·3· key in this -- it was needed to help convince elected ·3· fabulous staff who's always there for us working.· So I ·4· officials about a direction to move in. ·4· would like to give you the mic if you'd like to say a ·5· · · · · · · · ·The next slide is just a quote from our ·5· few words, please. ·6· Chairman Dennis Nixon, and he says this all the time. ·6· · · · · · · · ·COMMISSIONER NEW:· Just quickly welcome ·7· You know, "You cannot remain a spectator.· If you don't ·7· you to the Greer Building and acknowledge that we do ·8· get involved, those who do will determine your future." ·8· have great staff and that they are doing great work. ·9· Harvard recently -- the Harvard Business Review did a ·9· And thank you, Secretary, for coming to visit us and for 10· study not too long ago of activists -- what they call 10· running this committee and for really -- what -- in just 11· "activist" CEOs.· Remember in the -- and I'm saying this 11· two meetings, I can see are nice advancements towards 12· in quotes -- in the good old days when everybody 12· understanding both sides of the border and how important 13· remained neutral in business because you didn't want to 13· it is to the State of Texas and to trade and to the 14· offend a customer or didn't want to offend your 14· economic development of Texas.· And so I'm glad to be 15· employees, etcetera, etcetera, well, it seems that the 15· here and I'm mostly here just like last time to listen 16· new generation -- and we're talking millennials -- but 16· and learn.· So I appreciate the opportunity.· Thank you. 17· more and more in the public in general, actually they 17· · · · · · · · ·CHAIRMAN PABLOS:· Well, thank you. 18· don't necessarily have to agree with your CEO, but they 18· · · · · · · · ·Now, does anyone have any questions of 19· want your CEO to have a position on something, to stand 19· Mr. Sauvignet regarding the NAFTA process that we're in 20· for something and not be neutral on everything. 20· front of? 21· · · · · · · · ·So we are entering the age of the 21· · · · · · · · ·Sam, I know you'll have a question.· So 22· activist CEO and asking more business -- more 22· I'll just start with you. 23· individuals and more businesses to get involved in the 23· · · · · · · · ·MR. VALE:· No.· I have more of a comment. 24· issue again.· Do we have everybody at IBC convinced that 24· The important part of these deals is to get the deal 25· everything that IBC and Dennis Nixon?· Not necessarily, 25· done because many times, the parts that are not
Page 31 Page 33 ·1· but a lot of people respect him for taking a stand on an ·1· attractive could be addressed in other forums, much ·2· issue and fighting for that issue and I think that's a ·2· narrower scope without affecting every other issue in ·3· reality of the new business world we live in. ·3· the document.· So it's always difficult to say this ·4· · · · · · · · ·The next slide, it just shows a giant ·4· cannot be amended and we have to approve it as it is, ·5· version of what is on everybody's e-mail and I encourage ·5· but that really is the ballgame because you start doing ·6· you to develop one for yourselves, as well.· But when I ·6· amendments and it never stops.· So we have to accept it ·7· send out an e-mail with my signature block at the ·7· and be willing to sell something that is not exactly how ·8· bottom, this logo is at the bottom of my signature ·8· we would like it; but because it's part of the glue that ·9· block.· So no matter who I send an e-mail to, they know ·9· keeps the document and the countries working together, 10· that IBC supports NAFTA. 10· and that's something that we don't want to overlook when 11· · · · · · · · ·Thank you very much.· I'm ready to answer 11· we're promoting "pro this, pro that, I'm against this." 12· any questions you may have, and we'll yield the floor to 12· But we can't be against anything, not at this time. 13· the Secretary. 13· · · · · · · · ·That's the secret of the negotiation in 14· · · · · · · · ·CHAIRMAN PABLOS:· Henry, thank you. 14· Washington because any time you give a guy a reason to 15· · · · · · · · ·Well, as you can see, IBC is really 15· hang his hat against something and he's got constituents 16· taking a lead on this.· They have been present not only 16· that don't like it, he will hang his hat on that and 17· this round; but, you know, 23 years ago, 24 years ago. 17· says, "Oh, by the way, the Texas guys said this.· They 18· And so first and foremost, I want to thank you, Henry. 18· didn't like this thing."· And they don't like approving 19· · · · · · · · ·Dennis is active out there, to say the 19· agreements that they can't amend.· So I would make that 20· least.· Gerry and Eddie are always traveling everywhere, 20· as part of what we have to go. 21· and so they're doing a fantastic job. 21· · · · · · · · ·I mean, I've never seen an automobile 22· · · · · · · · ·Before I take questions, though, I would 22· worker in the United States in my lifetime that worked 23· like to recognize Commissioner New, Texas Transportation 23· for $16 an hour.· They're all up in the 40s and the 50s. 24· Commissioner.· Commissioner, thank you for being here. 24· NAFTA content, gee, that just means us.· That doesn't 25· Thank you for your interest in this topic.· I know this 25· mean anything else.· It means that Chinese and the Page 34 Page 36 ·1· Japanese may have some issues with that and sometimes it ·1· yes, you're a friend.· IBC is a friend of Mexico.· Come ·2· affects the price, but it still means it's going to be ·2· on in." ·3· built in North America, where somewhere we're creating a ·3· · · · · · · · ·So I was there at the meeting and what ·4· job there, whether it's in Mexico, United States, or ·4· was very interesting is that there was a presentation ·5· Canada; but they're going to be North American made ·5· very similar to this.· It was albeit a three-hour board ·6· products.· So that's good.· So I didn't see anything ·6· meeting.· So I didn't think you wanted a three-hour ·7· wrong with the so-called concessions that were made. ·7· version of this presentation, but this is the meat of ·8· · · · · · · · ·CHAIRMAN PABLOS:· Thank you, Sam. ·8· what was being discussed.· And Mexico has -- you know, ·9· · · · · · · · ·Anyone else? ·9· going to what Sam said, the point they're going to see 10· · · · · · · · ·MR. FLORES:· Mr. Secretary? 10· this in, we may not like everything in this agreement. 11· · · · · · · · ·CHAIRMAN PABLOS:· Yes, sir. 11· There were some things that we just didn't necessarily 12· · · · · · · · ·MR. FLORES:· Henry, thank you for that 12· want, and one of them was the fact that labor and 13· very informative presentation.· Just to underscore the 13· environment are no longer side agreements.· They're not 14· point on the wage requirement, if there is a silver 14· part of the agreement.· So that means you can 15· lining to that -- and pardon me if you touched on this, 15· effectively monitor it and track it. 16· and I missed it -- but I think at one point there were 16· · · · · · · · ·But they said exactly what Sam said to us 17· discussions around indexing that to inflation.· That did 17· right now; but this is what we have and we need to work 18· not happen.· And so as a consolation, it should be 18· with this because this is the agreement three countries 19· fairly easy for all the countries to get to that mark 19· need to vote on and if we want to talk about something 20· without a problem. 20· in the future, working with something in the future, 21· · · · · · · · ·MR. SAUVIGNET:· That's a very good point. 21· that's fine, but this is the agreement as it stands. 22· Also, the job that can be counted as contributing 22· They just wanted to let everybody understand, from their 23· towards the 16, could be an engineer working in Mexico 23· perspective, what was going on and how it affected 24· who is contributing to the assembly or the part of the 24· Mexico and some of Mexico's rules and regulations that 25· assembly, the engineering part of the assembly project. 25· would be affected.
Page 35 Page 37 ·1· So that it's not necessarily only a line worker.· It ·1· · · · · · · · ·And I'll give you a very brief example of ·2· could be another individual working there, and we know ·2· how this was affecting -- potentially would affect ·3· that engineers are earning more.· So that helps average ·3· Mexico, and I'm going to talk about the environmental ·4· out that wage issue there, as well.· That's very good ·4· issues.· So we know Mexico has some very strong ·5· point.· Thank you. ·5· environmental laws; but just like in the United States, ·6· · · · · · · · ·CHAIRMAN PABLOS:· Thank you, Henry. ·6· it's one thing to have a law on the books and it's ·7· · · · · · · · ·MR. SAUVIGNET:· I'll just close by saying ·7· another thing to be able to enforce the law.· So now ·8· something interesting.· I was in Mexico last week -- ·8· under the agreement, you can have, for example, let's ·9· Wednesday, Thursday, and Friday -- and I was invited to ·9· imagine two plants near each.· One's a Mexican plant. 10· a meeting by Francisco Cervantes.· Francisco Cervantes 10· One's a Canadian plant.· And the Canadian plant believes 11· is the President of (foreign language) down there and I 11· that they are following all rules and norms that were 12· ran into him at the hotel.· It was a coincidental 12· established in terms of Mexican law in terms of the 13· run-in; but he said, you know, "We're having a meeting 13· environment; but that the plant down the road is not. 14· tomorrow where we are going to explain to our 14· · · · · · · · ·Now, it can address this through a legal 15· membership."· It was a specially called board meeting to 15· process, a process within NAFTA saying, "I need that 16· explain to the membership what had been decided and 16· investigated because" -- I'll make up the environmental 17· basically this kind of presentation related to NAFTA, 17· issue -- "the purity of the water being used at the 18· but from Mexico's perspective, having just returned from 18· plant is not up to the standards that we know it needs 19· Washington because they had been at the CEO dialogue, as 19· to be because we're using it here."· So now there's 20· well. 20· redress. 21· · · · · · · · ·And I said, "Will it be okay for me to 21· · · · · · · · ·MR. VALE:· We're in Austin drinking the 22· attend?· Considering that you are going to be 22· water. 23· discussing -- discussion from the Mexico perspective." 23· · · · · · · · ·MR. SAUVIGNET:· Yeah, ironically.· But 24· · · · · · · · ·And he said, "Yes.· Just don't 24· the point here, is this was what was Mexico's discussion 25· over-announce that you're from the United States; but, 25· and this was the discussion in Mexico as I heard it at Page 38 Page 40 ·1· this meeting.· And so there are concerns from every ·1· Transportation Planning and Programming Division, and ·2· country's perspective, Canada and dairy; but as was ·2· I'll serve as the project manager for the development of ·3· summed up at the end, this is the agreement we have.· It ·3· the Texas-Mexico Transportation Master Plan. ·4· is a lot better than it was if we had not modernized and ·4· · · · · · · · ·Today I'm going to discuss where we ·5· we should move forward and get everybody's support. ·5· currently are in the development of the Border Master ·6· · · · · · · · ·Once again, Mr. Secretary, thank you. ·6· Plan, and where we plan to be in the next upcoming ·7· · · · · · · · ·CHAIRMAN PABLOS:· Thank you very much. ·7· months.· So in your packet today, you have the ·8· And, you know, just to wrap this NAFTA portion up, you ·8· PowerPoint presentation, which I will discuss in a few ·9· know, it is so important that we come together not only ·9· minutes.· In addition, you also have a very detailed 10· as a private sector/government to make our voices heard. 10· scope of work, in addition to a one pager that describes 11· You know, as Henry mentioned, you know, from the private 11· the concept of the Border Transportation Master Plan. 12· sector side, we see TAB and other groups, you know, 12· · · · · · · · ·So the scope of work identifies the 11 13· coming together to make sure that we continue to rally 13· tasks or work efforts that TxDOT will use to undertake 14· until this thing is done and sewn up.· We have to make 14· in working with BTAC, TxDOT Commission, and the 15· sure that we do that. 15· administration and binational public and private 16· · · · · · · · ·On the government side, Governor Abbott 16· stakeholders.· As you may recall, this scope of work is 17· continues to have discussions not only with the White 17· consistent with previous information that you have been 18· House, but also with Ambassador Lighthizer's office and 18· provided.· The only distinction is that it lays the 19· the Department of Commerce.· I was just in Washington 19· framework in our approach.· In addition, please note 20· doing some of that work.· And let me tell you, there's a 20· that it is a living -- yeah.· We're going to get to the 21· lot of excitement; but, yet, there's still a lot of 21· PowerPoint. 22· uncertainty.· There's confusion, you know, especially in 22· · · · · · · · ·Will you go to the second slide, please? 23· the area of the energy.· We still don't know, more or 23· · · · · · · · ·Okay.· So it is a living document and as 24· less, where all of that's landing, you know? 24· we engage binational public and private stakeholders, 25· · · · · · · · ·But, you know, when people ask me whether 25· the development of the Border Master Plan will be
Page 39 Page 41 ·1· I'm concerned about NAFTA surviving or not, I tell them ·1· refined in consideration of that engagement.· In ·2· that that's not my concern.· My concern is whether we're ·2· addition, please note the scope of work that is in your ·3· going to be ready to receive the tremendous amount of ·3· packet, that this has been provided to both U.S. and ·4· trade that's coming as a result of this.· So that's the ·4· Mexican Federal and State agencies during the ·5· purpose of this committee, and we need to make sure that ·5· U.S.-Mexico Joint Working Committee in San Diego on ·6· we continue to rally, speak with our representatives on ·6· September 5th.· In addition, TxDOT provided a Spanish ·7· both sides of the border to make sure that this thing ·7· translation of the scope of work to the Mexican ·8· gets done quickly, and we could move on and erase a lot ·8· agencies, as well. ·9· of that uncertainty that's in some cases preventing that ·9· · · · · · · · ·With the transition of the Mexican 10· investment from coming in or expansion from occurring, 10· Presidency from the Pena Nieto administration to the 11· especially along the Mexican side of the border. 11· Lopez Obrador administration, TxDOT proposed a joint 12· · · · · · · · ·So, again, thank you.· Thank you to IBC. 12· meeting with both the current and transition 13· We really appreciate your work, and we'll look forward 13· administration to discuss the scope of work in detail. 14· to more of these updates.· I know that Gerry and Eddie 14· This will help us ensure an understanding with our 15· are in Mexico City doing some more good work in relation 15· Mexican counterparts, hopefully have mutual agreements 16· to this.· So please send them our regards. 16· on the efforts in the development of the Border Master 17· · · · · · · · ·Okay.· We'll move onto our next item 17· Plan; but most importantly, we wanted to ensure the 18· then.· Our next item, very important.· As you know, 18· continuation of the schedule that we had laid out to the 19· we're working on our Border Transportation Master Plan. 19· Border Trade Advisory Committee. 20· A tremendous endeavor.· An endeavor that requires a lot 20· · · · · · · · ·This agreement was mutually agreed upon. 21· of research.· And at this time, I would like to pass it 21· We are currently working with SCT and their point of 22· over to Tim Juarez with TxDOT. 22· contacts to establish this meeting.· We proposed -- 23· · · · · · · · ·MR. JUAREZ, JR.:· Good morning, Secretary 23· because the new Presidency will be inaugurated on 24· of State, Bob Wilson, Commissioner New, and Border Trade 24· December 1st, that the meeting occur no later than 25· Advisory Committee Members.· I'm Tim Juarez with TxDOT's 25· November the 16th.· We continue to engage our Page 42 Page 44 ·1· counterparts to define that particular date. ·1· again, is going to be driven by stakeholder engagement ·2· · · · · · · · ·A note of interest to Border Trade ·2· from both the public and private sector and most ·3· Advisory Committee is that the SCT members also ·3· importantly, from the Border Trade Advisory Committee. ·4· introduced Pedro Romero.· He has been identified by the ·4· · · · · · · · ·Next slide, please. ·5· AMLO administration to be the Commissioner for Northern ·5· · · · · · · · ·So in the development of the project ·6· Border Affairs.· So we anticipate his presence at the ·6· management plan, I wanted to provide you an overview of ·7· actual meeting in Mexico City. ·7· what we are currently working on with HDR.· We are the ·8· · · · · · · · ·So as you have in front of you today on ·8· development of a project management plan that will ·9· the slide is that this is an overview on what is going ·9· outlay how the development of the Border Master Plan 10· to be considered in the development of the Border 10· will actually occur.· Associated with that is going to 11· Transportation Master Plan.· So this is a binational 11· be a detailed project schedule that will identify the 12· comprehensive approach to coordinate planning, 12· major milestones.· We are currently going through an 13· programming, and implementation of projects.· This is 13· update of the schedule, due to the fact that the 14· under the agreement between the U.S.-Mexico Joint 14· Secretaries and Undersecretaries from the Mexican 15· Working Committee, as established by USDLT and State 15· government haven't been identified yet and we're also 16· Department with the Secretary of the Comunicaciones y 16· waiting for the inauguration of the new President; but 17· Transportes.· So it outlines that in the development of 17· in the meanwhile, we're continuing to develop how we 18· the Border Master Plan, we are to look at border 18· will provide information to all of those who wish to be 19· crossings, the support facilities for each of those 19· participants in the process. 20· border crossings, and then its connectivity to the 20· · · · · · · · ·So we're not only looking at a 21· transportation network system. 21· communication and correspondence plan, but we're also 22· · · · · · · · ·We haven't made a determination because 22· looking at an online workspace or dashboard so that any 23· it will be mutually agreed upon as to how far that 23· of the users can go and retrieve data whenever they are 24· actual review will occur.· The key components is that we 24· finding such the need.· And it's our intent to 25· are going to consider a multimodal transportation 25· constantly update that so you have realtime information.
Page 43 Page 45 ·1· system, not only of highway; but aviation, rail, and ·1· Associated with that is going to be a quality ·2· other multi-modes.· So we will be looking at the port of ·2· assurance/quality control plan so that as we receive ·3· entries and then the support facilities for those port ·3· comments from the stakeholders, there's going to be an ·4· of entries by CBP or GSA.· We're going to look at the ·4· opportunity to identify how TxDOT and our selected ·5· policies, program, and specifically projects that many ·5· consultant will respond to those actual comments and ·6· of the sponsors will be considering in their development ·6· then we will actually pose what the response is.· So ·7· for that POE; and we're going to look at both short, ·7· that gives you an idea of the project management plan ·8· medium, and long-term efforts from an investment ·8· overview. ·9· standpoint. ·9· · · · · · · · ·On the next slide, we have the 10· · · · · · · · ·Next slide, please. 10· stakeholder engagement plan.· And in our whole approach 11· · · · · · · · ·What we are currently working on with 11· to this development, we want to ensure that we have a 12· HDR, the selected consultant, is a project management 12· very proactive stakeholder engagement that is meeting 13· plan, a stakeholder plan, and goals and objectives.· As 13· both the needs of the public and private sector from a 14· you may recall, we presented at the last BTAC this 14· binational standpoint.· So the stakeholder engagement 15· pinwheel that pretty much describes the 11 tasks in the 15· plan will note on how we will engage all sectors in the 16· scope of work; and it notes how we will go about in 16· development of a plan.· There is going to be the 17· development of the Border Master Plan.· To ensure that 17· opportunity to introduce the concept of the Border 18· we have continued engagement as we do our outreach, the 18· Transportation Master Plan and what we're trying to 19· pinwheel will be highlighted in the color of the actual 19· accomplish in it.· So there will be some education and 20· task that we will be working on, so that all members -- 20· outreach materials associated throughout the entire 21· if they came in at the very beginning, midpoint, or at 21· process. 22· the end -- will know the complete circle when this is 22· · · · · · · · ·We are currently and actively developing 23· all said and done.· And then, of course, there's going 23· a stakeholder database and our engagement in the Border 24· to be several iterations where we will be going back and 24· Master Plan as we've done outreach, we continue to add 25· forth between the multiple tasks.· Along with that once 25· new members to that database.· What we have asked Page 46 Page 48 ·1· economic development for, local governments/NPOs to ·1· consensus among all the binational stakeholders and many ·2· share their database with us as they've done outreach ·2· of you know and who have represented us here, it's a ·3· through their respective areas; and we're going to note ·3· wide spectrum of both public and private stakeholders ·4· that we would like to start having the transmittal of ·4· who, in many instances, will have their own initiatives ·5· that information to our office.· We're going to have ·5· or concerns.· So we're going to be sensitive to that, ·6· summaries to be distributed to all the partners on how ·6· ensure that we're able to document that and take that ·7· our engagement is going, what we're hearing out there ·7· into account. ·8· from both public and private sector components; and then ·8· · · · · · · · ·But when it's all said and done, we need ·9· we're going to have a website or a webpage totally ·9· to be able to development a framework that's going to 10· dedicated to the development of the Border Master Plan 10· lead to the analysis for prioritization of projects.· As 11· where you would find information and decisions not only 11· associated with the tasks that you have in the scope of 12· current to BTAC, but a schedule of the public meetings, 12· work, all of this is going to be from a data-driven 13· where they're going to be held, and the information 13· stakeholder engagement process where we can identify all 14· received from those. 14· projects regarding the POEs, the support facilities of 15· · · · · · · · ·It is our intent to provide status update 15· those POEs, and their transportation network system from 16· as much as possible so that we continue to develop and 16· a multimodal perspective; but also be associated funding 17· bring along all the participants in the process.· With 17· that local governments or sponsors may have from that 18· an endeavorer such as large as this, we know that there 18· project. 19· are a lot of risks associated with coming to a halt just 19· · · · · · · · ·That's going to lead us to identify 20· because of not including the right partners, not 20· corridors so that we can continue to develop those from 21· including the right stakeholders.· So we want to make 21· an international trade perspective and from a freight 22· sure as we go through that process, that we're able to 22· component perspective and then most importantly, 23· do a risk analysis assessment associated with our 23· identify where necessary gaps are occurring, where we 24· stakeholder outreach; and associated with that is going 24· need to go and do the necessary infill.· It's also going 25· to be project fact sheets, not only for the port of 25· to help us to identify resiliency to the actual
Page 47 Page 49 ·1· entry or specific projects, but from a commodities, good ·1· transportation network by looking at secondary ·2· multimodal element, as well.· And then any other ·2· corridors, as well, based either on NHS or the Texas ·3· supporting documentation or materials as requested by ·3· Trunk System.· We want to make sure that as we face ·4· you, as requested by the public and private ·4· natural disasters, events such as Hurricane Harvey, that ·5· stakeholders, our any others. ·5· we continue to move freight around the state because ·6· · · · · · · · ·I can say that -- and please be ·6· that's going to help spur economic development way above ·7· prepared -- that probably you're going to have ·7· and beyond just the border. ·8· information overload from our stakeholder engagement ·8· · · · · · · · ·Next slide, please. ·9· process, but this is truly the way that we can actively ·9· · · · · · · · ·So while these components of the first 10· engage all the partners and bring them along as we 10· three tasks have been undertaken, TxDOT has continued 11· develop the Border Master Plan. 11· with a very proactive binational state corridor 12· · · · · · · · ·Next slide, what we have done based on 12· engagement, both on the public and private sector. 13· guidance provided by BTAC is the development of an 13· Recently about two to three weeks ago, we were in Fort 14· overall preliminary goals and objectives for the Border 14· Worth at the Texas Municipal League, where we engage a 15· Transportation Master Plan.· Keep in mind BTAC, in 15· lot of the City Council Members, the Mayors, 16· addition to our public and private stakeholders and as 16· administration folks within the cities, to let them be 17· we begin to set up regional committees for the 17· aware of the development of the Border Master Plan, our 18· development of the Border Master Plan, we'll have input 18· timeframe, and what that entails. 19· and give us necessary guidance on the goals and 19· · · · · · · · ·After this meeting, we're actually headed 20· objectives of the plan.· It's going to serve as a 20· to Laredo for the quarterly regional meeting of the 21· measure for us to engage our success, how successful 21· Eagle Ford Consortium.· That is the users of the oil and 22· were we.· We're going to be putting some performance 22· gas pipeline association.· They are very interested in 23· metrics in all elements of the development of the plan 23· the Border Master Plan and this is that multimodal 24· to gauge that success; but most importantly, this is 24· perspective on how we continue to move goods throughout 25· going to help facilitate discussion and generate 25· the effort.· As I noted, we attended the U.S.-Mexico Page 50 Page 52 ·1· Joint Working Committee where we proposed this joint ·1· that we have full coverage as opposed to being cautious ·2· meeting with our Mexican counterparts; and we will ·2· in overload. ·3· continue to follow up on that. ·3· · · · · · · · ·And then one of the critical ·4· · · · · · · · ·We also in your packet is the one pager ·4· components -- and that will take some time -- is getting ·5· that we developed regarding the concepts of the Border ·5· an inventory of infrastructure assets at the corridor ·6· Transportation Master Plan.· This had not been done ·6· level.· We have been going -- and you'll hear about that ·7· before.· It was very well received at TML as a good ·7· later during the strategic blueprint presentation -- ·8· primer on what the Border Master Plan is.· It is our ·8· TxDOT has been actively identifying our investment ·9· intent to translate all the documents into Spanish so ·9· through our border trade activities reported, identifies 10· that we are able to get that binational approach and 10· projects either to be constructed or to be developed in 11· outreach. 11· our three border regions.· So we're going to ask local 12· · · · · · · · ·So where do we go from here as we've been 12· governments to start identifying that information so 13· actively busy on TxDOT and HDR side? 13· that it can easily flow together. 14· · · · · · · · ·Next slide, please, on next steps. 14· · · · · · · · ·Secretary of State Pablo, we're going to 15· · · · · · · · ·So we're going to continue with our 15· be going out and doing multiple requests because any 16· discussions with HDR and administration on the project 16· time we have a partner not provide us the information, 17· management plan, the stakeholder engagement plan, and 17· it's going to slow us down in the overall element.· And 18· the goals and objectives.· That's going to be inclusive 18· we'll be very cautious and conscientious to identify, 19· of an updated schedule, taking into account what is 19· okay, this is the lockdown date because we have to 20· occurring on the Mexican side; but we're going to 20· continue with the overall development.· So we're going 21· continue to engage all folks.· The schedule is going to 21· to ask for y'all's consideration as we go forward. 22· identify meeting dates and locations so we can introduce 22· · · · · · · · ·So Border Trade Advisory Committee 23· the concept of the Border Transportation Master Plan. 23· Members, this is very brief summary of where we are in 24· It is our goal to be consistent in where we're going to 24· the Border Master Plan.· I can assure you that we 25· be meetings.· So we establish locations in round one. 25· continue to move this along to get the necessary
Page 51 Page 53 ·1· Then every iteration after that, it's our intent to ·1· documents for your review; but in this particular ·2· still go to the same places.· We understand that ability ·2· instance, we did want to provide to you the detailed ·3· or possibility of expanding that list will occur, but we ·3· scope of work that really lays the framework on how ·4· have to make it manageable in our effort to ensure that ·4· we're going to accomplish this.· And we would like to ·5· we just don't have meeting overload for meeting ·5· give you the opportunity to review this and then provide ·6· overload.· We want to make sure that engagement if is ·6· us necessary comments because once again, this will ·7· very proactive. ·7· continue to evolve as we go through the process.· So ·8· · · · · · · · ·As we development these documents, the ·8· I'll pause there and accept any comments or questions ·9· three plans noted above, we're going to come back and do ·9· that maybe people may have. 10· an initial review and walk through those with the Border 10· · · · · · · · ·CHAIRMAN PABLOS:· Tim, that is excellent 11· Trade Advisory Committee so that you have a good concept 11· work.· Thank you for all the good work you-all are 12· of where we're going throughout the entire process and 12· doing.· Thank you for ensuring that we have a multimodal 13· give us that initial feedback on the goals and 13· approach.· As you know, energy and maritime ports are so 14· objectives so that we can then go share that information 14· important to this formula; both maritime ports in Texas 15· when we do the first round of engagement. 15· and in Mexico, how those relate.· Also, the corridors 16· · · · · · · · ·What we would like to get, is we would 16· that we have, our ports to planes and I-35 corridors, 17· like to requesting the databases from our public and 17· very important.· So I'm glad you're doing this. 18· private sector participants, such as the local 18· · · · · · · · ·Now that we have brought State 19· governments or NPOs.· That if you do a massive 19· Representatives from Mexico, I think now -- given that 20· distribution, then we would like to get that database so 20· you've been working with the Federal government, now 21· that we can add it to our database.· There will be many 21· you'll have an open door to accessing our State 22· instances where we're going to send you electronic 22· government leaders on the Mexican side.· So they might 23· copies of the files and ask that you distribute it to 23· be able to also not only provide you their input, their 24· your points of contact.· They may get it multiple times, 24· guidance; but also make referrals and recommendations to 25· but that really is the intent.· We want to make sure 25· stakeholders and others that have an interest in Page 54 Page 56 ·1· ensuring that both sides of the border are accounted ·1· that and trade and commerce and all the countries will ·2· for. ·2· benefit and then we can spread out and have everybody ·3· · · · · · · · ·So I would like to open it up for ·3· giving input because it doesn't do any good if it goes ·4· questions.· Does anyone have any questions of Tim? ·4· 90 miles an hour through Texas and then it gets to the ·5· · · · · · · · ·Sam. ·5· Canadian border and you're in the wilderness or vice ·6· · · · · · · · ·MR. VALE:· You're trying to hide me ·6· versa. ·7· there. ·7· · · · · · · · ·MR. JUAREZ, JR.:· So we agree, Mr. Vale, ·8· · · · · · · · ·CHAIRMAN PABLOS:· No, no.· Actually, ·8· and we definitely have heard that comment from many of ·9· you're the go-to. ·9· the Border Trade Advisory Committee Members.· And we've 10· · · · · · · · ·MR. VALE:· I really think that part of 10· gone throughout the communities doing engagement.· If 11· what we're trying to do in our working group five was to 11· you'll look within the scope of work on Task 5, that 12· reach out to the private sector and to Mexico and 12· specifically deals with binational and multimodal 13· demonstrate the need for those relationships being with 13· transportation system identification, designation, and 14· Texas, but all the border states of Texas.· But you also 14· needs assessment; and we really haven't identified how 15· need to start looking further than that and deeper and 15· far north and south of the border that the Border 16· using their relationships because they all have a 16· Transportation Master Plan will look at. 17· bordering state to the south. 17· · · · · · · · ·We're going to have both public and 18· · · · · · · · ·And if you look at where goods and 18· private stakeholder engagement to help drive that 19· services are being performed, they're all along the 19· process because you're right.· It is a corridor 20· corridor routes.· We don't have one corridor that was 20· perspective moving goods from the beginning to whatever 21· established about the same time NAFTA was that is 21· final destination that is.· And we have talked about 22· completely finished.· You have some that are more 22· that we'll look at the origin of that particular freight 23· advanced than others, but the corridor is supposed to be 23· and its initial or midpoint destination to its final 24· from the top of -- the originating point in either 24· destination.· So we're going to continue with that 25· Canada or Mexico, all the way to the other end.· We 25· detailed analysis.
Page 55 Page 57 ·1· don't have anything like that.· So we've got a ·1· · · · · · · · ·In addition, we have discussed with ·2· tremendous amount of work to do because the commerce ·2· feedback from this group and others is that we're still ·3· doesn't stop at the border and it's not generated at the ·3· keeping the regional concept of the original Border ·4· border.· It's facilitated at the border; or if it's not ·4· Master Plan where we had the Juarez/El Paso Border ·5· done well, it's held up at the border. ·5· Master Plan, Laredo/Nuevo Laredo, and then the Lower Rio ·6· · · · · · · · ·So the border is sort of like part of the ·6· Grande Valley/Tamaulipas.· So those concepts will still ·7· glue; but we've got several borders, and we need to ·7· be there because we need to bring from those previous ·8· start thinking beyond just -- we've seen how good it's ·8· Border Master Plans -- ·9· been to Texas.· That's why you have Republicans and ·9· · · · · · · · ·MR. VALE:· That brings Texas funding 10· Democrats supporting this thing, and that's not true in 10· cycles to focus. 11· every other state.· And I think we need to start using 11· · · · · · · · ·MR. JUAREZ, JR.:· Right. 12· the relationships that we build with the border states 12· · · · · · · · ·MR. VALE:· But it's not true when you 13· to move further south. 13· cross that border.· They get their funding differently. 14· · · · · · · · ·Your funding procedures for public funds 14· They don't get it the way we get it, and so we have to 15· are very different in both countries.· So they're going 15· plan that into the plan. 16· to have the expertise in quick order of how they go 16· · · · · · · · ·CHAIRMAN PABLOS:· And, Sam, the purpose 17· about getting their funding for their states to be able 17· of ensuring that we have the presence of our Mexico 18· to match up and you can -- we're always prioritizing 18· counterparts is exactly to do that, to harmonize the 19· things.· I think it's a mistake when we say this is a, 19· effort.· You know, each side has its own budgetary 20· you know, first, second, or third.· I think we ought to 20· constraints and rules; and so if we could just use this 21· talk about degrees of completion, categories.· This is 21· plan to help us harmonize, I think it would be a great 22· in a category that lacks so many things.· And then 22· win for all of us. 23· you're not selecting between A and B community or A and 23· · · · · · · · ·MR. JUAREZ, JR.:· Yes, sir, we agree. 24· B corridor.· It's got to be a good campus and the entire 24· And we're taking that into consideration. 25· state that this organization represents, benefits from 25· · · · · · · · ·CHAIRMAN PABLOS:· Any other comments or Page 58 Page 60 ·1· questions? ·1· it's not well connected to the rest of the system, then ·2· · · · · · · · ·Yes, sir, Henry. ·2· we're going to have an issue whereby wait times at the ·3· · · · · · · · ·MR. SAUVIGNET:· A brief comment related ·3· border impedes free flow of trade, free flow of people. ·4· to several of us who were at the NASCO annual conference ·4· · · · · · · · ·You know, Henry mentioned that, you know, ·5· in Vancouver recently and it brought to mind also -- ·5· a lot of the presentations at NASCO, you know, was all ·6· besides infrastructure -- in going to a little bit in ·6· the technologies that they could be bringing in place. ·7· what was said in terms of the border, border crossings ·7· Yes, that would make, you know, some dent in reducing ·8· are starting to change and feel different and look ·8· wait time; but if the infrastructure itself cannot ·9· different and I think the infrastructure going up to ·9· facilitate efficient role of whether it's, you know, the 10· those crossings needs to also be -- the plan needs to 10· trucks or it's people moving through these border 11· contemplate the new crossing and how it's going to look. 11· crossings, you know, they can only do so much.· So I 12· · · · · · · · ·Obviously, there's a bureaucratic part of 12· really hope that all of us this room -- especially 13· it that you cannot work around.· It's going to be there, 13· you-all that own the infrastructure in the border 14· the rules and regulations in each country, whether it's 14· crossings -- you know, to think beyond there. 15· in terms of inspection and crossing and everything; but 15· · · · · · · · ·You know, some of you have heard me talk 16· flow of goods and ease of crossing also depends on the 16· about you need to think of the border crossing as your 17· infrastructure that exists.· And I'm just pointing 17· house; and then, where's the driveway that gets you in 18· out -- not necessarily have a specific recommendation, 18· and out of your house that takes you to the major 19· but was impressed by what we saw there in terms of 19· interstates.· All of that needs to be connected; and if 20· presentations of what a new crossing looks like and the 20· it's not connected, then we're going to have a system 21· kind of infrastructure it has. 21· that's, you know, choked.· So again, infrastructure, 22· · · · · · · · ·And if we continue to build roads and 22· policy issues, that needs to be identified as part of 23· bridges towards border crossings that resemble the old 23· this; but also, you know, the recommendations.· So we're 24· paradigm, we're going to miss out on an opportunity and 24· going to look to you-all to help us identify that. 25· it's going to cost to re-retrofit, so to speak.· So I'll 25· · · · · · · · ·And to Secretary Russildi, welcome our
Page 59 Page 61 ·1· just point that out.· I know that you were there too, as ·1· Mexican counterparts.· We're going to be looking to you ·2· well.· So you caught that and so was Caroline and that ·2· for help engaging the right stakeholders within your ·3· was just very important to some of the discussion that ·3· state; but also helping us come up with these, you know, ·4· was there. ·4· collaborative solutions and strategies moving forward. ·5· · · · · · · · ·CHAIRMAN PABLOS:· Thank you. ·5· This is a binational plan.· It's not just multimodal, ·6· · · · · · · · ·MS. MAYS:· Can I comment? ·6· but it's binational because trade is binational.· In our ·7· · · · · · · · ·CHAIRMAN PABLOS:· Yes, Caroline. ·7· case, it's trilateral.· You know, we share more with ·8· · · · · · · · ·MS. MAYS:· Yeah, I just wanted to add on ·8· Mexico in terms of the infrastructure.· If we don't plan ·9· what Henry mentioned.· I think, you know, one of the key ·9· together, we will miss it. 10· components of this plan is identifying needs and those 10· · · · · · · · ·Yesterday we were in Presido.· You know, 11· needs have to include what he's talking about.· You 11· the groundbreaking to reveal the railroad that was 12· know, the impediments on the old design, so the 12· several years ago.· So that's just a testament to the 13· infrastructure, whether it's at the border crossing 13· work of this group; but if we can identify some of 14· itself or the connections.· As we talked, you know, many 14· those, we can bring it to reality.· I think it's really, 15· of times is that trade is, you know, actually looked at 15· really critical that this meeting is not just about 16· as a system.· Some of the challenges we have because we 16· we're meeting to meet.· We're meeting to actually see 17· have done it very segmented.· You know, we build the 17· things done on the ground.· So I just wanted to make 18· border crossing.· Then, we worry about how the roadmap 18· those comments that you're going to be seeing a lot 19· or rail map connects to that border crossing.· So it's a 19· coming from us, as Tim mentioned.· You guys are going to 20· little bit disjointed. 20· be the go-to group.· We're going to bring a lot of 21· · · · · · · · ·So moving forward, part of this will -- 21· information to you.· We're going to ask you to really 22· you know, hopefully the attempt for this committee and 22· review the documents, give us feedback, point us to the 23· all of us in this room is to look at that as a system 23· right stakeholders we need to engage on both the U.S. 24· and identify all those segments.· Like Sam said, the 24· side and Mexican side. 25· border itself is a facilitator; but if it's choked and 25· · · · · · · · ·A lot of you have a lot of relationships Page 62 Page 64 ·1· with the private sector.· We're going to rely on you a ·1· Transportation Blueprint.· I'll ask Tim Juarez to take ·2· lot for that, both inside the U.S., but also in Mexico. ·2· this item, please. ·3· A lot of you have connections with the public sector. ·3· · · · · · · · ·MR. JUAREZ, JR.:· Thank you, Secretary of ·4· You know, please make sure that they are at the table. ·4· State Pablos.· Once again, I'm Tim Juarez with TxDOT ·5· You know, some of you -- the cities represented here, we ·5· Transportation Planning and Programming Division and the ·6· need all the cities.· We need the counties.· You know, ·6· International Trade and Border Coordinator. ·7· we need the bridge owners.· We need everybody to be part ·7· · · · · · · · ·So under this effort, I want to note that ·8· of this process so that we can develop something that ·8· the development of the Texas Border Strategic ·9· each of you can take and implement. ·9· Transportation Blueprint is a Border Trade Activities 10· · · · · · · · ·At the end of the day, it's not a TxDOT 10· Committee driven initiative.· This is an activity that 11· plan.· You know, this is a Texas plan that everybody in 11· this committee developed about two years ago that 12· this room would have to take it and, you know, either 12· identified 30 priorities that you wanted to review and 13· sell or implement it from their perspective to actually 13· discuss and implement as a committee and then during the 14· make a difference.· So I just wanted to kind of state 14· process of those 30 elements, this committee narrowed it 15· that.· Sorry for the long-windedness about my comments; 15· down to the top five and we've been working on the top 16· but this is something that we're investing a lot from 16· five for a little over a year with your direction, your 17· the TxDOT side, and hope that you-all invest the time 17· guidance, and your leadership.· So we thank you on 18· that it's going to take to help us develop a plan that's 18· behalf of TxDOT. 19· really very effective. 19· · · · · · · · ·So next slide, please. 20· · · · · · · · ·So thank you-all for being here, and I 20· · · · · · · · ·So as a reminder since we do have many 21· continue to thank everyone for coming here every time we 21· new members here, I wanted to discuss what the actual 22· have meetings.· You know, it really makes me very happy 22· five recommendations that BTAC has been focusing on that 23· that you're staying at the table because that's what 23· TxDOT has been providing staff support.· So 24· it's going to take. 24· Recommendation 1 was establish of a Texas-Mexico Trade 25· · · · · · · · ·Thank you, Secretary. 25· Task Force; and under the Secretary of State's
Page 63 Page 65 ·1· · · · · · · · ·CHAIRMAN PABLOS:· Thank you.· And, yes, ·1· leadership, we're beginning to establish that with the ·2· the fact that the success of this plan is going to ·2· representatives from the four Mexican states.· But ·3· depend on the data that we gather and the more ·3· essentially, it is a miniature version of the ·4· pertinent, timely data and broad-based data that we ·4· U.S.-Mexico Joint Working Committee, where we are able ·5· gather, the better.· So we will be looking to everyone ·5· to establish that relationship between representatives ·6· here to connect us with individuals, with stakeholders, ·6· of the State of Texas with representatives of the four ·7· with those who you think will have valuable input to the ·7· Mexican states. ·8· process because that's exactly what it is.· It's really ·8· · · · · · · · ·Recommendation 2 is the development of a ·9· getting that data, that granular date, that we would ·9· Texas Trade Lanes Program.· BTAC identified the need to 10· otherwise not be able to obtain; and that's the purpose 10· have dedicated funds for projects along the border; and 11· of expanding this board.· We'll talk about this in a 11· so taking some lessons from the Congestion Program, we 12· little bit; but it's expanding that base, that network, 12· have been following under your guidance that direction 13· so that we can reach even further deep into the 13· and we'll get into additional detail. 14· stakeholder realm. 14· · · · · · · · ·Recommendation 3 was develop a public 15· · · · · · · · ·Okay.· So hearing no more questions, I'm 15· awareness and education program.· This was your guidance 16· wondering -- we're a little bit ahead of time.· So why 16· to tell the border story and to ensure that people in 17· don't we take a ten-minute break, and then we'll 17· North Texas, East Texas, or Southeast Texas had an 18· continue with discussion about the blueprint.· We'll 18· understanding of how the border affected those 19· take a pause for now.· Thank you. 19· particular regions.· And then you also issued us 20· · · · · · · · ·(Recess taken) 20· guidance to tell the story of the impact of the border 21· · · · · · · · ·CHAIRMAN PABLOS:· Okay, everyone, we're 21· from a regional economic development perspective, an 22· going to reconvene.· Okay.· We're going to go ahead and 22· economic development perspective to the state and then 23· move to our next item.· Okay, the time is 10:38.· We are 23· to the nation as a whole. 24· reconvening; and at this time, we're going to take up 24· · · · · · · · ·Recommendation 4 is implement technology 25· the item regarding our Texas Border Strategic 25· and innovative border strategies.· This is what Mr. Vale Page 66 Page 68 ·1· was talking about earlier.· And of the whole list of ·1· strategies. ·2· identified technology efforts that the committee ·2· · · · · · · · ·Next slide. ·3· identified, they've narrowed it down to four and we'll ·3· · · · · · · · ·At our last BTAC meeting, we presented to ·4· talk where we are on those top four. ·4· you a list of recommended task force members.· So under ·5· · · · · · · · ·And then Recommendation 5 was to develop ·5· the action items today is we're going to seek your ·6· and foster public sector involvement. ·6· concurrence in approval of this list, both from members ·7· · · · · · · · ·Next slide. ·7· from Texas, members from Mexico, and then potential ·8· · · · · · · · ·So these recommendations were narrowed ·8· ex-official members.· Once we have this list identified, ·9· down -- ·9· then we will go and note the individual person to be 10· · · · · · · · ·MR. VALE:· And expect involvement pretty 10· included on this committee; and as you know, we have a 11· fast -- 11· pretty good representation of our Mexican counterparts 12· · · · · · · · ·CHAIRMAN PABLOS:· Your mic, please. 12· to participate in the overall process. 13· · · · · · · · ·MR. VALE:· The public sector involvement, 13· · · · · · · · ·Next slide, please. 14· you know, it's -- you need the public, but you need the 14· · · · · · · · ·So the timeline has taken some 15· private is what I'm saying. 15· adjustments for what I discussed earlier regarding the 16· · · · · · · · ·MR. JUAREZ, JR.:· Yes.· Yes, sir. 16· inauguration of the new Mexican President.· That's going 17· · · · · · · · ·MS. MAYS:· Can I just interject?· Please, 17· to occur in December of 2018.· Then, we anticipate based 18· if you speak, state your name because we have a court 18· on input from many of you, that around January or 19· reporter here so that she can make sure she documents 19· February of 2019, we'll have appointment of Mexican 20· your comments correctly.· Thank you. 20· Secretaries and lower level positions.· And then our 21· · · · · · · · ·MR. VALE:· Sam Vale. 21· actual counterparts who are with SCT, SAT, and SRA may 22· · · · · · · · ·MR. JUAREZ, JR.:· So in the 22· occur much later.· So we'll have to take that into 23· recommendation back from April, we were -- guidance from 23· account, as well. 24· BTAC and the subcommittees were to develop a 24· · · · · · · · ·We anticipate in February or March 25· comprehensive, unified vision for Texas border among 25· of 2019, to notify the members that have been identified
Page 67 Page 69 ·1· members of the border communities.· You asked that we ·1· once the list has been approved; and then to start ·2· identify binational public and private stakeholders for ·2· developing a schedule:· One, to introduce the concept; ·3· participation in blueprint efforts, that we identify ·3· and then, two, lay out a game plan on the approaches, ·4· existing funding programs and establish processes here ·4· the goals, and objectives of this.· It was agreed upon ·5· through TxDOT, develop documents in support of the ·5· by that Rec. 1 committee that the meeting locations ·6· public awareness and education program, identify case ·6· would alternate between Texas and Mexico.· So if you ·7· studies to look at and develop alternative efforts from ·7· plan to participate, please plan to ensure that you have ·8· a technology-based approach, and then identify ·8· to travel to Mexico as needed and throughout the state ·9· strategies to include private sector in developing the ·9· because most likely, they may not occur only here in 10· recommendation. 10· Austin.· It's going to be a commitment of time to ensure 11· · · · · · · · ·Next slide. 11· that we carry out the goals and objectives of what the 12· · · · · · · · ·So under Rec. 1, the goal was to serve as 12· committee is intended to do. 13· a forum that would handle bilateral communication, 13· · · · · · · · ·Next slide, please. 14· coordination, and collaboration between Texas and Mexico 14· · · · · · · · ·Rec. 2 is to develop the Texas-Mexico 15· on cross-border trade transportation, including 15· Trade Lanes Program.· It's going to -- we've been 16· planning, programming, and implementation; but more 16· discussing for a while how we would go about from a 17· specifically, economic development.· The objectives were 17· conceptual standpoint of identifying this particular 18· to promote that bilateral cooperation and integration to 18· program.· We did review TxDOT Clear Lanes Program.· The 19· address that cross-border trade and transportation 19· committee did review the Coordinated Border 20· infrastructure issues needed to assist with that.· We 20· Infrastructure or CBI Program, as well as the Rider 11-B 21· were also to facilitate communication among agencies 21· State funded program.· And then our TxDOT districts from 22· responsible for border transportation planning and 22· El Paso, Laredo, and Pharr, have been identifying 23· programming and implementation; and then facilitate a 23· district projects and needs associated with not only the 24· bilateral data collection, sharing, and analysis to 24· Statewide Transportation Improvement Program, but also 25· identify that cross-border needs and investment 25· the Unified Transportation Program, as well as projects Page 70 Page 72 ·1· that are under plan or develop authority. ·1· saw at the last BTAC meeting, we presented to you an ·2· · · · · · · · ·And then this would all combine to ·2· international trade video.· That has been pretty well ·3· identify not only these corridors that we've talked ·3· received throughout the entire state.· We had that at ·4· about for Border Transportation Master Plan; but then ·4· TML when we were there a couple weeks ago.· This also ·5· how do we identify where TxDOT's investment is with the ·5· led to the development of the Border Transportation ·6· local governments and then how do we identify those ·6· Master Plan one pager that you have in your packet ·7· gaps, taking into account any alternative or auxiliary ·7· today.· In addition in your packet, you have fact sheets ·8· routes for the major corridors.· This will all lead to ·8· that have been developed for specific ports of entry. ·9· the development of identifying needs for infrastructure ·9· Last time we met, we gave you a sample of the Eagle Pass 10· throughout the state, to then come up with what amount 10· POE and asked for BTAC's concurrence so that we can go 11· would be needed from a financial perspective for the 11· and further develop the other POEs. 12· Trade Lanes Program. 12· · · · · · · · ·In your packet, you'll see a fact sheet 13· · · · · · · · ·Next slide, please. 13· for El Paso, Del Rio, Eagle Pass, Hidalgo-Pharr, and 14· · · · · · · · ·We're going to continue as action items 14· Brownsville.· And we are actively working with our 15· to work on the identified project list from a TxDOT 15· contractors to develop the fact sheets for the other 16· perspective, and then identify needed funding.· We want 16· ports of entry.· If there is additional information that 17· to be able to propose some evaluation criteria for those 17· you as a bridge owner, you as a community, or as BTAC 18· actual projects that would lead for a prioritization, 18· members would like to see, please let us know.· You can 19· understanding as duly noted by the committee that it has 19· sends us an e-mail.· And we are looking at it from a 20· to be a cross-representation of all of the three 20· multimodal perspective, as well; and those will be 21· respective regions:· El Paso, Laredo, and Pharr. 21· coming shortly. 22· · · · · · · · ·We have begun the development of 22· · · · · · · · ·Through Chairman Love's efforts, he 23· preliminary white paper from the committee for BTAC's 23· encouraged us through that subcommittee to go and attend 24· consideration and we would -- it's our intent to bring 24· the Texas Municipal League because he felt we would do a 25· that out at the next call meeting of BTAC.· In the 25· lot of outreach through all the cities and their
Page 71 Page 73 ·1· meanwhile, TxDOT has been developing a required report ·1· administrators and we did.· So we attended TML a couple ·2· known as the Border Trade Activities Report.· This ·2· of weeks ago.· I have to tell you there are some ·3· identifies TxDOT's investment throughout the entire ·3· communities north of us that really don't understand the ·4· three regions; and so it takes that approach of what ·4· impact of the border.· We say, you know, it takes some ·5· have we let, what do we have dollars committed to from a ·5· multimodal approaches to get bananas or avocados to your ·6· financial perspective both at the federal and state ·6· table and there's very long trips and short trips and ·7· level, and then what do we have under plan and developed ·7· they may come by water or they may come through one of ·8· authority, as well. ·8· the land ports.· And so when you put it in that context, ·9· · · · · · · · ·We are also -- because we're entering a ·9· you know, folks began to realize, "Oh, yeah, that has a 10· Legislative session, we are developing an International 10· net effect on me," but it also has a net effect on their 11· Trade Corridors Report.· This is going to help us 11· community's economic development efforts. 12· identify or lay the foundation for a proposed definition 12· · · · · · · · ·As I noted, we will go to Eagle Ford 13· or description of what is actually an international 13· Consortium today.· We are going to reach out to the 14· trade corridor, what is actually considered a border 14· users of oil and gas and the pipeline community, and we 15· trade project; and so this is going to be information 15· look forward to getting their information. 16· that we'll bring to BTAC as we continue to meet these 16· · · · · · · · ·In trade, Secretary of State Pablos and 17· requirements from the TxDOT perspective. 17· Commissioner New, you'll note that we bargained that 18· · · · · · · · ·Next slide, please. 18· they give us their database for going and doing the 19· · · · · · · · ·Recommendation 3 is develop a public 19· presentation and so I think it's going to open great 20· awareness and education program.· I have to say this has 20· avenues to get this particular energy sector group 21· been a very proactive committee.· They really have taken 21· involved in the development of the Border Master Plan. 22· charge of this effort and really have given a lot of 22· · · · · · · · ·Since we started the overall process of 23· work elements for TxDOT staff and our contractors to 23· Border Master Plan and the Strategic Blueprint, we have 24· work on.· This is really identifying how we can broaden 24· done, to date, 91 binational public and private 25· the public awareness on border trade efforts.· So as you 25· stakeholder engagements.· We are carrying literally your Page 74 Page 76 ·1· message from BTAC out to those communities.· Every time ·1· On this one, on the fact sheets, we will have electronic ·2· we talk about border transportation or the Master Plan ·2· copies on the website; but also if you would like that, ·3· or the freight component, we know that this is an ·3· please let us know.· We'll send it out to you for you to ·4· initiative of BTAC.· So this committee is to be ·4· use.· Again, we developed this with your input for your ·5· congratulated on the direction you have given us in ·5· use so that you can take the message with you wherever ·6· going out and doing this public awareness effort.· And ·6· you go.· This is, you know, a one pager for each of the ·7· once again, if you find some additional information that ·7· port of entries within the Texas-Mexico border. ·8· you would like for us to do on the fact sheets, just ·8· · · · · · · · ·I think what I would -- Secretary Pablos, ·9· e-mail us and we will go from there. ·9· is, you know, for Mexican counterparts here to look at 10· · · · · · · · ·So where do we go next regarding Rec. 3? 10· this and see if this is something that's useful for them 11· Well, we want to continue with the development of the 11· and see how we can work together and develop something 12· fact sheets.· We're going to do the remaining port of 12· similar on the other side of the border so that we can 13· entries.· We're also going to develop fact sheets from 13· have -- you know, as we move into the Border Master Plan 14· the custom districts -- one for El Paso, and then one 14· development, you know, information that now we can use 15· for Laredo -- because when we put all the fact sheets 15· as part of that, provide information out. 16· together, we have to be able to, one, not only dissect 16· · · · · · · · ·As Tim mentioned when we went to TML, 17· it by the port of entry, but be able to put the POEs 17· talking to some of the cities, you know, outside of the 18· from a regional perspective -- for example, Laredo -- to 18· borders, they're clueless.· They don't feel -- they 19· tell that story and then build upon the fact sheets for 19· don't understand that the border impacts them on a daily 20· El Paso and Pharr to tell the larger border story.· So 20· basis and once we started talking to them, they're like, 21· you can take it by POE or region or by the entire 21· "Oh, wow, I haven't thought about that." 22· border.· That was the approach or guidance you gave us. 22· · · · · · · · ·I'm like, "Okay, you don't plant avocados 23· · · · · · · · ·We are also going to do it from a 23· in your city or tomatoes."· Some of them didn't even 24· commodity perspective.· One fact sheet for the top three 24· know that tomatoes came from Mexico.· They thought they 25· export and import commodities at each border crossing. 25· planted it in the back there.· But I think this is so
Page 75 Page 77 ·1· We believe or estimate that's going to be about 39 fact ·1· important, you know, for us to work together with the ·2· sheets.· If there's one particular commodity you would ·2· Mexican counterparts, to develop this information so we ·3· like for us to look at, please let us know.· We'll bring ·3· can share it.· It's something you can take when you go ·4· that to committee and get their direction on that.· And ·4· to conferences, meetings, presentations to educate ·5· then we're also going to focus on the transportation ·5· people about the importance of the Texas-Mexican border ·6· mode.· We want to make sure that truck, rail, air, ·6· and your region, specifically when you go out to make ·7· maritime, and pipeline are addressed to ensure this ·7· those presentations. ·8· connectivity from a multimodal perspective, as well as ·8· · · · · · · · ·Henry talked about going to Mexico and ·9· an economic development perspective for the State of ·9· all of those places that you-all go every day.· This is 10· Texas. 10· a great one-page information to leave behind.· You don't 11· · · · · · · · ·And then this one is going to be pretty 11· even have to talk about it.· Just give it to the folks 12· broad and we would like input from not only the 12· because we have to raise the urgency in educating people 13· subcommittee, but BTAC; but we're going to develop five 13· about the border.· You know, the trade, the economic 14· various fact sheets regarding border topics or border 14· impact of the border to the rest of the country is huge; 15· elements.· So if there is a particular element that we 15· and I don't think that, you know, everybody gets it.· So 16· haven't already discussed that you would like for us to 16· I just want to make that -- and then you can see -- like 17· discuss, let us know and then we'll go and explore that. 17· Tim mentioned, if you see anything that you would like 18· Now, the only condition or restraint would be is that 18· added or want to provide, this is a working document 19· available data.· Do we have the necessary available data 19· that we'll be happy to slice and dice wherever we can, 20· to do the analysis to make it a worthwhile fact sheet? 20· as long as it meets your needs. 21· But we're willing to take any type of comment or 21· · · · · · · · ·So just take some time to review what 22· perspective you may have. 22· we've provided in your packets.· There's a lot of 23· · · · · · · · ·Next slide, please. 23· information; but I think, you know, it's a step forward. 24· · · · · · · · ·So -- yes, ma'am. 24· We didn't have this a couple months ago; but we got it 25· · · · · · · · ·MS. MAYS:· Let me make a quick comment. 25· from you and a lot of you put a lot of time in here. Page 78 Page 80 ·1· Councilman Love is not here.· He has been the biggest ·1· southern border or northern border; how can we take that ·2· champion for this, you know, so that we get this ·2· business case model, make the necessary adjustments from ·3· information out.· He's in Midland-Odessa.· He doesn't ·3· a policy or program perspective and implement or apply ·4· live at the border.· So if he's being a champion for ·4· it here to Texas or the POEs? ·5· this, I think all of us collectively can, you know, ·5· · · · · · · · ·So we had a lot of discussion regarding ·6· support him, so that your voice can be heard all over ·6· where should we take the first steps; and so the ·7· the country. ·7· committee decided for White Paper No. 1, we would ·8· · · · · · · · ·CHAIRMAN PABLOS:· Thank you. ·8· develop a Texas border crossing technology and ·9· · · · · · · · ·Secretary De La Vega? ·9· innovative border process inventory.· With all the POEs 10· · · · · · · · ·MS. DE LA VEGA:· Thank you.· Of course, 10· going in their particular direction for their particular 11· count on us.· That's why we're here.· The State of 11· need, innovative and input or implementation of that is 12· Chihuahua shares approximately 478 miles with Texas; 12· occurring a lot faster than what we had in inventory. 13· and, of course, we're very interested in working 13· So before we can talk about what the POE needs are, we 14· together.· Sometimes we plan thinking the border is the 14· have to identify what they currently had in their POE. 15· end of the world and Jon Barela from the Borderplex 15· So that inventory is occurring and is underway. 16· knows when you're promoting El Paso and you try to 16· · · · · · · · ·White Paper 2 took into account a 17· gather data and attract -- especially in retail for a 17· multimodal perspective for rail.· It's looking at 18· border town in the U.S., they don't -- they never take 18· unified cargo processing for rail.· Currently, the 19· into account the Mexican side.· And as some of you know, 19· business case model we're looking at is the Mariposa 20· we are avid shoppers.· But it's -- I think we need to 20· POE; but then we also are looking at the Aviation UCP 21· find the spaces where we collaborate, where we discuss 21· that Laredo Airport is doing.· It's looking at both 22· not only opportunities; but also our challenges and 22· business case models again, seeing what works and what 23· that's why we're here and the border crossings are a big 23· doesn't work, make improvements to make the case for how 24· part of this.· How do we make them more efficient and 24· we can do UCP for rail.· And the Class Ones have been 25· more secure? 25· actively engaged in the process to ensure that TxDOT
Page 79 Page 81 ·1· · · · · · · · ·They can be more efficient, faster, and ·1· takes the necessary approach from their business ·2· also more secure through the use of new technologies; ·2· perspective. ·3· but especially through the willingness to work together ·3· · · · · · · · ·White Paper 3 is looking at Texas-Mexico ·4· and understand the challenges on both sides.· So, of ·4· border shipment tracking technology.· That is going to ·5· course, count us in.· That's why we're here willing to ·5· definitely help with not only the security aspect, but ·6· work with you. ·6· the efficiency aspect as well.· So we're developing that ·7· · · · · · · · ·CHAIRMAN PABLOS:· Thank you.· And, you ·7· business case model and how that can applicable ·8· know, ensuring that we customize some of those, you ·8· throughout the entire state. ·9· know, documents to the localities I think is also very ·9· · · · · · · · ·And then White Paper No. 4 is from a 10· important and I'm sure that Secretary De La Vega's 10· Texas pipeline system.· Not only of the current 11· counterparts on the Mexican side would agree that 11· testimony; but as new fields become developed for 12· working with them to figure out what needs to go on 12· exploration, how do we get that necessary infrastructure 13· those documents is very important.· So, again, another 13· in there and that connectivity from a multimodal 14· opportunity to educate, right? 14· perspective to the transportation network system. 15· · · · · · · · ·MR. JUAREZ, JR.:· Definitely.· So we will 15· · · · · · · · ·The white papers are continuing to be 16· make an effort to reach out to the Mexican states 16· developed and we should have these refined no later than 17· regarding this.· Anticipate a couple of calls from us 17· at the end of the month to give you a final draft 18· within the next week or so. 18· version for your consideration and then get your 19· · · · · · · · ·So I'm going to go to Rec. 4, which is 19· necessary comments to go for refinement.· All of these 20· the implementing technology and innovative border 20· particular efforts has been how we go about implementing 21· strategy.· A great segue based on what you're saying on 21· it and how are they needed from a policy program or 22· safety and security, but efficiencies.· So this 22· project perspective. 23· really -- the subcommittee identified topics for review 23· · · · · · · · ·Recommendation 5 is fostering that 24· and development of white papers.· Essentially, the 24· private sector involvement while engaging the public 25· concept was:· Is what technology exists, either in the 25· sector, as well.· So this was to discuss an active Page 82 Page 84 ·1· dialogue between the public and private sectors, and ·1· committee. ·2· Mr. Vale has been the Chair for this subcommittee.· So ·2· · · · · · · · ·Right now for Recommendation 4, the ·3· that committee decided that we should do listening ·3· technology aspect, we are in the analysis of the ·4· sessions, identification of invited participants, ·4· business case information we've been able to get. I ·5· scheduling timelines for roundtable, and then any other ·5· spoke with Mr. Vale and he's going to give us some ·6· addition consideration of core efforts as we went out ·6· information on a white paper that they used for their ·7· and did the initial round.· So we're going to continue ·7· efforts.· So we'll incorporate that local perspective, ·8· to work on the development of Recommendation 3 because ·8· as well.· So we look forward to getting that ·9· that's really going to help us guide the topics that we ·9· information.· Once we get to those final drafts and 10· need to hold either from a listening session perspective 10· refinements, we're going to bring them back to BTAC. 11· or a location for those particular meetings. 11· And then if we're going to utilize the private sector 12· · · · · · · · ·We're going to continue with the 12· effort on this, our initial thoughts were to put this on 13· stakeholder list, but the stakeholder list is going to 13· a temporary hold; but if we have -- Secretary of State 14· have many elements for utilization:· Development of a 14· Pablos -- the four identified Mexican states to 15· border transportation plan, the development of these 15· participate and help us get that private sector database 16· particular Regs 1 through 5, and then a whole host of 16· identified of who to include, we could probably move 17· other efforts we're undertaking.· And then we want to 17· forward with this.· There may be a little time gap 18· make sure that we have the -- that the time is set and 18· depending on how soon we can get that information, but 19· done to have the completion of Recommendation 1 once we 19· we will leave that thought up to this committee. 20· have our Mexican counterparts identified. 20· · · · · · · · ·Next slide, please. 21· · · · · · · · ·Next slide, please. 21· · · · · · · · ·So the initial thoughts were, with BTAC's 22· · · · · · · · ·So where we stand at this particular 22· concurrence, we would continue with Rec. 2 and 3 and 4, 23· point in time to give not only the subcommittee members 23· to continue to meet; and that was done through web 24· a heads up, but also Border Trade Advisory Committee, is 24· access, as many of you participated in.· Our thoughts 25· that Recommendation 1 is on hold until we get the full 25· were Committee 1 and 5 would develop based on a refined
Page 83 Page 85 ·1· finalization of the Secretary and Undersecretaries.· It ·1· schedule and then initiate those later; but as I noted, ·2· really doesn't benefit us to work with the current ·2· we may be able to kickoff in some three or four months ·3· administration if within the next three to four months, ·3· on Rec. 5.· And then we want to make sure that you ·4· it's going to be a new group.· So we're putting that on ·4· continue to help us guide the review prioritization and ·5· hold; but remember, the action item is we want to make ·5· implementation of these committee efforts.· We're ·6· sure that BTAC gives us concurrence on who is proposed ·6· seeking, for exemple, under Rec. 3, the public ·7· on that list and then when those folks are identified, ·7· awareness, what additional items would you like for us ·8· we can put them to the list and come back to you with ·8· to address or consider.· The committee members -- which ·9· specific names and contact information. ·9· many of you are here present, and we appreciate your 10· · · · · · · · ·We're going to continue the development 10· participation in these subcommittees -- if there's 11· of Rec. 2, the Trade Lanes Program.· We have made 11· additional direction or guidance you would like to give 12· significant process regarding the work TxDOT is from its 12· us, please do so as we move forward in these initiatives 13· actual investment for infrastructure and we continue to 13· because really the bottom line is -- as Secretary of 14· look at our existing funding sources not only from the 14· State Pablos noted -- we want to go to implementation. 15· Point A to border infrastructure and Rider 11-B, but 15· We want to be able to have some fruit being beared from 16· what the districts have -- the TxDOT districts have 16· these particular efforts. 17· identified for funds within the Unified Transportation 17· · · · · · · · ·All these efforts are going to be tied 18· Program for those projects.· So that is steadily moving 18· into the development of the Border Transportation Master 19· along, and we did have a meeting with the three border 19· Plan.· We're going to utilize what came out as the 20· districts yesterday afternoon to make significant 20· Strategic Blueprint Plan for those particular efforts on 21· progress on that. 21· the Border Transportation Master Plan.· So I'm going to 22· · · · · · · · ·Recommendation 3 I have to say is just 22· pause there, Secretary of State Pablos, before I go into 23· off the charts.· That is the awareness and education 23· the next agenda item for any comments or questions. 24· program.· That is ongoing and will continue to evolve, 24· · · · · · · · ·Keep going?· Okay. 25· especially based on input that we get from BTAC and that 25· · · · · · · · ·So the next agenda item is our attendance Page 86 Page 88 ·1· at the U.S.-Mexico Joint Working Committee.· So ·1· Dallas/Fort Worth region, Austin/San Antonio region. ·2· essentially, this is a summary of that committee that ·2· How could we do it for our McAllen/Hidalgo/Brownsville ·3· occurred in San Diego, September the 5th through the ·3· region?· That type of an approach.· And so they wanted ·4· 6th.· As I noted -- next slide, please -- the ·4· to note for the states that as we were considering ·5· U.S.-Mexico Joint Working Committee is a -- next slide, ·5· planning Border Master Plan development and data needs, ·6· please.· The U.S.-Mexico Joint Working Committee is a ·6· that we looked at it from this regional perspective. ·7· binational group whose primary focus is to cooperate on ·7· · · · · · · · ·SCT commented on that they did note the ·8· land transportation planning and facilitate efficient, ·8· pending changes within the administration that would ·9· safe, and economic cross-border transportation movement. ·9· occur in Mexico and the net effect it would have to SCT, 10· It is a U.S. DOT, U.S. State Department, Secretaria of 10· SRE, SAT.· They reflected on the progress that had 11· Comunicaciones y Transportes, and SRE initiative led 11· occurred within the previous years, including completed 12· effort. 12· projects between agreements between the Mexican 13· · · · · · · · ·All the four states on the U.S. side, 13· government and Texas and the need to continue that 14· plus all the Mexican states are active participants and 14· collaboration and also to focus on technology advances 15· members of the Joint Working Committee.· It is comprised 15· between both countries for that efficient movement of 16· of FHWA; SCT; Department of State; SRE; the four border 16· goods.· They encouraged all participants to continue to 17· states DOTs, which we represent, TxDOT; the six Mexican 17· provide feedback and suggestions to the committee 18· border states; General Services Administration on the 18· because the Mexicans were kind of sensing what we were 19· U.S. side; and then U.S. Customs Border and Protection 19· sensing from Texas DOT and Arizona DOT, that a lot of 20· of the Department of Homeland Security and then their 20· information had been collected and now we needed to go 21· counterparts in Mexico. 21· to the implementation perspective.· And we were very 22· · · · · · · · ·Next slide, please. 22· pleased to receive that kind of cooperation and support 23· · · · · · · · ·So at this particular meeting -- and I 23· from our Mexican counterparts. 24· have to say under TxDOT leadership and Arizona DOT 24· · · · · · · · ·Next slide, please. 25· leadership, we really were pushing JWC for 25· · · · · · · · ·So at the JWC, Texas is always listed on
Page 87 Page 89 ·1· implementation, implementation, implementation.· We ·1· the agenda for the development of the Texas-Mexico ·2· needed to get some fact findings out of this.· There has ·2· Border Transportation Master Plan.· Normally, we're at ·3· been a whole host of discussion, which the Mexican ·3· the top of the agenda and we have a lot of time allotted ·4· states can probably attest to; but, okay, it's time for ·4· to us, especially from a Q-and-A perspective.· So we ·5· discussion to go on the backseat, but let's start doing ·5· gave a presentation on the status and development of the ·6· implementation.· Let's start getting fact finding ·6· Border Master Plan, and we also distributed the scope of ·7· information so that the State DOTs can utilize this.· So ·7· work in which you received today.· We also translated ·8· FHWA for the U.S. DOT perspective, brought that -- they ·8· that into Spanish for our Mexican counterparts, and that ·9· wanted that continued relationship to continue to be ·9· was also given and distributed to FHWA and SCT. 10· built between U.S. and Mexico and benefit for both of 10· · · · · · · · ·Key points, as we noted to them and as 11· the nations. 11· we've noted to you based on your guidance and input to 12· · · · · · · · ·U.S. DOT commented on their strategic 12· us, is that this is a binational port of entry effort to 13· 2018-2022 plan that identified connections between work 13· look at each of the support facilities of that POE, 14· done by JWC and then goals of safety, infrastructure, 14· connectivity to the multimodal transportation network 15· innovation, and accountability outlined in their 15· system, and then as a trade and economic development 16· strategic plan; and we can make that available and have 16· component, which just comes natural from freight and 17· it on our website, as well.· FHWA also promoted their 17· trade movement. 18· bill program and noted that applications submitted by 18· · · · · · · · ·Out of that meeting, we did propose to 19· the DOTs and local governments were currently under 19· Mexico to have this meeting between both countries -- 20· review and that they would be awarding them in the next 20· Texas and the Mexican -- and the four states -- to talk 21· coming months.· This is additional funding outside of 21· about Border Master Plan because we did not want to have 22· the regular federal programs. 22· missteps or delays as we go from one administration to 23· · · · · · · · ·And then they wanted us to continue to 23· the other and we talked to some of the Mexican states 24· focus on mega regions.· That's been a big push from U.S. 24· during the break to see if they could help assist with 25· DOT and FHWA.· Consideration, for example, in Texas the 25· moving that Mexican meeting forward. Page 90 Page 92 ·1· · · · · · · · ·Next slide, please. ·1· · · · · · · · ·CHAIRMAN PABLOS:· Thank you. ·2· · · · · · · · ·So out of this, the JWC decided to ·2· · · · · · · · ·Any comments or questions from the board? ·3· develop subcommittees that would look at these ·3· · · · · · · · ·Thank you, Tim.· Very good work. ·4· particular efforts that TxDOT and other states have been ·4· · · · · · · · ·Yes, sir. ·5· pushing for.· So there is an Innovations and Technology ·5· · · · · · · · ·MR. VALLEJO:· Yes.· I have a comment or a ·6· Subcommittee.· There is specifically the Laredo-Nuevo ·6· question. ·7· Laredo Workgroup Committee.· There is a committee ·7· · · · · · · · ·CHAIRMAN PABLOS:· Alfonso Vallejo from ·8· looking at underutilized border crossings so that we can ·8· Brownsville MPO. ·9· have efficiency for the entire POE system; and then ·9· · · · · · · · ·MR. VALLEJO:· In regards to Mexico when 10· really important to us for Border Master Plan 10· the new President start working, normally they give -- 11· development, cross-border sharing study. 11· he is -- a master plan for six years, right?· Do you 12· · · · · · · · ·We do have representatives from Texas who 12· know when it's going to be?· And that way we know what 13· are on all of those committees.· There are a couple ones 13· are your projects for the future. 14· in which we are asked to be the Chair of these 14· · · · · · · · ·CHAIRMAN PABLOS:· Well, pardon me for 15· subcommittees and I know Melissa Montemayor from TxDOT 15· interrupting; but are you referring to federal or state? 16· Laredo is here and she's the Chair of the Laredo-Nuevo 16· · · · · · · · ·MR. VALLEJO:· The new President gives the 17· Laredo Workgroup.· So we will continue to be actively 17· projects -- energy, schools, roads, everything -- for 18· engaged in these committees through JWC so that, one, we 18· six years, so. 19· continue to give the message regarding the State of 19· · · · · · · · ·MS. DE LA VEGA:· The first comment is all 20· Texas and TxDOT; but also to bring some of these 20· of us are State government, and so that would be the 21· initiatives forward for the development of Border Master 21· federal level; but I would have to say we have had 22· Plan and other efforts. 22· meetings with the transition team and their view is 23· · · · · · · · ·We would like to note to you that the 23· they, in general -- and I don't know if my colleagues 24· next JWC meeting is scheduled for April 10th and 11th of 24· agree -- but they are trying to finish plans that were 25· 2019, in Mexico.· They haven't identified a date yet. 25· already in place.· They're not -- you know, they're not
Page 91 Page 93 ·1· But what we are advocating, especially for port of entry ·1· coming in with an attitude of just scraping everything ·2· and local governments, is that if you have the ·2· and starting new, which is great. ·3· opportunity to participate at JWC, then we would like to ·3· · · · · · · · ·MR. VALLEJO:· Right. ·4· encourage you to do that.· We would also ask that you ·4· · · · · · · · ·MS. DE LA VEGA:· Not only in ·5· continue to share information with TxDOT about your ·5· infrastructure, but in some other plans.· In some areas, ·6· particular port of entry because as I noted earlier and ·6· of course, they will implement their own strategies; but ·7· to some of you during the break, it's at these JWC ·7· they're trying to finish, especially in infrastructure, ·8· meetings where CBP or FRA or FMCSA may come to us and ·8· the projects that were already taking place and they're ·9· say, "We have this additional funding.· We're ·9· kind of trying to do an inventory of what there is. 10· considering this particular aspect.· Is there an 10· · · · · · · · ·MR. VALLEJO:· So do you think in January, 11· application in Texas?" 11· he would give the report? 12· · · · · · · · ·And so many instances we can say, "Yes, 12· · · · · · · · ·CHAIRMAN PABLOS:· There's no way of 13· let's have additional discussions and talk about this," 13· knowing. 14· and, you know, we have and will continue to have those 14· · · · · · · · ·MS. DE LA VEGA:· January is probably too 15· discussions; but we will be better prepared if you're 15· soon because he takes office the 1st of December; but 16· not present, that at least you shared that information 16· they have been very, very active in the transition 17· with us because always as we're out there doing these 17· period. 18· binational meetings, we want to be able to advocate for 18· · · · · · · · ·MR. RUSSILIDI:· Every change of the 19· you so that we can continue that efficient flow of 19· administration has, by law, six months to present 20· movements of people and goods through those port of 20· their -- 21· entries.· So we will continue to provide BTAC 21· · · · · · · · ·MR. VALLEJO:· Six months. 22· information regarding the Joint Working Committee and in 22· · · · · · · · ·MR. RUSSILIDI:· -- their federal or state 23· particular as we go forward, with those subcommittees. 23· path for six years.· Then every December, they will 24· · · · · · · · ·So, Secretary of State, I will pause 24· present another update for the next year; but -- 25· there and yield to you for any comments or questions. 25· · · · · · · · ·MS. DE LA VEGA:· In April. Page 94 Page 96 ·1· · · · · · · · ·MR. RUSSILIDI:· But they are starting -- ·1· development organizations that haven't been represented. ·2· yes, by law, they have six months from December 1st. ·2· · · · · · · · ·And so I've been working -- and, ·3· · · · · · · · ·MR. VALLEJO:· It would be good to have ·3· Commissioner New, thank you for all your support on ·4· that, that way we can work for -- ·4· this.· I've been working with the commission to try to ·5· · · · · · · · ·CHAIRMAN PABLOS:· And the hope would be ·5· find a way where, you know, we can expand this board, ·6· this committee can also influence that effort, correct, ·6· ensure attendance because that's certainly been an ·7· where it makes a final decision? ·7· issue, not flooded in a way where it becomes too large; ·8· · · · · · · · ·So any other questions or comments? ·8· but enlarge it to the point where we're bringing in new ·9· · · · · · · · ·Okay.· Hearing none, we'll move onto our ·9· ideas.· Especially given that we have this Border Master 10· next item:· Committee membership.· So as you all know 10· Plan, which is a very expensive endeavor and to move 11· and as you all can feel, we are entering -- as a State, 11· forward in a Master Plan that does not include input 12· we are entering into a new era of binational prosperity. 12· from various sectors of our industry and from our 13· We are beginning to see tremendous economic growth.· The 13· Mexican counterparts I think would be a mistake. 14· State is -- Texas, our state, is the fastest growing 14· · · · · · · · ·And so what I'm looking for today, is 15· economy in the country.· We're seeing a tremendous 15· consensus from this group in bringing and recommending 16· amount of foreign direct investment coming in.· I mean, 16· to the Transportation Commission a new slate of members. 17· it seems that every week, we have a handful of 17· These members are individuals who attend these meetings 18· announcements of new investment coming into Texas and a 18· on a regular basis, who have expressed interest in 19· lot of that is related to what is going on in Mexico and 19· participating on this board, and represent these diverse 20· so we need to ensure that not only as a State we 20· industries.· And so at your seat, you have a proposed 21· continue on this trajectory, not sitting on our laurels 21· list of -- or a list of proposed new board members. 22· and making sure that we continue to be competitive; but 22· · · · · · · · ·In my discussions with individuals like 23· also as a binational community. 23· Ambassador Gutierrez from Mexico, it seemed -- you know, 24· · · · · · · · ·And so BTAC, this group, was originally 24· it very quickly seemed like the right thing to do to 25· conceived as an advisory group that would make 25· ensure that not only we have State representation from
Page 95 Page 97 ·1· recommendations to our State leadership regarding trade, ·1· the Mexican side, but also Federal representation.· And ·2· commerce, and the infrastructure related to that.· And, ·2· so taking his recommendation, I'm proposing today that ·3· you know, I've been part of this group for many years ·3· we bring in our four State representatives, all of whom ·4· and I've seen this group grow and mature in the content ·4· are here today; and add three federal seats.· One ·5· that it has been handling and as we've been discussing ·5· representing (foreign language), the other one SCT, and ·6· over the last year and a half, you know, the -- I see a ·6· then the other one SRE (foreign language).· So that we ·7· particular need to expand the base of this committee not ·7· way we can make sure that we have that Federal coverage ·8· only so that we can bring in new skill set, but also to ·8· that we need, that we have that input from the Federal ·9· extend our region to areas where we really haven't been. ·9· government. 10· · · · · · · · ·The original intent of BTAC in making 10· · · · · · · · ·As many of you know, in Mexico -- 11· recommendations was to include membership from community 11· particularly in infrastructure -- things are done at the 12· stakeholders in the private sector, government 12· Federal level, unlike, you know, we do here at the State 13· officials -- as you see here we have many mayors -- 13· level and so State and Federal participation on the 14· planning organizations, economic development 14· Mexican side is very important.· So the recommendation 15· organizations.· Private sector, we have the railroads. 15· is to bring in the four State and three Federal 16· So this has been a group of stakeholders that has really 16· officials on an ex-official capacity, given our State 17· taken it upon itself to identify the opportunities and 17· laws and given that this is an advisory committee. 18· the challenges and move forward. 18· We're not making policy.· We're recommending policy to 19· · · · · · · · ·I think given what is going on now with 19· our leadership. 20· the relationship, the bilateral relationship, all the 20· · · · · · · · ·The best solution is to bring in the 21· tremendous things that are to come, I think it's time to 21· Mexican counterparts, making sure that they have a seat 22· now expand this committee to include other stakeholders 22· at the table and a voice in the conversation.· That's 23· not only from the Mexican government, as that we have 23· always been critical to me, very important so that we 24· seen, but also on the Texas side, new industry sectors 24· can bring in those opinions and that support that the 25· that haven't been traditionally represented and economic 25· Mexican counterparts can provide. Page 98 Page 100 ·1· · · · · · · · ·On the Texas side, in front of you we ·1· GEMCO Group, customs agents.· Thank you for being here. ·2· have eight proposed members from the Texas side.· We ·2· · · · · · · · ·We have Michael Othites.· He is with ·3· have individuals from the technology sector, ·3· Constellation Brands.· He's not here today, but I ·4· manufacturing, Customs, agencies, and economic ·4· believe there's a representative here from ·5· development.· And so at this time, what I would like to ·5· Constellation.· You know, very important to have that ·6· do is ask -- as I call your name, ask if you could ·6· manufacturing component. ·7· please just stand so people can recognize you and we'll ·7· · · · · · · · ·Rod Ponton, County Attorney with Presido ·8· start with -- obviously, with our Mexican government ·8· County.· There you are.· Thank you. ·9· officials. ·9· · · · · · · · ·And let's see, did I miss anyone? 10· · · · · · · · ·We have Gerardo Berlanga Gotes.· He's the 10· · · · · · · · ·Sergio Davila with Rassini Suspension 11· Secretary of Infrastructure of Urban Development and 11· North America.· He's not here today. 12· Mobility for the State of Coahuila.· Thank you for being 12· · · · · · · · ·So as you can see, this is a diverse 13· here. 13· group.· The most important component of this I think is 14· · · · · · · · ·We have Alejandra De La Vega with 14· on the manufacturing side.· We really haven't had that 15· Chihuahua.· Thank you. 15· manufacturing representation; and to a great extent, 16· · · · · · · · ·We also have Claudia Lagos Galindo, who's 16· it's manufacturing on the Mexican side that creates a 17· the Deputy Secretary for Economic Growth, Tamaulipas. 17· lot of this traffic.· And so having their input I think 18· Thank you. 18· is very important.· And with Constellations and Rassini 19· · · · · · · · ·And Secretary Roberto Russildi with the 19· being a part of that on the economic development side, 20· State of Nuevo Leon. 20· obviously, working as a binational region, economic 21· · · · · · · · ·So these are the representatives, the 21· development is extremely important.· Technology, we've 22· seats that we are proposing that we add and the 22· seen that.· And on the energy side, we have the 23· representatives to fill those seats.· As mentioned 23· electrical component. 24· earlier, we don't know who is going to be filling in the 24· · · · · · · · ·I would like to see a couple of seats 25· Federal seats; and so those will remain open until 25· left open for.· One for an oil and gas private sector
Page 99 Page 101 ·1· further notice.· But we do need to obtain TxDOT ·1· representative; and another seat open for TAB, the Texas ·2· approval, Texas Transportation Commission approval to ·2· Association of Business, given that they're the ones ·3· have those seats open, with the understanding that as ·3· that are really leading the charge.· And so, you know, ·4· soon as the Obrador administration names the ·4· obviously adding more individuals creates a little bit ·5· individuals, we would then make that offer to ·5· more complexity; but at the same time, it also allows us ·6· participate and add them. ·6· to expand this base, especially during this very ·7· · · · · · · · ·On the private sector side, we have ·7· important time of developing our Strategic Border Master ·8· Secretario Corterez(phonetic) with the RGB Partnership ·8· Plan.· Looking 10, 20 years into the future, it's so ·9· and Economic Development Organization.· Secretary, are ·9· important that we have the input from these individuals, 10· you here?· Thank you for being here. 10· in addition to the input that we already have from this 11· · · · · · · · ·Rafael Esteban with ACCIONA Energy.· He's 11· committee. 12· not here today.· ACCIONA Energy is participating 12· · · · · · · · ·And so again, as I said, I'm looking for 13· actively on both sides of the border with respect to 13· consensus from this group that the process is going to 14· energy. 14· be once I obtain that consensus from you, then I would 15· · · · · · · · ·Carter Holston, he is the Director of 15· make a recommendation to the Transportation Commission. 16· Community Relations with NEC Corporation.· NEC's 16· I will present to the commission on November 15th and 17· participation I think is crucial because they bring in 17· seek their approval of this slate so that for our 18· the technology aspect.· They're already doing tremendous 18· December meeting, we can now have the first official 19· work with Homeland Security on facial recognition on 19· meeting with the new membership already in place. 20· border crossings and so Carter expressed interest in 20· · · · · · · · ·And so what I would like to do -- 21· participating. 21· Commissioner New, do you have any comments on this? I 22· · · · · · · · ·We have Mario Lozoya, Executive Director 22· would like to give you at least an opportunity to speak, 23· and CEO of Greater Brownsville Incentives Corporation. 23· if you'd like. 24· Mario, thank you for being here. 24· · · · · · · · ·COMMISSIONER NEW:· No, it's not 25· · · · · · · · ·Glafiro Montemayor, President and CEO of 25· necessary. Page 102 Page 104 ·1· · · · · · · · ·CHAIRMAN PABLOS:· Okay.· So I would like ·1· that would add a good voice. ·2· to open the floor for discussion.· Obviously, there are ·2· · · · · · · · ·I mean, I don't want to single out ·3· other individuals that might want to participate.· Sam ·3· anybody in particular; but I will name a few -- a couple ·4· had mentioned about someone; but here's the thing is ·4· of names.· But, you know, Secretary Contreras(phonetic) ·5· that right now, these are the individuals who have ·5· and Mario Losoya(phonetic) are individuals that we see ·6· expressed interest, who have come to me.· This has been ·6· on a regular basis at meetings and add to the depth of ·7· out for about a year, our efforts to try to add and ·7· the conversation and knowledge of the conversation.· And ·8· these are the individuals -- the extent of the ·8· then from my neck of the woods, of course, Deputy ·9· individuals who approached me and every single one of ·9· Secretary (foreign language), at several important 10· them is now going to have an opportunity to participate. 10· meetings there.· So it adds to the conversation there. 11· If, in the future, you see anyone who might also be 11· And I know that Gerry Schwebel would want me to mention 12· interested and might be a good addition, just bring this 12· and I would echo this, you know, Rafael Montemayor is at 13· to my attention. 13· all of those meetings that we talk about where Gerry's 14· · · · · · · · ·Luckily, we don't have an upper ceiling 14· at or Dennis Nixon's at.· He's there, as well, adding to 15· on the number of participants; but, again, I don't want 15· the conversation from a binational perspective, 16· to get to the point where this becomes too complicated. 16· especially in terms of what it costs and what it takes 17· But I think at least right now, making a recommendation 17· to make things work along the U.S.-Mexico border.· So 18· to the Transportation Commission to add these seats and 18· another person that would be welcome to the committee. 19· leaving it open for potential additions of future 19· The same is true of the other members, but I think that 20· members is really the way to go.· So I would like to 20· kind of depth is important. 21· open it for any discussion, if any.· If not -- yes, Sam. 21· · · · · · · · ·CHAIRMAN PABLOS:· Well, thank you. 22· · · · · · · · ·MR. VALE:· I would like to move that we 22· · · · · · · · ·Any other comments? 23· accept the recommendation by acclimation. 23· · · · · · · · ·COMMISSIONER NEW:· A quick question.· So 24· · · · · · · · ·CHAIRMAN PABLOS:· Okay.· There's a 24· would this new committee fit in this room? 25· motion.· Is there a second? 25· · · · · · · · ·CHAIRMAN PABLOS:· Well, that is something
Page 103 Page 105 ·1· · · · · · · · ·MR. BARELA:· Second. ·1· for staff to help us with.· Obviously, like I said, if ·2· · · · · · · · ·CHAIRMAN PABLOS:· Okay.· Second, Jon ·2· this will pose additional challenges; but, you know, ·3· Barela. ·3· we'll be able to overcome them.· I think we can probably ·4· · · · · · · · ·Okay.· Any discussion, please? ·4· fit them around this table.· By the way, this is a great ·5· · · · · · · · ·MR. CRISTINA:· Yes, Mr. Secretary.· Paul ·5· venue.· You know, having the meeting in Austin on a ·6· Cristina, BNSF.· Can you say again those three federal ·6· fixed basis I think has been very beneficial for folks. ·7· positions that you -- ·7· They can come in and have other meetings in Austin. ·8· · · · · · · · ·CHAIRMAN PABLOS:· So we have (foreign ·8· Moving around, you know, tends to present difficulties. ·9· language).· Which is, in essence, customs, right?· SCT, ·9· So if you will continue to have us, I'm sure we can 10· which is their infrastructure, transportation, road 10· accommodate the new membership. 11· agency.· And then SRE is their State Department, their 11· · · · · · · · ·Any other comments or questions? 12· Ministry of Foreign Affairs.· Ambassador Carlos Gonzalez 12· · · · · · · · ·Well, you know, I certainly look forward 13· Gutierrez is their representative here in Austin. 13· to having these members, these new members on board.· As 14· Minister Villarreal is the Secretary of State.· And so 14· you said, you know, the unique perspective from say, for 15· that came as a recommendation from Ambassador Gutierrez. 15· instance, with (foreign language), customs brokers. I 16· He felt that having SRE participating would be 16· mean, we need to hear what they are thinking.· We have 17· important, and I completely agree with him. 17· John Esparza with the Trucking Association.· You know, 18· · · · · · · · ·Yes, Henry. 18· hearing their perspective is very important.· These are 19· · · · · · · · ·MR. SAUVIGNET:· Just echoing the comment 19· all those pieces of the puzzle that we have to look at 20· or the sentiment there and I think it is important to 20· as we make recommendations as part of this Master Plan. 21· mention this.· You know, we serve on several committees 21· So I'm very excited about this. 22· and organizations throughout the state and there are 22· · · · · · · · ·Is there anyone opposed to this idea? 23· individuals that are on this list who we meet at various 23· · · · · · · · ·If no one is opposed, then I'll go ahead 24· other meetings and organizations that add depth and 24· and take that as an order to present this to the 25· perception to -- good perception to what's going on and 25· Transportation -- Page 106 Page 108 ·1· · · · · · · · ·MR. VALE:· Can we call the question? ·1· more aligned than they're from El Paso to Washington or ·2· · · · · · · · ·CHAIRMAN PABLOS:· Well, it's -- we could, ·2· Juarez to Mexico City and it's similar through all the ·3· but it's a consensus item.· So we could.· Any in favor, ·3· border.· We are, in fact, more similar Juarez to El Paso ·4· please signify by saying aye. ·4· than we are to Chihuahua City.· And I think it's a great ·5· · · · · · · · ·(Chorus of ayes) ·5· opportunity of how we facilitate and how we can really ·6· · · · · · · · ·CHAIRMAN PABLOS:· Any opposed? ·6· potentially take the full potential of what we've heard. ·7· · · · · · · · ·Okay, thank you.· So what I'll do, is ·7· Not only is it the new NAFTA, but I think we're also for ·8· I'll take this to the commission and we will notify the ·8· the first time going to see federal support on the ·9· entire committee thereafter so that for our December ·9· Mexican side.· So I think that's a very big opportunity 10· meeting, we can start with this new official slate as 10· for this group. 11· part of this.· To me, it's essential; and I thank 11· · · · · · · · ·CHAIRMAN PABLOS:· Thank you, Secretary. 12· you-all for supporting this idea.· We need to 12· · · · · · · · ·Secretary Berlanga has asked for some 13· institutionalize the relationship with Mexico within 13· time to present to you.· This is now a result of us 14· this committee, and I'm glad that we're heading in that 14· coming together to present to you some of the projects 15· direction. 15· that Coahuila has in place.· But before I give him the 16· · · · · · · · ·MS. DE LA VEGA:· I would like to thank 16· floor, I would like to ask our guests, our other 17· Secretary Pablos for inviting me and my colleagues to be 17· Secretaries to see if they have anything to add before 18· part of this advisory committee.· I think somebody 18· we close up. 19· mentioned earlier that we're going to experience 19· · · · · · · · ·Secretary Russilidi, do you have any 20· economic growth on the border and that is true and the 20· parting comments before we hand it over to Secretary 21· incoming President for Mexico has been announcing since 21· Berlanga? 22· his campaign, but has said it several times again during 22· · · · · · · · ·MR. RUSSILIDI:· Yes, thank you.· Just 23· his visits to our States on the border and has also said 23· thank you, Secretary Pablos, for the invitation.· As 24· it in Mexico City, he has an economic development plan 24· Alejandra De La Vega said, the border is going to become 25· for the border specifically. 25· much more important.· We are planning in Nuevo Leon the
Page 107 Page 109 ·1· · · · · · · · ·And, I mean, I was born on the border. I ·1· bridge of Columbia.· There is nothing on Mexican border ·2· grew up on the border.· This is the first time I have ·2· side.· It's just the rich and the logistics and that's ·3· heard on the Mexican side a President of Mexico talking ·3· it.· There's 800 people working there and -- but now ·4· about border cities particularly.· Not only states, but ·4· it's -- we're putting a lot of effort into the bridge. ·5· talking about Juarez, talking about Tijuana, talking ·5· We have the joint inspection between Mexican and ·6· about Reynosa, talking about all our border cities.· And ·6· American authorities in the USA.· Trade has grown a lot ·7· he has come forth with economic incentives with fiscal ·7· and the new President Lopez Obrador was in Monterrey ·8· incentives for the border.· Specifically, they're ·8· last week and we presented to him the plan to build the ·9· talking about -- and we don't have the specifics yet. ·9· city of -- whatever the name is going to be -- Columbia, 10· They're working on the implementation of the plan; but 10· and just to -- we have 10 miles of border; but in that 11· they're talking roughly 30 kilometers -- 11· space, there is enough room for three or four Nuevo 12· · · · · · · · ·MR. RUSSILIDI:· 20 miles. 12· Laredos in that area.· So it's enough space.· Even 13· · · · · · · · ·MS. DE LA VEGA:· Yeah, 20 miles, 30 13· though it is the smallest border with Texas, those 14· kilometers from the border.· They are going to -- 14· 10 miles, it's more than enough. 15· they're talking about free trade zones.· They're talking 15· · · · · · · · ·So we should be promoting the different 16· about fiscal incentives.· So I think, yes, we -- we're 16· companies to move to the border and take advantage of 17· going to see a big boost in economic development, and I 17· the incentives.· IRS taxes are going to be reduced from 18· think it's the perfect timing to be sitting here working 18· the 36 to 20 percent.· Sales tax is going to be the same 19· together and trying to facilitate and not be a hurdle in 19· that's in Texas from 16 to 8.4.· And the cost of 20· the opportunities that we have. 20· gasoline, it's going to be same as Texas.· So I'm sure 21· · · · · · · · ·We are neighbors.· We are -- I mean, as 21· that we're going to have a lot of companies moving to 22· long as I can remember -- I don't know how much of my 22· the border to take advantage of all this.· So we should 23· life I spent on one side or the other; but to me, you 23· be phasing a lot of increase in this economy on the 24· always see the opportunities and challenges from Juarez 24· border with -- between Monterrey and Texas. 25· that we face in Juarez and El Paso are more similar, are 25· · · · · · · · ·So again, Secretary Pablos, thank you Page 110 Page 112 ·1· very much for the invitation.· We should be coming and ·1· as to what they're trying to do and how those are going ·2· participating very actively.· I will bring in the future ·2· to be incorporated in our master planning. ·3· Hugo Gonzalez, who is the person in charge of the border ·3· · · · · · · · ·So, Secretario Berlanga. ·4· of Nuevo Leon with Texas to participate in these ·4· · · · · · · · ·MR. BERLANGA:· I apologize for my ·5· meetings, if you allow me to -- ·5· English.· On behalf of the constitution of governor of ·6· · · · · · · · ·CHAIRMAN PABLOS:· Of course. ·6· (foreign language), thanks again, Secretary, for the ·7· · · · · · · · ·MR. RUSSILIDI:· -- as a guest for the ·7· invitation.· We would like to show you something that we ·8· meeting. ·8· are working for years with the administration about the ·9· · · · · · · · ·CHAIRMAN PABLOS:· Yes, sir.· Thank you, ·9· kind of space that we need in other towns across the 10· Secretary. 10· corridors that goes from Mexico to the United States. 11· · · · · · · · ·And I should note that the early part of 11· · · · · · · · ·In this first year, we work with a master 12· November, I'll be traveling to Monterrey to meet with 12· plan in Mexico in our state energy master plan, focus on 13· Governor Rodriguez and with the Secretary to continue 13· infrastructure.· It's -- I think it's the first one in 14· our discussion about all these opportunities that we 14· Mexico.· And in this slide, we show the corridor from 15· have as neighbors. 15· Mexico to United States.· Well, I think this slide is 16· · · · · · · · ·So, secretary, I look forward to joining 16· mixed; but the next slide, yes.· We have a main corridor 17· you in Monterrey. 17· in Coahuila.· It's 57 Road, but the 30 Road that goes 18· · · · · · · · ·Deputy Secretary Lagos, do you have 18· from la Laguna, the southwest of Coahuila to Acuna, 19· anything to add, please? 19· Piedras Negras, in the last years, the federal arm and 20· · · · · · · · ·MS. LAGOS:· Thank you, Secretary.· I just 20· the state government has built about 1,600 meters and 21· want to thank you again.· This is like the third or 21· the next four years, we are going to work on five 22· fourth time that I've participated with you in this 22· carriageways that will reduce the time for the travel 23· group.· And as mentioned several times, for Tamaulipas, 23· and the secure -- to invest another about 900,000 meters 24· it's really important to be here.· We've had a lot of 24· for the next four or five years. 25· ports and important projects going on in the region and 25· · · · · · · · ·The next slide, please.
Page 111 Page 113 ·1· so we probably are going to hear a lot of good or new ·1· · · · · · · · ·And the 57 Road corridor that goes from ·2· ideas on the federal level.· Probably some of them are ·2· Saltillo to Piedras Negras and Acuna through 29, we will ·3· going to be -- probably where we have to work together ·3· build three carriageways that is going to be more secure ·4· in a lot of them to create, like, the better region for ·4· for the freights and the use of time.· We are working ·5· both sides.· If we have great projects on your side and ·5· to -- with the federal government in the abundant area ·6· we are not aligned on our side, those projects are not ·6· in Acuna.· We will finish this installation at the end ·7· going to work.· So this is really important, and thank ·7· of this year.· Also, we have assigned with the ·8· you for inviting us. ·8· transition team of the new government for a master plan ·9· · · · · · · · ·CHAIRMAN PABLOS:· It's our pleasure and ·9· for Acuna for infrastructure for the industry. 10· honor to have you here. 10· · · · · · · · ·The next slide, please.· The next one, 11· · · · · · · · ·So a few weeks ago, I traveled to 11· please.· Yes. 12· Saltillo, and had a really nice visit.· I spent the day 12· · · · · · · · ·This is the work that's promised by the 13· with Governor Riquelme and his cabinet.· We had some 13· federal government expected to be completed at the end 14· great discussions about all sorts of topics; but the one 14· of this year.· It's the modernization of Acuna Bonded 15· that kept resonating, obviously, was discussion about 15· Warehouse.· It's expanded about 2 or 3 acres more. 16· trade and about our border infrastructure.· We signed a 16· · · · · · · · ·The next slide, please. 17· memorandum of understanding of mutual cooperation; and 17· · · · · · · · ·The federal government is working for the 18· so that relationship, you know, is developing.· He has 18· second bridge in Acuna, as well as the third bridge in 19· been to Austin.· He visited us a few months ago and 19· Piedras Negras.· And State of Saltillo was working aside 20· expressed his interest in continuing to develop not only 20· of the federal government and the federal government of 21· our friendship, but our commercial relationship. 21· Mexico is working with the federal government of the 22· · · · · · · · ·And so what I would like to do at this 22· United States. 23· time, is I would like to ask Secretary Berlanga to give 23· · · · · · · · ·The next slide, please. 24· us a presentation about the infrastructure projects that 24· · · · · · · · ·This is for Piedras Negras.· The SCT is 25· that Coahuila is looking at so that you-all are informed 25· right now ending the fact project. Page 114 Page 116 ·1· · · · · · · · ·The next slide, please. ·1· maybe as it gets over past east of Uvalde and over ·2· · · · · · · · ·And I wanted to explain that we're ·2· towards San Antonio. ·3· already working this first year for all the projects for ·3· · · · · · · · ·MR. ZAPATA:· Right.· That's the only part ·4· these corridors.· All of them has had a number of ·4· of the highway that's not really Super 2 just yet, but ·5· projects in the SCT, so are susceptible for funding for ·5· they've started to do some work between Eagle Pass and ·6· next year; and we are looking for these corridors to be ·6· Del Rio for sure. ·7· safe and good use of time for travel.· Thank you. ·7· · · · · · · · ·COMMISSIONER NEW:· Thank you. ·8· · · · · · · · ·CHAIRMAN PABLOS:· Thank you, Secretary. ·8· · · · · · · · ·CHAIRMAN PABLOS:· Well, wonderful.· And ·9· · · · · · · · ·Any questions? ·9· to the other Secretaries, I encourage you to do the same 10· · · · · · · · ·Yes, sir, Commission New. 10· and bring us, you know, updates of your endeavors and 11· · · · · · · · ·COMMISSIONER NEW:· On 57 and 29, it 11· plans.· That way we can understand also how it is that 12· looked like they split.· In other words, it doesn't go 12· we can fit, you know, our plans into this. 13· to Piedras Negras and then go up.· It actually splits 13· · · · · · · · ·Any questions or comments? 14· and one leg goes directly to Acuna and one leg goes to 14· · · · · · · · ·Yes, Mayor. 15· directly to Piedras Negras; is that correct? 15· · · · · · · · ·MAYOR CANTU:· Mr. Secretary, thank you. 16· · · · · · · · ·MR. BERLANGA:· Yes, that's correct. 16· Mayor Cantu from the City of Eagle Pass.· I just wanted 17· · · · · · · · ·COMMISSIONER NEW:· And the number of 17· to take this opportunity on behalf of our City, of 18· lanes, is it two lanes, one each way or two each way? 18· course, to thank the City of Coahuila.· We have had an 19· · · · · · · · ·MR. BERLANGA:· To Piedras Negras, we have 19· exceptional working relationship with the new governor, 20· four lanes, two for each side; and the 29 is two-lane 20· as we did with the past.· These infrastructure projects 21· only. 21· have always been something that have been crucial for 22· · · · · · · · ·COMMISSIONER NEW:· Okay.· Thank you very 22· the growth, especially with all that we have seen with 23· much. 23· Constellation Brands and not to mention the numerous 24· · · · · · · · ·MR. BERLANGA:· We are working for the 24· other investments that have been seen in Eagle Pass and 25· carriageways for two towns so that the freight only goes 25· Piedras Negras that have now started to trickle into
Page 115 Page 117 ·1· to the middle of the towns. ·1· Eagle Pass. ·2· · · · · · · · ·COMMISSIONER NEW:· Now, currently, it ·2· · · · · · · · ·So we do want to thank the government of ·3· comes through the Plaza on the Acuna side.· How far ·3· Coahuila, most especially Governor Riquelme for his ·4· advanced are the talks for meeting with the bridge?· For ·4· working relationship not only with Piedras Negras, the ·5· the second bride? ·5· current municipal who constantly is working on issues ·6· · · · · · · · ·MR. ZAPATA:· For the second? ·6· alongside that stateside.· We are very excited to see ·7· · · · · · · · ·COMMISSIONER NEW:· For the second bridge. ·7· these projects finally come to fruition after a number ·8· Does it -- ·8· of years.· So we just congratulate you-all and thank you ·9· · · · · · · · ·MR. ZAPATA:· Right.· It will go -- ·9· for that commitment of working with us. 10· continue through.· Yes, sir. 10· · · · · · · · ·CHAIRMAN PABLOS:· Thank you. 11· · · · · · · · ·COMMISSIONER NEW:· Okay.· So can you help 11· · · · · · · · ·Okay.· So before we adjourn, I'd like to 12· me understand more about the federal part of that 12· see if there's any new business or anyone would like to 13· negotiation? 13· discuss anything? 14· · · · · · · · ·MR. ZAPATA:· Right now, I believe the 14· · · · · · · · ·Caroline, please. 15· step that we're in is the environmental study aspect of 15· · · · · · · · ·MS. MAYS:· Yeah.· I put a couple of 16· it with our contractor. 16· things -- and, Jake, I'm going to give you the table to 17· · · · · · · · ·CHAIRMAN PABLOS:· And on the U.S. side, 17· at least make comments about the groundbreaking 18· we have a Super 2 coming out of Eagle, right?· Eagle 18· yesterday before I make my statements. 19· Pass to 35, is that -- 19· · · · · · · · ·MR. GIESBRECHT:· Well, thank you very 20· · · · · · · · ·COMMISSIONER NEW:· Yeah.· And then you 20· much and that was great for so much attention that we 21· also have a 2 -- you know, Highway 87 -- or 277, sorry, 21· had so much attention at the airport.· We got to showoff 22· that goes north up to I-10 and at Sonora, Texas.· So you 22· what we did at the airport.· Well, not what we did; but 23· have that, which is some Super 2 and some two-lane.· And 23· what Texas did.· The airport there in Presido, Texas, 24· then you have basically some two-lane Super 2 mostly 24· was redone by a process of ten years and we did local 25· going over towards San Antonio and becoming four-lane 25· match there for -- it took about ten years to do it. Page 118 Page 120 ·1· And then it flew in and Caroline was on board, and I was ·1· · · · · · · · ·MS. MAYS:· But, yeah, I just wanted to ·2· really surprised that she came to Presido. ·2· mention that, you know, yesterday was a groundbreaking ·3· · · · · · · · ·COMMISSIONER NEW:· She was flying. ·3· for building the railroad in Presido and Jake failed to ·4· · · · · · · · ·MR. GIESBRECHT:· Yes, she was flying; and ·4· mention that, you know, Congressman Hurd was there, ·5· I was almost tempted to jump on with her coming back. ·5· Chairman Bugg was there, the Governor's Chief of Staff ·6· The drive is really good from Presido.· We're very ·6· was there, and then somebody from Representative Darby's ·7· thankful.· I'm the Economic Development Director there ·7· office was there, and I'm likely missing a couple others ·8· for the Presido Municipal Development District and I ·8· and then there was a school for, you know, elected ·9· then I also serve as the Executive Director for the ·9· officials, the Judge from Presido was there, the Mayor 10· Presido International Port Authority, which is the 10· from Marfa was there, and several other elected 11· County and City together. 11· officials.· It ended up being so big when we're going 12· · · · · · · · ·Indeed, we're going to try to get our 12· through town, TxDOT staff from El Paso and the local 13· port of entry more efficient and most of all, we have 13· office there did a fantastic -- I think it was, like, 20 14· now -- the State of Texas owns that bridge and they're 14· caravans of cars going inside Presidio.· At some point, 15· really helping us rebuild it and build another one and 15· cars were stopping.· They thought we were a funeral 16· keep the maintenance up and there's always a lot of 16· procession. 17· issues to the international bridge and the ports of 17· · · · · · · · ·So it was good to see that because if 18· entry.· We have a lot of issues at the port of entry 18· you've been to Presidio, it's fairly small.· But I 19· that we're looking at; but like we said, there's always 19· wanted to just make sure that, you know, the group knows 20· opportunities in the future and we're looking at the -- 20· that, you know, things that happen on the ground.· We 21· as economic development, at the border trade zone that 21· had a CBP representative there yesterday, you know, to 22· we're -- the new President is coming in from Mexico and 22· just show their support for the facility and then also 23· it's going to really emphasize what we're trying to 23· for the community in Presidio.· So I just wanted to 24· plan. 24· mention that. 25· · · · · · · · ·We have a real good Executive Director 25· · · · · · · · ·And, Secretary, I will close.· In your
Page 119 Page 121 ·1· for the City.· We have a very active judge and a mayor; ·1· packets, there's several handouts and some of these are ·2· and now with the railroad bridge being built, there's ·2· very relevant to the border communities.· We have two ·3· just endless opportunities.· I'm going to sound like a ·3· implementation plans going forward.· One is a truck ·4· commercial, too.· But endless opportunities there in ·4· parking study that we're going to be doing a statewide ·5· Presido, especially with a multimodal and that's what ·5· analysis of truck parking issues.· We have already been ·6· we're going to be really focusing on is economic ·6· contacted by some of the border communities to ·7· development in the future is to try to get that -- what ·7· specifically look at truck parking in the border ·8· we don't want on the roads, we want on the trains and ·8· communities.· You have a lot of freight trucks coming in ·9· vice versa.· And like I said, with the railroad bridge ·9· and out of those communities.· So we're probably going 10· being built and the multimodal between the port of entry 10· to do a case study of one of the border cities to look 11· and the Rio -- what I was showing Caroline yesterday, 11· at, you know, the truck parking issues there. 12· she was already tired of me.· She was kicking me almost 12· · · · · · · · ·And then the other one is freight 13· at the end, but how much space we have available. 13· infrastructure design considerations.· That has been 14· · · · · · · · ·He said that he put three or four Laredos 14· mentioned here earlier, you know, how we design the 15· in their space and we can do the same thing in Presido 15· infrastructure.· You know, a lot of it is dated for 16· and we just have -- we're just very fortunate to have 16· today's operations for trucks; both at the border 17· you help us and TxDOT.· And TxDOT owns that railroad, 17· crossing, but also on our roadways.· So we're going to 18· also.· So we're very willing and able to put our two 18· be coming to a city near you, and we also hope that you 19· cents in, as we have with the airport.· So thank you 19· will help us get the word out.· I think we're going to 20· very much for everything you've done for Presido, Texas. 20· be in El Paso, we're going to be in Laredo, and we're 21· · · · · · · · ·MR. BERLANGA:· TxDOT owns the rail, not 21· going to be in Rio Grande.· You know, I think we 22· the railroad or not the -- just to be clear. 22· start -- the first meeting is in San Antonio on 23· · · · · · · · ·MAYOR CANTU:· Oh, just the rail? 23· November 27th.· Then, we'll go to Laredo.· Then, we'll 24· · · · · · · · ·COMMISSIONER NEW:· Exactly.· So there is 24· be crisscrossing to El Paso early December. 25· a contracted operator running the railroad.· Okay? 25· · · · · · · · ·So just hope to see all of you at these Page 122 ·1· meetings because they're crucial.· Especially, we would ·2· like the trucking community to be there because some of ·3· the design issues, you know, within some of the border ·4· cities really challenge the operations and for our case ·5· at TxDOT, safety issues can also be related to some of ·6· the design issues in our roadways.· So we just want to ·7· hear from the communities so that, you know, address ·8· some of the issues moving forward.· So thank you for ·9· being here.· I appreciate it. 10· · · · · · · · ·Back to you, Secretary. 11· · · · · · · · ·CHAIRMAN PABLOS:· Thank you, Caroline. 12· · · · · · · · ·Let's talk about our next meeting in 13· December.· Do we have a date already?· Here it says 14· "TBD," but didn't we already have a date because we 15· had -- 16· · · · · · · · ·MS. MAYS:· Yeah.· I think it was 17· December 12th. 18· · · · · · · · ·CHAIRMAN PABLOS:· December 12th, 19· 9:00 o'clock.· So please put that on your calendar. 20· · · · · · · · ·Okay.· So having no other business, the 21· time is 12:01.· I would like to, at this time, adjourn 22· today's BTAC meeting.· Thank you-all for being here and 23· safe travels home. 24· · · · · · · · ·(Meeting adjourns at 12:01 p.m.) 25
Page 123 ·1· · · · · · · · · · C E R T I F I C A T E ·2· STATE OF TEXAS· ·) ·3· COUNTY OF TRAVIS ) ·4· · · · · · · · ·I, Paige S. Watts, Certified Shorthand ·5· Reporter in and for the State of Texas, do hereby ·6· certify that the above-mentioned matter occurred as ·7· hereinbefore set out. ·8· · · · · · · · ·I FURTHER CERTIFY THAT the proceedings of ·9· such were reported by me or under my supervision, later 10· reduced to typewritten form under my supervision and 11· control and that the foregoing pages are a full, true, 12· and correct transcription of the original notes. 13· · · · · · · · ·IN WITNESS WHEREOF, I have hereunto set 14· my hand and seal this Turn in date 2nd day of November, 15· 2018. 16 17 18 19 20· · · · · · · · · · ·______21· · · · · · · · · · ·Paige S. Watts, CSR, RPR · · · · · · · · · · · ·CSR No.: 8311 22· · · · · · · · · · ·Expiration: December 31, 2018 · · · · · · · · · · · ·Firm Registration No. 631 23· · · · · · · · · · ·Kim Tindall & Associates, LLC · · · · · · · · · · · ·16414 San Pedro, Suite 900 24· · · · · · · · · · ·San Antonio, Texas 78232 · · · · · · · · · · · ·Phone 866.672.7880 25