Introduction to the South Texas Economic Progress Council (Costep)
The Council for South Texas Economic Progress (Costep) aims to position the Rio South Texas Region as a binational area situated between northern Tamaulipas, Mexico, and southern Texas. Adam Gonzalez, CEO of Costep, sees potential in strengthening commercial ties with Querétaro through industries such as aerospace, automotive, and others.
Networking and Investment Opportunities
During a meeting with Querétaro industrialists, Gonzalez explained that Costep seeks to attract Mexican investments to Texas and vice versa, identifying investment opportunities in the Mexican territory. The central objective is to foster a binational region between northern Mexico and southern Texas.
“Our goal is networking, for the communities of Rio South Texas to know the Querétaro community and do business, attract more business, whether for the Rio South Texas region or the Bajío region,” Gonzalez stated.
Costep is looking for both manufacturing and perishable goods companies interested in establishing themselves in Texas, linking them with organizations that can help explore the region.
Collaboration Opportunities with Querétaro
Gonzalez highlighted opportunities for collaboration with Querétaro in the aerospace industry, which they share with Brownsville, Texas, home to SpaceX’s space base.
“We have SpaceX. Elon Musk is setting up his sources and production there; we know Querétaro also has a lot of aerospace manufacturing, as well as perishables. The thing is to know more about what we do and what Querétaro has to offer,” Gonzalez declared.
Rio South Texas Region: A Binational Area
Rio South Texas Region, a project driven by Costep, is intended to be a binational area between northern Tamaulipas and southern Texas, encompassing 143 industrial parks: 109 in Texas and 34 in northern Tamaulipas.
The region hosts automotive, logistics, electronics, aerospace, food, medical industries, and more. It borders Nuevo León and Coahuila, connecting various economic centers in both Mexico and the United States.
The south Texas region has nearly 1.6 million residents, plus approximately 2 million from Mexico’s border region, totaling less than 4 million people with an average age of 30 to 31. This demographic is a significant asset to meet future talent demands.
Trade Uncertainty Amid Tariff Changes
In the pursuit of commercial opportunities, the tariff situation with the U.S. creates investment uncertainty and has even halted projects. However, Costep’s CEO noted that positive effects have also emerged, as other projects have accelerated to counteract tariff impositions.
“Although there are stalled investments, we’re also seeing projects from Canada, Turkey, Germany, and Japan,” Gonzalez mentioned.
“With tariff policies changing almost hourly, there’s a lot of uncertainty, many projects have been halted, but others have been accelerated, especially one project—not necessarily to move an entire company from Mexico to Texas—but to initiate a process to mitigate tariff impacts. As an economic development organization, regardless of the political system, we must learn to navigate this situation and continue investing and creating jobs for our communities,” Gonzalez expressed.
Expanding Business Networking
In addition to visiting Querétaro, Costep plans to replicate business meetings in Monterrey, Guadalajara, Aguascalientes, Oaxaca, and Durango.
Key Questions and Answers
- What is the Council for South Texas Economic Progress (Costep)? Costep is an organization that aims to strengthen commercial ties between south Texas and Mexico, focusing on industries like aerospace, automotive, and others.
- What industries does Costep target for collaboration with Querétaro? Costep seeks collaboration in the aerospace industry, which they share with Brownsville, Texas, home to SpaceX’s space base, as well as other sectors like manufacturing and perishables.
- What is the Rio South Texas Region, and why is it significant? The Rio South Texas Region is a binational area between northern Tamaulipas and southern Texas, encompassing 143 industrial parks. It has a young demographic and connects various economic centers in both countries, making it an attractive region for investment.
- How do tariff changes impact investments in the region? Tariff changes create uncertainty and have halted some projects. However, they’ve also accelerated others as companies seek to mitigate tariff impacts.
- Where else will Costep expand its business networking? In addition to Querétaro, Costep plans to replicate business meetings in Monterrey, Guadalajara, Aguascalientes, Oaxaca, and Durango.
