Received by Registration Unit 01/26/2018. 4:07:29 PM . GOVERNOR GREG ABBOTT January 25, 2018 The Honorable Robert Lighthizer U. S. Trade Representative Of?ce of the U. S. Trade Representative .600 17111 Street, Nw Washington, D. c. 20508 Dear Ambassador Lighthizer: As you continue negotiations to update the North American Free Trade Agreement (NAFTA), write to emphasize the economic importance to our state of trade with Canada and Mexico and how bene?cial NAFTA has been to Texas. Our state is the nation?s largest exporter, and NAFTA has been an important trade agreement for 1 Texas for more thanZO- years. We support the administration?s effort to review and strengthen NAFTA and understand the need to update the agreement to address innovations and technologies that simply were not envisioned in 1993 However, while there are many areas in need of updating, it is important to not attempt to the parts of the agreement that are not broken. As you might expeet, Texas? trade with Mexico 15 eSpecially robust, but we have considerable trade relationships with Canada as well: 0 Texas exports more than any other state to Mexico ($92.6 Billion, 40 percent of Texas? total exports) and is second behind Michigan for exports to Canada ($19.6 Billion, 8.5 percent of Texas? total exports). 0 Since NAFTA took effect, Texas exports to Mexico have increased by 13 percent annually, 3 350 percent increase in total. Texas enjoys a trade surplus with Mexico. 0 Texas? imports valued at $81 Billion from Mexico and $15.2 Billion ?om Canada in 2016, accounting for nearly 42 percent of all of Texas imports. 0 Texas accounts for abdut 16 percent of all U. S. exports, and nearly half of Texas exports are to NAFTA partners. 0 U. S. Customs Districts 1n Texas were on pace to process nearly $425 billion 1n trade with NAFTA partners as of November last year. That 13 $1.16 billion per day! POST OFFICE Box 12428 AUSTIN, TEXAS 78711 512-463-2000 (VOICE) DIAL- 7-1-1 RELAY SERVICES ?Disclaimer? This material is distributed by Consulting (SC) Inc. on behalf of the Government of Mexico. Additional information is available at the Department of. Received by 6?1?/?26/201 8 4:07:29 PM Received by Registration Unit: 01/26/2018 4:07:29 PM The HonOrable Robert LighthiZer January 25, 2018 Page 2 In 2013, countries with Free Trade Agreements with the United States purchased $379.09 Worth of Texas per capita. Countries without such agreements purchased only $16. 79 worth of Texas exports per capita. (Source: CDx?ports database, Trade Partnership WOrldwide) 0 Texas? energy sector is a leading trade partner with both Canada and Mexico. High tariffs 011 this industry in the absence of NAFTA could have substantially negative repercussions to our state and national energy industry. The Business Roundtable has reported that nearly 1 million Texas jobs depend upon free trade with our NAFTA partners in varied industries including agriculture, energy, manufacturing and automotive. In fact, the increased economic diversity that Texas has achieved 1n part due to - expanded trade relationships has provided Texas with economic resiliency 1n the face of recent oil price shocks. But these economic drivers face a devastating increase in tariffs should NAFTA cease to, exist, jeopardizing the jobs of Texans and other Americans. The US. Chamber of Commerce has found that nearly 6 million jobs nationally depend on trade with Mexico. While NAFTA has been an incredible boon for all of Texas, perhaps nowhere else in the country encapsulates the success of NAFTA as the Rio Grande Valley (the Valley) which borders Mexico According to data from the Texas Workforce Commission, since NAFTA was signed in 1993 unemployment has decreased in the Valley from 21.1 percent to 6.2 percent. Over that same time, the labor force has increased by 87 percent, and per capita income has increased 22-9 . NAFTA has enabled, growth and economic stability not only for our state, but also for'the nation as a whole, and for our neighbors to the north and south as well. As you continue the work of modernizing this mutually bene?cial trade agreement, I hope you will continue to recognize the true value of the decades of trade relationships we have built with Mexico and Canada. Sincerely, ??egm Greg Abbott Governor G'Aicmk *Disclaimer.? This material is distributed by FTI Consulting (SC) Inc on behalf of the Government of Mexico. Additional information rs available at the . . Department of Justice Washington, I) Received by Registration Unit 01/26/2018 4:07:29 PM Received by Registration Unit- 01/26/2018 4:38:09 PM _C_ott_e_r_, B__rianne_ . . Subject: I 7 FW: Texas Gov. Abbott letter in. support of NAFTA Attachments: 180125_Abbott NAFTA Ltr.pdf From: Broder, Adam Sent: Friday, January 26, 2018 4:12 PM To: Broder, Adam A.dam BrodeertiConsulting. com> Subject: Texas Gov. Abbott letter' In support of NAFTA Folks Just wanted to share this letter from Texas Gov Greg Abbott to USTR Lighthizer who had previously been quiet on NAFTA. Key quote: has enabled growth and economic stability not only for our state, but also for the nation as a whole, and for our neighbors to the north and south as well. As you continue the work of modernizing this mutually bene?cial trade agreement, I hooe you will continue to recognize the" true value of the decades of trade relatiOnships we have built with Mexico and Canada.? Thanks, Adam Adam Brodor Senior Dimotor Public Affairs Strategic Communications 555 12" NW, Suite 700 Washington. DC 20004 .. ll. .- 1 ReceiVed ARA Registration Unit 01/26/2018 4:38:09 PM.