Mexico to Expand Texas Incubator Effort
By Mary Jordan
Washington Post Foreign Service
DALLAS –– Inside a brick warehouse in Dallas, Mexican president-elect Vicente Fox stores many hopes.
Three years ago Fox, then a state governor, flew here and personally
selected the building in the city's busy Regal Row district, where Mexican
entrepreneurs could
sell their vases, boots and furniture directly to American customers.
With the state paying most of the $3,600 monthly rent and for a bilingual
staff to help them find
customers, more than 30 small businesses have flourished, racking up
millions of dollars in sales.
As soon as businesses are successful enough, they move out to their
own storefront, making room for the next newcomer from Mexico. Fox, who
has returned many
times to check on the "Texas warehouse incubator" project, is now preparing
to vastly expand it.
Fox doesn't take office until Dec. 1, yet already his team has been
scouting around Dallas this week for a far bigger government launch pad
for small-business owners
from every Mexican state--expanding Gov. Fox's state program into President
Fox's national program.
By offering money and encouragement to Mexican entrepreneurs wanting
to start businesses in America, Fox above all is aiming at his signature
goal: making the
border irrelevant and outdated. The continuous expansion of commercial
links, he argues, will ultimately overwhelm barbed-wire divisions. Fox
is so intent on
ignoring the border that he frequently refers to himself as the leader
of 118 million Mexicans--meaning the 100 million who live in Mexico and
the 18 million who live
in the United States.
"Mexicans in Texas are really surprised that a president in Mexico realizes they exist," said Maria Rosa Suarez, the warehouse administrator. "This is new."
In addition to the financial help for small Mexican businesses in the
United States, Fox plans to set up an office in Los Pinos, the presidential
office, solely devoted to
the needs of Mexicans abroad, such as getting health insurance coverage
in San Diego or more efficient banking services in Chicago. If he is able
to deliver on his
promises, Fox will reach out to Mexicans in America in a way none of
his predecessors have.
Fox also favors an absentee ballot plan to make it easier for Mexican
citizens living in the United States to vote in Mexican elections. This
had been strongly resisted
by the government until now, and it forced Mexicans to make expensive
trips back into the country if they wanted to vote.
"In the past, Mexicans in the U.S. lived in an in-between world. Now
Fox is saying, 'These are my people,' " said Juan Hernandez, a top Fox
adviser and director of
the Center for U.S.-Mexico Affairs at the University of Texas.
And Fox has a lot of people up North. In Dallas alone, there are 443,000 Mexicans--250,000 of them from Fox's relatively small state in central Mexico.
Karla Pineda Castro is one of the Mexicans whom Fox has visited in Dallas.
She said that without the help of the warehouse her small-craft business
wouldn't have
made it in the United States. She has decorated her niche in the Dallas
warehouse to look like a fancy boutique, brimming with etched glass, mirrors
framed in
colorful tiles, and hand-painted flower vases. Her latest success,
she said proudly, is a new Neiman Marcus account for her decorative glassware.
She said attracting American customers from Mexico was next to impossible,
even with international courier services and the Internet. "If you don't
have a physical
presence in the United States, nobody trusts you," Pineda said. "They
want a U.S. telephone number and a place where they can return things if
they are not happy."
For Fox, Texas is a logical place to start his peaceful revolution against
the border. Not only does Texas have America's longest state border with
Mexico--more
than 1,200 miles--but, most recently under the governorship of George
W. Bush, it is viewed by Mexicans as the most hospitable of border states.
Texas, once a
part of Mexico, has long-established cultural links to Mexico, and
with its considerable Mexican population and ever-growing cross-border
trade, many Texans feel
more in sync with their southern neighbors than with, say, New Yorkers.
So while Fox runs into opposition to his vision of a more united North
America in Washington, he finds much less in Texas, where common ground
thinking already
prevails.
Hernandez said there is so much traffic back and forth, and so many family and business ties that span the frontier, people think, "Border? What border?"
"The border becomes a reality the closer you get to Washington," he said.
Fernando Soto said that, thanks to the warehouse, the border is no longer
a barrier to his business. Two years ago, he set up his pillow and bedding
sales office in
the warehouse, while his brother ran the factory producing the products
back in Mexico. It took seven long months before he landed his first customer.
Without the
warehouse's subsidized rent and nurturing atmosphere, he said, it would
have been downright scary to learn everything he needed to know, including
Yankee pillow
tastes and how to cope with the Internal Revenue Service.
"I didn't even know how to get a phone line or a driver's license or
an accountant," said Soto, who, like many in the warehouse, came to Dallas
with little more than a
$2,500 business visa.
Pillow color was one area, Soto learned, where the tastes of Mexicans
diverge from those of their northern neighbors. "In Mexico, people like
decorative pillows
with brilliant colors, maybe one that is orange with purple and a strong
yellow," said Jose Soto, Fernando's brother who runs the factory back home
in Leon, in
Guanajuato state. "In the United States, people like beige pillows
and black pillows! You can't imagine that a black pillow would sell in
Mexico."
But the factory is cranking out what the American customers want, and
now Soto sells in bulk to customers such as J.C. Penney outlet stores and
is expecting to do
$700,000 in sales this year. Twenty new employees have been hired to
work at the family's factory in Mexico to keep up with the U.S. demand,
bringing the total to
68.
"It has been hard, but it would have been a lot harder without the help," Soto said.
The help the Mexican government lends to its citizens abroad also is
aimed at creating jobs and prosperity back home. Every year, Mexicans in
the United States
send an estimated $6 billion to $7 billion back to Mexico, a figure
that rivals the country's income from the tourist industry. In the future,
Fox hopes to see that figure
soar.
The Soto family business in Dallas has brought a little more prosperity
back home to Leon. The family plans to hire more workers next year, and
Fernando Soto said
four of his friends--owners of businesses selling candy, bathroom rugs,
baby accessories and hammocks in Mexico--are lining up to follow him north.
Jose Natera, director of the warehouse, said this past weekend that
he was busy inspecting several buildings with about 120,000 square feet
of space for the new
warehouse. He said it is to open late this year or early next year.
Part of Fox's plan for his first 100 days in office, the Texas incubator
project is attracting a lot of interest among Mexican business leaders
who want to move to
Dallas and will have to interview with Natera to see whether they qualify
in terms of size and track record for delivery and quality.
For Texas residents such as Billy Baird, a home-furnishings consultant
in Dallas since 1972, the stores at the warehouse have made it easier to
find inexpensive
Mexican handcrafts. For years, Baird has been making trips into Mexico
to buy tables and wrought iron decorations for American customers. Now
he can drive a
few minutes from the World Trade Center, pull in by the Fairfield Inn
hotel, and see all kinds of home decorations from Mexico.
"This warehouse really helps market Mexico," he said.
© 2000 The Washington Post