Investment Overview

McAllen is a city in the U.S. state of Texas and the most populous city in Hidalgo County. It is located at the southern tip of the state in the Rio Grande Valley, on the Mexico–United States border. The city limits extend south to the Rio Grande, across from the Mexican city of Reynosa. McAllen is about 70 mi west of the Gulf of Mexico. As of the 2020 census, McAllen's population was 142,210, making it the 23rd-most populous city in Texas. It is the fifth-most populous metropolitan area (McAllen–Edinburg–Mission) in the state of Texas, and the binational Reynosa–McAllen metropolitan area counts a population of more than 1.5 million. The introduction of the maquiladora economy and the North American Free Trade Association led to an increase in cross-border trading with Mexico. Since the 1980s and especially since the ratification of the North American Free Trade Agreement in 1994, the focal point of economic activity has shifted from agriculture to international trade, health care, retail, and tourism. The McAllen Foreign-Trade Zone (FTZ) is located south of McAllen between McAllen and Reynosa. Commissioned in 1973, it was the first inland foreign-trade zone in the United States. Also, an FTZ designation site is at the McAllen Miller International Airport to facilitate air cargo needs. Under U.S. and Mexican laws and NAFTA provisions, the FTZ designation offers specific cost-saving opportunities to manufacturers. Products can be brought into the FTZ duty-free. Services have recently expanded to include full logistic support services, including public warehouse services such as pick and pack, order processing, inventory control, incoming/outgoing quality inspection, and kitting.