Laredo is a city in the U.S. state of Texas and seat of Webb County, on the north bank of the Rio Grande in South Texas, across from Nuevo Laredo, Tamaulipas, Mexico. Founded in 1755, Laredo grew from a village to the capital of the short-lived Republic of the Rio Grande to the largest inland port on the Mexican border. Laredo's economy is primarily based on international trade with Mexico, and as a major hub for three areas of transportation: land, rail, and air cargo.