How to expand trade between Arizona and Mexico during COVID-19

Business and civic leaders met virtually to discuss the opportunities that Arizona and its sister state, Sonora, Mexico, should focus on during COVID-19 and beyond to strengthen cross border trade during the Arizona and Mexico Town Hall last week.

Now that the new United States Mexico-Canada Agreement (USMCA) is in effect, the two countries are strategically positioned to expand commerce in the region, participants said. 

Expanding e-commerce, improving ports of entry and travel corridors, and tapping into colleges to produce more qualified workers for the region were among the top recommendations. 

About 70 people from Arizona and Sonora attended the event, Cross-Border Connecting: Implementation of the USMCA — Opportunities for Arizona and Sonora. Phoenix law firm Jennings, Strouss and Salmon sponsored the event. 

Glenn Hamer, the president and CEO of the Arizona Chamber of Commerce, was the featured speaker. He talked about why the USMCA, which updates and expands on NAFTA, is so important for both states, improvements in the new agreement, and the need to protect free trade during the coming elections.

There’s much at stake, particularly now with economies struggling during the coronavirus, Hamer said. 

“If you take a look at just the numbers since NAFTA went into effect, they’re staggering. Before the world stopped, Arizona’s trade relationship with Canada and Mexico was worth $20 billion (annually). For the U.S., the trading block is worth $1.3 trillion.”

Hamer spoke of the improvements in the new modernized agreement including a new chapter to help small and medium businesses benefit more from trade, new protections for digital trade and intellectual property, and de minimis rules that raise thresholds from 7 to 10 percent, which provide cost savings by allowing more cross-border shipments to occur that won’t be required to be conducted as formal customs transactions. 

Most essential element of new deal: duty-free trade 

But by far, the most essential ingredient in the new deal is that it maintains “duty-free, tax-free” trade between the three countries, Hamer said. 

Start up operations Mexico

“This is the world’s most prosperous trading block. It is that big a deal and it affects every sector of the economy, whether its financial services, energy, manufacturing, health care, agriculture, semiconductors, electronics, mining, tourism — you couldn’t pick an important sector of our state’s economy that hasn’t been affected in a positive way,” Hamer said 

“And the same goes for direct foregn investment. Our friends from Canada are far and away the largest source of foreign direct investment (FDI) into Arizona. In terms of Arizona and the United States, we’re the biggest source of FDI in Canada and Mexico.”

Recommendations 

During breakout sessions, participants targeted opportunities to focus on to improve regional tourism and commerce. Among the most mentioned were:

-Expand ecommerce, particularly during COVID-19, to increase shipping at a time when consumers and businesses need it most

-Encourage investment in border points of entry to streamline processes and move cargo and tourism traffic more quickly and safely

-Invest in the modernization of heavily traveled tourist and cargo corridors 

-Promote relationships between municipalities and states on projects, including messaging to inform Americans about safety protocols in communities like Rocky Point that are taking measures to protect visitors from COVID-19 

-Support more cross border relationships between business and industry with universities, colleges and trade schools to produce workers for the region

About Arizona and Mexico Town Hall 

The Arizona and Mexico Town Hall is part of the nonprofit Arizona Town Hall that “brings diverse people together to solve critical and often divisive policy issues.” 

“The goal of these programs is to strengthen the economic opportunities as well as the quality of life for Arizonans and Sonorans as sister states who work together, and to show by example to the other states of our nations how we can work together to  improve each others lives by building these cultural bridges,” said Tara Jackson, president of the Arizona Town Hall. 

Expand your operations - start up business in mexico

Source: Chamber Business News

https://chamberbusinessnews.com
If you would like to find out more about this topic or are interested in receiving a complimentary business case analysis for your operation in Mexico, please fill out this form or contact us at:

US toll-free: +1 (877) 698 3905

CAN toll-free: +1 (844) 422 4922

start@americanindustriesgroup.com



Related posts

November 19, 2020
Ford Mexico begins production of the 2021 Bronco Sport in Sonora
HERMOSILLO –  Ford Mexico started the production of the new Bronco Sport 2021 at its plant in Hermosillo, Sonora, which has a team of engineers led […]
October 30, 2020
Amazon announces $100 million logistics investment in Mexico
Amazon.com Inc AMZN.O said on Thursday it has invested $100 million in opening new warehouses in Mexico, including its first shipping centers outside the populous capital area, in […]
October 12, 2020
Mexico Automotive Industry to surpass USD 40 Billion by 2024
The research report on Mexico Automotive Aftermarket offers a thorough understanding on this industry with significant details subject to its overall foothold in the global landscape […]
September 30, 2020
Beyond China: US manufacturers are sizing up new and cost-efficient global footprints
Mexico and Southeast Asia should stand to benefit from shifting global supply chains Manufacturers are taking a hard look at making changes to future-proof their businesses. […]
July 30, 2020
Exclusive: Mexico eager to lure firms from Asia under new trade deal
MEXICO CITY (Reuters) – Mexico has spoken to a host of foreign companies, particularly steelmakers, in an effort to lure business from Asia to capitalize on […]
June 26, 2020
Start up operations Mexico
Electric Truck Unicorn Arrival Revamps The Transit Bus For A Post-Coronavirus Era
Arrival, a Hyundai-backed startup preparing to build electric delivery trucks for UPS, wants to revamp the humble transit bus with a boxy battery-powered model with a […]