Carefree Truth
Issue #622, February 5, 2018
Councilman Mike Farrar attended the 2017 Arizona-Mexico Commission/Comision Sonora Arizona (CSA) Annual Conference in Puerto Penasco, Sonora, also known as Rocky Point, which took place on November 30th and December 1st. Mr. Farrar serves on the Maricopa County Association of Governments (MAG) Regional Council, and was appointed to the Economic Development Committee. He attended as a representative of the MAG Ari-Son delegation.
Under the leadership of Sonoran Governor Pavlovich and Arizona Governor Ducey, the conference consisted of top level business leaders and policy makers who were gathered to promote a strong, cooperative bi-national relationship. Distinguished speaker panels ranged in topics from NAFTA, tourism industry development, and trade & commerce. 15
bi-national committee meetings were held to develop initiatives promoting trade, tourism and cross border commerce. Both Governors were committed to a mutual economic partnership. There was a very productive Ari-Son mega-region meeting with Rocky Point Mayor Kiko Munro, discussing strategic alliances of cross-border municipal partnerships driving trade and tourism.
There has been much discussion and debate of Free Trade Agreements (FTA), both pro and con. Key topics included the main role of local governments in NAFTA discussions, how it has impacted local economies, and aspects that need modernizing. It was asked how local governments can help raise awareness of NAFTA's importance, and what each has done to help.
Mexico is Arizona's #1 trading partner, with $8.3 billion in exports, approximately 40% of Arizona's exports, and $7.4 billion in imports in 2016. 100,000 Arizona jobs are supported by trade with Mexico. Arizona ranks #5 in the U.S. for total exports to Mexico. Exports increased 32% (without adjustment for inflation) between 2012 and 2016. The economic and supply chains are deeply connected. Arizona is one of 6 states that send more exports to Mexico than any other nation. $10.4 billion worth of goods and services were exported to Canada and Mexico, equal to 47% of the state's exports.
Compared to Canada, Mexico is an attractive market due to their proximity. We share a 300 mile border. Mexico is expected to surpass Brazil as Latin America's largest economy by 2020. With an economy of $1.3 trillion, it is currently the world's 14th largest and is predicted to rank 7th by 2020. The peso is relatively stable now. Mexico has been increasingly focused on manufacturing, particularly since NAFTA was signed in 1994.
Mexico has a population of 11.8 million, with a median age of 27. Private consumption outpaces China, Indonesia, India, Columbia, and Brazil. There is a growing middle class (39% of the total population) looking for travel, recreation, and business opportunities. It has an affluent upper class with money to invest, and an increasingly skilled work force, with over 100,000 engineers graduating annually. 64% of the population is considered economically active. With rising wages in China, ongoing concerns over quality control and protection of intellectual property, compounded by uncertainty in shipping reliability and costs, Mexico has emerged as a top location for advanced U.S. manufacturing.
Mexico has one of the most open economies. NAFTA's network includes 46 countries, which account for 70% of the world's GDP, 2/3 of global imports, and a billion consumers. North America is a dynamic economic powerhouse. It has a thriving regional market of 480 million people and a combined GDP of $2.3 trillion, representing 18% of global exports, with Canada at $1.5 trillion, the U.S. at $17.9 trillion, and Mexico at $1.1 trillion.
Tri-lateral trade has more than tripled, reaching nearly
$1 trillion in 2016. U.S./Mexico trade has increased times 6. Mexico is the U.S.'s 3rd largest trading partner, with $1.5 billion in diversified products traded daily, representing highly integrated, strengthening supply chains in key industries. U.S. exports benefit from Mexico's network of free trade agreements with 46 countries, providing preferential market access to 70% of the world GDP and 2/3 of the global imports. Mexico and the U.S. work together to manufacture trade goods.
North America is emerging as a global energy power. Mexico is the U.S.'s largest energy market, consuming over $20 billion in energy goods. Canada is the biggest energy supplier, providing over $54 billion in commodities.
U.S agricultural trade with Mexico has multiplied by 5 since NAFTA. Mexico is an important export destination, ranking among the 3 top export markets for 31 states. Mexican owned businesses have invested over $52 billion in more than 6,500 businesses in the U.S., employing more than 120,000 workers, and exporting over $1 billion to the global market.
Mr. Farrar stressed that it's time to speak up in favor of free trade. FTA skeptics focus on the wrong culprit for manufacturing job losses. Globalization and technological changes have led to adjustments in the manufacturing sector. FTAs are part of the solution. Mexico and the U.S. must continue promoting free trade and regional integration or they will lose international competitiveness. Both need to engage in educational campaigns to counteract the protectionist voices dominating the media. Participation of businessmen, consumers, academia and civil society is needed to tell the real story. Free trade creates jobs, promotes innovation, and provides tools to face the challenges of globalization.
Withdrawing from NAFTA would hit 100,000 Arizona exporting jobs. Arizona is the 9th most vulnerable state to NAFTA disruptions, with up to $5 billion in exports and up to 236,000 vulnerable jobs. But Mr. Farrar agreed that NAFTA needs to be updated. Much has changed since 1994. Technological advances have profoundly affected the economy. In 2014, the U.S. International Trade Commission calculated that digital trade had increased GDP by as much as $710.7 billion and created up to 2.4 million jobs. NAFTA does not recognize digital trade. U.S. jobs were lost and wages were suppressed. Maquiladora workers were exploited. Mexico's environment deteriorated. There was also a question of reciprocity. It must be fair to both the U.S. and Mexico.
There is a tremendous tourism opportunity for 2 nation vacations. Arizona benefits from having about 22 million shoppers from Mexico each year, spending on average $1 billion in Tucson alone, which has a big impact on their local economy. Most cities depend on sales tax revenue to operate. A legislative push is on by MAG, the Intertribal Commission of Arizona, and the City of Nogales to extend the border zone statewide to those with border crossing cards, rather than maintaining the current 75 mile limit. According to a study done by the University of Arizona, this could generate an additional $181 million, and bring estimated total spending by Mexican visitors to nearly $3.1 billion.
Governor Ducey announced that Arizona will be home to SkyBridge Arizona, the nation's first international air cargo hub to house both Mexican and U.S. customs. The service provided at the Phoenix-Mesa Gateway Airport will allow users to send products anywhere in Mexico without going through the inefficient international customs center in Mexico. It is expected to create 17,000 direct and indirect jobs, and increase flights out of Phoenix-Mesa Gateway Airport by 2,000 per year, eventually reaching 10,000 a year by 2036.
Consumers in Latin America want the ability to purchase goods online and receive them the next day. This will transform Mesa into an international e-commerce hub, benefiting the Arizona/Mexico region as a whole. In what Mr. Farrar called "another home run", Air Canada has announced a direct flight from Montreal to Phoenix, starting February 22nd.
Mr. Farrar said NAFTA benefits Carefree because "a rising tide lifts all boats".
https://vimeo.com/250927471
Lyn Hitchon
Prepared by Carefree Truth
Visit our website at www.carefreetruth2.com If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me. Feel free to share Carefree Truth with others on your list.
Visit www.carefreeazbusinesses.com to see more info about businesses in Carefree. Please support our merchants.
Issue #622, February 5, 2018
Councilman Mike Farrar attended the 2017 Arizona-Mexico Commission/Comision Sonora Arizona (CSA) Annual Conference in Puerto Penasco, Sonora, also known as Rocky Point, which took place on November 30th and December 1st. Mr. Farrar serves on the Maricopa County Association of Governments (MAG) Regional Council, and was appointed to the Economic Development Committee. He attended as a representative of the MAG Ari-Son delegation.
Under the leadership of Sonoran Governor Pavlovich and Arizona Governor Ducey, the conference consisted of top level business leaders and policy makers who were gathered to promote a strong, cooperative bi-national relationship. Distinguished speaker panels ranged in topics from NAFTA, tourism industry development, and trade & commerce. 15
bi-national committee meetings were held to develop initiatives promoting trade, tourism and cross border commerce. Both Governors were committed to a mutual economic partnership. There was a very productive Ari-Son mega-region meeting with Rocky Point Mayor Kiko Munro, discussing strategic alliances of cross-border municipal partnerships driving trade and tourism.
There has been much discussion and debate of Free Trade Agreements (FTA), both pro and con. Key topics included the main role of local governments in NAFTA discussions, how it has impacted local economies, and aspects that need modernizing. It was asked how local governments can help raise awareness of NAFTA's importance, and what each has done to help.
Mexico is Arizona's #1 trading partner, with $8.3 billion in exports, approximately 40% of Arizona's exports, and $7.4 billion in imports in 2016. 100,000 Arizona jobs are supported by trade with Mexico. Arizona ranks #5 in the U.S. for total exports to Mexico. Exports increased 32% (without adjustment for inflation) between 2012 and 2016. The economic and supply chains are deeply connected. Arizona is one of 6 states that send more exports to Mexico than any other nation. $10.4 billion worth of goods and services were exported to Canada and Mexico, equal to 47% of the state's exports.
Compared to Canada, Mexico is an attractive market due to their proximity. We share a 300 mile border. Mexico is expected to surpass Brazil as Latin America's largest economy by 2020. With an economy of $1.3 trillion, it is currently the world's 14th largest and is predicted to rank 7th by 2020. The peso is relatively stable now. Mexico has been increasingly focused on manufacturing, particularly since NAFTA was signed in 1994.
Mexico has a population of 11.8 million, with a median age of 27. Private consumption outpaces China, Indonesia, India, Columbia, and Brazil. There is a growing middle class (39% of the total population) looking for travel, recreation, and business opportunities. It has an affluent upper class with money to invest, and an increasingly skilled work force, with over 100,000 engineers graduating annually. 64% of the population is considered economically active. With rising wages in China, ongoing concerns over quality control and protection of intellectual property, compounded by uncertainty in shipping reliability and costs, Mexico has emerged as a top location for advanced U.S. manufacturing.
Mexico has one of the most open economies. NAFTA's network includes 46 countries, which account for 70% of the world's GDP, 2/3 of global imports, and a billion consumers. North America is a dynamic economic powerhouse. It has a thriving regional market of 480 million people and a combined GDP of $2.3 trillion, representing 18% of global exports, with Canada at $1.5 trillion, the U.S. at $17.9 trillion, and Mexico at $1.1 trillion.
Tri-lateral trade has more than tripled, reaching nearly
$1 trillion in 2016. U.S./Mexico trade has increased times 6. Mexico is the U.S.'s 3rd largest trading partner, with $1.5 billion in diversified products traded daily, representing highly integrated, strengthening supply chains in key industries. U.S. exports benefit from Mexico's network of free trade agreements with 46 countries, providing preferential market access to 70% of the world GDP and 2/3 of the global imports. Mexico and the U.S. work together to manufacture trade goods.
North America is emerging as a global energy power. Mexico is the U.S.'s largest energy market, consuming over $20 billion in energy goods. Canada is the biggest energy supplier, providing over $54 billion in commodities.
U.S agricultural trade with Mexico has multiplied by 5 since NAFTA. Mexico is an important export destination, ranking among the 3 top export markets for 31 states. Mexican owned businesses have invested over $52 billion in more than 6,500 businesses in the U.S., employing more than 120,000 workers, and exporting over $1 billion to the global market.
Mr. Farrar stressed that it's time to speak up in favor of free trade. FTA skeptics focus on the wrong culprit for manufacturing job losses. Globalization and technological changes have led to adjustments in the manufacturing sector. FTAs are part of the solution. Mexico and the U.S. must continue promoting free trade and regional integration or they will lose international competitiveness. Both need to engage in educational campaigns to counteract the protectionist voices dominating the media. Participation of businessmen, consumers, academia and civil society is needed to tell the real story. Free trade creates jobs, promotes innovation, and provides tools to face the challenges of globalization.
Withdrawing from NAFTA would hit 100,000 Arizona exporting jobs. Arizona is the 9th most vulnerable state to NAFTA disruptions, with up to $5 billion in exports and up to 236,000 vulnerable jobs. But Mr. Farrar agreed that NAFTA needs to be updated. Much has changed since 1994. Technological advances have profoundly affected the economy. In 2014, the U.S. International Trade Commission calculated that digital trade had increased GDP by as much as $710.7 billion and created up to 2.4 million jobs. NAFTA does not recognize digital trade. U.S. jobs were lost and wages were suppressed. Maquiladora workers were exploited. Mexico's environment deteriorated. There was also a question of reciprocity. It must be fair to both the U.S. and Mexico.
There is a tremendous tourism opportunity for 2 nation vacations. Arizona benefits from having about 22 million shoppers from Mexico each year, spending on average $1 billion in Tucson alone, which has a big impact on their local economy. Most cities depend on sales tax revenue to operate. A legislative push is on by MAG, the Intertribal Commission of Arizona, and the City of Nogales to extend the border zone statewide to those with border crossing cards, rather than maintaining the current 75 mile limit. According to a study done by the University of Arizona, this could generate an additional $181 million, and bring estimated total spending by Mexican visitors to nearly $3.1 billion.
Governor Ducey announced that Arizona will be home to SkyBridge Arizona, the nation's first international air cargo hub to house both Mexican and U.S. customs. The service provided at the Phoenix-Mesa Gateway Airport will allow users to send products anywhere in Mexico without going through the inefficient international customs center in Mexico. It is expected to create 17,000 direct and indirect jobs, and increase flights out of Phoenix-Mesa Gateway Airport by 2,000 per year, eventually reaching 10,000 a year by 2036.
Consumers in Latin America want the ability to purchase goods online and receive them the next day. This will transform Mesa into an international e-commerce hub, benefiting the Arizona/Mexico region as a whole. In what Mr. Farrar called "another home run", Air Canada has announced a direct flight from Montreal to Phoenix, starting February 22nd.
Mr. Farrar said NAFTA benefits Carefree because "a rising tide lifts all boats".
https://vimeo.com/250927471
Lyn Hitchon
Prepared by Carefree Truth
Visit our website at www.carefreetruth2.com If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me. Feel free to share Carefree Truth with others on your list.
Visit www.carefreeazbusinesses.com to see more info about businesses in Carefree. Please support our merchants.