The governors of the two border states, Arizona and Sonora, Mexico, came together last week to celebrate their shared accomplishments in furthering the region鈥檚 growth as a global economic force over the past six years.  

Arizona Governor Doug Ducey and Sonora Governor Claudia Pavlovich spoke at a special virtual meeting of the and to highlight their shared successes as well as their friendship since they both were first elected in 2015. The event also honored Pavlovich, Sonora鈥檚 first female head of state, who is finishing out her term this year. 

鈥淭oday we see these common roots and unbreakable ties everywhere,鈥� Juan Ciscomani, senior adviser to the governor and vice chair of the AMC, said during introductory remarks. 鈥淭hey are in our economies and our businesses, they are in our binational tourism, they are in our trade relationships, they are in the arts 鈥� and they are definitely in our food!鈥�

More than 800 people tuned in to the event, 鈥淎rizona-Sonora: Transcendent Leadership Sonora-Arizona: Liderazgo Trascendente,鈥� Arizona Public Service was the prime sponsor of the event. 

Legacy and mission: improving quality of life, economic development 

This year, the two commissions are celebrating 62 years of collaboration in promoting the region. Founded in 1959 by former governors Paul Fannin and 脕lvaro Obreg贸n, the commissions鈥� mission is to improve the quality of life for citizens through public-private collaborations. Economic development is a key focus.   

During their tenure, Ducey and Pavlovich have developed one of the strongest and most fruitful relationships in the history of the border, said Jessica Pacheco, president of the AMC board of directors. 

Friendship and free trade 

In the process, free and open trade between the two states and countries has created one of the largest economies in the world, benefitting both states. Two-way trade between Mexico and Arizona reached $17.51 billion in 2019.  

鈥淚n every metric that we measure, there鈥檚 been improvement,鈥� Ducey said. 

鈥淚 know the citizens of Arizona have heard me say dozens of times that Mexico is our number one trading partner and it鈥檚 not even close 鈥� this is four times any other trading partner the state of Arizona has,鈥� he said. 

Pavlovich expressed similar sentiments about Sonora. 

鈥淚t seems like I see a new skyscraper going up everyday,鈥� Pavlovich said in Spanish. 

Shared accomplishments 

At the event, they listed key accomplishments of the two relationship over the past six years, including;

-The Unified Cargo Processing program between the U.S. Customs and Border Protection agency and Mexico鈥檚 Tax Administration Service allows for officers from both agencies to work side by side at ports of entry to jointly inspect and process cargo shipments. The has eliminated the need for separate inspections and reduced wait times for goods crossing the border. 

-The Border Liaison Unit works with the international commercial transportation industry to ensure safe and efficient movement of people, goods and services. Among its are to hold training workshops and classes for truck operators in both states to improve border crossing efficiency to reduce wait times.

-Safety corridor from Lukeville to Puerto Pe帽asco, also known as Rocky Point. This 63-mile safety corridor along Highway 8 was created to improve safety for travelers. The initiative included improved lighting and increased law enforcement and emergency services. 

-Educational partnerships Sonora and Arizona universities and colleges have entered into a number of agreements and memorandums of understanding to provide more opportunities for research and students, including tuition waivers and reduced tuition for international students. 

-Arizona-Sonora Business Expo draws hundreds of exhibitors and thousands of visitors each year, focusing on the region’s high-growth industries like aerospace, mining, construction, manufacturing, medical devices, renewable energy and tourism.

–Expansion and investment at ports of entry at border crossings. For example, nearly $60 million of private investment has resulted from improvements to border infrastructure in Nogales, Arizona, for warehouses and distribution centers to support international commerce.

–United States-Mexico-Canada Agreement Both governors worked to encourage  passage of the new . The agreement replaced the outdated NAFTA to bring tariff-free trade into the modern age. There are new chapters on digital trade, protection of intellectual property, and the opening up of international trade to more small and medium-sized businesses.

鈥淪taying the course鈥� through five presidents, Covid-19

Since 2015, when the two were first elected to office, the region has attracted hundreds of new companies, thousands of new jobs and billions of dollars in investment, they said. Growing supply and distribution chains near the border are bringing in major corporations like Lucid Motors, which is investing $1 billion in an electric vehicle factory in Casa Grande.

Both said it took staying the course during times of political turmoil, the changeover of three American presidents and two Mexican presidents, and Covid-19. 

鈥淎rizona and Sonora have already shown what can be achieved when you chart a course and lead a vision. Together we鈥檝e shown the world that everyone is better off when you put politics aside and put people first,鈥� Ducey said.

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Arizona companies export an annual $9.7 billion in goods tariff-free to Canada and Mexico largely due to the North American Free Trade Agreement (NAFTA) that took effect in 1994.  

Flash forward to 2020 and the new modernized version of that accord, the United States-Mexico-Canada Agreement (USMCA), is now in place, giving Arizona more chances to reap the benefits of free trade, trade experts said Tuesday.

Top Arizona Exports to Canada and Mexico, 2017

Computer & Electronic Products ($2.1 Billion)
Electrical Equipment, Appliances & Components ($1.3 Billion)
Minerals & Ores ($1.1 Billion)
Transportation Equipment ($947.2 Million)
Machinery ($727 Million)
Agricultural Products ($536.9 Million)
Plastics & Rubber Products ($528.6 Million)
Fabricated Metal Products ($440.6 Million)
Chemicals ($386.2 Million)
Primary Metal Products ($278.8 Million)

How this new agreement impacts Arizona businesses was the topic of a panel discussion hosted by the Arizona Chamber of Commerce and Industry. The event, entitled A New Era for Trade: USMCA Implementation & Growing Arizona鈥檚 Trade Ties, detailed the changes in the new agreement that went into effect July 1. 

Four panelists, all who are involved in strengthening economic ties and trade between Arizona, Canada and Mexico, were the speakers: Zaib Shaikh, consul general of Canada in Los Angeles; Jorge Yescas, consul general of Mexico in Phoenix; Juan Ciscomani, senior adviser for regional and international affairs for the Arizona Office of the Governor; and Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry. 

New rules to advance world鈥檚 largest free trading block 

Among the new chapters and provisions in the USMCA lauded by the panelists were higher dollar thresholds for duty-free sales, labor reforms and higher wages for auto workers in Mexico, legally binding standards to protect the environment, protections for intellectual property, gender equity provisions, and new measures to help small- and medium-sized companies more fully access the global market. 

The new treaty also positions the three countries to come out of the pandemic in a stronger position, united together as a global competitive force, the Chamber鈥檚 Hamer said.  

鈥淭he more we use the tools of this agreement, the more prosperous all three countries will be, and the faster we鈥檒l get out of this damage that the pandemic has caused us all,鈥� Hamer said. 

Free trade in a region with 470 million customers 

Mexico and Canada are Arizona鈥檚 top trading partners. Canada also is the No. 1 country with direct foreign investment here. 

For North America, the USMCA represents a region with 470 million consumers and an annual marketplace of more than $1.2 trillion in trade.   

鈥淚n this time of the pandemic, as we look forward to what the agreement means to the reset and the recovery, those kinds of numbers are really meaningful,鈥� said Shaikh, consul general of Canada, whose job is to encourage cooperation between Canada and听Arizona, Southern California and Nevada. 鈥淔rom a Canada perspective, the USMCA is a top-notch updated modern agreement, but it also is a preservation of the North American Free Trade Agreement. There will be no new tariffs.鈥澨�

New and improved USMCA changes

The USMCA鈥檚 stated purpose is to deepen gains from trade and preserve and expand regional trade and production by further 鈥渋ncentivizing the production and sourcing of goods and materials in the region.鈥�

Here are some of the most important changes in the new agreement, the panelists said:

New Rules of Origin

More stringent rules from the automotive industry. Seventy-five percent of vehicles, including electric vehicles, must be produced in North America instead of the former 62.5 percent, and 40-45 percent of vehicles are to be assembled by workers who earn at least $16 an hour.

Yescas, consul general for Mexico in Phoenix, said his country鈥檚 president and congress overwhelmingly support labor reforms including the 鈥済radual鈥� increase of hourly wages and 鈥渢he extension of labor protections for migrant workers and the protection of women from discrimination.鈥� 

These new rules will benefit Arizona, tilting automotive original equipment manufacturers (OEMs) toward the southern part of the U.S. and Mexico.

Arizona is well positioned, given its proximity to OEMs in Northwest Mexico like Ford in Sonora, and Toyota in Baja California, and its connectivity via I-19 to Mexico鈥檚 Highway 15 corridor, leading to the Baj铆o automotive cluster. Trinational electrical vehicle projects, such as the Lucid Motors factory in Casa Grande and the Nikola truck factory in Coolidge, also are well positioned to meet USMCA goals and leverage research and development and auto assembly in the U.S.

Agricultural access

The agreement preserves market access for Arizona鈥檚 agricultural industry and includes additional U.S. access to Canada鈥檚 poultry, dairy and turkey听 markets. There are additional measures to improve phytosanitary inspections.

In Arizona where agriculture is a key industry, tariff-free trade is essential to the economy, said Ciscomani, who also is vice chair of the board of directors for the that has been working for 61 years to improve economic, cultural and tourism ties between Arizona and Mexico.

Yuma alone produces the vast majority of America鈥檚 green leafy vegetables in the winter months, Ciscomani said. 

鈥淎griculture has always been a staple for the Arizona economy so we鈥檙e excited about the advantages tariff-free trade brings to the sector,鈥� Ciscomani said. 鈥淚t did well under NAFTA and the new improvements will set it up for further expanded success.鈥�

Higher duty-free thresholds

Minimum thresholds were increased, removing tariffs on more goods. This will allow for additional flexibility in sourcing globally while also keeping the duty-free incentive to source in North America. This also would have a positive impact on the SkyBridge project at Phoenix-Mesa Gateway Airport, a new operation that capitalizes on the U.S.-Mexico Unified Cargo Processing that expedites import and export processing times of goods.

Stronger IP protections

New protections for intellectual property extend patent protections to 10 years from eight in Canada, expand copyright protections, and broaden trademark rules to cover sound marks and scent marks. Penalties are increased for violating trade secrets or trading counterfeit goods. Custom rules for detaining illegal counterfeit goods have been modified. Internet service providers are now required to implement a 鈥渘otice and takedown鈥� system in Mexico when digital information infringes on ownership rights.

Digital Trade and cybersecurity

New provisions for digital trade such as e-books, music, software and video games include a prohibition on tariffs on digital products distributed electronically, rules for validating e-signature and e-documents, anti-spam measures, and coordinated cybersecurity measures for the three countries鈥� highly integrated telecommunication systems.

Small businesses will benefit for first time

For the first time in a U.S. trade agreement, the USMCA includes a dedicated chapter on small- and medium-sized enterprises (SMEs) and other provisions targeting this group including:

-Establishes information-sharing tools to help SMEs to better understand the benefits of the agreement

– Creates a committee on SMEs issues comprised of government officials from each country to ensure they benefit from the agreement

To read more about the new USMCA and its impacts in Arizona, go to: .

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Mexico鈥檚 president, Andr茅s Manuel L贸pez Obrador (AMLO), is under heavy fire for his delayed and shaky response to the coronavirus and his failure to provide significant stimulus funding to shore up the private sector. 

Add in rising violence and tanking oil prices and the economic outlook for this year is gloomy: Mexico鈥檚 economy is projected to contract by , according to the International Monetary Bank (IMF). 

鈥淢exico under AMLO appears to be entering a dark period of economic decline and spiraling violence,鈥� said Ryan Berg, a research fellow for the American Enterprise Institute (), who studies Latin American foreign policy and development issues. 

As many as 20 million Mexicans could slip into poverty, said Berg, who spoke to 探花精选 about the implications for Arizona and North America. 

Headlines attack 鈥渋ndifferent fiscal response鈥�

A rash of articles and editorials critical of AMLO appeared in Bloomberg, Forbes, the Washington Post, Aljazeera and other major news outlets this week to mark the official opening of the new trade agreement, the United States-Mexico-Canada Agreement (USMCA). 

鈥淟opez Obrador Is making Mexico鈥檚 tragedy worse,鈥� blared a headline from Bloomberg鈥檚 editorial board Wednesday. 鈥淭he government鈥檚 indifferent fiscal response is inexcusable.鈥�

Some of his actions have been labeled irresponsible. He has downplayed the need for mass testing. And until recently, AMLO continued to hold large public rallies, shaking hands and kissing people.

Business groups calling on AMLO to aid private sector

As AMLO prepares to meet with President Trump in Washington D.C. July 8, business leaders and advocates are urging U.S. officials to press AMLO to follow the lead of other countries that have rushed financial aid to help businesses survive the pandemic.   

The meeting is meant to celebrate the USMCA, the successor accord to NAFTA that has fueled the three economies to become the largest free trade group in the world for more than two decades. 

But Mexico鈥檚 response and missteps in reacting to the virus are producing challenges that could hurt the recovery of supply chains and economies on both sides of the border, Berg said. 

Here are a few takeaways from Berg:

Missteps and misguided policies 

Mexico is the least poised of the three partner nations to take advantage of the new trade deal, he said.   

The rapid spread of COVID-19 cases is wearing on the country鈥檚 already fragile health system, and continues to cripple the main pillars of the Mexican economy — tourism, energy production, and manufacturing.  

Meanwhile, AMLO continues to reopen the economy as cases are skyrocketing. And as  Mexican officials have downplayed mass testing, it had 231,770 confirmed cases and 28,510 deaths as of today, according to the John Hopkins .

鈥淔or a successful reopening, tests need to come back positive at a rate of around 5 percent,鈥� Berg said. 鈥淭en percent is dangerous. Twenty percent is crazy. Mexico is returning coronavirus tests with a 50 percent positive rate, which is way too high for a successful reopening. It would seem as though USMCA is coinciding with a massive surge in cases.鈥�

Contentious relationship with private sector 

AMLO also 鈥渉as indulged his contentious relationship with the private sector鈥� instead of bolstering the economic model that has brought Mexico tremendous growth over the past 25 years under NAFTA, Berg said. 

In April, AMLO yielded to pressure to help businesses and informal workers, who make up more than 50 percent of the economy, approving a $25.6 billion stimulus package. 

But it was too little, too late. 

鈥淢exico has spent less than any country in the region as a percentage of its GDP, save for the Bahamas, to support its industrial base,鈥� Berg said.

Meanwhile, AMLO continues to focus on 鈥減et projects鈥� like the new airport in Mexico State that has been plagued by cost overruns and delays, the Mayan train project in the Yucatan Peninsula, and a large new refinery for the heavily indebted state-owned petroleum company, Pemex.

鈥淢any people think these glitzy projects are economically dubious and cost a lot of money. Money that could be better spent shoring up Mexican industry.鈥� 

More dialogue needed to define essential businesses

Resuscitating economies in Mexico and the U.S. after the pandemic will depend largely on the renewed productivity of the massive North American manufacturing supply chain, Berg said. 

One of the roadblocks has been Mexico鈥檚 鈥渉aphazard鈥� method for declaring which  industries are essential, he said.

In April, the National Association of Manufacturers sent a to AMLO, stating its members’ concerns about losing supply chains that have taken years to fortify. The letter contains 14 pages of signatures from leading manufacturers across America. 

In response, AMLO moved to open up more industries. Now, dialogue is needed to create harmonization between the three trading partners, including joint definitions of what is essential. 

鈥淪upply chains are so complicated that when we鈥檙e talking about the disruption of a supply chain, we could be talking about something as small as a screw or a nail or something that is nevertheless a very critical component that might be going over the border multiple times as it’s assembled,鈥� Berg said.

Opportunity for Mexico to reverse course

Unless Mexico adjusts its domestic policies, it is squandering an opportunity to expand its role in North American trade and production, Berg said. 

鈥淎t a time when many U.S. and Canadian businesses will be keen to take advantage of the USMCA to “nearshore” their supply chains, Mexico doesn’t seem to be in a position to take full advantage.鈥� 

If Mexico can prove that the country is safe for trade and manufacturing, it has many benefits to offer, he said. Mexico is graduating more people every year that are poised to enter high tech manufacturing and other skilled trades. Unlike China, it has managed to keep labor costs relatively low. 

鈥淚 think Mexico has a huge opportunity here. I think there is going to be a bipartisan consensus or a near bipartisan consensus to rethink some of these supply chains after the pandemic, particularly extracting some of these supply chains from China.鈥� 

鈥淲ith the right policies, Mexico could be a huge beneficiary of that.鈥�

Mexico鈥檚 recovery vital to Arizona  

For Arizona, Mexico鈥檚 recovery is vital. Here are some of the reasons why:

• Mexico is Arizona鈥檚 largest trading partner times four. Arizona鈥檚 two-way trade with Mexico was $16.6 billion in 2018: nearly $7.6 billion in exports and $9 billion in imports. 
• Arizona鈥檚 infrastructure supports international trade and tourism with six international border ports of entry, including one of the nation鈥檚 largest commercial ports, the Mariposa Port of Entry in Nogales, Arizona.
• Visitors from Mexico contribute between 60-70 percent of sales tax revenue in Arizona鈥檚 border communities.
• Together, Arizona and Mexico are leaders in the automotive industry, importing $968 million and $761 million in auto parts in 2016 鈥� net trade of nearly $1.7 billion annually.
• The automotive industry in Arizona and Sonora produces 1,488 vehicles daily, supporting more than 50,600 employees.
• Nearly 3.6 million people from Mexico choose Arizona as a travel destination annually, representing the largest segment of international tourism to Arizona.
• Tourism from Mexico accounts for the majority of all expenditures in Arizona by international visitors to the state. 
• Tourists from Mexico have an annual economic impact of $2.5 billion and support approximately 30,000 jobs throughout Arizona.  

(Source: )

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Dr. Joaqu铆n Ruiz is a professor of geosciences at the University of Arizona, endowed by the Thomas R. Brown Foundations. He also serves as vice president of Global Environmental Futures and director of Biosphere 2, a project of UArizona. Last, but not least, Ruiz serves as co-chair of the Mining Committee at the Arizona-Mexico Commission.

From day to day, Ruiz manages Biosphere 2 and its many unique, powerful environmental experiments, and he also spends a lot of time educating both his students and the public about the environment, especially as it pertains to food growth, water usage and mining.

探花精选 spoke with Ruiz about his work and his recent time as a board member of the Arizona-Mexico Commission. Read the full interview below.

Question: What do you do in your day-to-day work?

Answer: Managing Biosphere is one; but finding connections between the powerful environmental programs of the U of A with international partners 鈥� or national partners 鈥� I spend a lot of time doing that.

Q: Can you tell me more about ?

A: If you think about Biosphere 2, it has four components.

The first component [of the Biosphere] is the experiments that go inside the glass.

Right now, for example, we have an experiment on the fate of rainforests as they dry up, because as global climate change progresses, we worry that many of the big rainforests are going to be drying out; there鈥檚 going to be less rain.

The second [experiment] is: How do we protect corals? Again, as the temperature of the ocean warms up and the waters become more acidic, many corals are dying, and our interest is that corals are fundamental for the well-being of a lot of people in the world 鈥� either for tourism or because of fisheries.

The third [experiment] is: We have a big program in the fate of water in the Southwest as, again, climate changes. And, of course, our vegetation is going to change because of that, so the mass balance of water is going to be very different. So, there are huge experiments that cannot be done anywhere else.

The second part of the Biosphere is: We get about 100,000 tourists that show up every year, and we want to educate them about the environment.

The third part of the Biosphere is: We have a conference center in there, which we鈥檙e trying to develop into something like the of the Environment; not with Aspen, but that kind of concept.

And the fourth [part of the Biosphere] is that it鈥檚 an icon that we can then use to connect these partnerships.

I have three partnerships that are being worked on extensively right now. One of them is: 鈥楬ow do we make Mexico City more sustainable?鈥� We have a huge project with Mexico City, and we chose Mexico City because the partnerships we have there are great. And if we get Mexico City to be more sustainable, then we鈥檝e done something at scale that can be then introduced to other big cities, like S茫o Paulo, [Brazil], or Lagos, [Nigeria].

The second project that we have is a binational partnership 鈥� again with Mexico 鈥� to study the effects of climate change in semiarid environments, broadly speaking. So, we have groups between Mexican institutions and U of A institutions trying to understand a variety of issues that come from those changes in the desert, including mining, which is an important part of it.

We have a project that we鈥檙e developing, supported by the Jewish National Fund, creating a binational institute between the U of A 鈥� through the Biosphere 鈥� and a region in Israel called the Arabah, which is in southern Israel, in a region called the Negev Desert, which is one of the driest deserts [in the world].

And these folks have amazing water technology [in Israel]. They basically grow food in rocks with salty water; it鈥檚 just the most incredible thing. That鈥檚 a partnership we鈥檙e developing. And we have other things that we can offer to them, like growing mushrooms and other stuff that they don鈥檛 have, so it鈥檚 a great partnership. And, of course, education is in the middle of it, with students coming and going.

Q: When did you first get involved with the Arizona-Mexico Commission, and in what capacity?

A: I鈥檝e gone to a variety of meetings, but then I was added to the board I鈥檇 say about four years ago. I鈥檓 now a board member of the Arizona-Mexico Commission, and I鈥檓 also the co-chair of the Mining Committee of the Arizona-Mexico Commission.

Q: What do you do with the Mining Committee?

A: What we鈥檙e always trying to find is ways to look for what makes us special in mining and how we can leverage that to create programs in which more mining companies would come in 鈥� or the industry that supports mining companies, like Komatsu or Caterpillar.

How do you approach all of the industry that surrounds mining, including making sure that mining is sustainable 鈥� which is a big deal now 鈥� and responsible? It鈥檚 always been responsible, but it鈥檚 basically more sustainable. And how do you do all that?

The mining industry is more and more interested in sustainable operations, not only because it鈥檚 good for the bottom line, but because it鈥檚 good for the environment and the people that work in mining. I鈥檓 spending a lot of time thinking about those kinds of things.

Q: How do you feel your unique expertise in environmental science and geology help the Arizona-Mexico Commission accomplish its goals in the mining sector?

A: One of them is simply personal. I was born in Mexico City, and I got my first degree there, and I know a lot of people 鈥� including people from the mining sector in Mexico 鈥� very, very well. So, the personal touch is important.

Secondly, I鈥檓 a geologist, so I鈥檝e been working as a professor with many of my students doing research in ore deposits 鈥� in Mexico, in particular; in other parts of the world, too.

So, I understand the needs of the mining industry very well. I can speak the language, and there鈥檚 [the] trust and the connectivity that the AMC really is all about; I think I fit the bill in all those categories.

Q: What would you say is one of your most notable memories during the time that you鈥檝e been with the AMC?

A: The various meetings in which our governor and the governor of Sonora clearly have a joint vision for the region. I鈥檝e been quite impressed by that.

I was also fortunate to be [on] the very first trip that [Gov. Doug Ducey] took to Mexico City, and the recognition of how important [it is to have] a common vision with our neighbor鈥� it鈥檚 been terrific.

If it hadn鈥檛 been for the AMC and its leadership, which, of course, includes the governor, I think, with all the narrative in both countries about what鈥檚 going on 鈥� if it wasn鈥檛 for the AMC and the governor and the governor of Sonora, who knows what kind of pickle we would be in, really?

Q: How has your work with the Arizona-Mexico Commission, and your other cross-border work, shaped your view of the Arizona-Mexico relationship?

A: Most of my relationship [with Mexico] before I joined the AMC was academic. I鈥檝e been a professor all my life, and even though I鈥檝e been working with [the] mining industry, it鈥檚 been through science research projects. And the AMC has broadened my view about the importance of the business part of it, which then allows me to be more effective in what I鈥檓 trying to do in these connections.

Q: In your opinion, what is the value of that relationship and fostering collaboration between Arizona and Mexico?

A: We speak highly of the business that we do across our border, and we cannot forget that a very large part of that is actually mining. So, there are a couple of issues: one of them is truly the importance of mining to our economy 鈥� we tend to forget that; secondly, the issues that the mining companies have to address to be successful in their business 鈥� and more and more there are environmental issues that are part of it.

All those things that, before, I was only dimly aware of, I am fully aware of now. My connection with them in the past was simply helping [the mining industry] find more ore, but now my view of the industry is way more holistic, and [I鈥檓 aware of] all of the issues that they need to address, not only simply finding more ore.

Q: In what ways do you feel you鈥檝e seen the AMC grow or expand its scope since you鈥檝e been involved?

A: Even in those four years, I can see the AMC 鈥� from the beginning, when I got on, to now 鈥� it is a much more effective entity, with clear directions and committees and subcommittees, and you can see that specifically when you go to these AMC conventions. And, I think that every year that I鈥檝e been to one of these, they鈥檝e been better 鈥� they鈥檝e been more focused鈥�

They鈥檝e come up with important issues; there鈥檚 follow-up on them. So, it鈥檚 a much more effective organization than when I started in it.

Q: Is there a recent achievement, project or event that you want to share?

A: I think the most important one would be 鈥� there鈥檚 a mining company in Mexico called . They鈥檙e the largest silver producer in the world, and they鈥檙e listed in the . They鈥檝e become more and more interested in Arizona through the University of Arizona, and they are more and more interested in sustainable mining.

And that, I think, would not have happened without two things: one of them, some of the programs at the U of A; but secondly, without the interest of the AMC, and [the AMC] allowing me to use that to have conversations with this company.

This is an exact transcript, but minor changes have been made for clarity.

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Dr. Cecilia Rosales wears many hats at the University of Arizona: Professor of public health, interim associate dean of community engagement and outreach, and associate dean of Phoenix programs at the Phoenix Biomedical Campus.

Rosales also serves as co-chair of the Arizona-Mexico Commission鈥檚 Health Services Committee, offering her deep expertise in public health infrastructure on both sides of the border to help solve health disparities, educate students and develop a network of support for public health for Arizonans and Sonorans alike. Rosales sat down with 探花精选 to discuss the cross-border relationship and her role at the Arizona-Mexico Commission.

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In an exclusive interview with 探花精选, Ruben Alvarez, managing partner at the Molera Alvarez government affairs firm and former executive director of the Arizona-Mexico Commission, describes the social and economic relationships between Arizona and Mexico, the importance of cross-border collaboration and the role of the Arizona-Mexico Commission.

Question: You formerly served as the executive director of the Arizona-Mexico Commission. When did you first get involved with the Commission, and in what capacity?

Answer: I got started with the Arizona-Mexico Commission in the early 鈥�90s, and I actually started as an intern. Once I graduated from college at Arizona State University, I was hired on as a project specialist, and over the years I was able to work my way to become the director of the Arizona-Mexico Commission and eventually became Gov. policy advisor for Mexico.听

Q: Any notable memories from the time you were executive director?

A: During the 鈥�90s鈥� in 1993 was the ratification of NAFTA. So, during that time, there was a lot of activity and interest in the relationship between the United States and Mexico, and back then, in 1992, from Arizona and from Sonora actually established offices in each other鈥檚 capital, which was an impetus for a lot of the economic development activities that took place in the early 鈥�90s.

Q: How has working with the Arizona-Mexico Commission, its partner organizations and different governors鈥� administrations shaped your view of the cross-border relationship?

A: I was actually able to witness first-hand all of the because of the relationships that were established over the years between Arizona and Sonora 鈥� a lot of issues, challenges that were overcome because there was a close relationship, and there were lines of communication where each administration was able to pick up the phone and talk to one another, to be able to resolve issues and also to be able to take advantage of opportunities as they were created.

Q: Why do you feel the continued relationship and collaboration between Arizona and Mexico is important for Arizonans, even if they are not involved with trade?

A: The is a very unique organization. There have been other border states and, quite frankly, other countries that have tried to replicate the efforts of the Arizona-Mexico Commission, and they haven鈥檛 been as successful. And the reason they haven鈥檛 been as successful is because the people, the membership that are involved with the Arizona-Mexico Commission have continually worked to develop and to establish processes that have helped both states accomplish everything they鈥檝e been able to do.

Q: The Arizona-Mexico Commission has obviously grown and changed over the years and under different governors. What鈥檚 new, and what do you think of the Commission鈥檚 latest projects?

A: I think that every governor who was chaired the Arizona-Mexico Commission has been able to imprint their own focus and their own priorities on the work of the Arizona-Mexico Commission, but through the years 鈥� and , quite frankly 鈥� the one thing that has remained is the energy and the importance that individuals, both in the private and public sector, have placed on the relationship.

When you look back, originally the organization was created to form friendships and to build trust between the two states, and through the years each governor who has come along has been able to build upon the foundation that was created, whether it鈥檚 on economic development, whether it鈥檚 health, education, law enforcement and even . There have been a lot of great projects, collaboration that has been established, and that has helped both states.

Q: For people who may not know about it, can you tell me about the (USMCA) and how that could be significant for Arizona?

A:听 The reason the USMCA is so important to Arizona is because Mexico is Arizona鈥檚 largest trading partner. There are over 228,000 jobs that are associated with trade with Mexico, and that impacts our economic development here in this state.

As I mentioned before, in 1993, when NAFTA was ratified, I had the pleasure and the honor of getting started with the Arizona-Mexico Commission, so I witnessed first-hand all the benefits and the opportunities that were created because that agreement was established.

The , now, is providing sort of an update of NAFTA, providing the states along the border, and the three countries, with new opportunities: enhanced [methods to address] labor issues, taking advantage of the new technologies that have been created since 鈥�93 until now. And all of it, basically, establishes a set of principles that help each country with transparency and with their abilities to move forward with this trade agreement.

Q: Is there anything Arizonans should definitely know about the relationship between Arizona and Mexico?

A: I think that between Arizona and Mexico is very, very important, because we share cultural ties; we share historical bonds; we share a border. The reality is environmental issues, health issues and other issues don鈥檛 necessarily respect boundaries, so we have to work in collaboration with one another, because we are border states, and by working together we can help resolve issues that impact both of our communities.

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Mexico is Arizona鈥檚 top trading partner, accounting for about 30 percent of the state鈥檚 exports to foreign markets, according to an extensive ongoing study by the Eller College of Management at the University of Arizona.

With that in mind, it鈥檚 no wonder that business leaders, trade experts and economists agree the cross-border relationship is of the utmost importance to Arizona when it comes to trade, manufacturing, education, safety, tourism and more.

The Arizona-Mexico Commission celebrated its this year. The organization works to improve economic prosperity and quality of life for Arizonans through close public and private collaboration with Mexico.

鈥�If 60 years of work with the Arizona-Mexico Commission has taught us anything, it鈥�s that we achieve so much more when we work together,鈥� said Gov. Doug Ducey earlier this year. 鈥�It鈥�s with a spirit of friendship, and as partners, that we will continue working together toward a brighter future for our families and communities.鈥�

Ducey has been instrumental in enhancing the AMC鈥檚 effectiveness throughout his tenure as governor, calling the relationship between Arizona and the Mexican state of Sonora an 鈥渆thnocultural entity that precedes even the existence of both Mexico and the United States.鈥�

According to the AMC, visitors from Mexico contribute more than $7 million a day to Arizona鈥檚 economy by shopping in stores, eating at restaurants, staying in hotels and spending money at businesses in the state.

鈥淥ur trade numbers are looking fantastic through the first three quarters of 2019,鈥� said Luis Ramirez, president of Ramirez Advisors International and an expert on Arizona-Mexico issues.

Ramirez said the early half of 2019 saw a drop in the number of people crossing the border into the United States, which he attributes to the 鈥渉ardening鈥� of the border under the Trump administration, including reassignment of Customs and Border Protection officers away from ports of entry to support Border Patrol operations.

Though Mexican visitors at first hesitated to travel to the U.S. in 2019, Ramirez said those numbers have begun to turn around in Q3, and the volume of trucks moving northbound through Arizona ports of entry has increased substantially.

鈥淪an Luis is going up almost 26 percent; Nogales is going up almost 5 percent,鈥� he said. 鈥淎 5 percent increase may not sound like much, but for Nogales that translates to almost 12,000 additional trucks over the same period as last year.鈥�

Ramirez said he expects both Nogales and San Luis ports of entry to set new records for the number of trucks crossing the border into the U.S. in 2019.

Fresh produce is one of the biggest industries that feeds the international economy in Arizona, and tomatoes imported from Mexico make up a significant part of the supply of fresh tomatoes in the U.S.

The U.S. imported $1.9 billion worth of fresh tomatoes from Mexico in 2016 鈥� about 3.4 billion pounds 鈥� which represent 40 to 50 percent of the national supply, according to a 2018 by the UArizona College of Agriculture and Life Sciences.

鈥淯.S consumers enjoy a wide variety of fresh fruits and vegetables year-round,鈥� the report read. 鈥淭his is facilitated by the United States importing produce from countries that can grow crops during times of the year when production is not possible in the United States. Even though it is grown and harvested elsewhere, produce grown abroad supports economic activity, jobs and income in the United States.鈥�

Mexico is Arizona鈥檚 No. 1 destination for manufacturing exports, due in part to Mexico鈥檚 and IMMEX (Industr铆a Manufacturera, Maquiladora y de Servicios de Exportaci贸n) program.

Arizona鈥檚 manufacturing exports to Mexico have increased from less than $3 billion in 2001 to more than $6 billion in 2018, according to collected by the Eller College.

One industry that Arizonans tend to overlook 鈥� but which is significant to both Arizona and the state of Sonora 鈥� is mining, Ramirez said.

鈥淭hey鈥檙e huge job-creators, and they typically create jobs in rural parts of both Arizona and Sonora,鈥� he said. 鈥淭hough there may be different companies who are making the investments, the mining supply chain is blossoming.鈥�

That鈥檚 the reason, for example, that Caterpillar moved its mining division to Tucson a couple of years ago.

Ramirez said mining is emerging as a huge source of new investment in Arizona and Sonora鈥檚 border communities, offering high-paying jobs for skilled workers in job-scant areas.

鈥淲e hear mine after mine working on both sides of the border with universities and colleges 鈥� particularly trade schools 鈥� for training of prospective employees,鈥� Ramirez said. 鈥淭hose are long-term impacts that we see in the communities.鈥�

He said the two entities are intrinsically tied 鈥� Arizona and Sonora, and Arizona and Mexico 鈥� through history, culture, environment, business and tourism.

Family ties that span decades and generations exist between Arizona and its southern neighbors, and tourism dollars flow from the U.S. into Mexico all year long.

Ramirez said Arizona visitors to Puerto Pe帽asco, Mexico 鈥� also known as Rocky Point 鈥� account for more than half a billion dollars for the state of Sonora.

鈥淎nd it鈥檚 important for job creation, for investment in Mexico, so that people stay in Mexico,鈥� he said. 鈥淭hey have jobs rather than having to look somewhere else.鈥�

Tourism works both ways, too. Ramirez said the Arizona border communities of Douglas, Nogales and San Luis receive anywhere between 60 and 70 percent of their retail tax revenue from Mexican visitors.

For bigger cities farther north, that number can be lower, but it鈥檚 still significant 鈥� Ramirez estimates Mexican visitors account for about 25 percent of sales tax in Yuma and more than 10 percent in Tucson.

Ramirez鈥檚 biggest piece of advice for those interested in supporting Arizona-Mexico collaboration: Stay informed, especially beyond big, sensational headlines.

鈥淭here are security issues, and we cannot deny them鈥� they鈥檙e having an impact,鈥� he said. 鈥淏ut that鈥檚 not all that Mexico is. It鈥�s still a great place to visit; you just have to be conscious and aware.鈥�

Ducey has worked closely with Sonora Gov. Claudia Pavlovich to increase ties between the two neighboring states and to increase safety for tourists from both states traveling across the border.

鈥淚 think Gov. Ducey and Gov. Pavlovich have instilled this 鈥�let鈥�s work together鈥� attitude 鈥� let鈥�s work together on everything from security, to trade and economic development, to working together on job creation, to working together on our infrastructure,鈥� Ramirez said.

He said most people don鈥檛 realize that Mexico invested $1.8 billion in improving the Arizona-Mexico corridor on the southern side of the border, saving trucks from Mexico City between 4 to 12 hours to get to the U.S. border with Arizona.

鈥淭here are so many things that are happening, and because of the leadership of these two individuals, it鈥檚 really easy to work side-by-side across the border,鈥� Ramirez said.

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Ralph Romero first got involved with the Arizona-Mexico Commission in 1979, and his expertise about the cross-border relationship is unparalleled. Romero has represented Arizona governors and the director of the state Department of Economic Security in both the U.S. and Mexico. He was appointed to the Arizona-Mexico Commission鈥檚 Education Committee in 1995, where he has fought for quality education and cooperation from both sides of the border ever since. Romero now works as a private consultant and recently opened his own consulting firm, USAMEX International, LLC.

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Benjamin Aguilera, shareholder and transactional attorney at Greenberg Traurig, has been a member of the Arizona-Mexico Commission since 1994.

He says that the Arizona-Mexico relationship is stronger than ever despite recent ups and downs, and that progress is largely thanks听to the work of Gov. Doug听Ducey.

According to Aguilera, the cross-border collaboration has benefits that go beyond just business and politics 鈥� the Arizona-Mexico Commission also helps enhance safety, tourism, real听estate and听more between Arizona and the Mexican state of Sonora.

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Last month, the Arizona-Mexico Commission welcomed foreign relations experts to its 60th Anniversary Summit to discuss trade and opportunities in North America.

International Trade Administration director of policy Joseph Laroski, Consul General of Canada in L.A. Zaib Shaikh, and the Wilson Center’s Mexico Institute director Duncan Wood joined the summit for the Markets of Opportunity panel discussion.

Melissa Sanderson, AMC board member and听vice president of international affairs for Freeport-McMoRan, moderated the panel.

Sanderson and the panelists discussed the United States-Mexico-Canada Agreement (USMCA) and the opportunities in North American trade.

Mexico 鈥� which refers to the agreement as T-MEC 鈥� last month, the only country in the agreement to do so at this point.

鈥淥ur country鈥檚 very much in favor of all three countries doing what they have to do in the timeline they see fit for their constituents, for their governments and their administrations,鈥� Shaikh said.听

Canada 鈥� which refers to the agreement as CUSMA 鈥� is awaiting parliamentary action on the deal. In order for the U.S. to pass the USMCA, it must be ratified by Congress.

In the U.S., the Republican Congress members are expected to , but Democratic support is not as secure.

鈥淭here are Democrats from districts where a lot of business depends upon the certainty that鈥檚 given by North American trade鈥� And so, there will be pressure on those Democrats to go for ratification,鈥� Wood explained.

The panelists also discussed the importance of not letting migrant controversies at the border impact the productivity of trade.听

鈥淭here鈥檚 no reason to hold up our trade relationship due to the immigration issues that we have before us,鈥� Laroski said.

Last month, President Donald Trump would be placed on imported goods from Mexico to Arizona unless Mexico stopped or slowed the stream of migrant caravans to the U.S. border.

The tariffs were suspended indefinitely after Mexico agreed to put more resources into addressing the issue. But experts fear the cross-border migration issues will impact trade.

鈥淔or the next year as we move up to the 2020 election, I鈥檓 afraid that trade is going to be a very political issue 鈥� migration, security are connected with trade,鈥� Wood said.

鈥淭he threat of tax works so that when the time comes where it makes sense to use them again, from his point of view, they鈥檙e going to come back,鈥� Wood said.

The Markets of Opportunity panel was held Friday, June 28, at the JW Marriott Phoenix Desert Ridge Resort & Spa.

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