Arizona's economic ties with its neighbors got a boost with Governor Katie Hobbs' release of a new study detailing the benefits of the United States-Mexico-Canada Agreement (USMCA). Presenting the findings, Hobbs pointed out that the report, conducted by the Seidman Research Institute at Arizona State University, reveals strong support from the state's business community for maintaining and improving the trilateral trade deal.
The study, which involved multiple interviews and surveys of Arizona business leaders, underscored the importance of the USMCA to key sectors such as advanced manufacturing, agriculture, and logistics. Its conclusion was stark: More than 85 percent of participants suggested Arizona will face serious consequences if the trade agreement isn't renewed, including trade disruptions, higher costs, and potential job losses. "Protecting and strengthening our trade partnerships is essential to our emergence as a leading global economic hub and continuing to grow and create jobs," Governor Katie Hobbs told the Office of the Arizona Governor.
Ahead of this year's USMCA joint review, the report does more than just paint a picture of potential doom; it also offers a roadmap for bolstering Arizona's competitive edge. Suggestions for fine-tuning the agreement to better serve Arizona businesses include the reintroduction of the Certificate of Origin for greater clarity, consistent application of labor and health standards across the three nations, and a push for better cross-border infrastructure.
"Mexico and Canada represent two of Arizona’s most important partners," said Sandra Watson, President and CEO of the Arizona Commerce Authority. The recommendations, she argues, is key to tailoring trade policy that benefits the Arizona workforce and economy at large. In terms of economic security and opportunity, USMCA's role is seen as vital for maintaining national security and reducing reliance on overseas sources of critical minerals, as emphasized by Pat Risner, President of South32's Hermosa project.
Echoing the sentiments on the importance of USMCA, Lance Jungmeyer, President of the Fresh Produce Association of the Americas, reminded us that "the USMCA trade agreement is a huge benefit for the residents and businesses in Arizona.” The significance of the agreement for small and medium-sized businesses was also highlighted by Carolynne Hunter, CEO of St. Clair Technologies, who lauded the Hobbs administration's effort to involve companies of all sizes in this impactful dialogue.
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