Last month, Mexico approved the United States Mexico Canada Agreement (USMCA), an important step to finalizing the agreement and ensuring the three countries have continued, thriving economic relationships that benefit all parties.
The USMCA is an effort to reshape and modernize the North American Free Trade Agreement (NAFTA), which the United States, Mexico, and Canada established in 1993.
As the United States’ two top trading partners, Mexico and Canada are critically important to maintaining economic stability.
In fact, according to the Business Roundtable, trade between these countries accounted for a sizable amount of economic activity in Arizona.
Specifically, in 2017, it supported more than 200,000 jobs, $1.7 billion in service exports, and $9.6 billion in goods.
Trade with Canada and Mexico represents a vital part of Arizona’s economy. The USMCA has provided assurances to the business community that these trade relationships are valued. However, it’s important that the USMCA continues to move forward and be passed by all nations.
If the USMCA fails to be ratified by all three countries, Arizona stands to lose more than 33,000 jobs and will likely see a decrease of $2 billion in economic production (Business Roundtable).
Despite negotiations and ratification dragging on well past the expected time frame, Arizona’s exports to both Mexico and Canada have remained steady.
In recent weeks, both Governor Ducey and Sonora Governor Pavlovich released joint letters urging Congress to ratify the USMCA.
Arizona stands to benefit once all three countries have ratified and passed the USMCA, which is why the Arizona business community supports the USMCA.
As the region’s premier business organization, the Greater Phoenix Chamber has engaged with other leaders to support the passage of the USMCA and to educate the community about the importance of trade with Mexico and Canada.
Through continued advocacy at the federal level and with local leaders, the Chamber and partners have urged federal leaders to ratify the USMCA.
For more information about the important economic relationship between Arizona and Mexico, read the report The USMCA and its impact on Arizona.