Customs and Border Protection on December 4 announced the closure of an international bridge in Eagle Pass, Texas spanning the Rio Grande and a land port of entry at Lukeville, Arizona. Days later CBP closed a pedestrian crossing in San Ysidro, the border community south of San Diego. Just recently, CBP suspended rail crossing operations in Eagle Pass and El Paso, Texas. CBP has closed other bridges at times throughout 2023, each closure more disruptive than the next.

These closures are in part a consequence of the inability or unwillingness of successive Congresses and administrations to reach a durable agreement on immigration and border security.

But the blame for today鈥檚 debacle rests in the epic mismanagement by the current administration of the U.S. Department of Homeland Security. It’s not just Republican governors and members of Congress voicing criticism. It’s a growing list of prominent Democrats.  

The closures are unacceptable. They damage cross-border trade. They cause shipping delays and cost increases, which get passed along to consumers in the form of higher prices on store shelves. They make travel more difficult for folks who want to visit friends and family or simply run errands, and they cut off small businesses from their customers.

It鈥檚 clear that many on Capitol Hill and the current White House don鈥檛 understand cross-border trade and travel鈥檚 importance to every border community. Eagle Pass and Lukeville rely on trade and travel just as much as behemoths like Detroit or Laredo, Texas or San Ysidro, Calif. For the people who live and work in the affected areas, the ports are essential to their livelihoods.

When it comes to beer imports, no one is bigger than Eagle Pass. A little over two hours south of San Antonio, the city sits across from Piedras Negras, Coahuila, and the nearby town of Nava, where Constellation Brands brews beers like Corona and Modelo. The annual value of beer imports at Eagle Pass is more than $3.5 billion. Eagle Pass is also a major import point for kitchen appliances, clothes, and vehicle parts.

Lukeville serves as the main port for travelers to and from Arizona and the beach community of Puerto Pe帽asco, or Rocky Point. It鈥檚 also isolated. CBP suggests travelers instead go west and use the San Luis port south of Yuma or go east and cross at Nogales. It鈥檚 an approximately three-hour drive from San Luis to Puerto Pe帽asco, nearly five hours via Nogales. It鈥檚 no wonder that in what should otherwise be a busy holiday travel season, merchants in Puerto Pe帽asco their community 鈥渓ike a little ghost town.鈥�

CBP says the closures are necessary to shift personnel to assist with the migrant surges on the Mexican side of the border, which have become a humanitarian calamity. Border Patrol agents and CBP officers have an already difficult job made even more challenging by Washington鈥檚 ineptitude, and, as a result, the country鈥檚 legal trade and travel corridors are shut down, while illegal migration only grows.

The story of immigration reform in Washington is a long and frustrating one. Over the years, some members of both parties have negotiated in good faith, but many haven鈥檛, preferring instead to demagogue an issue where real action is needed.

Here are some recommendations:

• Bridge and port closures are intolerable. The consequences of a mismanaged border and of unscrupulous smugglers who lie to migrants should not be borne disproportionately by the American people. The processing of legitimate trade and travel should take priority over migrants with dubious amnesty claims.

• The administration needs to get the border under control, and agency staffing levels at the U.S.-Mexico border shouldn鈥檛 bear the entire burden. To deal with migrant surges, Border Patrol agents and CBP officers should be shifted from locations other than the Southwest border.

• The president should signal he鈥檚 ready to bargain and give congressional Republicans most of what they want. A bill like H.R. 2, the heavy enforcement bill House Republicans passed earlier this year, may not include the type of policy the president would prefer, but he should at least be willing to cut a deal for its political value. One look at his poll numbers and it鈥檚 obvious that immigration could sink his campaign.

• There is an emerging solution to be had if members of both parties will take yes for an answer. Senators like Kyrsten Sinema, I-Ariz., and Tom Tillis, R-N.C., stayed in Washington before the holiday recess to negotiate an immigration deal that could reform our amnesty laws, allow for more expedited removals, and clean up the parole system that releases some migrants from U.S. custody. Party leaders should encourage their rank-and-file members to study the proposal before criticizing it.

These are recommendations for the near term. We and our colleagues in the business community for more than a decade have urged Congress and the White House to reach an agreement that can meet the country鈥檚 border security requirements, that reflects the realities of our economy, and that encourages cross-border commerce. But right now, our states鈥� international borders are in crisis. Washington needs to fix the damage it鈥檚 inflicted.

Danny Seiden is the president and CEO of the Arizona Chamber of Commerce & Industry. Glenn Hamer is the president and CEO of the Texas Association of Business.

Photo courtesy . CC BY-NC 2.0 DEED Attribution-NonCommercial 2.0 Generic

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Nineteen months after closing the United States border for health concerns during the beginning of the Covid-19 pandemic, land border crossings between Arizona and Sonora are again open to tourists. As of November 8, the border is open to those who have received the Covid-19 vaccine. 

The reopening comes just in time for the peak holiday shopping season. Nogales, Ariz. Mayor Arturo Garino and city officials are maintaining hope that there will be a surge in tourist numbers to counteract the economic hardships that border towns faced during the pandemic. 

鈥淲e have worked very hard to make sure that we have done our part to have that port open. With the help of our health department, the city and the county, we will hopefully be successful with this and end this year on a good note,鈥� 

Arizona鈥檚 Santa Cruz County depends heavily on cross-border traffic. Visitors who come through the Mexican border contribute between of the sales tax revenue in the Arizona border communities. 

With things starting to make a return to normal there is hope that the economy will return to pre-pandemic levels. 

During the holiday season Nogales, Ariz. typically receives anywhere from shoppers who are coming across the Mexican border. Crossings last year decreased significantly, hurting the businesses that depend on this traffic. 

In a produced by the Nogales-Santa Cruz County Chamber of Commerce touting the border鈥檚 reopening, Santa Cruz County Supervisor Manuel Ruiz said Nogales and the county are looking forward to seeing friends and family from Sonora.

鈥淚 have a lot of friends and family in Nogales, Sonora,鈥� Ruiz said. 鈥淚t鈥檚 going to be great to see all of you back. We鈥檙e going to welcome you with open arms. The old adage is 鈥�mi casa es su casa.鈥� You鈥檙e welcome to come and shop. It helps everyone. It helps in our communities with the sales tax revenue and, more important, we can hire people back so that they can go back to work and have money for the holidays that are coming up.鈥�

In the two years since the start of the Covid-19 pandemic, approximately 20 businesses in Nogales alone have had to close due to the pandemic-induced economic hardship.

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Immigration reform advocates across Arizona welcomed the news this month that a federal judge ordered the full reopening of the DACA program to allow not only current recipients to sign up for another two years but to allow new applicants as well.

Whether the ruling will stand is unknown. But for those who have waited years, it鈥檚 still a reason to celebrate, said Reyna Montoya, a DACA recipient who came to Arizona at age 10 with her undodumented parents who were fleeing violence in Tijuana, Mexico. 

鈥淚t鈥檚 really exciting. We鈥檙e talking about 300,000 applicants (in the U.S.) that may be applying,鈥� said Reyna, the founder and executive director of the nonprofit , which works on behalf of DACA youth and undocumented students. 

Arizona reaps economic, intellectual benefits from Dreamers

For Arizona, the court ruling means approximately 25,000 current 鈥淒reamers鈥� and potentially thousands more young adults who can continue to work, attend school and contribute to local, state and federal taxes, said Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry. 

鈥淭he ruling was a relief for tens of thousands of DACA recipients and those who want to apply for the deferral program who are our friends, neighbors, coworkers and business owners who contribute to the richness of our state,鈥� Hamer said.

Arizona has one of the highest numbers of DACA recipients, who were brought here as young children by their undocumented parents. 

Most are working and going to school, according to a number of studies. Without them, Arizona鈥檚 economy would suffer. Phoenix and Mesa rank among the top cities in America that benefit from these young workers and students, according to the public policy research organization, the (CAP) in Washington, D.C. Of current households in Maricopa County that are eligible for the DACA program, they contribute nearly $235 million in federal taxes and $143 million in state and local taxes each year, CAP research shows. 

With mortgage to pay, this Dreamer dares to hope for a permanent path 

Montoya, who has a master鈥檚 degree from Grand Canyon University, a home mortgage, a recently purchased new car and many other trappings of , said the court ruling is 鈥渆xciting鈥� but bittersweet.   

As has occurred ever since DACA was implemented in 2012, each courtroom win for DACA leads to another legal challenge, she said. 

Earlier this year, the U.S. Supreme Court overturned the Trump administration鈥檚 2017 termination of DACA. This month, U.S. District Judge Nicholas Garaufis in New York fully reinstated the program. 

Today, another federal judge in Houston will hear a challenge to that ruling. Texas and eight other states have sued stating the program is unconstitutional.  

Montoya and other DACA recipients are hoping Congress will end their years of waiting and resolve the matter once and for all.   

鈥淲e鈥檙e hoping to see, as Joe Biden takes the presidency, that he would make a real effort to work across the aisle with Democrats and Republicans to make sure we have a pathway to citizenship,鈥� she said.

Vast majority of DACA recipients work, half are essential employees 

For Arizona, these young adults not only represent potential employees and entrepreneurs, they are essential employees whose wages benefit the state. 

The vast majority of the nation鈥檚 DACA-eligible individuals — 93 percent — are working if they鈥檙e not in school, said Jeremy Robbins, the executive director of the national bipartisan immigration research group . 

鈥淢ore than half of DACA-eligible immigrants are essential workers, and this ruling is a victory for them and their communities,鈥� Robbins said about the recent court ruling.

If DACA recipients are deported, Arizona stands to lose more than $1.3 billion in annual GDP, according to CAP research. Nationally, the loss to the nation would be about $23.4 billion, according to New American Economy. 

DACA鈥檚 impact on employment 

A national survey of DACA recipients by the Center for American Progress found that 88.5 percent are currently employed. For those 25 and older, 89.1 percent are working. 

Other survey findings show that after becoming DACA recipients:

• 63.2 percent of respondents reported moving to a job with better pay
• 52.8 percent reported moving to a job with better working conditions
• 52.6 percent reported moving to a job that 鈥渂etter fits my education and training鈥�
• 54.5 percent reported moving to a job that 鈥渂etter fits my long-term career goals鈥�

Dreamers outpace general population in business creation

DACA recipients also continue to outpace the general population in terms of business creation rates. The survey showed that 6.1 percent of respondents started their own businesses after receiving DACA. Among respondents 25 years old and older, it is 7 percent. 

Moreover, 16.7 percent reported obtaining professional licenses after receiving DACA. This increases to 18.3 percent among respondents ages 25 and older.

Who is eligible for DACA 

When individuals are accepted into the DACA program, they are considered legal residents and can apply for employment authorization. However, there is no direct path from deferred action to lawful permanent residence or to citizenship. And, the status can be revoked at any time by the DHS. 

To apply for DACA, individuals must meet certain criteria including:

• Were under 31 years of age on June 15, 2012
• Came to the U.S. while under the age of 16
• Have continuously resided in the U.S. from June 15, 2007 to the present
• Are currently in school, have graduated from high school, have obtained a GED, or have been honorably discharged from the Coast Guard or armed forces
• Have not been convicted of a felony offense, a significant misdemeanor, or more than three misdemeanors of any kind; and do not pose a threat to national security or public safety

For more information, visit:

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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鈥檚 much at stake, particularly now with economies struggling during the coronavirus, Hamer said. 

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

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鈥檛 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 鈥渄uty-free, tax-free鈥� trade between the three countries, Hamer said.聽

鈥淭his 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鈥檛 pick an important sector of our state鈥檚 economy that hasn鈥檛 been affected in a positive way,鈥� Hamer said 

鈥淎nd 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鈥檙e the biggest source of FDI in Canada and Mexico.鈥�

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 鈥渂rings diverse people together to solve critical and often divisive policy issues.鈥� 

鈥淭he 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,鈥� said Tara Jackson, president of the Arizona Town Hall. 

To read more about the town hall, visit: . 

To read more about how the USMCA benefits Arizona and the U.S., go to: .

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Arizona Senators Martha McSally and Kyrsten Sinema joined Representatives Tom O鈥橦alleran, Greg Stanton, Debbie Lesko, Andy Biggs, David Schweikert, Ruben Gallego, and Raul Grijalva in urging U.S. Trade Representative Robert Lighthizer to protect 鈥渇ree, fair, and reciprocal trade鈥� with Mexico.

The letter comes amid discussions among Trump Administration officials over whether to implement a new 鈥渟easonal trade remedy鈥� to protect growers in the Southeast U.S., which the delegation argues will hurt Arizona importers and shoppers. 

By  increasing barriers to the importation of Mexico fresh tomatoes in the form of tariffs or duties, the policy could potentially raise prices for domestic consumers.

Complicating matters is Florida and Georgia鈥檚 importance to the president鈥檚 reelection. 

Disputes linger despite USMCA implementation

Following the ratification of the U.S-Mexico-Canada Agreement (USMCA), a landmark trade agreement that replaced the North American Free Trade Agreement (NAFTA), the three North American powers are still debating the implementation of new rules.

Mexican firms, for instance, have been by American petroleum companies of participating in unfair trade practices that 鈥淸throw] up roadblocks to American companies seeking permits for new or rebranded gas stations, energy storage facilities, and liquefied natural gas terminals,鈥� said Gary Clyde Hufbauer, a nonresident fellow at the Peterson Institute for International Economics.

Hufbauer said that 鈥渇aithful implementation of the United States-Mexico-Canada Agreement is鈥� important鈥� for all member nations.

In the past weeks, President Trump was also accused of stymying the process of implementation when he a 10% increase in aluminum tariffs on Canada after they had been lifted more than a year earlier.

In response, Canada levied $2.7 billion in tariffs on American goods.

Despite the disputes, business leaders and economists remain optimistic that the USMCA will stimulate economic expansion.

Agriculture

The commercial relationship between Arizona and Mexico is significantly bolstered by the flow of imported Mexican produce to the state. 

Since the turn of the century, Arizona has seen an expanded agricultural importation relationship with Mexico, the University of Arizona鈥檚 Eller College of Management.

The dispute arising from the importation of Mexican agricultural products, specifically tomatoes and avocados, arose in 2019 when Trump Administration officials regarding 鈥渋ncreasing organized crime activity in Michoac谩n — the main avocado producing state in Mexico.鈥� 

They also had separate worries surrounding competition between the U.S. agricultural sector and the Mexican agricultural sector.

30% of all Mexico-grown tomato imports, the Nogales, Ariz. commercial port of entry is key to the Southwestern economy and Arizona commerce. This places Arizona at the center of the current conflict.

A 2018 by UArizona found that U.S. and Canadian importation of fresh tomatoes from Mexico is responsible for more than 30,000 U.S. jobs. 

Economic impacts

In 2019, when the U.S. considered levying a 17.5% tariff on Mexican tomatoes, economists from Arizona State University that 鈥渃onsumers could pay 40% to 85% more for vine-ripe and other fresh tomatoes.鈥�

If the U.S. administration establishes protectionist trade remedies, trade advocates  worry that Mexico will retaliate in kind againstAmerican imports. 

In January, Mexican Deputy Trade Minister Luz Maria de la Mora , 鈥淚f the U.S. government seeks any action of this kind against Mexican agricultural exports, the government of Mexico will apply similar measures to U.S. products.鈥�

As occurred last week between the U.S. and Canada, there is a possibility of a new trade dispute erupting — this time along the Southern border.

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American consumers and industries could face price hikes on fresh produce and aluminum products as trade conflicts with Arizona鈥檚 top two trading partners heat up. 

Just weeks after the new 鈥渢ariff-free鈥� United States-Mexico-Canada Agreement (USMCA) went into effect July 1, President Donald Trump announced he was reimposing a punishing 10 percent tariff on Canadian aluminum. Canada retaliated in kind the following day.

Meanwhile, a domestic trade dispute over fresh produce from Mexico is threatening to stir up a new round of tariff battles as well.  

Both measures could disrupt relations with Arizona鈥檚 top two trading partners, Mexico and Canada, during a time when many Americans are faced with financial hardships due to COVID-19 shutdowns, opponents said. 

鈥淭ariffs are taxes, plain and simple,鈥� said Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry. 鈥淎s trade partners with Canada and Mexico, we see every day how Arizona benefits from these relationships.

鈥淓fforts should be focused on expanding market access for American manufacturers and growing economic opportunities with our closest partners to lead to a greater variety of goods and price competition for U.S. consumers.鈥�

Here is a rundown of what鈥檚 happening:

U.S. hearings on produce from Mexico alarm industry

Of concern to importers and exporters is a long festering domestic battle over a rarely-used 鈥渢rade remedy鈥� to affect seasonal produce coming from Mexico like tomatoes, peppers and strawberries. 

For years, farmers in the Southeast have made a number of claims about Mexico, including that government subsidies to agriculture have harmed American farmers who cannot compete with the low price of produce flooding north over the border.

During heated hearings before U.S. trade officials last week, representatives from states like Florida called for the seasonality rule — known as Section 301 — to be enforced to improve the domestic competitiveness of American farmers.

Representatives of Southeast agriculture testified that Mexican tomatoes and other produce are being sold well below fair market prices — a practice known as dumping — which it鈥檚 creating 鈥渦nfair鈥� challenges for growers to compete.

But opponents dispute those claims and have the research to prove it, said the Fresh Produce Association of the Americas (FPAA), which is headquartered in Nogales, Arizona. 

A recent analysis by the University of Arizona, for example, shows that since 1995, the U.S. has used up to 41 percent of its allowable subsidies while Mexico has averaged just 2 percent, the FPAA said last week. Also, the analysis did not include the $28 billion in aid to U.S. farmers to compensate them for the financial harm caused by trade  disputes with foreign trading partners last year. 

The so-called trade 鈥渞emedy鈥� would hurt American pocketbooks by instigating costly new tariffs on Mexican imports, the FPAA said. 

鈥淐onsumers would pay more for strawberries, blueberries, bell peppers, tomatoes, sweet corn and watermelon if tariffs or quotas are put on these items through a 301 trade action as requested today by the Florida Fruit & Vegetable Association,鈥� the FPAA stated in a that countered the 鈥渞hetorical鈥� claims one by one.  

Action could instigate another tariff war with Mexico 

Imposing the action potentially could instigate 鈥渘umerous and unending tit-for-tat trade wars鈥� with Mexico just weeks after the USMCA went into effect, the FPAA said.

That could imperil $40 billion in U.S. agricultural exports to Mexico and push up the cost of fresh produce from Mexico, said the FPAA, which represents 120 U.S. member companies involved in importing and marketing fresh fruits and vegetables grown in Mexico and distributed across the U.S. and the world. 

Bipartisan front in Arizona opposes attack on 鈥渇ree trade鈥� 

Arizona鈥檚 congressional delegation has stepped in to intervene, calling on the White House to reject the proposal. 

鈥淭his trade remedy would affect Arizona鈥檚 economy, the U.S. agribusiness supply chain, and consumers all across the country who enjoy a diverse selection of tomatoes at low prices,鈥� said a letter sent by nine Arizona congressional members to the U.S. Trade Representative Robert Lighthizer. 

The letter was signed by Arizona U.S. senators Kyrsten Sinema (D) and Martha McSally (R) and representatives Tom O鈥橦alleran (D), Ra煤l M. Grijalva (D), Andy Biggs (R), David Schweikert (R), Ruben Gallego (D), Debbie Lesko (R) and Greg Stanton (D). 

鈥淪uch a provision would run counter to consumer preferences, undermine the spirit and benefits of free trade, risk reciprocal or retaliatory actions from our trade partners, and harm U.S. industries in order to artificially support a small segment of regional growers鈥� interests,鈥� the letter said.

Canadian and U.S. aluminum hit with new trade taxes

In another blow to many industries that rely on aluminum, President Trump reimposed tariffs on Canadian aluminum this month. Canadian Prime Minister Justin Trudeau responded the next day with retaliatory tariffs on $2.7 billion worth of U.S. aluminium products. 

During a at the Whirlpool Corporation Manufacturing Plant in Clyde, Ohio August 6, the president said that the tariffs were being reimposed to stop Canadian aluminum producers from flooding the U.S. with exports that will 鈥渒ill all our aluminum jobs.鈥� 

鈥淐anada was taking advantage of us, as usual, and I signed it…because the aluminum business was being decimated by Canada,鈥� Trump stated. 鈥淰ery unfair to our jobs and our great aluminum workers.鈥�

鈥淭o be a strong nation, America must be a manufacturing nation and not be led by a bunch of fools,鈥� the president said. 鈥淭hat means protecting our national industrial base.鈥�

Industry leaders, U.S. Chamber oppose tariffs

But many aluminum manufacturers and industry advocates said the tariffs will only push up costs for producing items like cars, household appliances and beer cans. 

Calling the tariffs 鈥渁 step in the wrong direction,鈥� Myron Brilliant, the head of international affairs for the U.S. Chamber of Commerce, issued a opposing the new trade duties. They will raise costs for American manufacturers and draw retaliation against U.S. exports.

鈥淭oday more than ever, American businesses of all sizes depend on trade as an engine of growth and job creation,鈥� he said.

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A measure to allow approved visitors from Mexico to travel throughout Arizona without additional documentation, instead of a mere 25 to 75 miles from the border under current law, is making its way through both houses of the U.S. Congress. 

The bill, called the Southwest Tourism Expansion Act, is receiving substantial support from local governments, tribal nations, economic groups and most of Arizona鈥檚 congressional delegation. 

One reason is an estimated $1 billion more expected in spending by tourists from Mexico, Arizona鈥檚 top foreign market. Last year, Mexican visitors spent more than $3 billion here. 

鈥淎rizona benefits in so many ways from a strong relationship with Mexico — inviting our Mexican neighbors to explore and invest more across our entire state will strengthen those ties,鈥� said Arizona U.S. Representative Greg Stanton, a key sponsor of the bill who has long advocated for the legislation including as the former mayor of Phoenix. 

Five-year pilot program 

The bill calls for a five-year pilot program to allow Mexican citizens who carry a valid Border Crossing Card (BCC) to travel statewide. 

Currently, card holders are only allowed to travel 75 miles from the border from Arizona鈥檚 land ports of entry, taking them about as far as Tucson. Traveling beyond that mile marker requires travelers to apply for additional federal documentation at the port of entry. The I-94 form requires a $6 fee. In the Yuma region, travel is even more restricted, with a 25-mile limit for BCC carrying visitors coming through the San Luis port of entry before the I-94 is required. 

The Act would allow Mexican nationals with a valid BCC card to go to spring training and visit popular spots like Sedona, the Grand Canyon, Antelope Canyon, Monument Valley, not to mention Greater Phoenix and Flagstaff, but without having to secure the I-94.

Especially important right now 

Stanton said the bill is especially important right now when Arizona鈥檚 tourism and recreation industries 鈥渉ave taken a catastrophic hit鈥� from the pandemic. The bill would allow for a five-year pilot program to test it out.   

鈥淲e need to think ahead and be creative about how we will help those sectors rebuild and reach new audiences. This pilot program is a first step in doing so,鈥� Stanton said. 

Last week, the bill jumped a major hurdle when it was advanced as part of the House鈥檚 Fiscal Year 2021 Department of Homeland Security appropriations bill.

Arizona is 鈥渙pen for business鈥� 

Most of Arizona鈥檚 congressional delegation are co-sponsors, including Arizona U.S. Senator Martha McSally (R), who introduced the companion bill in the Senate.

鈥淎rizona is open for business and when we allow approved visitors into more areas of our beautiful state, we unleash the potential for greater economic growth, more jobs, and additional sales tax revenue,鈥� Sen. McSally said. 

Widespread support 

The proposal has strong support from state and local governments, economic groups, the Maricopa and the Arizona , which represents 21 tribal nations. 

Mexico top foreign market for Arizona

Mexico is Arizona鈥檚 top international market. Last year, Mexican visitors spent more than $3 billion here with 4 million overnight visits, a 5.2 percent increase over 2018, according to the Arizona Office of Tourism.

A University of Arizona study conducted at the request of MAG in 2015 found that expanding the border zone to the entire state could generate up to $181 million in additional spending during the first year. Over the five years, expanded travel for Mexican visitors would generate approximately $905 million.  

Requirements for Border Crossing Card 

• In order to obtain a BCC, applicants must provide fingerprints, photography, employment information, a security background check, and an in鈥恜erson interview.
• The BCC is a B鈥�1/B鈥�2 visa issued exclusively to Mexican citizens by the U.S. State Department and includes a radio-frequency-identification (RFID) technology chip. 
• Holders of these cards must demonstrate that they have ties to Mexico, including financial, that would compel them to return after a temporary stay in the U.S. 
• Penalties for abusing the visa include revocation of the BCC with a fee, as well as losing the privilege for future visa application.

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As business and industry trumpet the start of North America鈥檚 new trade agreement this month, the road ahead is lined with both possibilities and challenges, experts on multinational trade said. 

All three countries now must put in the hard work required to advance the largest tariff-free trading bloc on the globe, they said.

鈥淣orth America’s new regional trade agreement has the potential to propel each of the three member countries individually, and the region collectively, to the highest levels of international competitiveness,鈥� said Duncan Wood, an internationally known specialist on North American politics and the director of the Wilson Center鈥檚 Mexico Institute in Washington D.C. 

鈥淣ow what we have to consider is how each of the three governments is going to do its job making sure we have the right regulations in place, the right legislation in place, and that we can work with business to take full advantage of this.鈥�

Big unknowns  

COVID-19 will be one of the biggest concerns on the trek forward, said Marco L贸pez, Jr., president and CEO of International Business Solutions, Inc. (IBS), a business advisory firm that provides business development and policy direction to international and domestic organizations.

鈥淲e must start thinking and working towards a risk mitigation plan should the economy struggle to meet the new reality post-COVID19,鈥� Lopez said. 鈥淲e have to now think about the millions of American jobs that the country is losing due to the pandemic.鈥�

Reasons to celebrate 

For now, there are many reasons to celebrate, trade experts and business advocates agree.   

Most importantly, the new deal allows for the continued tariff-free trade to continue between America, Mexico and Canada, they said.

The new agreement, the United States-Mexico-Canada Agreement (USMCA), is a reboot of NAFTA — the 鈥済randmother of free trade鈥� — that went into effect in 1994 and has helped create the largest free trade bloc in the world. 

Globe鈥檚 largest tariff-free trading bloc 

Since NAFTA鈥檚 inception, annual American trade with the two countries has nearly quadrupled to $1.3 trillion, and they purchase more than one-third of U.S. merchandise exports, according to statistics compiled by the U.S. Chamber of Commerce. 

Today, trade with Canada and Mexico support nearly 14 million American jobs, and nearly 5 million of these jobs are supported by the increase in trade generated by free trade. 

A win for Arizona industry 

A 2019 report by the Arizona Chamber of Commerce & Industry, the Arizona Chamber Foundation and the Arizona-Mexico Commission, found that between 2015-2017 Arizona exported $10.5 billion annually to Canada and Mexico. More than 228,000 jobs in Arizona are dependent on the annual trade and investment relationship.

Arizona is now well positioned to continue to attract new manufacturing and supply chains, Wood said. 

The introduction of digital and e-commerce into the trade agreement should strengthen Arizona and North America鈥檚 competitive edge in global markets with a new emphasis on digital trade and ecommerce, fewer barriers to trade, joint production and the strengthening of existing supply chains, experts said.

Among the benefits cited:

-Raises the 鈥渄e minimis鈥� customs thresholds under which U.S. businesses may export to Canada and Mexico with reduced paperwork and without paying taxes or duties

-Reduces red tape at the border, reduces costs, and increases predictability for cross-border transactions

-Gives preferential market access for U.S. agricultural exporters, and commitments to fair and science-based trade rules

-Opens up new market opportunities for U.S. dairy and fruit farmers in Canadian markets

-Introduces agricultural biotechnology into the agreement including support for innovation including new technologies such as gene editing

-Introduces a chapter for the first time to support expanded trade for -size businesses

Biggest challenges ahead  

Covid-19鈥檚 impact is one of the biggest challenges facing the region. With millions of people out of work, there will need to be investment by both public and private sectors to retrain them for 21st century jobs, Wood said. 

鈥淲e need to think about the skills the workforce doesn鈥檛 have or skills the people don鈥檛 want to learn,鈥� he said.

Missed opportunity for Mexico 

Mexico is the least poised to benefit from the USMCA, Wood and other multinational trade experts said. 

President Andr茅s Manuel L贸pez Obrador, popularly known as AMLO, has done little to instill confidence in investors, they said. A number of his economic policies and weak relationship with the business community have been widely criticized. 

UMCA could be a missed opportunity for Mexico to attract manufacturing and supply chains, Wood said. 

鈥淢exico really is in such a privileged position right now and it needs to open up to the world, it needs to provide legal certainty,鈥� he said. 鈥淚t needs to provide a regulatory and legal framework whereby investors feel they are protected.鈥�

Positive signs with leaders meeting    

A meeting between Trump and AMLO at the White House last week offered signs of a friendlier relationship. But it revealed little about Mexico鈥檚 ability to meet the demands of the new USMCA like boosting the hourly wage of auto workers and enforcing environmental standards.  

It was AMLO鈥檚 first trip during his presidency to a foreign country. In a joint public appearance to herald the USMCA. Trump said he was 鈥渉onored鈥� to have AMLO as his guest. AMLO called the meeting, the 鈥渂eginning of a new stage.鈥� 

Need for countries to work together to compete globally

While the USMCA is now in place for 16 years, it contains a new clause that allows for review every six years.

That offers an opportunity for dialogue, collaboration and action to incorporate changes, Wood said.

The is launching a series of monthly dialogues with public and private stakeholders from all three countries to identify problems so they can emerge better prepared when the USMCA comes up for review every six years, he said. 

鈥淣ow, what we have to consider is how each of the three governments are going to do their job making sure we have the right legislation in place, the right regulations in place and that we can work with businesses to take full advantage of this.鈥�

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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 网爆门事件 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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Arizona border communities that were overwhelmed with the migrant crisis last year are rebounding as asylum seekers are being routed back into Mexico, commerce is flowing more smoothly at crossing ports, and a new free trade agreement is in place, local mayors said Tuesday.聽聽聽

Nonprofit, faith-based and government agencies that provided food, shelter and other services to migrants last year also are seeing some relief with the announcement of a of emergency funding from the National Board for Emergency Food and Shelter Program.

And as the migrant humanitarian crisis has shifted south of the border, a new $2.5 million shelter opened this month in Nogales, Sonora, Mexico, to take in families that continue arriving in search of a legal path to America.聽

鈥淓verything has calmed down completely,鈥� said Nogales, Arizona Mayor Arturo Garino. 鈥淎lmost everybody is being processed in Mexico. We don鈥檛 have people waiting to come across. I was in Nogales, Sonora, yesterday and it took me 15 minutes to get across when it would have taken two hours last year.鈥�

Almost one million migrants arrived at U.S. borders

Last year, record breaking numbers of Central American families trekked north to the border seeking asylum, resulting in hours-long delays at many ports of entry.聽

Close to a million — 977,509 — migrants were last year, almost double the amount from five years prior, according to the U.S. Customs and Border Protection (CPB).聽

Under threat from the Trump administration, Mexico agreed to stem the flow of migrants. Monthly apprehensions dropped from around 100,000 each month to tens of thousands.

Commerce buzzing again聽

Now, at the height of produce season, 1,300 to 1,500 trucks transporting goods are flowing smoothly across the border daily, Mayor Garino said.聽聽

Businesses that were hurt by the border chaos are seeing profits returning, he said. Sixty-five to 70 percent of the city鈥檚 sales tax comes from outsiders who come to shop in Nogales or stop on their way to Tucson. Last year, border issues caused the city’s revenues to decrease by about $140,000.

When the mayor gives his state of the city speech next month, he expects to announce that聽 revenues are well into the black.聽聽

Yuma state of emergency lifted聽

In Yuma last year, Mayor Doug Nicholls, was faced with a city crushing under the weight of thousands of migrants needing assistance.

In one four-month period, Yuma dealt with 5,700 desperate migrants, mostly Central American families released from custody by the Border Patrol, he said. He called upon the city鈥檚 non-profit partners to help prevent widespread homelessness and starvation among migrant families.

In April, he called a state of emergency when city services, shelters and food lines could no longer handle the influx.聽

The dollar impact for illegal immigration activity during the first half of 2019 is estimated at about $1.2 million, which includes the sheltering process and health care costs that were not reimbursed, said Nicholls, who withdrew the emergency proclamation in December.聽

New policies and stronger border security in place聽

As the crisis reached a tipping point, new U.S. Migrant Protection Protocols were put in place to return migrants to Mexico to await processing or return them to their home countries. The White House also entered into agreements with Mexico and Central American countries to increase border security.

Now, the border region is stabilized, the two mayors said.聽聽

Second round of funding to reimburse agencies that aided migrants聽

To reimburse agencies that shouldered much of the burden of the humanitarian crisis, an act called the Emergency Supplemental Appropriations for Humanitarian Assistance and Security at the Southern Border Act was signed into law on July 1, 2019.聽

It provides $30 million for the Federal Emergency Management Agency鈥檚 Emergency Food and Shelter Program (EFSP) to reimburse local communities. During round one, $8 million was reimbursed to over 80 entities for expenses incurred the first six months of 2019. Round two covers the second half.聽

State and local social service organizations in Arizona are eligible to apply for this supplemental funding on the .

New shelter opens on Mexican side of the border聽聽

To continue to assist migrants, the nonprofit Kino Border Initiative unveiled its this month near the Nogales-Mariposa Port of Entry.聽

Called the Migrant Outreach Center, the 19,000 square-foot facility has dining space, classrooms, offices and separate sleeping areas for men and women and children.聽

United States Mexico Canada Agreement to help border economies聽聽

After a rough year, both mayors said last month鈥檚 passage of the new free trade agreement, the USMCA, offered a ray of hope.聽聽聽

鈥淚t is critical to the continued and increasing growth of the Yuma area,鈥� Nicholls said. 鈥淲e are already seeing interest in companies looking to have a United States presence and keeping close proximity to both Mexico and California. Job creation and opportunity benefits the Yuma region that has a unique positioning to engage on the global stage.鈥�

Moving forward聽

Both mayors said they hope that the region can now focus on strengthening economies and communities.聽

There are still challenges ahead. Immigration reform is one, said Nicholls, adding that Yuma鈥檚 thriving agricultural and other industries rely upon labor from neighboring countries to supplement the lack of domestic workers.

Global competitiveness will rely on updated, concise immigration laws, he said.聽

鈥淲e have come a long way past the humanitarian border crisis of 2019, but are not done yet,鈥� Nicholls said. 鈥淥ur nation is founded upon legal migration. The need for a more modern immigration reform is long overdue. It is a federal level issue that has a huge impact locally.鈥�

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