SUMMER 2019 VECINOS -MEXICO COMMISSION | CHAMBER BUSINESS NEWS

CELEBRATING

YEARS OF CROSS-BORDER COLLABORATION

1959 2019 summer 4 GOVERNOR DUCEY ADVANCES RELATIONS WITH MEXICO Governor has become a national leader when it comes to strengthening relations with Mexico and recognizes the importance of 2019 working with his counterparts to ensure both economies thrive. 8 CELEBRATING  YEARS OF GLOBAL TIES Arizona-Mexico Commission President Jessica Pacheco and Board Member Glenn Hamer discuss the organization’s expansive and lasting contributions.

10 ARIZONAMEXICO COMMISSION THROUGH THE YEARS The Arizona-Mexico Commission was founded in 1959 and has since worked to strengthen Arizona’s relationship with Mexico. Take a look back at the last six decades.

14 BINATIONAL COMMITTEES—THE AMC'S PROVEN DRIVING FORCE Juan Ciscomani, Senior Advisor for Regional and International Affairs to Governor Doug Ducey and Vice Chair of the Arizona-Mexico Commission Board of Directors, discusses the Commission's binational committees.

16 ARIZONAMEXICO COMMISSION TIMELINE This visual timeline celebrates the 60th anniversary of the Arizona-Mexico Commission. Explore the early days of the Commission, key historical events and recent accomplishments.

18 Q&A WITH ARIZONA GOVERNOR DUCEY In this exclusive interview, Governor Doug Ducey discusses his role as chair of the Arizona-Mexico Commission and why Arizona’s relationship with Mexico is important to the state.

20 TRADE AND TRANSPORTATION ON THE BORDER Arizona’s ports of entry and transportation routes are busy and expanding. From budgets to borders to trade routes, here’s a brief look at what’s going on along the border. Vecinos is a partnership between the Arizona-Mexico Commission and Chamber Business News. The Arizona-Mexico Commission is Arizona’s premier cross-border nonprofit organization focused on improving the economic prosperity and quality of life for all Arizonans through strong, public/private collaborations in advocacy, trade, networking and 24 THE ARIZONASONORA REGIONAN ECONOMIC POWERHOUSE information. To learn more, visit azmc.org. Gail Lewis, Director of P3 initiatives and Senior Advisor for International Affairs at ADOT, and Bruce Wright, Arizona-Mexico Commission Board To highlight the often-untold stories, Chamber Business News delivers insider information, engages newsmakers and Member, discuss the Arizona-Sonora Strategic Economic Vision. addresses issues that drive Arizona toward a brighter and more prosperous future. Chamber Business News is an initiative of the Arizona Chamber Foundation. To learn more, visit ChamberBusinessNews.com. 26 A TWONATION DESTINATION Most of Arizona’s international visitors come from Mexico and more than 10,000 overnight tourists from Mexico visit each day. Tourism between Arizona and Mexico creates a noteworthy economic impact.

2|SUMMER  VECINOS |3 Arizona’s relationship with Mexico, especially with efficient flow of goods between our states and Arizona’s neighbor to the south, Sonora, has become a countries, we have so much groundbreaking work to GOVERNOR DUCEY national model for diplomacy and collaboration. build upon, and this trip was an opportunity to continue those efforts.” Shortly after taking office, Governor Doug Ducey led a delegation to Mexico City to meet with elected officials During his trip, Governor Ducey met with Mexican and business leaders to share the message that Foreign Secretary Marcelo Ebrard and Ambassador of ADVANCES RELATIONS Arizona is open for business. Today, Arizona enjoys a Mexico to the Martha Bárcena to discuss thriving relationship with Mexico that can be seen in the how to build upon the strong bond Arizona and Mexico strong ties between Governor Ducey and high-level share. The governor also met with the president and WITH MEXICO dignitaries in Mexico. CEO of the United States-Mexico Chamber of Last fall, Governor Ducey traveled to Mexico City to Commerce, Albert Zapanta, to discuss the best Governor Doug Ducey has become a national leader when it comes to take part in new President Andrés Manuel López practices for creating strong economic ties between strengthening relations with Mexico. As chair of the Arizona-Mexico Commission, Obrador's inauguration festivities. While there he met the two countries. Governor Ducey recognizes the importance of working collaboratively with his with many cabinet level officials, bolstering his “I think the governor has a deep understanding of what counterparts in Mexico to ensure both economies thrive. binational reputation as one of the U.S.' most makes Arizona prosper,” Arizona-Mexico Commission internationally engaged governors. President Jessica Pacheco said. “What makes Arizona BY LORNA ROMERO “It’s always great to be in Mexico, solidifying our prosperous is a thriving economy. Our trade relationship as trading partners, neighbors and friends relationship with Mexico is integral in making our for years to come,” Governor Ducey said. “From economy not only a healthy one, but one that can increased security at our ports of entry, to unique compete globally. We are dealing with a global stage educational opportunities for our citizens, and more and Governor Ducey’s leadership with our relationship

4|SUMMER  Phoenix skyline, courtesy of Dreamframer/Shuerstock.com

with Mexico—understanding the importance of our economic, social, and cultural ties—has really been a national best practice model.”

In 2018, two-way trade with Mexico exceeded $16 billion, and can be tied to 91,000 jobs in Arizona. This is due in part to our ports of entry, which are critical to facilitating healthy two-way trade. Systems like Unified Cargo Processing, in which U.S. and Mexican customs officials conduct inspections side-by-side, are helping to streamline the movement of goods and services through our ports.

“Arizona and Sonora have set an example of pragmatism that is already delivering results for the economy on both sides of the border,” said John Murphy, senior vice president for international policy at the U.S. Chamber of Commerce. “From the governor to the Arizona Chamber and members of the congressional delegation from both parties, the focus has been on delivering real solutions that support trade, growth, and jobs. There’s an innovative approach, exemplified by initiatives such as SkyBridge, that is really exciting.” “Governor Ducey has positioned Arizona at the forefront of cross-border collaboration and has re-energized the Arizona-Mexico Commission to lead the way in this important relationship” said Juan Ciscomani, Senior Advisor to Governor Ducey and Vice-Chair of the Arizona-Mexico Commission. “The AMC is proud to execute on the Governor’s vision by hosting events like

the 2019 Governor’s Luncheon with Mexico Ambassador to the United States Martha Bárcena earlier this year.”

The event focused on the issues facing both countries and opportunities for Arizona and Mexico in a new era of North American trade. Governor Ducey and Ambassador Bárcena’s desire for mutual prosperity aligns with the Arizona-Mexico Commission’s mission to foster a strong relationship between Arizona and Mexico and to embrace the economic, geographic and cultural ties.

“I just want to [say] how much I appreciate the leadership of Governor Ducey with other governors, other colleagues,” Ambassador Bárcena said. “Without his leadership, other governors would not be so sympathetic to Mexico and the USMCA. He’s a respected governor among his peers, he is a leader among his peers and he represents Arizona with great pride. So, you should also be very proud of your governor.” Arizona’s relationship with Mexico, especially with efficient flow of goods between our states and Arizona’s neighbor to the south, Sonora, has become a countries, we have so much groundbreaking work to national model for diplomacy and collaboration. build upon, and this trip was an opportunity to continue those efforts.” Shortly after taking office, Governor Doug Ducey led a delegation to Mexico City to meet with elected officials During his trip, Governor Ducey met with Mexican and business leaders to share the message that Foreign Secretary Marcelo Ebrard and Ambassador of Arizona is open for business. Today, Arizona enjoys a Mexico to the United States Martha Bárcena to discuss thriving relationship with Mexico that can be seen in the how to build upon the strong bond Arizona and Mexico strong ties between Governor Ducey and high-level share. The governor also met with the president and dignitaries in Mexico. CEO of the United States-Mexico Chamber of Last fall, Governor Ducey traveled to Mexico City to Commerce, Albert Zapanta, to discuss the best take part in new President Andrés Manuel López practices for creating strong economic ties between Obrador's inauguration festivities. While there he met the two countries. with many cabinet level officials, bolstering his “I think the governor has a deep understanding of what binational reputation as one of the U.S.' most makes Arizona prosper,” Arizona-Mexico Commission internationally engaged governors. President Jessica Pacheco said. “What makes Arizona “It’s always great to be in Mexico, solidifying our prosperous is a thriving economy. Our trade relationship as trading partners, neighbors and friends relationship with Mexico is integral in making our for years to come,” Governor Ducey said. “From economy not only a healthy one, but one that can increased security at our ports of entry, to unique compete globally. We are dealing with a global stage educational opportunities for our citizens, and more and Governor Ducey’s leadership with our relationship

with Mexico—understanding the importance of our economic, social, and cultural ties—has really been a XXXXXXX/SHUTTERSTOCKCOM national best practice model.”

In 2018, two-way trade with Mexico exceeded $16 billion, and can be tied to 91,000 jobs in Arizona. This is due in part to our ports of entry, which are critical to facilitating healthy two-way trade. Systems like Unified Cargo Processing, in which U.S. and Mexican customs officials conduct inspections side-by-side, are helping to streamline the movement of goods and services through our ports.

“Arizona and Sonora have set an example of pragmatism that is already delivering results for the economy on both sides of the border,” said John Murphy, senior vice president for international policy at the U.S. Chamber of Commerce. “From the governor to the Arizona Chamber and members of the congressional delegation from both parties, the focus has been on delivering real solutions that support trade, growth, and jobs. There’s an innovative approach, exemplified by initiatives such as SkyBridge, that is really exciting.” “Governor Ducey has positioned Arizona at the forefront of cross-border collaboration and has re-energized the Arizona-Mexico Commission to lead the way in this important relationship” said Juan Ciscomani, Senior Advisor to Governor Ducey and Vice-Chair of the Arizona-Mexico Commission. “The AMC is proud to Plaza de la Constitución in Mexico City, courtesy of Diego Grandi/Shuerstock.com execute on the Governor’s vision by hosting events like

the 2019 Governor’s Luncheon with Mexico Ambassador to the United States Martha Bárcena earlier this year.”

The event focused on the issues facing both countries and opportunities for Arizona and Mexico in a new era of North American trade. Governor Ducey and Ambassador Bárcena’s desire for mutual prosperity aligns with the Arizona-Mexico Commission’s mission to foster a strong relationship between Arizona and Mexico and to embrace the economic, geographic and cultural ties.

“I just want to [say] how much I appreciate the leadership of Governor Ducey with other governors, Arizona Governor Doug Ducey, Sonora Governor Claudia other colleagues,” Ambassador Bárcena said. “Without Her Excellency Martha Bárcena, Ambassador of Mexico to the Arizona Governor Doug Ducey greets performers at the Pavlovich, Arizona Department of Transportation Director John his leadership, other governors would not be so United States, and Arizona Governor Doug Ducey discuss inauguration of Mexican President Andrés Manuel López Halikowski and Sonora Secretary of Transportation and Urban sympathetic to Mexico and the USMCA. He’s a Arizona’s cross-border relationship with Mexico at the 2019 Obrador. Development Secretary Ricardo Martinez sign a memorandum respected governor among his peers, he is a leader of understanding regarding the Safety Commercial Logistical Governor’s Luncheon hosted by the Arizona-Mexico Courtesy of the Office of Arizona Governor Doug Ducey Commission. among his peers and he represents Arizona with great Corridor Program. pride. So, you should also be very proud of your Courtesy of the Office of Arizona Governor Doug Ducey governor.”

SUMMER  6| VECINOS |7 collaborative research initiatives. To support regional safety and strong Arizona Governor put it best when he said, GUEST COMMENTARY infrastructure, the AMC has facilitated unique cross-border “God made us neighbors, let us be good neighbors.” a broad array of shared issues, partnerships such as the including trade, infrastructure, Lukeville-Puerto Peñasco Safety Today the Arizona-Mexico Commission keeps Gov. energy, and tourism, becoming Corridor and the commercial stronger under this structure even driver-training program that make Fannin’s words close as it works in collaboration for the as state leadership changed hands our infrastructure safer and more under multiple Arizona and Sonora efficient. mutual prosperity of Arizona and Mexico. governors. As chair of the AMC, Gov. Ducey Throughout its 60-year history, the knows the importance of keeping AMC’s contributions are expansive Arizona’s relationship with Mexico strong. Under his leadership, the and lasting, focusing on advocacy business and global trade are on the the AMC and its counterpart in AMC has never been more vibrant for policies that uplift the joint rise, and increasingly our key partners Sonora working as neighbors for or effective. By continuing an open region. Most recently, the are those across our own borders. good. dialogue on common issues of Mexico City at night, courtesy of Joshua Davenport/Shuerstock.com Commission has played an essential The AMC has set the standard as to importance, the two states have Arizona Governor Paul Fannin put it role in advocating for the ratification how to develop and maintain a been able to advocate effectively best when he said, “God made us of the United States-Mexico-Canada lasting neighborly relationship built on behalf of the region even as neighbors, let us be good Agreement (USMCA). on trust and mutual understanding. CELEBRATING  YEARS international tensions over border neighbors.” Today the AMC keeps Through its work, the AMC is keenly issues rose and fell over the years. Gov. Fannin’s words close as it The organization’s 60-year legacy aware of the deep impact trade works in collaboration for the mutual As we move into an increasingly of cross-border collaboration is one OF GLOBAL TIES between the U.S. and Mexico has on prosperity of Arizona and Mexico. furthering economic prosperity in interconnected world, the role of to celebrate. As permanent the AMC in strengthening Arizona’s neighbors looking to maintain a Jessica Pacheco is the Vice President of Arizona-Mexico Commission President Jessica Pacheco and Board the region, and regularly discusses ties with Mexico, Arizona’s number mutually beneficial relationship, State and Local Affairs for Arizona Public Member Glenn Hamer discuss the organization’s expansive and lasting the importance of enhancing the Service and Glenn Hamer is the President & one trading partner, will become Arizona and Mexico are incredibly contributions. two economies. CEO of the Arizona Chamber of Commerce even more important. International fortunate to have organizations like and Industry. A report released earlier this year BY JESSICA PACHECO & GLENN HAMER by the AMC and the Arizona Chamber Foundation found that in 2018 Arizona’s two-way trade with Phoenix skyline, courtesy of Mark Skalny/Shuerstock.com Mexico equaled $16.6 billion – nearly $7.6 billion in exports and $9 billion or 60 years the Arizona- Comité de Promoción Económica y in imports. Mexico Commission (AMC) Social de Sonora-Arizona. Keeping trade, commerce, and has served to promote a In 1972, Arizona Governor Jack tourism flowing is, of course, key. strong and cooperative Williams expanded and elevated the The organization is doing its part to F relationship between Arizona newly renamed Arizona-Mexico reduce border wait times through and Mexico. Commission’s activities and championing innovative programs The organization has been a appointed a select group of like Unified Cargo Processing, a joint constant in Arizona since 1959 when prominent business and community U.S.-Mexico inspection program Governor Paul J. Fannin and Sonora leaders to serve on its board of piloted at the Nogales Port of Entry. directors. Today, binational Governor Álvaro Obregón saw the The AMC also works to facilitate committees chaired by leaders in importance of fostering cross-border joint promotion of the region as a the public and private sector drive cooperation and common ground. tourist destination, and supports the work of the AMC to improve the Together they launched what binational university partnerships for economic prosperity and quality of began as the Arizona-Mexico West Arizona’s universities through life for all throughout the region. Coast Trade Commission and its international degree programs and sister organization in Sonora, the The AMC has expanded its scope to classes, student exchanges, and SUMMER 2019 8|SUMMER  VECINOS |3 |9 REX WHOLSTER/SHUTTERSTOCKCOM s Nogales, Arizona and Nogales, Sonora officially became Sister Cities in 1980. The two cities became known as Ambos Nogales while Arizona Governor and Sonora Governor Samuel Ocaña García were in office. In 1984, the AMC expanded to eight committees with the addition of the Legal Advisory Committee. In 1989, the first U.S.-Mexico Border Governors Conference was held in Arizona. s In 1992, the State of Arizona opened a trade office in Hermosillo, Sonora to support business growth in both states and benefit the entire Arizona-Sonora region. In 1994, the U.S. House of Representatives issued a conference report instructing the U.S. Customs Service Grand Canyon National Park to undertake a unified binational border port management pilot project. It was intended to design and test a model of unified border port management in the good neighbors.” Nogales Customs District. ARIZONAMEXICO COMMISSION s The following year, the Arizona State Legislature appropriated $925,000 for the border port From 1960-1961, the edible animals and animal imports management pilot project as well as the initiation phase THROUGH THE YEARS group was valued at $68,087,859. The vegetable, food of the CANAMEX multistate trade coalition. products and beverages group was valued at The AMC assisted in the designation of the U.S. The Arizona-Mexico Commission was founded in 1959 and has since worked to strengthen Arizona’s relationship with $41,648,908, according to tracking reports by the consulate in Hermosillo as a U.S. Consulate General Mexico. Take a look back at the last six decades. . Imports for consumption are office in 1998. It opened that year and established a measured by the value of merchandise that clears permanent Consulate office in Nogales, Sonora. customs or U.S. Foreign Trade Zones and enters the BY SIERRA CIARAMELLA market. Former Arizona Governor Jack Williams rebranded the he Arizona-Mexico Commission was Honorable Álvaro Obregón, were motivated by the Arizona-Mexico West Coast Trade Commission to what founded in 1959 and has since worked to conference and decided to create a permanent is now known as the Arizona-Mexico Commission in strengthen Arizona’s relationship with Arizona-Sonora committee. 1967. Mexico, especially its neighbor south of At the first committee meeting, Gov. Fannin overheard a the border in Sonora. As it celebrates its s Sonoran attendee say, “God made us neighbors, let us 60th anniversary this year, the b e In 1972, the AMC established formal committees with a TCommission looks toward the future. But, what are some reorganization. The committees formed that year of its key accomplishments in the last six decades? included Trade and Commerce, Banking and Finance, THEFOUNDING Agriculture and Livestock, Education, Tourism, Health, and Art and Culture. Former Arizona Governor Paul Fannin founded what is now called the Arizona-Mexico Commission (AMC) in In 1975, the AMC published the first bi-monthly bulletin, 1959 following his election. which was designed to help inform members and stakeholders of the AMC’s different happenings. Shortly after taking office, Gov. Fannin attended the Chairman of the Arizona-Mexico West Coast Trade Arizona-Sonora International Conference in Tucson held The University of Arizona published the Economic Commission (now Arizona-Mexico Commission) Paul McGinn, by the University of Arizona and the University of Sonora Impact of Mexican Visitors to Arizona in 1978. Tourism Sonora Secretary of State Cesar Gandara and Arizona in Hermosillo. from Mexico to Arizona- and vice versa- is still tracked Secretary of State at the Arizona State Fair in 1967. annually to analyze the economic impact and SUMMER 2019 Gov. Fannin and the Governor of Sonora at the time, the opportunities. |3 10|SUMMER  VECINOS |11

In 2008, Arizona and Sonora high school students compete in the Arizona-Sonora Bowl II, in celebration of Super Bowl XLII. Arizona beat Sonora.

In 2009, the AMC Environment & Water Committee completed a study of the feasibility of binational desalination to address water needs of the region. It was funded by the and Salt River Project.

s

The Transportation and Trade Corridor Alliance (TTCA) was established in 2012. It was geared to raise the level of attention “to issues and opportunities in trade, transportation, logistics and supply chain development,” according to the TTCA. Partners of the TTCA included the AMC, Arizona Commerce Authority, Arizona Office of Tourism, and the Arizona Department of Transportation.

s In 2014, the State of Arizona Trade Office opened in Mexico City and the Mariposa Port of Entry expansion The State of Arizona, AAA Arizona and the State of was completed. The expansion totaled about $200 Sonora signed a memorandum of understanding in million. Pavlovich signed the Lukeville – Puerto Peñasco Safety The policy review covers the importance of Arizona’s 2000 to establish cooperation in the promotion of Corridor Memorandum of Understanding (MOU). The trade relationship with Mexico and Canada and the ways tourism and facilitation of cross-border travel. Arizona and Sonora teamed up in 2017 to create the safety corridor was established to improve the safety of in which the United States-Mexico-Canada Agreement “Home Port,” an agreement designed to pave the way In 2006, the AMC and the Comisión Sonora-Arizona those traveling to and from Arizona and Sonora. (USMCA) will benefit the state’s economy. for residents of the region to have easy access to implemented the Arizona-Sonora 511 Travel and Transportation System Initiative linking cross-border cruises in Puerto Peñasco. Unified Cargo Processing was piloted at the Mariposa That year, Gov. Ducey welcomed Martha Bárcena, Port of Entry as well. Through the pilot, agents on both Ambassador of Mexico to the United States, on her first travelers to timely traffic information in Arizona and Sonora. That same year, Gov. Ducey and Sonora Gov. Claudia sides of the border would conduct cargo clearance official trip to Arizona as ambassador. examinations in an effort to reduce wait times at the border.

In 2018, the Lukeville – Puerto Peñasco Safety Corridor launched after the MOU between Gov. Ducey and Gov. Pavlovich.

That year, Gov. Ducey announced the launch of SkyBridge Arizona at the Phoenix-Mesa Gateway Airport. SkyBridge Arizona is similar to the Unified Cargo Processing pilot in that it intended to speed up cross-border traffic. The development is designed to allow U.S. Customs and Border Protection and Mexican customs officers to examine shipments at the same time.

After President Andrés Manuel López Obrador was elected president of Mexico, Gov. Ducey attended his inauguration in Mexico City December of 2018.

The AMC partnered with the Arizona Chamber of Commerce and Industry and the Arizona Chamber Foundation in 2019 to publish a policy review, The USMCA & Its Impact on Arizona. s Nogales, Arizona and Nogales, Sonora officially became Sister Cities in 1980. The two cities became known as Ambos Nogales while Arizona Governor Bruce Babbitt and Sonora Governor Samuel Ocaña García were in office. In 1984, the AMC expanded to eight committees with the addition of the Legal Advisory Committee. In 1989, the first U.S.-Mexico Border Governors Conference was held in Arizona. s In 1992, the State of Arizona opened a trade office in Hermosillo, Sonora to support business growth in both states and benefit the entire Arizona-Sonora region. In 1994, the U.S. House of Representatives issued a conference report instructing the U.S. Customs Service to undertake a unified binational border port management pilot project. It was intended to design and test a model of unified border port management in the good neighbors.” Nogales Customs District.

s The following year, the Arizona State Legislature appropriated $925,000 for the border port From 1960-1961, the edible animals and animal imports management pilot project as well as the initiation phase group was valued at $68,087,859. The vegetable, food of the CANAMEX multistate trade coalition. products and beverages group was valued at The AMC assisted in the designation of the U.S. $41,648,908, according to tracking reports by the consulate in Hermosillo as a U.S. Consulate General University of Arizona. Imports for consumption are office in 1998. It opened that year and established a measured by the value of merchandise that clears permanent Consulate office in Nogales, Sonora. customs or U.S. Foreign Trade Zones and enters the market. Former Arizona Governor Jack Williams rebranded the he Arizona-Mexico Commission was Honorable Álvaro Obregón, were motivated by the Arizona-Mexico West Coast Trade Commission to what founded in 1959 and has since worked to conference and decided to create a permanent is now known as the Arizona-Mexico Commission in strengthen Arizona’s relationship with Arizona-Sonora committee. 1967. Mexico, especially its neighbor south of At the first committee meeting, Gov. Fannin overheard a the border in Sonora. As it celebrates its s Sonoran attendee say, “God made us neighbors, let us 60th anniversary this year, the b e In 1972, the AMC established formal committees with a Commission looks toward the future. But, what are some reorganization. The committees formed that year of its key accomplishments in the last six decades? included Trade and Commerce, Banking and Finance, THEFOUNDING Agriculture and Livestock, Education, Tourism, Health, and Art and Culture. Former Arizona Governor Paul Fannin founded what is now called the Arizona-Mexico Commission (AMC) in In 1975, the AMC published the first bi-monthly bulletin, 1959 following his election. which was designed to help inform members and stakeholders of the AMC’s different happenings. Shortly after taking office, Gov. Fannin attended the Arizona-Sonora International Conference in Tucson held The University of Arizona published the Economic by the University of Arizona and the University of Sonora Impact of Mexican Visitors to Arizona in 1978. Tourism in Hermosillo. from Mexico to Arizona- and vice versa- is still tracked annually to analyze the economic impact and Gov. Fannin and the Governor of Sonora at the time, the opportunities.

In 2008, Arizona and Sonora high school students compete in the Arizona-Sonora Bowl II, in celebration of View of Nogales, Sonora from Nogales, Arizona, courtesy of Rex Wholster/Shuerstock.com Super Bowl XLII. Arizona beat Sonora.

In 2009, the AMC Environment & Water Committee completed a study of the feasibility of binational desalination to address water needs of the region. It was funded by the Central Arizona Project and Salt River Project.

s

The Transportation and Trade Corridor Alliance (TTCA) was established in 2012. It was geared to raise the level of attention “to issues and opportunities in trade, Magaret (Pat) Lougee was named the first female Board transportation, logistics and supply chain development,” Member of the Arizona-Mexico Commission in 1972. That year, according to the TTCA. Partners of the TTCA included the AMC also reorganized the organization and established formal commiees. the AMC, Arizona Commerce Authority, Arizona Office of Tourism, and the Arizona Department of Transportation.

s In 2014, the State of Arizona Trade Office opened in Mexico City and the Mariposa Port of Entry expansion The State of Arizona, AAA Arizona and the State of was completed. The expansion totaled about $200 Sonora signed a memorandum of understanding in million. Pavlovich signed the Lukeville – Puerto Peñasco Safety The policy review covers the importance of Arizona’s 2000 to establish cooperation in the promotion of Corridor Memorandum of Understanding (MOU). The trade relationship with Mexico and Canada and the ways tourism and facilitation of cross-border travel. Arizona and Sonora teamed up in 2017 to create the safety corridor was established to improve the safety of in which the United States-Mexico-Canada Agreement “Home Port,” an agreement designed to pave the way In 2006, the AMC and the Comisión Sonora-Arizona those traveling to and from Arizona and Sonora. (USMCA) will benefit the state’s economy. for residents of the region to have easy access to implemented the Arizona-Sonora 511 Travel and Transportation System Initiative linking cross-border cruises in Puerto Peñasco. Unified Cargo Processing was piloted at the Mariposa That year, Gov. Ducey welcomed Martha Bárcena, Port of Entry as well. Through the pilot, agents on both Ambassador of Mexico to the United States, on her first travelers to timely traffic information in Arizona and Sonora. That same year, Gov. Ducey and Sonora Gov. Claudia sides of the border would conduct cargo clearance official trip to Arizona as ambassador. examinations in an effort to reduce wait times at the border.

In 2018, the Lukeville – Puerto Peñasco Safety Corridor launched after the MOU between Gov. Ducey and Gov. Pavlovich.

That year, Gov. Ducey announced the launch of SkyBridge Arizona at the Phoenix-Mesa Gateway Airport. SkyBridge Arizona is similar to the Unified Cargo Processing pilot in that it intended to speed up cross-border traffic. The development is designed to allow U.S. Customs and Border Protection and Mexican customs officers to examine shipments at the same time.

After President Andrés Manuel López Obrador was Her Excellency Martha Bárcena, Ambassador of Mexico to the elected president of Mexico, Gov. Ducey attended his United States, and Arizona Governor Doug Ducey aended inauguration in Mexico City December of 2018. the inauguration of Mexican President Andrés Manuel López The AMC partnered with the Arizona Chamber of Obrador.

Commerce and Industry and the Arizona Chamber Courtesy of the Office of Arizona Governor Doug Ducey View of the Arizona/Sonora border, courtesy of the University of Arizona, Special Collections Foundation in 2019 to publish a policy review, The USMCA & Its Impact on Arizona. 12|SUMMER  VECINOS |13 have been signed and issued—all of However, the committees have also which have contributed to inspired many lighthearted GUEST COMMENTARY improvements in public safety, ease moments. Within the first two of transportation, quality of decades of the organization’s education, and joint efforts in the founding, we saw multiple friendly Agribusiness & Wildlife as we know them today were promotion of tourism and economic sports exchanges between Arizona formed, starting with Agriculture development in the shared region. and Sonora. Arizona hosted and Livestock, Art and Culture, Art & Culture numerous Little League baseball Banking and Finance, Education, We have seen some great examples teams while the University of Health, Tourism, and Trade and of collaboration that have resulted Arizona sent multiple softball teams Commerce. in game-changing projects for the Community & Social to play in Mexico. In 1968, the State region, starting in the early years This unique structure is what sets of Sonora gifted Arizona a statue of Organizations when engineers from Mexico toured the Arizona-Mexico Commission Father Kino. The statue currently Arizona to learn firsthand about apart from other organizations. resides in Tucson, Arizona and Arizona’s irrigation projects. A few Economic Development Today, there are 16 such binational contains a copper time capsule that decades later when the U.S. committees, each led by a public is to be opened in 2235. Hermosillo Consulate General office and private sector co-chair from Education was facing closure due to The Arizona-Mexico Commission Arizona-Mexico Commission Binational Commiee Members, 2019 Arizona and Sonora. Many of our budgetary cutbacks, the AMC has ensured that the shared committee chairs are state agency spearheaded efforts to save it. language, history, culture, stories, directors, private sector leaders and Emergency Management Those efforts not only saved the food, and most importantly, values, experts in their respective fields. U.S. Hermosillo Consulate General, transcend our shared border to BINATIONAL COMMITTEES Committee meetings are where the they also resulted in a second U.S. offer a unique and vibrant region. It Energy bulk of the AMC’s ideas originate Consulate General in Nogales. To is through the 16 committees that —THE AMC'S PROVEN and are the driving force behind the this day, Sonora is the only state in the Arizona-Mexico Commission is organization’s successes – many of Mexico with two U.S. Consulate empowered to champion these Environment & Water DRIVING FORCE which have garnered international General offices. In recent years, the values that continue to strengthen attention. The committees welcome AMC has taken things to an entirely an incredibly important relationship. Financial & Legal Services Juan Ciscomani, Senior Advisor for Regional and International Affairs to participation from members of the new level with projects such as the Our ties with Mexico have never Governor Ducey and Vice Chair of the Arizona-Mexico Commission Arizona-Mexico Commission and Border Liaison Unit and the been stronger, and through the Board of Directors, discusses the Commission's binational committees. the Comisión Sonora-Arizona (CSA) establishment of the Safety Corridor impactful work of the AMC’s Health Services interested in helping drive the between the Lukeville-Sonoyta Port thoughtful, committed partners, we initiatives planned over the course of Entry and Puerto Peñasco, will continue to make a lasting BY JUAN CISCOMANI of the year. Committee actions lead Sonora. These initiatives both seek impact for the next 60 years and Mining to real results, and these to facilitate trade and tourism while beyond. accomplishments are presented to enhancing safety measures. the governors twice each year at Real Estate “Never doubt that a small group of and Sonora in mind as they tackle a the summer and winter commission thoughtful, committed citizens can range of issues important to each meetings. Security change the world; indeed, it's the state and to their respective Since 1972, these committees have only thing that ever has.” Governors. The ultimate goal? To been an integral part of the Tourism –Margaret Mead improve the quality of life in our Arizona-Mexico Commission’s foundation region through cross-border and the binational relationship. here is perhaps no truer collaboration. Under Governor Ducey’s leadership, Transportation, statement to describe the the work of these 16 committees The AMC was originally established Infrastructure & Ports Arizona-Mexico Commission’s in 1959 as the Arizona-Mexico West has been re-energized through the (AMC) binational committees Coast Trade Commission, and by cooperative and productive relationship T and the extraordinary 1972 Governor Jack Williams of shared with Sonora Governor Sports (Ad-Hoc) results they have produced over the Arizona felt the Commission could Claudia Pavlovich. Between 2015 Arizona-Mexico Commission commiee leadership celebrated the official launch of the course of 60 years. The individuals expand its binational influence. The and 2018 alone, 13 memorandums Lukeville-Puerto Peñasco Safety Corridor at the Lukeville-Sonoyta Port of Entry in 2018. serving on these committees have organization was rebranded and of understanding, declarations of the best interests of both Arizona shortly thereafter the committees cooperation and joint statements SUMMER 2019 14|SUMMER  VECINOS |3 |15 ARIZONAMEXICO COMMISSION TIMELINE The Arizona-Mexico Commission has 60 years of rich history. This visual timeline explores the early days of the AMC and recent accomplishments. 1961 2007 2015 1991 Doug Ducey is inaugurated as 1980 is inaugurated Governor of Arizona. as Governor of Arizona. 1967 1970 2018 Jack Williams is inaugurated 1977 as Governor of Arizona. 2000 Governor Ducey leads his United States Ambos Nogales officially Arizona and Sonora enter into a first trade mission to imports for become Sister Cities. • The State of Arizona partnership with National Mexico City. consumption opens a trade office in Geographic to promote geotourism from Mexico throughout the region. through Arizona. Guadalajara, Jalisco. is inaugurated as Claudia Pavlovich Sonora Governor Pavlovich • The Arizona-Sonora Economic Opportunities Governor of Sonora. attends Governor Ducey's 1962 Arizona exports reach State of the State Address. $5 billion. 2001 Regional Partnership is established. 2016 The Arizona-Mexico • Governor Ducey announces the launch of West Coast Trade 2008 Commission is The Friendship Airport-Industrial Complex Governor Castro is First U.S.-Mexico 1992 • Annual Arizona-Mexico • Arizona and Sonora develop a binational SkyBridge Arizona at the Phoenix-Mesa renamed is proposed to Arizona-Mexico nominated by Border Governors Environmental Strategic Plan. Arizona-Mexico Mexico Day is Commission. The project would have been President Carter to Conference is held in Commission Dr. Andy Gateway Airport. Commission by held at the located between San Luis, Arizona and serve as Cd. Juarez, Chihuahua. Nichols Award is Governor Williams. Arizona State San Luis Rio Colorado, Sonora with a Ambassador to Argentina. established. • Unified Cargo Processing is piloted at the Annual Arizona-Mexico Commission Fair. runway in both states. 1984 • Mariposa Port of Entry. William K. Brooks Award is established. 1972 Wesley Bolin is inaugurated • The Arizona-Mexico Commission Legal • Arizona-Sonora Film as Governor of Arizona. Governor Fannin and Advisory Committee is established. Commission is established. • Arizona Department of Transportation Sonora Governor Luis • The Arizona-Mexico Arizona and Sonora high school signs historic agreement with the Mexican Encinas attend Commission is reorganized and 1978 students compete in the "Arizona-Sonora The State of Arizona-Sonora Bowl II, in Ministry of Communications and Recognition Day" at the formal committees are formed: Arizona opens 2002 celebration of Super Bowl XLII. Transportation to conduct a freight corridor Seattle World's Fair. trade office in Arizona beats Sonora. Courtesy of: Seattle Municipal •Trade and Commerce Hermosillo, Sonora. study of the Arizona-Mexico corridor. Archives State Route 189 receives The State of Sonora gifts • Banking and Finance • The State of Arizona Governor Ducey and full funding for Arizona a statue of Father th The Lukeville-Puerto • hosts the 20 U.S.-Mexico Sonora Governor Pavlovich expansion to Kino. The statue currently Agriculture and Livestock • Annual Arizona-Mexico Commission Governor Ducey accompanied by Sonora Peñasco Safety 1963 • host the National accommodate resides in Tucson, Arizona Border Governors Corridor launches, • Education Tony Certósimo Award is established. Governors Association commercial traffic at the and contains a time capsule Governor Pavlovich, announces electric car resulting from a MOU Conference. North American Summit in Mariposa Port of Entry. that will be opened in 2235. • Tourism The Arizona-Mexico Commission and between Governor company, Lucid Motors, to open factory in Arizona. Courtesy of: MUTCD • Health the Comisión Sonora-Arizona Ducey and Sonora th Casa Grande, Arizona utilizing U.S. and celebrate 25 Anniversary. 1993 • Governor Hull leads trade Governor Pavlovich. 1968 • Art and Culture Groundbreaking ceremony Mexico supply chains. mission to Guadalajara and takes place for the San Luis II • Margaret (Pat) Lougee is Mexico City, meets with Port of Entry. named the first female Mexican President Vicente The University of Arizona

Arizona-Mexico Commission publishes a study on the Fox. 2009 1969 Board Member. “Economic Impact of 1979 1989 1999 Mexican Visitors to Arizona.” Governor Ducey joins The U.S. General Governor Ducey, Sonora Martha Bárcena, Flagstaff, Arizona hosts the The North American Free Services Administration Governor Claudia Pavlovich Mexico's Ambassador 1968 West German Olympic Trade Agreement (NAFTA) is completes $6 million and New Mexico Governor 1973 • Governor Bolin The Summit Six, a group of Arizona and Sonora create the to the United States for team for training prior to the First U.S.-Mexico Border ratified by the United States, new Pedestrian Annex at Susana Martinez sign MOU free trade economic first of its kind Public-Private Mexican President XIX Olympiad in October passes. Governors Conference is held in Canada and Mexico and the San Luis I Port of promoting the production, development Partnership (PPP) at the Andrés Manuel López 1968, in Mexico City. • Sinaloa Governor Alfredo Arizona. becomes law. Entry. transfer and international organizations was Lukeville Port of Entry by Governor Ducey speaks at the Obrador’s inauguration Valdéz Montoya and securing funds for the distribution of natural gas. Bruce Babbitt is developed after the inauguration of the new Consulate of festivities on the Zócalo delegation visit Arizona to • Arizona-Mexico Border Health Arizona-Mexico construction of two additional Mexico building in Tucson, Arizona. as her special guest. inaugurated as Commission's first passenger occupancy vehicle 1959 strengthen ties. Foundation is established. "Summit on Free Trade. (POV) lanes. Governor of Arizona. 1969 1979 1989 1999 2009

1995 1964 1974 1985 2003 2010 2017 • Mexico City is struck by is an 8.0 magnitude inaugurated as Governor of • Governor Napolitano 2019 earthquake and the Arizona. is appointed by Potential Port of Guaymas Arizona-Mexico President Obama to transportation systems Commission assists in • The Arizona-Mexico networks are presented at the serve as the United 5th Arizona-Sonora Committee relief efforts. Commission Emergency States Secretary of The Arizona-Mexico Commission honors Conference in Hermosillo, Sonora Governor Carlos Board Member Harlan Capin with the Management, Real Estate, first Lifetime Achievement Award. Sonora. Armando Biebrich Torres Homeland Security. and delegation attend the • The Arizona-Mexico The State of Arizona Security, and Transportation, Vesta Club Banquet Legislature 2011 Commission Environment Infrastructure & Ports Governor Ducey accompanied by in Phoenix, Arizona. appropriates Janice K. Brewer and Water Committees $925,000 for a border Committees are established. is inaugurated as • The Arizona-Mexico Commission the , leads trade port management pilot mission to Mexico City. The Arizona-Mexico Governor Ducey hosts Martha are established. project and initiation Energy Committee is established. 1975 Commission, the • Governor Hull leads her Governor of Arizona. Bárcena, Mexico’s Ambassador to The Arizona-Mexico Commission phase of CANAMEX Comisión Sonora-Arizona • Governor Napolitano leads the United States for her first official and the Comisión Sonora-Arizona The Arizona-Mexico multi-state trade first trade mission to • Governor Ducey hosts Geronimo and the State of Sinaloa 1986 visit to Arizona. conduct a joint plenary celebrate 20th Anniversary. Commission and the coalition. Mexico City, meets with her first trade mission to Gutierrez, Mexico’s Ambassador session. • The Arizona-Mexico Comisión Sonora-Arizona President Ernesto Zedillo. Mexico City, meets with to the United States in Arizona. An Arizona-Sonora Delegation Commission Sports celebrate • Annual President Vicente Fox. attends "Arizona-Sonora Committee is established. 30th Anniversary. Recognition Day" at the New Arizona-Mexico • The Arizona-Mexico The University of Arizona York World's Fair. Commission Paul J. • Courtesy of: Ron White Commission partners with holds the Arizona-Sonora Fannin Award is The Arizona-Mexico Commission Raúl H. Castro is inaugurated the University of Arizona and the Comisión Sonora-Arizona International Conference established. to create the Regional celebrate 50th Anniversary. The Arizona-Mexico Commission and the 1965 as Governor of Arizona. Arizona Department of Transportation prepare with its counterpart, the the Arizona-Sonora Border Master Plan. Samuel P. Goddard is 1996 Economic Indicators Governor Ducey University of Sonora. Report. hosts Chihuahua inaugurated as Governor of • The first Governor Javier During the conference, 2012 Corral in Arizona for Arizona. Governor Napolitano Arizona Governor Paul Arizona-Sonora Bowl his first official visit hosts President Fox of The Arizona-Mexico Commission hosts a to Arizona. Fannin and Sonora Football Game is Mexico for a visit in delegation from the State of Sinaloa. • The Arizona-Mexico West Coast played in conjunction Arizona. Governor Alvaro Obregon The Arizona-Mexico Courtesy of: Arizona State Trade Commission appoints a Commission publishes first with Super Bowl XXX. Arizona and Sonora hold University created the newsletter “The Cronista” Binational Weapons of • The Arizona-Mexico Commission Ladies Committee led by Mrs. Kelso. - subscriptions were sold Sonora defeated Mass Destruction Arizona-Mexico West for $15/year. Community and Social Arizona. Exercise in Nogales, Coast Trade Commission Arizona. Organizations Committee is and the Comité de 1987 established. 1997 The Arizona-Mexico Transportation and Trade Corridor Promoción Economica y is inaugurated as Commission and the Comisión 2004 Alliance is established. Partners Sonora-Arizona celebrate included, the Arizona-Mexico Social Sonora-Arizona. The Arizona-Mexico Commission th The State of Arizona conducts a trade Governor of Arizona. 40 Anniversary. • Commission, Arizona Commerce • Unified Cargo Processing program publishes its first bi-monthly bulletin. mission to Monterrey, Nuevo Leon. Authority, Arizona Office of Tourism, is expanded to the ports of entry in and the Arizona Department of The Arizona-Mexico Transportation. Douglas and San Luis, Arizona. • The Arizona-Mexico Commission Commission partners co-sponsors the air-drop of 5,000 with Arizona 2014 • The State of Arizona and the State Chamber of ping-pong balls over Hermosillo, Sonora as of Sonora sign MOU to promote the Commerce & a goodwill gesture and trade promotion Industry and the establishment of the “Home Port” Arizona Chamber for Arizona. Stuffed into 1,000 balls were Governor Napolitano and Foundation to • The Arizona-Mexico Commission Mining Committee is established. Sonora Governor Eduardo Bours Joint tourism promotion project in Puerto Peñasco, Sonora. publish gift certificates for many businesses in tour the Port of Guaymas project named, “Kinoland” is inaugurated as Governor of Arizona. “The USMCA & Its is developed to promote Impact on Arizona.” Governor Goddard issues a Arizona valued at $12,000. The outside of The City of Phoenix both states under one • Arizona Department of proclamation honoring the 1998 distributes a Mexican each ball read, “Para Sonora, Con Saludos destination. The project Fiesta De Amigos Days. Arizona-Mexico 2006 Transportation establishes the visitor survey. was named after Father The Arizona-Mexico - Raúl H. Castro, Gobernador de Arizona.” Border Health • The Arizona-Mexico Commission Border Liaison Unit to foster better Foundation begins to Kino. • Arizona’s Border Vision 2015 is created to provide an The State of Arizona Trade Office Commission and publish "Vecinos" to advocates for the designation of the U.S. advocacy timeline to secure funding for Arizona opens in Mexico City. communications with industry and inform health Consulate in Hermosillo as a U.S. Consulate the Comisión professionals and the infrastructure projects. • The Transportation and Trade Corridor the border communities. public on issues Sonora-Arizona General and for the establishment of a U.S. th affecting the region. Consulate in Nogales, Sonora, making Alliance completes the Roadmap; Arizona's celebrate 60 • Arizona-Sonora 511 Travel and Transportation System Path to Global Market Expansion to help Anniversary. 1988 Sonora the only state in all of Mexico with Initiative is implemented. two consulates. facilitate trade. is inaugurated as Governor of Arizona. • The U.S. Consulate General Office in Nogales, Sonora is opened. Q&A WITH ARIZONA GOVERNOR DUCEY In this exclusive interview, Governor Doug Ducey discusses his role as chair of the Arizona-Mexico Commission and why Arizona’s relationship with Mexico is important to the state.

QUESTION Governor, what are your duties as the chair a leadership organization for solutions. of the Arizona-Mexico Commission? Q What are the top trade opportunities between ANSWERMy duties as the chair of the Arizona-Mexico Arizona and Mexico in the next few years? Commission are to make sure that we've got the right AI would begin with our trade relationship and I would people in the room so that we can best advocate for this start with the USMCA. I'm someone who is a huge fan of most valued relationship that Arizona has with our this idea. I believe in free trade and if this is how we're number one trading partner, Mexico. It's a position and going to define free and fair trade. I want to make sure responsibility I embrace as governor. that Congress gets this ratified. I think another reason Q Why do you think the work the Arizona-Mexico that the USMCA is so important is not only do we want Commission does is important for Arizona? to protect the agricultural relationship that we have with Mexico right now along with the manufacturing AFirst, I don't think it can be stated enough that the relationship, but it's really these ideas of the future. It's work the Arizona-Mexico Commission does builds Governors Ducey and Pavlovich co-host the NGA North American Summit in Phoenix, Arizona in May 2018 what's coming that we can't see. We've seen how the relationships across the border with areas of influence economy has been transformed over the past ten years; across the sphere—public sector, private sector and I think it's only going to change exponentially going education. I come at it, first and foremost, from a forward. believe vice versa. It shows the work ethic and the commerce perspective because Mexico is our largest relationship that has been built by people that came I want to make sure that Q Why is it important for Arizona to focus on trading partner. I think it’s important that we maintain long before I came into this office and it's something Congress gets (the USMCA) ratified. that relationship, but also build on it—focusing on the maintaining and continuously build a relationship with that Governor Pavlovich and I both want to see outlive things we can do together, like making sure that Mexico? our administrations. We think that this type of We've seen how the economy has commerce can flow more freely across the border, what A Arizona should continually focus on its largest relationship, this type of spirit and partnership and we've done with Unified Cargo Processing, tourism, joint opportunities and its best friends and partners. I mean, friendship that we've seen over the past four years is been transformed over the past ten law enforcement efforts and more. All of these issues the way that it should be for the next 60 years and “ you can always do more with the relationships that you are real issues for both myself and Governor Claudia already have and that are existing. We have an beyond. years; I think it's only going to change Pavlovich and the Arizona-Mexico Commission has been incredible relationship with the nation of Mexico and an QWhat is your top priority regarding our relationship exponentially going forward. incredible relationship with Sonora, which is beginning to with Mexico for 2019? grow with other states in Mexico. It is one where I think ARIZONA GOVERNOR DOUG DUCEY Arizona is the lead advocate, the ambassador state, for A My top priority with Mexico every year is to build on what can be done when you have the leader-to-leader the relationship. We're seeing our economy boom here relationships. in the state of Arizona. We're seeing our population QIs there anything else you'd like to mention about the grow at record numbers and that provides opportunity Arizona-Mexico Commission? Q The Arizona-Mexico Commission is celebrating its for all of our citizens, and the relationship that we have I just want to say one of the things I'm most proud of 60th anniversary, what has been its biggest with Mexico brings jobs to the state of Arizona, it brings A achievement in the last 60 years? companies that relocate to the state of Arizona outside as governor is what we've been able to do with the Arizona-Mexico Commission over the last four years. I AFirst, I want to say happy anniversary. It is something of our urban core. So, it's something that's really to be celebrating the 60th anniversary of the benefited the state of Arizona and I think if we take care think it's not only been reset, it's been refreshed and Arizona-Mexico Commission. And if I had to pick one of the relationship leader-to-leader, we make sure that recharged for the future and I think everyone in Arizona Chihuahua Governor Javier Corral Jurado meets with Arizona single accomplishment, I think that would be very we have the proper delegations of influencers and knows what's possible with this positive and productive Governor Doug Ducey during a state visit to Arizona in March difficult to do. I would actually point to the totality of the decision makers, we make sure we have the education relationship we have with the nation of Mexico and the 2019. relationship and how our economy is fundamentally exchange opportunities, that will maintain the state of Sonora. And I think the future has never been dependent on the Sonora and Mexico economies and I relationship, that will help us weather whatever storm. brighter.

18|SUMMER  VECINOS |19 Mariposa Port of Entry, courtesy of the U.S. Customs and Border Protection

In addition to freight mobility, ADOT is integral to the ability of travelers from Mexico to enjoy Arizona excursions with ease, and for Arizona-based vacationers to head south to enjoy a weekend of sun and surf in Mexico safely and hassle-free.

Arizona is working to ease the overall travel process for travelers who want to visit destinations like Puerto Peñasco, the location for the soon-to-be-christened cruise line port.

The inaugural Cruise & Maritime Voyages cruise will set sail this December and create new economic development opportunities for commuter towns along the way to welcome travelers stopping in to eat, fuel up, and rest up.

IMPROVEMENTS AT PORTS OF ENTRY FACILITATE SMOOTHERTRADETOURISMFLOWS

In Nogales, San Luis, and Douglas, Arizona’s ports of entry have been experiencing longer crossing wait times, higher numbers of trucks, and bigger flows of people coming to Arizona for work and shopping on Arizona’s side of the border. well-planned, well-built, safe transportation system. companies that provide services to those companies,” said Tom Hermann, a representative for ADOT. “It also To handle these larger volumes of trade and traffic, TRANSPORTATION Without robust roads and highways, and state and local officials are asking federal lawmakers to well-maintained routes for trucks and trailers and could make the Tucson International Airport region invest more heavily into the infrastructure at these ports travelers, the Arizona-Mexico border risks being known even more attractive to companies from international & TRADE ON THE of entry like the ones in San Luis. more for congestion and frustration than facilitation. commerce and others along both Interstate 19 and Interstate 10. And it would benefit companies already in In President Trump’s budget outline for 2020, the The Arizona Department of Transportation (ADOT) is BORDER the Tucson area by reducing congestion on I-10 around administration proposed $248 million be invested in the state agency essential to strengthening this downtown Tucson.” modernizing and expanding the port of entry in San Luis. There’s a lot going on at the border with walls and infrastructure link to Mexico. migrants and long wait times and tomatoes. While those The agency, in collaboration with the Arizona-Mexico issues are headline-grabbing, Arizona’s ports of entry Commission and additional stakeholders, has been and transportation routes are busy, expanding and flying Ocean-to-Ocean Bridge in Yuma, Arizona in under the radar. From budgets to borders, trade setting plans in motion for some time to develop more partners to trade routes, here’s a brief look at what’s ports of entry, build new connector roads, and enhance going on down south. the overall freight movement in the state.

ADOT is currently in the environmental review phase of BY NICK ESQUER a long, multi-step process for a development known as the Sonoran Corridor. The project will completely redo rom Arizona’s border region to the entire transportation landscape of southern Arizona Washington, D.C, elected officials, for not only freight traffic, but everyday drivers as well. business leaders, and vocal supporters are The project looks to add more routes and roads to the promoting Arizona’s efforts to advance booming area and brings with it more jobs and a positive trade, commerce and stronger economic impact. relationships with Mexico. F “This could provide an economic boost in several ways. The Arizona-Mexico cross-border trade and tourism Companies that benefit from access to the airport and a relationship cannot reach its full potential without a new freeway would be attracted to the area, as would SUMMER 2019 |3 20|SUMMER  VECINOS |21

The president’s proposal has garnered support from ship through Texas to consider entering at Nogales. officials in Yuma County like San Luis Mayor Gerardo The improvements at the Mariposa Port of Entry in Sanchez who is working to ensure the budget item Nogales would boost trade between Arizona and survives the lengthy congressional appropriations Mexico and help the exporters on the other side of the process. border cut down on shipping costs. “We estimate that 70 percent of our sales tax revenue “We’re trying to keep the existing flow of cucumbers, is directly attributable to our Mexican visitors and our tomatoes, bell peppers going. But we’re also wanting to experience has shown us that the number one deterrent bring in more grapes, berries, and avocados. If you can to crossing the border is border wait times,” Mayor Sanchez wrote in a letter to Arizona U.S. Sen. (D) and Sen. Martha McSally (R). The letter urged both of them to work with their colleagues in Congress to make sure the money is approved this year.

More than 2.5 million pedestrians pass through the San Luis port each year, making it the second-busiest non-commercial port in Arizona. Last October, the port of entry unveiled a series of renovations that cost $6 million and included new technology in a new building to analyze images taken by cameras that Customs and Border Protection officers review along with travelers’ offer that to a producer in Mexico who is shipping to Sonora side. However, the City of Douglas, along with documents. Altogether, 165 new cameras were installed Texas, then that would boost their efficiency,” border stakeholders are advocating for a two-port solution that affairs consultant Luis Ramirez said. “Over the last 10 will take all truck traffic out of the downtown areas on in the new building. years, or so, we have put a focus on improving ports of both Douglas and Agua Prieta and relocate it to a new In Nogales, a $700,000 investment will be made at the entries, especially in terms of federal highway structure. state of the art facility to the west.” Mariposa Port of Entry as part of the FY20 state budget. We’re really invested in our highways and ports of Currently, semi-trucks that cross through the middle of The refrigerated docks will support inspection entry.” the border town usually carry a mix of dry goods and processes of imported fresh produce and will Last year, Governor Ducey announced the investment fresh produce, but can also bring in hazardous materials. encourage Mexican export companies that currently of $134 million to expand State Route (SR) 189, which A new port of entry would separate risky materials from connects the Mariposa Port of Entry to I-19. This those that come in contact with the general public and investment will help improve the flow of north and redirect commercial traffic away from the city. The southbound traffic and relieve congestion issues in existing port of entry would be assigned to Nogales. non-commercial traffic, which would increase pedestrian flow as well as car and bus movement through the “The expansion of SR-189 is critical for the downtown facility. ever-increasing flow of commerce through the Mariposa Port of Entry,” said Juan Ciscomani, Vice Chair of the Ramirez described a modernization process behind Arizona-Mexico Commission. “The expansion of SR-189 updating highways, including the I-10, I-17, and other addresses traffic issues in this community, while high-speed connectors with better pavement, as well as increasing efficiency for commercial drivers traveling new bypasses around major metropolitan areas, through Arizona’s largest port of entry.” including Guadalajara, Tepic, Mazatlán, Culiacán, Ciudad Obregón and Hermosillo. In Douglas, Mayor Robert Uribe has been touting growth and development at and around the border city’s Raúl H. Investment along the Sonoran Corridor is forecasted to Castro Port of Entry. According to Uribe, the port is save trucks at least four hours on the road and maybe obsolete, encumbered, and heavily congested. even up to 18 hours between Mexico City and Arizona.

“The port requires a significant modernization to “This makes the corridor more effective, more address current and future needs of the community, competitive and a better location decision for trade, commerce, security, and tourism,” Uribe said. companies that want to expand their business “The port is landlocked, particularly on the Agua Prieta, interests,” Ramirez said. In addition to freight mobility, ADOT is integral to the ability of travelers from Mexico to enjoy Arizona excursions with ease, and for Arizona-based vacationers to head south to enjoy a weekend of sun and surf in Mexico safely and hassle-free.

Arizona is working to ease the overall travel process for travelers who want to visit destinations like Puerto Peñasco, the location for the soon-to-be-christened cruise line port.

The inaugural Cruise & Maritime Voyages cruise will set sail this December and create new economic development opportunities for commuter towns along the way to welcome travelers stopping in to eat, fuel up, and rest up.

IMPROVEMENTS AT PORTS OF ENTRY FACILITATE SMOOTHERTRADETOURISMFLOWS

In Nogales, San Luis, and Douglas, Arizona’s ports of entry have been experiencing longer crossing wait times, higher numbers of trucks, and bigger flows of people coming to Arizona for work and shopping on Arizona’s side of the border. well-planned, well-built, safe transportation system. companies that provide services to those companies,” said Tom Hermann, a representative for ADOT. “It also To handle these larger volumes of trade and traffic, Without robust roads and highways, and state and local officials are asking federal lawmakers to well-maintained routes for trucks and trailers and could make the Tucson International Airport region invest more heavily into the infrastructure at these ports travelers, the Arizona-Mexico border risks being known even more attractive to companies from international of entry like the ones in San Luis. more for congestion and frustration than facilitation. commerce and others along both Interstate 19 and Interstate 10. And it would benefit companies already in In President Trump’s budget outline for 2020, the The Arizona Department of Transportation (ADOT) is the Tucson area by reducing congestion on I-10 around administration proposed $248 million be invested in the state agency essential to strengthening this downtown Tucson.” modernizing and expanding the port of entry in San Luis. infrastructure link to Mexico.

The agency, in collaboration with the Arizona-Mexico Commission and additional stakeholders, has been setting plans in motion for some time to develop more ports of entry, build new connector roads, and enhance the overall freight movement in the state.

ADOT is currently in the environmental review phase of a long, multi-step process for a development known as the Sonoran Corridor. The project will completely redo rom Arizona’s border region to the entire transportation landscape of southern Arizona Washington, D.C, elected officials, for not only freight traffic, but everyday drivers as well. business leaders, and vocal supporters are The project looks to add more routes and roads to the promoting Arizona’s efforts to advance booming area and brings with it more jobs and a positive trade, commerce and stronger economic impact. relationships with Mexico. “This could provide an economic boost in several ways. The Arizona-Mexico cross-border trade and tourism Companies that benefit from access to the airport and a relationship cannot reach its full potential without a new freeway would be attracted to the area, as would

The president’s proposal has garnered support from ship through Texas to consider entering at Nogales. officials in Yuma County like San Luis Mayor Gerardo The improvements at the Mariposa Port of Entry in Sanchez who is working to ensure the budget item Nogales would boost trade between Arizona and survives the lengthy congressional appropriations Mexico and help the exporters on the other side of the process. border cut down on shipping costs.

“We estimate that 70 percent of our sales tax revenue “We’re trying to keep the existing flow of cucumbers, is directly attributable to our Mexican visitors and our tomatoes, bell peppers going. But we’re also wanting to experience has shown us that the number one deterrent bring in more grapes, berries, and avocados. If you can to crossing the border is border wait times,” Mayor Sanchez wrote in a letter to Arizona U.S. Sen. Kyrsten Sinema (D) and Sen. Martha McSally (R). The letter urged both of them to work with their colleagues in Congress to make sure the money is approved this year.

More than 2.5 million pedestrians pass through the San Luis port each year, making it the second-busiest non-commercial port in Arizona. Last October, the port of entry unveiled a series of renovations that cost $6 Historic Gadsden Hotel in Douglas, Arizona million and included new technology in a new building to analyze images taken by cameras that Customs and Border Protection officers review along with travelers’ offer that to a producer in Mexico who is shipping to Sonora side. However, the City of Douglas, along with documents. Altogether, 165 new cameras were installed Texas, then that would boost their efficiency,” border stakeholders are advocating for a two-port solution that affairs consultant Luis Ramirez said. “Over the last 10 will take all truck traffic out of the downtown areas on in the new building. years, or so, we have put a focus on improving ports of both Douglas and Agua Prieta and relocate it to a new In Nogales, a $700,000 investment will be made at the Border mayors discuss investment, job creation, and business entries, especially in terms of federal highway structure. state of the art facility to the west.” Mariposa Port of Entry as part of the FY20 state budget. opportunities on a panel at the Arizona-Mexico Commission We’re really invested in our highways and ports of Currently, semi-trucks that cross through the middle of The refrigerated docks will support inspection Summit in Tucson in June 2018. entry.” the border town usually carry a mix of dry goods and processes of imported fresh produce and will Last year, Governor Ducey announced the investment fresh produce, but can also bring in hazardous materials. encourage Mexican export companies that currently of $134 million to expand State Route (SR) 189, which A new port of entry would separate risky materials from connects the Mariposa Port of Entry to I-19. This those that come in contact with the general public and investment will help improve the flow of north and redirect commercial traffic away from the city. The southbound traffic and relieve congestion issues in existing port of entry would be assigned to Nogales. non-commercial traffic, which would increase pedestrian flow as well as car and bus movement through the “The expansion of SR-189 is critical for the downtown facility. ever-increasing flow of commerce through the Mariposa Port of Entry,” said Juan Ciscomani, Vice Chair of the Ramirez described a modernization process behind Arizona-Mexico Commission. “The expansion of SR-189 updating highways, including the I-10, I-17, and other addresses traffic issues in this community, while high-speed connectors with better pavement, as well as increasing efficiency for commercial drivers traveling new bypasses around major metropolitan areas, through Arizona’s largest port of entry.” including Guadalajara, Tepic, Mazatlán, Culiacán, Ciudad Obregón and Hermosillo. In Douglas, Mayor Robert Uribe has been touting growth and development at and around the border city’s Raúl H. Investment along the Sonoran Corridor is forecasted to Castro Port of Entry. According to Uribe, the port is save trucks at least four hours on the road and maybe obsolete, encumbered, and heavily congested. even up to 18 hours between Mexico City and Arizona.

“The port requires a significant modernization to “This makes the corridor more effective, more address current and future needs of the community, competitive and a better location decision for trade, commerce, security, and tourism,” Uribe said. companies that want to expand their business San Luis I Port of Entry “The port is landlocked, particularly on the Agua Prieta, interests,” Ramirez said.

22|SUMMER  VECINOS |23 CANAMEX Trade Corridor: The Arizona Department of Transportation Today, Governors Ducey and Pavlovich have reenergized GUEST COMMENTARY spearheaded efforts to develop the CANAMEX Trade Corridor through the concept of the Vision and have set the region on a sparked statewide attention and the mountain west portion of North eventually, America. A key project under this new, more ambitious path that will help position the (ASU) and the Morrison Institute initiative was the construction of a joined forces with the UA to bridge across the . region as an economic powerhouse in North America and develop a statewide NAFTA The Two Nation Destination: The initiative, organizing two statewide Arizona and Sonora Offices of beyond. summit meetings with participation Tourism joined forces to market the from key stakeholders. region as an international tourism Two initiatives emerged. The first destination by promoting tourism was the creation of the Summit Six, assets in both states such as the Entry. Today, we look forward to the time and its success is a coalition led by the AMC to Grand Canyon and beaches along modernization of the San Luis I Port demonstrated in the dramatic coordinate statewide NAFTA the Sea of Cortez. of Entry and expansion of SR-189 in increases in trade, business, tourism efforts. The second initiative was Kozolchyk National Law Center: Nogales, both critical to our trade and innovation. Today, Governors the outline of a strategic plan The Center was established to Ducey and Pavlovich have focused on initiatives that would growth. harmonize banking and trade laws, reenergized the concept of the have a lasting impact on the region. regulations and practices among Nogales Cyberport Study: The Vision and have set the region on a THE ARIZONASONORA A group of researchers from eight countries in North and South University Consortium recommended new, more ambitious path that will higher education institutions in America. deploying leading-edge technology help position the region as an Arizona and Sonora formed the at the ports of entry, and early economic powerhouse in North Port of Entry Improvements: Major REGION—AN ECONOMIC University Consortium to develop adoption by the Tucson Field Office America and beyond. infrastructure improvements to this plan through a series of studies of Customs and Border Protection Arizona’s ports of entry, supported Gail Lewis is the Director of P3 initiatives and examining the economic dynamics has paved the way for Arizona to POWERHOUSE by innovative process enhancements, Senior Advisor for International Affairs at the of the region. What resulted was a become a leader in the use of these Arizona Department of Transportation and have helped drive major increases in Bruce Wright is an Arizona-Mexico Commission Gail Lewis, Director of P3 initiatives and Senior Advisor for International list of proposed projects designed technologies. trade, including: the modernization Board Member. Affairs at ADOT, and Bruce Wright, Arizona-Mexico Commission Board to advance the development of of the Mariposa Port of Entry and The Arizona-Sonora Strategic Economic Member, discuss the Arizona-Sonora Strategic Economic Vision. Arizona and Sonora as a binational region. the construction of San Luis II Port of Vision has withstood the test of

With the support of Governors BY GAIL LEWIS AND BRUCE WRIGHT Symington and Beltrones, AMC and Mike O'Callaghan-Pat Tillman Memorial Bridge at the Hoover Dam, courtesy of Jim Vallee/Shuerstock.com CSA began implementing the Arizona-Sonora Strategic Economic Vision, with three key principles: (1) he Arizona-Mexico Commission cooperation in mind, in 1992 a group building on the long-standing ties (AMC) and the Comisión of Tucson business leaders asked and relationships between Arizona Sonora-Arizona (CSA) have the University of Arizona (UA) to and Sonora, (2) taking advantage of Tbeen the prime stewards of assess the impact of the North the region’s strategic geographic Arizona Governor Paul American Free Trade Agreement location along major trade corridors Fannin’s vision for an enduring (NAFTA) on Arizona and to explore in North American and (3) exploiting partnership of cross-border ways that Southern Arizona could the complementarities among key cooperation and collaboration prosper within the emerging North industry clusters and institutions in between Arizona and Sonora. The American economy. In response, the two states. relationship that has emerged is the Organization for Free Trade and The Vision sparked game-changing unique and is a model for Development (OFTD) was founded results for Arizona that have transborder cooperation worldwide. to guide this effort led by former transformed the Arizona-Mexico With that spirit of cross-border Congressman Jim Kolbe. The effort relationship, including:

24| SUMMER  VECINOS |25 While there is an international border that cuts through percent was for visiting friends and family. the Arizona-Sonora region, the collaboration between While Arizona and Sonora are bordering states, the two leaders and the bond between the binational neighbors still have to continuously communicate and collaborate A TWONATION make it a two-nation destination. to encourage and promote tourism back and forth. “Mexico is Arizona’s number one source of international “The Arizona-Mexico Commission, they provide the visitors. More than 10,000 overnight tourists from framework for Sonora and Arizona to get together, to sit DESTINATION Mexico visit Arizona each day, and thousands more down and have a conversation about the challenges in day-trippers travel across the border to shop, dine and the tourism industry between our two states and two Most of Arizona’s international visitors come from Mexico and more than 10,000 recreate,” Debbie Johnson, Arizona Office of Tourism overnight tourists from Mexico visit each day. Tourism between Arizona and (AOT) executive director, said. countries,” Garcia said. Mexico, especially Sonora, creates a noteworthy economic impact. Visitors from Mexico see attractions throughout all of The Arizona-Mexico Commission (AMC) works to help Collaboration between leaders, like the Arizona-Mexico Commission, and the maintain and build relationships in varying industries in bond between the binational neighbors foster the tourism relationship. Arizona, and many make short trips up to Tucson to shop. Arizona and Mexico to benefit both sides of the border. “Shopping is the main purpose and reason for visitors to It takes the work of leaders in Mexico and Arizona to BY SIERRA CIARAMELLA come here,” Felipe Garcia, Visit Tucson executive vice foster the relationship, but the bond between neighbors president, said. “In addition, we’ll see visiting family and throughout the Arizona-Sonora region keeps it strong. friends, they come here to see doctors [and] specialists “What binds us together isn’t our shared border but all for medical reasons, and for business as well.” the things that span it: family ties, cultural alliances, daily According to AOT’s 2018 Mexico Market Profile, 84 commerce. These innate connections shape the percent of Mexican overnight visitation to Arizona was identities of citizens on both sides of the border, and they for leisure. Of that, 75 percent was for shopping and five motivate us to help one another succeed,” Johnson said.

Hiker at the Grand Canyon National Park, courtesy of Galyna Andrushko/Shuerstock.com VECINOS |27

“This is a good way for individuals to connect, to really This will draw more people to book a spot on the cruise understand,” Garcia said. “When someone travels, even and will give people traveling from elsewhere the chance the perceptions they might have about your neighbor or to visit Arizona. somewhere you’re visiting, it changes when you are able As Arizonans travel south and as Sonorans travel north, to go to that city, that community, and you understand leaders continuously work with the Arizona Department the people and connect to the people.” of Transportation (ADOT) to ensure a safe trip. Puerto Peñasco, commonly referred to as Rocky Point by Arizonans, will be a base for a cruise ship operated by Cruise & Maritime Voyages starting in December 2019. “Big picture, I hope this maiden service is another stepping stone toward a completed cruise port in Rocky Point, which would strengthen the tourism economies of both Arizona and Sonora, and is something Governor Ducey and Governor Pavlovich have long supported,” Johnson said. Arizona is working to ease the travel process for those who want to set sail from Rocky Point by making plans to offer transportation and tour options that lead to the cruise. “We’ve been meeting with tour operators on both sides of the border to help facilitate binational tours either tour “We tend to connect a lot, and we have to, of course, He added, “It’s an area where we try to have motorists operators coming to Tucson to pick up people to take make sure that those visitors coming here are coming focus more attention on their speed and driving. We down to Rocky Point, or to take down to the missions in safely as they travel north,” Garcia said. may use enhanced enforcement and first responder northern Sonora, or take down to San Carlos for scuba techniques to respond quickly to crashes.” diving- and, vice versa,” Garcia said. ADOT facilitates transportation throughout the state, and it is committed to finding safe methods for those traveling to or from Arizona. “What we try to do in working with our counterparts in Sonora is on a number of fronts, and probably the most prevalent one is what we call a safety corridor,” said John Halikowski, ADOT director.

Halikowski uses his transportation expertise as the co-chair of the AMC’s Transportation and Infrastructure Committee. “We work on common transportation-related issues that deal with commercial, non-commercial vehicles, ports of entry issues, tourism trying to go back and forth between the border and above all trying to ensure safety of travelers on both sides of the border,” Halikowski explained. While there is an international border that cuts through percent was for visiting friends and family. the Arizona-Sonora region, the collaboration between While Arizona and Sonora are bordering states, the two leaders and the bond between the binational neighbors still have to continuously communicate and collaborate make it a two-nation destination. to encourage and promote tourism back and forth. “Mexico is Arizona’s number one source of international “The Arizona-Mexico Commission, they provide the visitors. More than 10,000 overnight tourists from framework for Sonora and Arizona to get together, to sit Mexico visit Arizona each day, and thousands more down and have a conversation about the challenges in day-trippers travel across the border to shop, dine and recreate,” Debbie Johnson, Arizona Office of Tourism the tourism industry between our two states and two (AOT) executive director, said. countries,” Garcia said. Visitors from Mexico see attractions throughout all of The Arizona-Mexico Commission (AMC) works to help Arizona, and many make short trips up to Tucson to maintain and build relationships in varying industries in shop. Arizona and Mexico to benefit both sides of the border. “Shopping is the main purpose and reason for visitors to It takes the work of leaders in Mexico and Arizona to come here,” Felipe Garcia, Visit Tucson executive vice foster the relationship, but the bond between neighbors president, said. “In addition, we’ll see visiting family and throughout the Arizona-Sonora region keeps it strong. friends, they come here to see doctors [and] specialists “What binds us together isn’t our shared border but all for medical reasons, and for business as well.” the things that span it: family ties, cultural alliances, daily According to AOT’s 2018 Mexico Market Profile, 84 commerce. These innate connections shape the percent of Mexican overnight visitation to Arizona was identities of citizens on both sides of the border, and they for leisure. Of that, 75 percent was for shopping and five motivate us to help one another succeed,” Johnson said.

“This is a good way for individuals to connect, to really This will draw more people to book a spot on the cruise understand,” Garcia said. “When someone travels, even and will give people traveling from elsewhere the chance the perceptions they might have about your neighbor or to visit Arizona. somewhere you’re visiting, it changes when you are able As Arizonans travel south and as Sonorans travel north, to go to that city, that community, and you understand leaders continuously work with the Arizona Department the people and connect to the people.” of Transportation (ADOT) to ensure a safe trip. Puerto Peñasco, commonly referred to as Rocky Point by Arizonans, will be a base for a cruise ship operated by Cruise & Maritime Voyages starting in December 2019. “Big picture, I hope this maiden service is another stepping stone toward a completed cruise port in Rocky Point, which would strengthen the tourism economies of both Arizona and Sonora, and is something Governor Ducey and Governor Pavlovich have long supported,” Johnson said. Arizona is working to ease the travel process for those who want to set sail from Rocky Point by making plans to offer transportation and tour options that lead to the cruise. San Fransisco Peaks in Arizona, courtesy of Mahew Mellinger/Shuerstock.com Arizona Governor Doug Ducey and Sonora Governor “We’ve been meeting with tour operators on both sides Claudia Pavlovich speak to the media during the 2018 of the border to help facilitate binational tours either tour Arizona-Mexico Commission Summit in Tucson. “We tend to connect a lot, and we have to, of course, He added, “It’s an area where we try to have motorists operators coming to Tucson to pick up people to take make sure that those visitors coming here are coming focus more attention on their speed and driving. We Nick Serpa/Chamber Business News down to Rocky Point, or to take down to the missions in safely as they travel north,” Garcia said. may use enhanced enforcement and first responder northern Sonora, or take down to San Carlos for scuba techniques to respond quickly to crashes.” diving- and, vice versa,” Garcia said. ADOT facilitates transportation throughout the state, and it is committed to finding safe methods for those traveling to or from Arizona. What binds us together isn’t our “What we try to do in working with our counterparts in Puerto Peñasco, courtesy of Stacy Egan/Flickr Sonora is on a number of fronts, and probably the most shared border but all the things that prevalent one is what we call a safety corridor,” said John Halikowski, ADOT director. span it: family ties, cultural alliances, daily“ commerce. These innate connections shape the identities of citizens on both sides of the border.

DEBBIE JOHNSON ARIZONA OFFICE OF TOURISM

Halikowski uses his transportation expertise as the co-chair of the AMC’s Transportation and Infrastructure Committee. “We work on common transportation-related issues that deal with commercial, non-commercial vehicles, ports of entry issues, tourism trying to go back and forth between the border and above all trying to ensure safety of travelers on both sides of the border,” Tucson, Arizona golf course, courtesy of Harry B. Lamb/Shuerstock.com Halikowski explained.

28|SUMMER  VECINOS |29 BUSINESS IS OUR BEAT

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