Tucson-Mexico Trade Program

Forming a regional partnership

Proposed by: City of Tucson, Caballeros del Sol and MTCVB

Whats new? Why now?

A lot of recent Tucson-Mexico activities between many people and many different organizations. Small group got together in April to discuss. Need more information-sharing and better understanding of the issues. Realization that we need a coordinated, sustained effort. The world is changing rapidly. We need to move forward on behalf of Tucson.

Tucson-Mexico Trade Program

U.S.-Mexico Trade at a Glance

www.state.gov/r/pa/prs/ps/2010/05/142020.htm

Mexico is the third largest U.S. trading partner after Canada and China. The U.S. is Mexicos largest trading partner and biggest investor. The U.S.-Mexico border: nearly one million travelers daily and purchasing nearly $1 billion worth of manufactured goods. A total of 22 U.S. states have Mexico as the number one or number two destination for their exports. Texas and California are the leaders. Mexico is Arizonas largest trade partner. In 2009, the U.S. provided up to 80% of all materials for Mexicos manufacturing and assembly firms, and 90% of all its exports returned to the U.S., translating to over $114 billion in bilateral trade. Evidence that some U.S. companies are leaving China and moving back to neighboring Mexico due to: lower transportation costs, same time-zone. Mexican visitors contributed $976 million to the Tucson regional economy in 2009. Tucson-Mexico Trade Program 3

U.S. trade with Mexico

www.state.gov/r/pa/prs/ps/2010/05/142020.htm

Top Exports in 2010

Electrical Machinery ($31.5 billion) Machinery ($24.7 billion) Vehicles ($14.5 billion) Mineral Fuel and Oil ($14.2 billion) Plastic ($11.4 billion) Agricultural products ($11.8 billion): coarse grains, red meats, soybeans, and wheat.

Top Imports in 2010

Electrical Machinery ($53.9 billion) Vehicles (cars and parts) ($40.2 billion) Machinery ($33.6 billion) Mineral Fuel and Oil (crude) ($33.4 billion) Optic and Medical Instruments ($8.8 billion). Agricultural products ($13.6 billion) the 2nd largest U.S. supplier of fresh vegetables, fresh fruit, wine and beer, and snack foods

Other Trade
Retail goods and services Tourism and travel Educational exchange Sporting events Music, Dance, Art Friendship and families

Tucson-Mexico Trade Program

Why we need a Tucson-Mexico trade program

Increased international trade means more jobs for the Tucson region. Tucson and Mexico have many longstanding cultural and economic ties that benefit both if strengthened. Tucson is geographically located at the U.S. gateway to one of Mexicos main trade corridors, and there is unlimited opportunity. There is extreme global competition, and Tucson is losing out on trade opportunities with Mexico and other countries as well. Tucson needs to be ready for all trade opportunities when they arise, with a focus and coordinated effort.

Tucson-Mexico Trade Program

Proposed Program
A program is a group of ongoing activities involving communication and interactions between many people, in the private and public sectors on both sides of the border. Within the trade program there are initiatives with defined scopes and schedules that will be coordinated among all partners. The program could include a collaborative website to serve as the initial contact point for all Tucson-Mexico business relations, a physical office, other means of communication or all of the above.

Tucson-Mexico Trade Program

Proposed Mission
The Tucson-Mexico Trade Program will move Tucson in the direction of creating new relationships and forming strong international partnerships through ongoing communications and initiatives, which translates into jobs and economic opportunities.

Tucson-Mexico Trade Program

Proposed Functions
The Tucson-Mexico Trade Program mission would be carried out by MTCVB, Caballeros del Sol, other local business, sports and cultural organizations, with the City of Tucson as a supporting partner. Hosting official international dignitaries in Tucson and participating in trade conferences on both sides of the border. Maintaining long-term relationships through ongoing communications with all businesses, big and small, on important projects and initiatives. Collaborative teamwork among local groups to assist trade partners with marketing, public relations, transport services, language, formalities, etc. Offer frequent social and educational workshops on key trade topics.

Tucson-Mexico Trade Program

Local Business Partners

Potential local business partners include:
City of Tucson and other cities, towns, tribes and nations Metropolitan Tucson Convention Center and Visitors Bureau (MTCVB) Caballeros del Sol and associated businesses Tucson Regional Economic Opportunities (TREO) Metropolitan Tucson Chamber of Commerce Tucson Hispanic Chamber of Commerce Tucson-Mexico Sister Cities Program Arizona Mexico Commission (AzMC) U.S. Department of Commerce U.S.-Mexico Border Mayors Association University of Arizona programs and departments Tucson Meet Yourself and other festival groups Transportation services (TAA, UP, trucking, buses) Manufacturing industry and retail sectors Financial institutions

Tucson-Mexico Trade Program

Mexico Business Partners

With primary focus on the northwestern Mexico trade corridor, our major Mexico business partners include:
Nogales Puerto Penasco Hermosillo Guaymas and San Carlos Obregon Culiacan Mazatlan State of Sonora State of Sinaloa Local and state chambers of commerce Mexican federal trade representatives Tourism, manufacturing ,and retail industries

Tucson-Mexico Trade Program

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Key activities for 2011-2012

Create a Global Economic Development District A free-trade zone to lure more global manufacturing and warehousing into the south Tucson industrial corridors. Host future Tucson-Mexico trade conferences and expos MTCVB and City submitted grant application for Tohono Oodham gaming funds. Support the Caballeros del Sol/MTCVB annual Tucson-Obregon business trip A collaborative trip to Hermosillo and Obregon to meet with business officials and build friendships and relationships. Tucson-Culiacan economic development and educational exchange Preliminary communications with city and university officials. International sports tournaments Vamos a Tucson Mexican Baseball Fiesta, October 7-9, with teams from the Pacific League of Mexico and coordinated by MTCVB and the Tucson Padres. FC Tucson soccer and potential tournaments with Mexican teams. Tucson-Mexico Trade Program 11

Benefits and Opportunities

Forming a Tucson-Mexico Trade Program will:
Increase

business partnerships and opportunities Increase tourism and revenue generation Promote international sports leagues and tournaments Increase investments in the Tucson region Create more local jobs in the global trade industries

Questions?

Tucson-Mexico Trade Program

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