Arizona Mexico Commission

ARIZONA MEXICO COMMISSION

VIEW FROM THE CHAMBER PRESIDENT’S DESK

Julie Pastrick Serves as Board Member of Arizona Mexico Commission and is sharing her thoughts about the importance of ratification of the United States Mexico Canada Agreement.

The United States Mexico Canada Agreement (USMCA) is our new, improved and best-ever trade agreement that is intended to replace NAFTA. The Greater Flagstaff Chamber supports its speedy ratification since nearly one quarter of a million Arizona jobs rely on this trade relationship. This new agreement could be the new global standard for United States worldwide.

On November 30, 2018 in Argentina, the three countries signed the agreement in principle for the USMCA. That meant there is still an opportunity for “minor”

modifications to the text. 95 percent of USMCA is the same as NAFTA. The new agreement retains positive elements from the original NAFTA, which eliminated virtually all tariffs between the three North American nations. The end result is $1.2 trillion in annual trade with our North American neighbors which supports 11 million American jobs. And the improvements are vast and extremely beneficial to our country but it is also noted that Arizona is one of the most important states nationally to the agreement.

Congress needs to approve the updates in this agreement that benefit the USA. We are on a very good course with additions such as a digital trade chapter that is touted to be the best ever negotiated, by any country. Protection of intellectual property is huge; enhanced custom provisions to benefit our many national defense

contractors; expansion of export markets for agricultural products; expansion of US Dairy producers into the Canadian market; stronger Rules of Origin which encourages investment in US companies; increased production all across America for farmers with products like soybeans, beef, and much more.

Trade deals are difficult. That said, this one has had broad bipartisan support and we have made progress on addressing the issues important to labor and environmentalist groups as well. As a Board member of the Arizona Mexico Commission I have learned first-hand how important this relationship with Mexico is to Arizona businesses since Mexico is our largest trade partner times four. What’s good for Arizona is great for Flagstaff too. Thank you!