Last week, Governor Doug Ducey sent a letter to Arizona’s Congressional delegation urging them to immediately ratify the United States-Mexico-Canada Agreement. Ducey said the agreement supports free markets, more equal trade practices and greater economic growth.
President Trump signed the agreement in November 2018, which modernized the former NAFTA agreement that was established about 25 years ago. Now, Congress must approve the deal in order for it to take effect. The U.S. International Trade Commission will release an assessment of the agreement and its economic impact in April. Once the assessment is released, Congress is expected to consider the agreement.
“While the North American Free Trade Agreement was a historic agreement and visionary for its time, it is nearly 25 years old. The business world has evolved tremendously during that time, but our trade policies have not kept up,” Governor Ducey states in the letter. “As we seek to secure Arizona’s economic future, a strong trade deal with Mexico and Canada is crucial. I urge you to work with your colleagues in Congress to move towards ratification of the USMCA as quickly as possible.”
The USMCA would have a significant effect on Arizona’s economy, with a $19 billion trade impact in combination with Canada and Mexico. In 2017, Arizona exported $9.7 billion of goods to the two countries.
“Arizona’s strong relationships with Mexico and Canada are a key part of our thriving economy,” said Jessica Pacheco, president of the Arizona-Mexico Commission Board of Directors. “The USMCA gives Arizona and all of North America the tools needed to build on our trade relationships, modernizing trade policy to meet the needs of our twenty-first century economy.”