Governor Ducey Urges Support For USMCA Trade Agreement

News Release

February 28, 2019

PHOENIX – Governor Doug Ducey today sent a letter to Arizona’s Congressional members  urging ratification of the United States-Mexico-Canada Agreement (USMCA). The agreement, which was signed by President Trump along with his Mexican and Canadian counterparts in November of last year, updates and modernizes current U.S. trade agreements with Mexico and Canada established nearly 25 years ago, known as the North American Free Trade Agreement (NAFTA).

The modernized agreement supports mutually beneficial trade across North America, supporting free markets, more equal trade practices and greater economic growth.

“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.”

Arizona’s trade with its North American partners is a vital part of the state’s economy, supporting:

  • $19 billion in combined economic impact with Mexico and Canada;

  • $9.7 billion in Arizona exports to Canada and Mexico in 2017;

  • And more than 236,000 Arizona jobs.

The deadline for the U.S. International Trade Commission (ITC) to release an assessment on the agreement and its economic impact is expected in April of this year and Congress will begin consideration of the agreement following the release of the ITC’s assessment.

Please see below for the full text of the letter.

For a signed copy of the letter, click HERE.

For additional statistics showing how USMCA would benefit Arizona’s economy, see below.

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Dear Members of the Arizona Congressional Delegation,

I write to you today to express my support for the ratification of the United States-Mexico-Canada Agreement (USMCA). More than 236,000 Arizona jobs are dependent on our trade relationship with Mexico and Canada, a relationship that exceeds $19 billion combined.  

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.

The USMCA meets the needs of the 21st century by providing stronger Rules of Origin, new provisions to protect intellectual property and trade in services, and new chapters that focus on digital trade and anticorruption, to name a few. These critical updates help to modernize the rules of the game governing the trade relationship with Arizona’s most important trading partners in the world.

Arizona has long been the model of collaboration with our cross-border neighbors. Sixty years ago, Governor Paul Fannin founded the Arizona-Mexico Commission aimed at enhancing international partnerships and furthering our mutual prosperity. Over the years, Arizona has built on those efforts, and as Chair of the Arizona-Mexico Commission, I’m proud to say today Arizona enjoys its strongest partnership with Mexico as at any time in our state’s history. Now, it’s time to take this relationship to the next level. The USMCA gives Arizona the tools we need to build on this proven legacy by coming together around shared goals.

Over the last four years, more than 300 companies have chosen Arizona to expand or relocate, thanks to the right business environment, modern infrastructure, a talented workforce and strong working relationships. The USMCA will help Arizona further capitalize on these assets--attracting more businesses and bringing more jobs here--by providing a sound framework for companies to invest.  Additionally, the USMCA ensures that North America will remain the most competitive region of the world, and the place where companies from Europe, Asia, South America and Australia want to invest and grow their business.

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.  

Respectfully,

Douglas A. Ducey
Governor