ARIZONA & MEXICO

Table 1: Mexican States and Population
Rank State Population 2015
1 México 16,187,608
2 Distrito Federal 8,918,653
3 Veracruz 8,112,505
4 Jalisco 7,844,830
5 Puebla 6,168,883
6 Guanajuato 5,853,677
7 Chiapas 5,217,908
8 Nuevo León 5,119,504
9 Michoacán 4,584,471
10 Oaxaca 3,967,889
11 Chihuahua 3,556,574
12 Guerrero 3,533,251
13 Tamaulipas 3,441,698
14 Baja California 3,315,766
15 Sinaloa 2,966,321
16 Coahuila 2,954,915
Rank State Population 2015
17 Hidalgo 2,858,359
18 Sonora 2,850,330
19 San Luis Potosí 2,717,820
20 Tabasco 2,395,272
21 Yucatán 2,097,175
22 Querétero 2,038,372
23 Morelos 1,903,811
24 Durango 1,754,754
25 Zacatecas 1,579,209
26 Quintana Roo 1,501,562
27 Aguascalientes 1,312,544
28 Tlaxcala 1,272,847
29 Nayarit 1,181,050
30 Campeche 899,931
31 Baja California Sur 712,029
32 Colima 711,235
Increased trade between the United States and Mexico generates new business opportunities and
creates wealth and jobs in both countries. For example, as nearshoring fuels Mexico’s manufacturing
sector growth, opportunities are created for inputs and services suppliers in the United States and
Arizona to capture new markets. Arizona’s manufacturing exports to NAFTA markets grew to $7.81
billion in 2015, accounting for an impressive 7.32% year-to-year increase from 2014 to 2015. 13 Still,
Arizona is actually only capturing a very small share of the manufacturing export market. Arizona’s total
exports to NAFTA markets as a share of all southern U.S. border states combined was 6.43% in 2015 (the
vast majority of exports come from Texas at 69.0% 14 ). Arizona engagement with its traditional Sonora
and Sinaloa trading partners can be expanded to other regions of Mexico – Baja California, Chihuahua,
Jalisco and Nuevo León for example – where manufacturing has a larger presence. Of indirect benefit
to Arizona, Mexican middle class growth creates increased demand for American consumer products --
both through export from the U.S., and in the case of Arizona, through increased retail sales to
Mexican visitors. Another area of opportunity for Arizona is the emerging technology innovation sector
in Mexico, which is further leveraging Arizona’s robust ecosystem for technology innovation and
entrepreneurship -- resulting in joint venture and research collaboration development with emerging
tech enterprises in Mexico.
The forces of globalization and a commitment to free trade, coupled with the demographic transition in
Mexico have enhanced Mexico’s global position for advanced manufacturing. Additionally, as
Mexico’s production sector and higher education system evolve and its capacity for technology
innovation grows, new opportunities arise for Arizona businesses to provide inputs and services to the
global value chain cutting across the trans-border region. Arizona’s value proposition, from logistics, to
research and development, to a strong ecosystem for innovation and entrepreneurship, make it an ideal
partner for participating in shared growth opportunities with Mexico. Beyond a revived cyclical interest
in Mexico, a sustained dialogue and targeted engagement are critical to capitalizing on these
opportunities for both Arizona and Mexico.
ABOUT THE AUTHORS
Justin Dutram is the Director of Business Development for Tech Parks Arizona, The University of Arizona’s Research and
Technology Parks. He holds a Master of Education in Bilingual and Multicultural Education from Northern Arizona University and
a Bachelor of Science in Geography from New Mexico State University.
Jennifer Columbus is an Associate in Program Development at the University of Arizona’s Office of Global Initiatives. She holds a
Master of Fine Arts in Poetry from Goddard College, and a Bachelor of Arts in English from Michigan State University.
APRIL 2016 • ARIZONA TOWN HALL • ARIZONA & MEXICO • 24