ARIZONA & MEXICO

AN OVERVIEW OF ARIZONA’S TRADE WITH MEXICO
By George Hammond
Mexico is Arizona’s top export market. Exports of goods to Mexico hit $9.2 billion in 2015. Arizona is
the 4th largest exporter to Mexico among U.S. states.
Arizona’s exports to Mexico rose 6.3% in 2015. In contrast, U.S. exports to Mexico declined by 1.6%.
On a per capita basis, Arizona exports to Mexico hit $1,356 in 2015, which ranked the state 2nd in the
nation, behind only Texas.
Arizona imports of goods from Mexico hit $7.6 billion in 2015. The state was the 6th largest importer
of goods from Mexico. Arizona is a major market opportunity for Mexican businesses.
One major development during the past year-and-a-half was the 39% appreciation of the U.S.
dollar versus the Mexican Peso. This may dampen export growth in the near future.
International trade is a key component of both the Arizona and Mexican economies. Overall, trade
reflects our integration into the global marketplace through our purchases from foreigners (imports)
and our sales to foreigners (exports). Both imports and exports include transactions for goods and
services. Goods include manufactured products, as well as agricultural products and minerals and ores.
Services include intangible products, like tourism, medical care, software, and others.
Let’s start with a bit of background on Arizona’s international trade in goods. Arizona’s trade (exports
plus imports) in goods with the rest of the world totaled $42.2 billion in 2015. That ranked the state 23rd
in the nation and accounted for 1.1% of U.S. total trade flows in goods. Keep in mind that these data
(and much more) are available free online at the Arizona-Mexico Economic Indicators website (azmex.
eller.arizona.edu).
Exports are one dimension of the participation of Arizona and Mexico in the global economy. They get a
large amount of attention from decision makers, in part, because exports reflect production and
employment within a nation.
In 2015, Arizona’s exports of goods to the world hit $22.6 billion in 2015. That translated into $3,339 per
person in the state, which ranked Arizona 30th in the nation. For the U.S., per capita exports averaged
$4,681.
While exports are one important dimension of international trade, imports also matter. Imports can
positively influence state growth when they are part of a supply chain that drives local economic
growth. Think of maquiladora activity that boosts production and employment on both sides of the
U.S.-Mexico border.
Now let’s focus on Arizona’s trade in goods with Mexico, which is the second largest export destination
for the nation, behind Canada and ahead of China. Mexico is Arizona’s number one export destination
for goods, accounting for 40.6% of the total value of state exports in 2015. Canada was the next most
important destination country at 9.8%. By region, Arizona’s largest export destinations in 2014 were
North America (Mexico and Canada) at 50.4%, followed by Asia (24.6%), Europe (19.3%), and all other
(5.7%), as Exhibit 1 shows.
25 • ARIZONA & MEXICO • ARIZONA TOWN HALL • APRIL 2016