ARIZONA & MEXICO

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RELEVENT FURTHER READINGS: PWC Insights of Transportation and Logistics Sector in Mexico (https://www.pwc.com/mx/es/knowledge-center/archivo/2014-09-transportation-and-logistics.pdf) accessed most recently on January 14, 2016. Pima County Economic Development 2015-2017 (http://webcms.pima.gov/cms/One.aspx?pageId=183160), accessed January 14, 2016. Mexican Infrastructure Plan 2014-2018 (http://cdn.presidencia.gob.mx/pni/programa-nacional-de-infraestructura-2014-2018.pdf?v=1) accessed most recently January 14, 2016. Lewis, Gail, “ADOT Mexico and Border Strategy” Congressional Briefing November 3, 2015 (https://www.google.com/?gws_rd=ssl#q=ADOT+Mexico+and+Border+Strategy) accessed most recently January 14, 2016. City of San Luis, “Port Improvement Projects at San Luis/San Luis Colorado,” Congressional Border Briefing, November 3, 2015. ABOUT THE AUTHOR Arnold Maltz, Ph. D., is Associate Professor, Supply Chain Management, W. P. Carey School of Business, Arizona State University. 39 • ARIZONA & MEXICO • ARIZONA TOWN HALL • APRIL 2016
THE MAQUILADORA/IMMEX SECTOR – A KEY DRIVER OF ARIZONA’S MANUFACTURING EXPORTS TO MEXICO By Vera Pavlakovich-Kochi The Mexican IMMEX sector, which includes maquiladoras, is an important market for Arizona’s exports of goods and services. Arizona’s closest neighbor, Sonora, has about 163,000 employees in the IMMEX sector, of which 70 percent are in manufacturing. The automotive industry centered around Ford Motor Company in Hermosillo became not only one of Sonora’s manufacturing pillars, but also one of Mexico’s leading automotive industry’s production centers. Emerging aerospace sector in the Empalme-Guaymas area strengthens the Arizona-Sonora transborder aerospace industry cluster. There are untapped opportunities for Arizona’s companies to expand trade relationships with the IMMEX sector. INTRODUCTION Maquiladoras are Mexican production facilities mostly located along the U.S.-Mexico border. Mexico’s Maquiladora Program was initiated in mid-1960s as an assembly platform for U.S. manufacturing companies within special trade provisions under which U.S.-made components were imported duty-free in Mexico, and after being assembled with less expensive labor, were exported back to the U.S., duty-free (Figure 1). Figure 1: A Basic Model of Maquiladora -- Parent Company Relationship Source: Tijuana EDC APRIL 2016 • ARIZONA TOWN HALL • ARIZONA & MEXICO • 40
Page 1 and 2: ARIZONA & MEXICO APRIL 2016
Page 3 and 4: ARIZONA & MEXICO APRIL 2016 CONTENT
Page 5 and 6: TOWN HALL PARTICIPANTS AND OBSERVER
Page 7 and 8: MUNGER, JOHN: Munger Chadwick PLC,
Page 9 and 10: Report of the 108th ARIZONA TOWN HA
Page 11 and 12: Emerging trends in the global econo
Page 13 and 14: Education, including cross-border e
Page 15 and 16: GLOBAL ECONOMIC TRENDS AND OPPORTUN
Page 17 and 18: Transportation, Arizona Transportat
Page 19 and 20: • Request the Arizona Congression
Page 21 and 22: ARIZONA & MEXICO BACKGROUND REPORT
Page 23 and 24: TRANSITIONS IN THE MEXICAN ECONOMY
Page 25 and 26: lost revenue from petroleum exports
Page 27 and 28: Table 1: Mexican States and Populat
Page 29 and 30: Exhibit 1: Arizona's Merchandise Ex
Page 31 and 32: Exhibit 4: Selected U.S. Dollar Exc
Page 33 and 34: Map 1: United States Ports of Entry
Page 35 and 36: Table 2: Traffic at United States P
Page 37 and 38: Traded goods are grouped into 98 co
Page 39 and 40: Two other Mexico Federal roads have
Page 41: Figure 3: Mexico’s Port infrastru
Page 45 and 46: Whereas exports and imports to and
Page 47 and 48: total). Sonora’s share is about 6
Page 49 and 50: Several other sectors, such as fabr
Page 51 and 52: THE ROLE OF ARIZONA IN THE U.S.-MEX
Page 53 and 54: Nogales and the wholesale prices pa
Page 55 and 56: REGIONAL IMPACT OF FRESH PRODUCE FR
Page 57 and 58: Department of Transportation (ADOT)
Page 59 and 60: Santa Cruz County’s dependence on
Page 61 and 62: SUMMARY The fresh produce industry
Page 63 and 64: of the largest Latin American produ
Page 65 and 66: Table 1: Roles and Responsibilities
Page 67 and 68: Map 1: Electricity Transmission Poi
Page 69 and 70: MEXICAN VISITORS: PARTY CHARACTERIS
Page 71 and 72: A contributing factor to both the d
Page 73 and 74: non-U.S. citizens is assumed to be
Page 75 and 76: positive message to potential visit
Page 77 and 78: WORKFORCE TRENDS AND ECONOMIC DEVEL
Page 79 and 80: Among the many responsibilities of
Page 81 and 82: with the City of San Luis Incubator
Page 83 and 84: mutually beneficial initiatives. In
Page 85 and 86: CONCLUSION Through cooperation and
Page 87 and 88: New Car Plants in Mexico, 2005-19 S
Page 89 and 90: Town Hall Date Subject ARIZONA TOWN

ARIZONA & MEXICO

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