January 17, 2019

Last week, President Trump delivered his first Oval Office address portraying our border in a negative light which adversely impacts our regional economy both in the short and long term. The Chamber’s advocacy for a secure, reliable, and efficient border focuses on policies and funding for our ports of entry, increased staffing and comprehensive immigration reform.

Chamber Vice President of International Business Affairs, Paola Avila, spoke with the San Diego Union-Tribune in response to the national address and reiterated the Chamber’s position.  “We agree that we need a secure border, but we believe that we have a secure border” she added, “Our border region is an opportunity zone, not a danger zone”.

With an integrated manufacturing supply chain worth $2.5 billion, the Cali Baja region critically depends on its cross-border connectivity and efficient movement of goods which accounts for a gross regional product of $255 billion. Mexico is the largest trading partner for 22 states including California.

Rep. Cesar Blanco (TX) highlighted that President Obrador recently presented an initiative to strengthen economic investments in the border region and “we need to look at doing the same, start focusing on how we can partner with Mexico to make sure our region thrives economically”. Blanco suggested investing in technology in order to have safe and secure trade, which “creates business, jobs, and opportunities for our region”.

January 17, 2019

Over the past year, issues surrounding trade, border security, the environment, and infrastructure improvements have put a spotlight on our border region. Now, with a new Presidential administration in Mexico, it is important that we share our region’s story of successful collaboration and reaffirm our commitment to the U.S.-Mexico relationship. We can’t do it alone. We need all the voices that make up our diverse and dynamic cross-border business community to make a strong, lasting impact. That message is most effective when we have a large, diverse representation of business and community leaders joining with us.

This Chamber’s upcoming Binational Delegation to Mexico City will take place from March 31 to April 3, 2019. We are happy to announce our continued partnership with the Four Seasons hotel who offers our delegates a discounted rate.

As a delegate, you will have the opportunity to meet with key federal officials and diverse business industry leaders to discuss trade and investment opportunities while helping us cultivate political and business relationships. International policy priorities for this year’s delegation include: U.S.-Mexico-Canada Agreement (NAFTA 2.0), border infrastructure, transboundary pollution, immigration/workforce integration, private & public sector partnerships, and foreign investment opportunities in Mexico.

Early bird registration pricing deadline is Friday, February 15^th.

For event details and to register, please visit our website.

January 17, 2019

Nearly $3.6 billion in trade takes place daily between the U.S., Mexico, and Canada, and 14 million jobs in the U.S. are supported by trade within North America. The CaliBaja region is globally competitive because of our strong collaborative relationship. In fact, San Diego and Baja California’s integrated manufacturing supply chain is valued at $2.5 billion. Much of this can be attributed to trade agreements such as the North American Free Trade Agreement (NAFTA) which have had a positive impact on the growth of our region.

As the revised trilateral agreement – now called USMCA (T-MEC in Mexico) – heads to Congress for consideration, there is much to learn about this new agreement and its potential impacts. Join us for a presentation and roundtable discussion with John G. Murphy, Senior Vice President for International Policy at the U.S. Chamber of Commerce. Murphy will provide an overview on where U.S. trade policy is headed and present an early assessment of the revised trade agreement for North America. Murphy has led successful campaigns to win congressional passage of trade agreements with a dozen nations, including Colombia, Panama, and South Korea in 2011, as well as Trade Promotion Authority in 2015.

Date/Time: Tuesday, February 12, 2019 | 10:00 a.m. to 11:30 a.m.

Location: San Diego Regional Chamber of Commerce Boardroom

For event details and to register, please visit our website.

January 17, 2019

A revised trilateral agreement was reached last September which will govern more than $1.3 trillion worth of trade between the U.S., Mexico, and Canada. If approved, the United States-Mexico-Canada Agreement (USMCA) would replace the North American Free Trade Agreement or NAFTA. While the two documents are largely similar, USMCA updates various chapters in NAFTA and includes additional chapters which were included in the Trans-Pacific Partnership or TPP.

The Chamber has partnered with various organizations to hold a series of informational forums to build support for the trade agreement. We are proud to partner with Consejo Coordinador Empresarial Tijuana and thank them for co-hosting our upcoming forum which will take place Friday January 29 from 10:00 a.m. to 11:30 a.m. at Club de Empresarios in Tijuana. Attendees will be welcomed by Kurt Honold, President of CCE and member of the Chamber’s International Business Affairs Committee.

This forum will provide an overview of the revised agreement, next steps in the ratification process and insight from private and public sector stakeholders as to the possible impacts on our binational region.

For event details and to register, please visit our website.

January 17, 2019

President López Obrador visited Tijuana earlier this month to present a new program he calls Zona Libre or “Free Zone” which aims to encourage economic development along Mexico’s northern border. This decree is now in effect through 2020.

The Free Zone covers the entire 1954 mile border with the U.S. and an area of 12 to 16 miles from the international boundary into Mexico. This includes 44 municipalities among Mexico’s six border states which includes Tijuana, Tecate, Mexicali, Rosarito, and Ensenada in the Baja region.

With this program, President López Obrador intends to encourage border residents to increase their domestic consumption to boost the local economy. With an overall economic growth of 3.1 percent from 2013 to 2017 and exceeding the national average of 2.6 percent, Mexican Secretary of Economy Gabriela Márquez Colin stated that the administration plan is to incentivize growth even further.

The Free Zone program includes a series of incentives for Mexico’s northern border including:

• Reduced value added tax (IVA) from 16% to 8%
• Reduced corporate income tax (ISR) from 30% to 20% (restrictions apply)
• Matching fuel and electricity rates to be competitive with the U.S. prices in U.S. cities along the border
• Doubled the minimum wage to $176 pesos per day (about $9 USD)

President López Obrador will return to Baja California in three months to evaluate results and make appropriate revisions as part of his national economic development plan. The Chamber’s analysis of the program and feedback provided from the business community is positive. The President’s focus on the border region and acknowledgement as an economic engine gives us great optimism. We will continue to monitor and evaluate impacts in order to provide comments to the Administration.

To review the Free Zone Program Decree by President López Obrador, click here (this document is only available in Spanish).To review Deloitte’s strategic analysis of the program, click here.