July 13, 2018

After Mexico’s Energy Reform, rail transportation was referred as one of the most cost efficient and viable option. For the first time in 100 years, diesel was imported to Mexico by Baja Railroad (BJRR). It took nearly three years of planning, and with ten tank cars carrying 30,000 gallons of diesel each, CEO Roberto Romandia shared that jet fuel and gasoline are not far from being imported to Mexico as well.

With the cost of the fuel molecule, the exchange rate and tariffs, freight cost is key on the process of importing fuel into Mexico, which is why BJRR offered a solution for U.S. companies looking to expand their market.

Baja Railroad has authorization and permits required by CRE, Secretary of Energy, and the Secretary of Communications and Transportations, as well as all necessary infrastructure and equipment to transport fuel into Mexico. Their future connection with Union Pacific through the Dessert Line, currently in rehabilitation, gives BJRR the ability to achieve complete connectivity for almost 5,000 railcars per year across our binational region. BJRR already has a direct connection to the northwest at the San Ysidro Port of Entry towards the San Diego Imperial Valley connecting with BNSF Railway in downtown San Diego. For more information about BJRR, visit their website.

July 13, 2018

The Chamber’s upcoming Cross-Border Business Forum will take place August 16^th at Club de Empresarios in Tijuana. The forum will address the transportation and infrastructure aspect of the goods movement including opportunities to further increase connectivity and boost our binational economy, and discuss the challenges of keeping up with a growing population and reducing our carbon footprint while remaining globally competitive.

With an integrated supply chain worth over $2.5B, a binational community and tourist destination, Cali-Baja relies on its connectivity for the transportation of people and goods by land, sea, and air. This connectivity is possible via the region’s three major international airports, two deep-sea commercial ports, rail connections, highways and six land ports of entry.

The purpose of these quarterly forums is to provide business leaders the essential knowledge and resources needed to thrive within the binational marketplace. For meeting details, or to register, click here.

July 13, 2018

The Chamber’s annual International Tribute Dinner provides an opportunity to recognize outstanding individuals and businesses that have made a significant impact in the binational efforts bridging U.S. and Mexican economies. Previous awardees include Ambassador Marcela Celorio for Binational Leader of the Year; University of California, San Diego, for Cross-Border Collaboration; and Cross Border Xpress (CBX) for the Change Maker Award.

Save the date for this year’s International Tribute Dinner, which will take place Thursday, November 14^th from 5:00 p.m. to 7:30 p.m.

July 13, 2018

The Chamber is pleased to welcome Sue Saarnio to the region as the new U.S. Consul General in Tijuana, a three-year assignment beginning June 2018. Chamber President Jerry Sanders recently met with Consul Saarnio and provided an overview of the Chamber’s work and priorities. We will be working with her to plan a meeting with the Department of State during our upcoming delegation trip to Washington D.C. September 30 through October 3.

To learn more about Sue Saarnio’s experience and career, visit the U.S. Embassy and Consulates’ website.

July 13, 2018

Jerry joined the State of Baja, MTS, and the San Diego Tourism Authority at a press conference promoting a marketing campaign to attract visitors to Tijuana via the San Diego Trolley. Two trolley cars dressed in bright pink with the name “TIJUANA” have joined the MTS fleet through the end of August.

Jerry emphasized that this is effort is not just for tourists, it speaks to our close ties and collaboration and reminds San Diegans that there’s a venue south of the border – 15 miles from San Diego – offering a tremendous amount of fun and various arts, culture and dining exploration.

July 13, 2018

Last month, the Chamber issued a statement regarding family separation occurring at the southern border, stating the policy’s negative impact on our credibility as a nation and commercial partner.

July 13, 2018

The Chamber’s IBA Committee and regional stakeholders met with Ambassador Anthony Wayne to learn about a project he is leading with the Wilson Center in Washington D.C. on promoting North American cooperation on issues pertaining to workforce development. Ambassador Wayne provided an overview of a report which included policy proposals and highlighted the need for regional collaboration to generate more jobs, boost the productive power, and strengthen the global competitiveness of the North American region.

The report recommends action and policy updates on the following areas:

• Work-based learning- promoting and investing in work-based training programs such as apprenticeships.
• Credentials- facilitating the understanding, recognition, and validation of credentials and competencies.
• Data collection and transparency – developing real-time labor market data and information platforms that are comparable across Mexico, Canada, and the U.S.
• Preparing for change – share and implement best practices to approach the “fourth industrial revolution” and the onslaught of new technology and workplace processes.

The successful implementation of the proposed North American Workforce Development Agenda depends on joint collaboration and multi-stakeholder involvement, including the three levels of government, business community, educational institutions, unions, NGOs and civil society from all three countries.

To read the full report, please visit the Wilson Center’s website here.

July 13, 2018

The recently imposed U.S. tariffs on steel and aluminum imports as well as a group of products from China have prompted retaliatory action from Europ, Canada, Mexico, and China. This trade war has already resulted in higher costs for U.S. companies which rely on steel and aluminum inputs and job losses across industries whose exports now face retaliatory tariffs.

The Chamber, along with business organizations across the country, oppose tariffs as they are a tax on business and consumers. Past use of tariffs to protect specific industries, proved to be counterproductive resulting in increased cost of living, a drop in U.S. exports, a decrease in production and loss of jobs. The best way to aid domestic industries and increase access to foreign markets is through trade agreements.

This understanding has driven our advocacy for free trade. We have signed on to a letter in support of S. 3013, a bi-partisan bill sponsored by Sen. Corker and others that would require the President to submit to Congress any proposals to raise tariffs in the interest of national security under the Trade Expansion Act of 1962. The letter was sent to members of the U.S. Senate, sharing the concern of more than 270 industry trade associations, local chambers of commerce, and other business organizations on the retaliatory tariffs from our largest trading partners and closest allies, which will have serious negative economic impacts nationwide and diminish our global competitiveness. This effort was highlighted in an exclusive story by USA Today.

The U.S. Chamber of Commerce conducted a state by state analysis of the impacts on U.S. exports. The analysis includes the list of California exports which will now face greater competition in foreign markets. In total, there are $562 million worth of California exports to Canada which will now face tariffs, $699 million in exports to Mexico, $4 billion in exports to China, and $383M in exports to Europe. The impact is significant as 4,869,200 California jobs are supported by global trade.

The Chamber will be sending an additional letter opposing tariffs on imports to the administration and Congress. To support this effort and add your name to this letter, please email Kenia Zamarripa.

July 13, 2018

Mexican general elections took place July 1^st. It was a historic election due to the high number of seats on the ballot: voters elected all 500 members of the House known as the Chamber of Deputies, 128 members of the Senate, and a new president. Elected members of the legislature will be the first ever allowed to run for re-election in Mexico. Local elections also took place in 30 out of 32 Mexican states.

With over 50 percent of vote and winning majority in 31 of 32 states, candidate Andres Manuel Lopez Obrador from the MORENA party was elected President of Mexico. He will take office on December 1^st, 2018 for a term of six years. In addition, MORENA will be a majority on the Chamber of Deputies and the Mexican Senate.

Lopez Obrador met with President Enrique Peña Nieto to coordinate an orderly and smooth transition, discussing agenda priorities such as NAFTA, national security, and the energy and education reforms that took place during Peña Nieto’s administration.

A day after the election, President Trump called Lopez Obrador to congratulate him and express support to his administration. During the 30-minute conversation, they briefly shared views on immigration, national security, and the possibility of a bilateral agreement that could substitute NAFTA.

The Chamber sent Lopez Obrador a congratulatory letter reaffirming our desire and commitment to continue working together as we have with past administrations to develop and promote projects and initiatives that improve our economies such as border infrastructure and trade facilitation; workforce development and minimizing transboundary pollution.

We are also reaching out to the newly elected members of the Mexican Congress as well as the members of Lopez Obrador’s proposed cabinet to foster relationships in advance of the Chamber’s 14^th delegation trip to Mexico City taking place March 31 to April 3, 2019.