News & Updates

Tijuana’s Anniversary and Fundraiser

The City of Tijuana and DIF (the National Institution for Integral Family Development) invite you to the “Binational Gala Cocktail Event” held on Friday July 13th, 2018 at 7:00 p.m. This gala is part of the City’s 129th anniversary celebration and will take place at the Central Patio of Tijuana’s City Hall.

The event  is in benefit of “Network of Young Adults Development”, an assistance program that seeks to establish a relationship with young adults from high risk communities in order to help them stay out of the streets and back to school. In an effort to serve this noble cause and strengthen the collaboration relationship between Tijuana and San Diego, the First Lady of Tijuana extends an invitation to this fundraiser, which asks for a donation of $90 USD which will go towards this program.

For San Diego guests, the City of Tijuana will be providing transportation from and back to Downtown San Diego. The agenda starts at 2:00 p.m. with lunch hosted by Tijuana’s Tourism Council (COTUCO), followed by a tour of Tijuana before the main event.

For details and information on how to attend, please contact Kenia Zamarripa at kzamarripa@sdchamber.org.

New Study Suggests Methods For Reducing Transaction Costs at The Border

As a significant economic engine for the U.S. economic activity and global competitiveness, Mexico and Canada are our two largest export markets, valued at more than $580 billion. Imports from our North American neighbors contain far higher proportions of U.S. content than goods imported from Asia or Europe.

There are, however, significant logistical constraints to commercial flows within North America that hinder their potential competitiveness and job growth. Many of these constraints are tied to the countries’ infrastructure at their ports of entry.

The Belfer Center for Science and International Affairs at Harvard Kennedy School published a research paper on the benefits to economic and job growth of reducing transaction costs at North America’s borders, with two propositions:

  1. The U.S. should be able to substantially improve cargo processing processes to better use existing infrastructure and vastly sped throughput at the border.
  2. American port infrastructure must be updated and improved, and governments should prioritize supplementing funding with private investment and other alternative sources given likely inadequacy of congressionally appropriated funds for the foreseeable future.

To read an article covering this topic by the Belfer Center for Science and International Affairs at Harvard Kennedy School, click here.

Confirmation of CBP Commissioner McAleenan

Kevin McAleenan was confirmed by U.S. Senate as Commissioner of U.S. Customs and Border Protection. He has served as Acting Commissioner since January 2017. Under his leadership, CBP has developed strategies that protect the nation’s borders from terrorism and attack transnational criminal networks. He has also advanced the development of CBP’s trade transformation agenda, designed to help America compete in the global economy.

On a visit to Mexico City last month, Commissioner McAleenan signed three agreements with Mexican counterparts (SAT) to strengthen the relationship between them, enforce trade and customs compliance, and advance cargo pre-inspection.

The Chamber met with McAleenan during the delegation trip to Washington D.C. in September 2017, and we look forward to continue working with him, advocating for a secure and efficient border that enhances cross-border commerce.

 

National Guard at the Southern Border

President Trump recently signed a proclamation to dispatch National Guard Troops to the U.S.-Mexico border, with the goal of sending 2,000 to 4,000 troops until his proposed border wall progresses, stating that the U.S. “cannot let people enter the country, we have no idea who they are, what they can do, where they came from.”  Defense Secretary James Mattis approved funding for up to 4,000 National Guard personnel from the Pentagon budget until the end of September, 2018.

Texas and Arizona Governors have responded this call, deploying 250 and 225 National Guard members respectively. New Mexico’s Governor stated she would deploy more than 80 troops later this month. Apprehensions are still well below trends during the terms of former Presidents Bush and Obama.

The Chamber sent a letter to Governor Brown urging he reject the request to deploy National Guard Troops to the U.S.-Mexico Border. Border authorities report a 26 percent decrease in the number of people detained along the Mexico border in 2017 compared with the previous year, and with an annual investment of $18 billion, the federal government already spends more than all other federal criminal law enforcement agencies combined when northbound immigration is at a historic low.

Governor Brown’s response to the federal government’s request did accept federal funding to add approximately 400 Guard members, though it set limits on what the troops actions would focus on. To see Governor Brown’s response to the federal government’s request for additional California National Guard personnel, please click here.

NAFTA Negotiations

The 8th round of NAFTA negotiations has instead become a permanent session as top officials from Canada, the U.S., and Mexico meet on an ongoing basis with the goal of reaching an agreement. Mexico’s Secretary of Economy Ildefonso Guajardo, stated “there’s a very high probability of reaching an agreement in principle, an 80 percent change.”

NAFTA is critically important for our region, it has created a $2.5 billion manufacturing supply chain that supports co-production between San Diego and Baja California. Our economies are linked, and thanks to NAFTA, 200,000 jobs have been created in Baja and over 110,000 in San Diego. In 2016 alone, San Diego exported goods to Mexico were valued at $5.5 billion. We are proud to have strengthened our ties and each other’s economies.

Lighthizer has stressed out the need to reach an agreement before the Mewww.sdchamber.org/wp-content/uploads/2018/04/NAFTA-Infographic.pdfxican presidential election on July 1st. If an agreement is reached within a short timeline, it could be presented to Congress before new representatives take office in January following mid-term elections.

The UC San Diego Chicanx/Latinx Academic Excellence Initiative

On April 30, 2018, the Chamber will host the UC San Diego Chicanx/Latinx Academic Excellence Initiative. The event will consist of a discussion on what UC San Diego is doing to enrich the experience of our Chicanx/Latinx community featuring Dr. Becky Petitt, Vice Chancellor for Equity, Diversity, and Inclusion. Dr. Petitt serves as the lead senior executive responsible for providing a holistic and integrated vision on all major equity, diversity and inclusion efforts. She brings to the table 24 years of progressive leadership experience in diversity work across the university community.

For more information, please contact our Director of International Business Affairs, Kenia Zamarripa at kzamarripa@sdchamber.org.

Chamber Leads Delegation to Mexico City

Nearly 90 business and community leaders from San Diego and Baja California took part in the Chamber’s 13th annual three-day Binational Delegation to Mexico City, April 15-18. Delegates met with government officials and representatives to strengthen economic and diplomatic ties and discuss opportunities for collaboration on projects and issues affecting the region. The delegation included five mayors and four councilmembers from both sides of the border.

The three day agenda included more than 16 meetings covering issues ranging from NAFTA, the Tijuana River Valley transboundary pollution issue, East Otay POE, Calexico/Mexicali POE, cross-border rail project, medical tourism, and nautical tourism among other topics. The Chamber was recognized by several government leaders for our ongoing leadership and advocacy on NAFTA and promotion of the U.S. -Mexico relationship. Delegates had the unique opportunity to meet with three members of President Peña Nieto’s cabinet and two department heads:

  • Secretary of the Interior (SEGOB): who carried a message to the Chamber from the President of Mexico
  • Secretary of Finance and Public Credit (SHCP)
  • Secretary of Economy
  • Head of Federal Customs Administration (SAT)
  • Newly appointed Commissioner of Migration (INM)

The delegation also met with the Mexican Senate, including the President of the Northen Border Affairs Commission, to follow up on the MOU signed last year and discuss the priorities for joint efforts this year.

Chamber President and CEO Jerry Sanders participated in a joint press conference with the Secretary of the Interior, Alfonso Navarrete. Also present, Mayor Faulconer and Ambassador Marcela Celorio focused on the positive outcomes of binational collaboration.

The Chamber’s delegation, over the span of several years leading this trip, has successfully raised our region’s profile in Mexico. Each government official and agency representative that met with our group was aware of our issues, assets, economic potential, and value at the national and global level. We are proud to have made such progress in just a few years.

As a result of our visit, the Secretary of the Economy Ildefonso Guajardo has made plans to visit San Diego to give a presentation about the current state of NAFTA negotiations, as well as the implications of a renegotiated NAFTA for the bilateral relationship. The presentation is co-sponsored by the Chamber, and will take place at the University of California San Diego on May 1st.

For highlights and photos from the trip search #SDinMX on social media. You can also view recap videos for each day’s events and photos on the Chamber’s Facebook.

China Imposes Tariffs on U.S. Exports

On March 1, 2018, the government of China announced that it will impose tariffs on 120 U.S. products including steel and aluminum. This decision followed recent measures taken by the United States to detain and diminish Chinese imports. U.S. Trade Representative Lighthizer revealed a list of goods which would be subject to 25 percent tariffs for $50 billion worth of Chinese products including machinery, agricultural equipment and tech goods. These tariffs aim to alleviate the $375 billion trade deficit with China.

China’s announcement states a 15 percent tariff will be added to fruits, nuts, wine and steel pipes, while a 25 percent tariff will be added to pork and aluminum. The trade value of these products combined surpasses $3 billion.

As San Diego’s third highest export destination with a total value of $794 million, tariffs represent a critical threat to our region. Trade supports more than 110,000 jobs in San Diego, and many studies have shown that the average U.S. household saves about $10,000 per year in lower prices paid for imported goods. The Chamber will continue its advocacy for free trade and cross-border commerce.

TAKE ACTION: U.S. Trade Representative Solicits Comments on Tariffs Proposal

The U.S. Trade Representative released a proposal to impose a 25 percent tariff on approximately 1,300 products from China. This proposal is part of the administration’s response to counter the $375 billion trade deficit with China and unfair trade practices that USTR found on China’s policies and practices on technology transfer and intellectual property. The proposed tariffs target Chinese products valued at approximately $50 billion. To view the USTR notice and proposed list of products click here.

USTR is soliciting comments on its proposal and will hold a hearing on May 15, 2018. Comments may address any aspect of the proposal including the specific products to be subject to tariffs (if products should be retained, removed or added to the list) and the level of increase, if any. To assure consideration, comments must be submitted in accordance with the following schedule:

*April 23th, 2018: due date for filing requests to appear and a summary of expected testimony at public hearing

* May 11th, 2018: Due date for submission of written comments

*May 15th, 2018: public hearing in main hearing room of USTR, 500 E Street SW Washington DC 20436 beginning at 10:00 a.m.

*May 22nd, 2018: Due date for submission of post-hearing rebuttal comments

To submit comments, please click here. Docket number is USTR-2018-0005. For alternatives to online submissions, please contact Sandy McKinzy at (202) 395-9483. Further information about USTR’s request for comments may be found here.

On March 1, 2018, the government of China announced that it will impose tariffs on 120 U.S. products including steel and aluminum. This decision followed recent measures taken by the United States to detain and diminish Chinese imports. U.S. Trade Representative Lighthizer revealed a list of goods which would be subject to 25 percent tariffs for $50 billion worth of Chinese products including machinery, agricultural equipment and tech goods. These tariffs aim to alleviate the $375 billion trade deficit with China.

China’s announcement states a 15 percent tariff will be added to fruits, nuts, wine and steel pipes, while a 25 percent tariff will be added to pork and aluminum. The trade value of these products combined surpasses $3 billion.

As San Diego’s third highest export destination with a total value of $794 million, tariffs represent a critical threat to our region. Trade supports more than 110,000 jobs in San Diego, and many studies have shown that the average U.S. household saves about $10,000 per year in lower prices paid for imported goods. The Chamber will continue its advocacy for free trade and cross-border commerce.

VP Honored by San Diego Girl Scouts

Paola Avila, Vice President of International Business Affairs, was honored with the “Cool Women Award” presented by the San Diego Girl Scouts.  The Cool Women Award honors local women who embody the Girl Scouts Promise and Law, exhibit excellent leadership skills and serve as role models. They maintain high levels of integrity, motivate and inspire others, represent outstanding professional achievements, advocate for positive social change or demonstrate civic responsibility, and are newsworthy. The event provides participating girl scouts with the opportunity to ask mentors questions about their careers, and learn about education pathways and how to overcome challenges.