Photo by Jones Studio

Why Mexico?

Two Countries, One Region
Why Southern Arizona and Mexico?

Southern Arizona and Mexico’s cultural and economic relationship dates back hundreds of years and extends well beyond the formation of current geopolitical borders. Cultivating economic partnerships based on that shared history has created a thriving regional economy.

Mexico is the U.S. and Arizona’s Top Trade Partner

In 2023, Mexico supplanted China to become the U.S.’s top trading partner for the first time in more than 20 years, with nearly $800B in goods and services exchanged between the two countries. While Mexico has long been Arizona’s number one trade partner, this shift at the national level represents increased economic opportunities for Southern Arizona and Sonora.

Mexico has also experienced a surge in foreign direct investment (FDI). Mexico is the primary recipient of manufacturers’ efforts to “nearshore” operations across various industries. According to Mexico’s Ministry of the Economy, the country had a record-high FDI of $36B in 2023, citing its economic stability, competitive advantages, and good business environment as the reason for the record investment. This was a 27 percent increase in FDI compared to 2022.

Southern Arizona is well-positioned to be among the biggest beneficiaries of the trade growth between the two countries.

Ports of Entry

The ports of entry located sixty miles south of Tucson in Nogales, Arizona serve as a gateway between the United States, Mexico, and Canada. These ports of entry are the hub for international trade, commerce, and tourism. The state-of-the-art Mariposa Land Port of Entry is one of the nation’s busiest ports, supporting a multi-billion dollar cross-border trade industry, including commodities such as manufactured goods, automobiles, raw materials, fresh produce, and more.

The only cross-border rail crossing in Arizona is in Nogales, located 60 miles south of Tucson along Interstate 19. Union Pacific Railroad operates the track from Nogales north to the East-West Sunset Route in Tucson and from Nogales south to Ferromex Rail, which connects the cities of Hermosillo, Guaymas, and Guadalajara.

Learn more about the ports of entry and trade from the Greater Nogales Santa Cruz County Port Authority

Top Commodity Imports and Exports

Top Imports to Arizona from Mexico	Top Exports to Mexico from Arizona
Fresh produce	Copper ores and concentrates
Insulated Wiring Sets for Vehicles Ships Aircraft	Electronics
Electronics	Aircraft, engines and parts
Engine and Motor Parts	Articles of plastic

Source: United States Census Bureau via USA Trade Online

Shared Industries

Southern Arizona’s key industries complement those in the neighboring state of Sonora, located just 60 miles south of metro Tucson. Those industries include Aerospace & Defense, Medical Device Manufacturing, and Mining Technology companies. Many companies across these industries operate facilities in both Sonora and Southern Arizona, including BD, Belden, MTD, Rainbird, Chamberlain and Integrated Magnets, among others. Additionally, Southern Arizona’s strategic location at the intersection of I-10, I-19, and the Union Pacific Sunset line makes our region an ideal location for the logistics of many industries.

Shelters

A Mexican shelter company, also known as a maquiladora shelter service, acts as a bridge for foreign companies looking to manufacture in Mexico without the complexities of setting up their own legal entity. Traditionally, the Mexican Shelter Provider owns the Mexican entity and has acquired all the necessary permits (IMMEX and IVA/IEPS Cert) for their client to operate in Mexico. The Shelter handles all administration needed to comply with Mexican Law as a basic service. To learn more about shelter companies, connect with the Sun Corridor Inc. team.