Odd Ball SM1002 - 541R - S Ver of SM1002

Senate Engrossed

State of Arizona

Senate

Fifty-fourth Legislature

First Regular Session

2019

SENATE MEMORIAL 1002

A MEMORIAL

urging the united states congress to ratify the recently negotiated united states-mexico-canada agreement.

(TEXT OF BILL BEGINS ON NEXT PAGE)

To the Congress of the United States of America:

Your memorialist respectfully represents:

Whereas, North American trade is vital to the United States economy; and

Whereas, together, the United States, Canada and Mexico promote a shared belief in freedom, representative democracy and market principles as recognized in the United States Constitution; and

Whereas, the North American Free Trade Agreement (NAFTA) created the largest single free trade area in the world; and

Whereas, a longstanding, close trilateral relationship, codified in NAFTA, has existed between the three countries for close to 25 years and has proved to be economically, culturally and strategically important for all parties; and

Whereas, more than 280,000 jobs in Arizona depend on trade and investment from Mexico and Canada; and

Whereas, since NAFTA entered into force in 1994, trade with Canada and Mexico has nearly quadrupled to $3.5 billion daily, or $1.3 trillion annually, and the two countries buy more than one-third of American merchandise exports; and

Whereas, Canada and Mexico are Arizona's two largest trading export markets; and

Whereas, for 43 states in the United States, Canada and Mexico represent their first or second largest export market, and all states but one count Canada or Mexico as a top three trading partner; and

Whereas, NAFTA has contributed to a 405% increase in American agricultural exports to Canada and Mexico; and

Whereas, ratification of the recently negotiated United States‑Mexico-Canada Agreement (USMCA) will continue the many benefits of the stellar trade relationship between the three North American economies that has flourished under NAFTA; and

Whereas, thanks to new market access and clearer rules afforded by NAFTA, United States service exports to Canada and Mexico have tripled, rising from $27.5 billion in 1993 to $91.3 billion in 2017. These benefits will continue to be enhanced under USMCA; and

Whereas, the modernized USMCA may prove to be even more beneficial to the agricultural sector than NAFTA and will offer a higher degree of certainty and stability for cross‑border business opportunities; and

Whereas, in 2017, the State of Arizona sent $2.2 billion in exports to Canada and $7.5 billion to Mexico; and

Whereas, Canada and Mexico are the top two export destinations for small and medium‑sized American enterprises, more than 120,000 of which sell their goods and services in these two countries; and

Whereas, due to modernized ports of entry, improved access roads and outstanding cooperation with our counterparts in Mexico, Arizona is well‑positioned for continued trade growth under USMCA, as evidenced by the Unified Cargo Processing inspection model that allows U.S. Customs and Border Protection and Mexican Aduanas personnel to inspect cargo side‑by‑side in the United States, forgoing any delay caused by additional inspections in Mexico; and

Whereas, the USMCA's modernized de minimis provisions will facilitate even more of Arizona's small and medium-sized businesses in exporting to Canada and Mexico; and

Whereas, the intellectual property provisions found in the USMCA are the most comprehensive of any United States trade agreement and are vastly superior to those included in NAFTA; and

Whereas, a seamless transition between the current NAFTA and the newly negotiated USMCA will ensure that none of the benefits of continuity in trade accomplished by the integration of the three North American economies will be lost.

Wherefore your memorialist, the Senate of the State of Arizona, prays:

1. That the United States Congress ratify the newly negotiated USMCA to ensure continuity in trade among the three North American economic partners.

2. That the Secretary of State of the State of Arizona transmit copies of this Memorial to the President of the United States, the Members of the United States Senate Finance Committee, the Members of the United States House of Representatives Ways and Means Committee, the Members of the Senate and House Advisory Groups on Negotiations, the United States Trade Representative, the United States Secretaries of Commerce, State and Labor, the Director of the Office of Management and Budget, the Intellectual Property Enforcement Coordinator and each Member of Congress from the State of Arizona.