Consulate general of Mexico highlights cross-border trade ties and opportunities with Sonora and Arizona

Jorge Villescaz, Consul General of Mexico in Phoenix, told the Arizona House Committee on International Trade that the economic relationship between Arizona and Mexico is robust and expanding, and he urged state-level collaboration to capture cross-border supplier and infrastructure opportunities.

“Mexico has surpassed China and Canada as a main trading partner for the U.S.,” Villescaz said, noting Mexico–U.S. trade flows and the scale of economic exchange. He told the committee Arizona and Mexico have about $20 billion in annual trade and identified the Mariposa port of entry in Nogales as a vital corridor for produce and other exports; he said about 40% of those exports move through Mariposa.

Villescaz described federal Mexican initiatives intended to attract investment, including a recently published presidential decree offering tax incentives for key export sectors and a multi-year Plan Mexico that he said includes roughly $2 billion in tax breaks to incentivize investment in high-value sectors, workforce training and innovation. He also referenced a continuity of regional plans such as Plan Sonora and said the Mexican government is investing in port-of-entry infrastructure at locations including Nogales/Mariposa, Douglas and San Luis to support increased trade.

Targeting the committee’s interest in the semiconductor supply chain, Villescaz suggested coordinated regional development between Arizona and Sonora to produce complementary supplier networks. “If we have one big company coming to Arizona, we could have five small companies in Mexico that will be suppliers for Arizona,” he said, citing supplier development as an opportunity to strengthen North American manufacturing without offshoring to Asia.

Committee members asked about security and logistics tied to nearshoring and imports; Villescaz noted changes in Mexican port operations and controls, including increased navy oversight of seaports and pre-clearance procedures that affect shipments into Mexico. He said these measures are intended to strengthen surveillance and control of goods entering Mexico.

Ending: Villescaz recommended deeper state-to-state engagement with Sonora and other Mexican partners to develop supplier networks and infrastructure that complement Arizona’s manufacturing growth; members expressed interest and thanked the consul general for the briefing.