Tomatoes on their way north across the U.S.-Mexico border.
A new report out of Eller College of Management shows that trade between Arizona and Mexico is up above pre-pandemic levels and signs are good that trend will continue.
Trade through Arizona ports of entry totalled $9.3 billion during the first quarter of this year, a 7.5% increase over last year, according to an economic update from Eller released this month.
The overall takeaway is that Arizona’s trade with Mexico has recovered nicely from the pandemic shock of early 2020, says George Hammond, who directs Eller’s Economic and Business Research Center.
“Our exports to Mexico have bounced back fairly strongly," he says. "The flows of goods through Arizona’s border ports of entry to and from Mexico have also recovered nicely, so the ports are busy.”
Fresh produce imports from Mexico through Arizona ports are up and so are northbound border-crossings, which is good news for retailers in Southern Arizona, Hammond says.
As well, the value of the peso has gradually increased since the pandemic began.
Many of the report’s positive economic indicators can be attributed to growth in the overall Mexican economy and competitiveness in Arizona manufacturing, Hammond said.
“So overall, Arizona’s role in border trade, particularly that trade with Mexico, is in pretty good shape, certainly much improved shape compared to where we were three years ago.”
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