Strengthening Binational Ties in California, Baja California
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Strengthening Binational Ties in California, Baja California

Photo by:   PAN Senate
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Adriana Alarcón By Adriana Alarcón | Journalist & Industry Analyst - Wed, 10/11/2023 - 12:45

Mexican senators and other officials met with representatives from the San Diego Chamber of Commerce (SDCC) and the San Diego Chamber of Commerce, California, to delve into the various opportunities and challenges affecting both regions. They also discuss strategies to strengthen the binational relationship especially in the "CaliBaja" region, an area that refers to the dynamic binational zone encompassing southern California counties and northern municipalities within Baja California.

According to a University of San Diego study, CaliBaja is the most extensive integrated economic region along the US-Mexico border, boasting a regional GDP of US$250 billion and an estimated US$70 billion in cross-border trade flows. In 2019, trade between the US and Mexico via trucking reached US$44.1 billion in imports from Mexico into California and US$25.8 billion in exports to Mexico. 

During the discussions, Jerry Sanders, President and CEO, San Diego Chamber of Commerce, emphasized that collaborative efforts made in recent years have been pivotal in advancing several regional transformational projects, such as the expansion and modernization of the San Ysidro and Otay ports of entry and the construction of the new Otay Mesa II East port of entry. 

Senator Roberto Clemente, Chair, Mexico’s Senate Economic Commission, underscored the ongoing efforts Mexico has made to maximize the potential of nearshoring. These actions include revising specific rules, particularly those related to SMEs to grant them access to benefits facilitating their establishment. 

Furthermore, Clemente mentions that the Ministry of Economy has identified specific sectors in which it intends to provide incentives, streamlining the efficient establishment of enterprises in Mexico. This primarily concerns companies specializing in high-quality goods production, the electronics sector and select regions with substantial potential. 

Clemente also highlighted that the Interoceanic Corridor (CIIT) holds immense economic potential, particularly for nearshoring as it is expected to lead to the creation of areas for growth across its route.

Senator Gustavo Madero, Foreign Relations Commission for North America, drew attention to electromobility, pointing out that Mexico possesses an ample electricity supply for electric vehicles (EVs). The country, however, is limited by its transmission infrastructure, which needs investment. 

Todd Gloria, Mayor of San Diego, California, highlighted the need to deepen the relationship and foster authenticity in the face of border challenges, including fentanyl trafficking and security concerns.

Photo by:   PAN Senate

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