Arizona House of Representatives Committee on International Trade Meeting Minutes and Presentation Materials

Summary

The report of the regular meeting of the Arizona House of Representatives Committee on International Trade, Fifty-seventh Legislature, First Regular Session, held Wednesday, February 19, 2025, with Representative Rivero as Chairman. The meeting convened at 9:06 A.M. and adjourned at 10:09 A.M., and the minutes list the agenda, Request to Speak report and committee attendance record as attachments. The agenda consists of three presentations: Hispanic trade and commerce in Arizona by the Arizona Hispanic Chamber of Commerce, Canada's foreign direct investment in Arizona by the Canada Arizona Business Council, and Arizona's fresh fruit and vegetables trade by the Fresh Produce Association of the Americas. The presentation materials are attached as handouts, and the produce association's slides discuss infrastructure at the Mariposa port of entry and staffing at Arizona ports of entry.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

COMMITTEE ON INTERNATIONAL TRADE

Report of Regular Meeting
Wednesday, February 19, 2025
House Hearing Room 1 -- 9:00 A.M.

Convened 9:06 A.M.
Recessed MINUTES RECEIVED

Reconyened CHIEF CLERK'S OFFICE

Adjourned 10:09 A.M. fat /a S

Members Present Members Absent
Representative Austin Representative Hernandez
Representative Carbone Representative Travers
Representative Cavero

Representative Hendrix

Representative Weninger

Representative Wilmeth

Representative Pefia, Vice-Chairman

Representative Rivero, Chairman

Agenda
Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Presentations
Name Organization Attachments (Handouts)
Monica Villalobos AZ Hispanic Chamber of Commerce 4
Paul Padilla
Glenn Williamson Canada Arizona Business Council 5
Lance Jungmeyer Fresh Produce Assoc of the Americas 6

Allison Moore

hristie Hudson, Committee Secretary
‘ebruary 21, 2025

(Original attachments on file in the Office of the Chief Clerk; video archives available at http://Awww.azleg.gov)

COMMITTEE ON INTERNATIONAL TRADE
February 19, 2025
Cony: FOLAam
dy. 10.0% Rin

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature - First Regular Session

REGULAR MEETING AGENDA

COMMITTEE ON INTERNATIONAL TRADE

DATE Wednesday, February 19, 2025 ROOM HHRI1 TIME 9:00 A.M.

Members of the public may access a livestream of the meeting here:
https://www.azleg.gov/videoplayer/?clientID=636 1 162879&eventID=2025021098

Members:
Representative Austin Representative Hernandez C Representative Wilmeth
Representative Carbone Representative Travers Representative Pefia, Vice-Chairman
Representative Cavero Representative Weninger Representative Rivero, Chairman

Representative Hendrix

e Presentations:

o Hispanic Trade and Commerce in Arizona
- Monica Villalobos, President & CEO, Arizona Hispanic Chamber of Commerce
- Paul Padilla, Senior Director Market Intelligence, Arizona Hispanic Chamber of Commerce

o Canada’s Foreign Direct Investment and Public Private Partnerships in Arizona
- Glenn Williamson, CEO and Founder, Canada Arizona Business Council

o Arizona's Fresh Fruit and Vegetables Trade: Issues and Opportunities for Enhanced Growth
- Lance Jungmeyer, President, Fresh Produce Association of the Americas
- Allison Moore, Executive Vice President, Fresh Produce Association of the Americas

RA
02/13/2025

People with disabilities may request reasonable accommodations such as interpreters, alternative formats, or
assistance with physical accessibility. If you require accommodations, please contact the Chief Clerk's Office at
(602) 926-3032 or through Arizona Relay Service 7-1-1.

Page 1 of 1

Attachment |
Information Registered on the Request to Speak System

House International Trade (2/19/2025)

Attachment “ha
ARIZONA STATE LEGISLATURE

Fifty-seventh Legislature - First Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON INTERNATIONAL TRADE
CHAIRMAN: Tony Rivero VICE-CHAIRMAN: _ Michele Pefia
DATE 02/19/25 125 125 /25 125
CONVENED A O(yhm m m m m
RECESSED
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MEMBERS
Austin Mo
Carbone v4
Cavero 4
Hendrix A
Hernandez C cee
Travers LX
Weninger /
Wilmeth /
Pefia, Vice-Chairman VA
Rivero, Chairman 4

V Present -- Absent exc Excused

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Ne gEreshPro duce’

D sssociarion OF THE AMERICAS

“Arizona’s Fresh Fruit and Vegetable Trade:

Issues and Opportunities for Enhanced
Growth”

Speakers: Lance Jungmeyer, President, Fresh Produce Association of the Americas
Allison Moore, Executive Vice President, Fresh Produce Association of the Americas
Javier Badillo, Principal, Fresh International; Chairman, FPAA Tomato Division

Rirsehmwent (0
About Us

Founded in Nogales, Arizona in 1944, the Fresh
Produce Association of the Americas (FPAA) is an
influential voice for the produce industry, helping keep
business humming for hundreds of U.S. fresh produce
businesses in Arizona, Texas, New Mexico, and
California, that handle imports.

Wa EreshPro duce’

ASSOCIATION OF THE AMERICAS

California

Arizona New Mexico

OT
Rie (oloeade

Baja
California

Tamaulipas
Our Mission:

¢ Ensure market access for
imported fresh fruits and
vegetables by informing and
advocating with government and
industry on behalf of Members,
thereby providing consistent
expertise and support.

ee

The Fresh Produce
Industry in Santa Cruz
County, Arizona:

Local, State, & National
Economic Contributions

George Frisvold, Dari Duval, Ashley Bickel
Department of Agricultural & Resource Economics
University of Arizona Cooperative Extension

THE UNIVERSITY OF ARIZONA
COLLEGE OF AGRICULTURE & LIFE SCIENCES
JX, Cooperative Extension

COLLEGE OF AGRICULTURE & LIFE SCIENCES
Agricultural &
Resource Economics

2020 Economic Contributions

Forward-linked economic activity

Un ited States throughout value chain estimated at $5.0
billion in output in 2020

2020 state economic contribution of $944

° million in output (sales), $522 million value
Arizona added (GDP), & $362 million labor income,

supporting 4,927 jobs

* 2020 county economic contribution of

$726 million in output (sales), $385 million
Sa nta Cruz Cou nty value added (GDP). & $277 million labor |

income, supporting 3,788 jobs

WU) Trade/tariffs - Threatened tariffs of
25% or more will harm Arizona
businesses and workers.

L) USMCA renegotiation will occur in 2025-
26. As in the 2018 negotiation,
producers from the Southeast (Florida,
Georgia) are seeking protectionist
measures including tariffs or quotas to
drive Arizona's distributors out of
business.

CL) Tomatoes are the bedrock industry of
the Nogales produce industry. Florida
seeks to put duties on tomatoes
imported by Arizona distributors.

LY FPAA Appreciates Arizona's $100-
million plus investment in Phase 1
infrastructure. Phase 2 is key for
growth.

QO) Sufficient CBP Personnel are Crucial

Tariffs Harm Arizona Employers, Workers
Yet, these Tariffs Could Go in Place Soon

O2 O3

‘3 Vh The Administration issued a The White House issued a
nnounced a 25% tariff on | blanket 25% tariff against memo that by April 1, the
all goods from Mexico and | steel and aluminum imports, US could impose reciprocal
C anada. That has since been including from Mexico. It is tariffs on nations with a VAT.
delayed until March 4, unclear if/how Mexico might Mexico's VAT is about 16%.
pending Mexico satisfying | respond, and whether the

US would make a counter-
response.

1.USMCA - The U.S. Mexico

* Canada Trade Agreement, formerly

NAFTA, is up for review in 2025-26,

by statute, meaning that

negotiations start in 2025.

BY 2.President Trump or his

1 Counterparts in Mexico or Canada

| could call for an earlier, complete

review of USMCA, and this is

increasingly a possibility

3. During the 2018 negotiations for

USMCA, the Southeastern U.S.

states sought to include a provision

ein USMCA that would install tariffs
= OF quotas On imported seasonal

@e fresh produce from Mexico, which

sy WOULd be especially harmful to

sees Arizona. FPAA’s Congressional

MWg clelegation and others fought to

keep seasonality out of USMCA.

4. Instituting tariffs on Mexican

produce is likely to again be on the

table as the next USMCA is
negotiated.

Ongoing Support for Maintaining the 2019 Tomato

Suspension Agreement

In 2024, the Arizona Senate Passed a Resolution In Support of Maintaining the 2019 Tomato Suspension
Agreement Because:

¢ The Agreement brings stability to the U.S. tomato market and ensures the supply of a wide variety of
vine-ripened tomatoes that consumers demand throughout the year

* Tomatoes are important for Arizona companies with over 1.1 billion pounds imported each year through
the state, with an estimated nationwide economic impact of $3.3 billion

* Southern Arizona produce companies are the largest private employing industry in Santa Cruz County,
and these companies rely on tomatoes to continue to provide jobs in Arizona

* Tomatoes account for 33,000 direct and indirect jobs across the U.S.

* Getting rid of the Agreement would cause harm to Arizona’s local and state economy, threatens all
citizens of Arizona, hampers Arizona’s economic growth, and threatens Arizona and Mexico’s strong
trade relationship

Arizona businesses appreciate the Arizona Legislature’s past support for the Tomato Suspension
Agreement, and we call on lawmakers to continue to help Arizona companies that rely on tomatoes for
their economic stability and growth
O2

Arizona contributed nearly $1
million to 6 refrigerated inspection

spaces at Mariposa POE. This is a
small step toward a larger goal of
asking the Federal Government to
refrigerating the remainder of the
POE. The port is out of compliance
with the Food Safety
Modernization Act.

you Arizona for Infrastructure!!!

Phase || of the Mariposa Flyover is
making major improvements to
Exits 12 & 17, which serve the
major industrial parks. This S60
million-plus investment completes
the vision of Mariposa Phase | and
serves as a powerful draw for
companies aiming to relocate to
Arizona.

Ensure Appropriate Staffing for Ports of Entry in

Arizona

Ports of Entry in Arizona perform two overarching functions:

1. Ports are important economic drivers for the state, facilitating the movement of legitimate trade and
travelers that contribute to Arizona’s economy.

2. Ports of entry are an integral part of border security, stopping illicit goods and bad actors from entering the
U.S. while stopping the export of guns and money to criminal elements Mexico.

It is crucial that the Department of Homeland Security (DHS) ensure adequate staffing at Arizona ports of
entry that are responsible for trade facilitation, security, immigration, food safety and more functions that
impact port operations on a daily basis.

Additionally, staffing continues to be diverted to non-port activities and the recruitment process can take
more than a year to hire on CBP officer.

Advocating for an update to the CBP Workforce Model, streamline the recruitment process, and implement
programs to retain personnel are vital steps in the health of Arizona’s ports.
The Arizona Business Perspective

NZ
Y

Thank you!

Questions?

* Ph: (520) 287-2707

¢ FPAA President Lance Jungmeyer:
lance@freshfrommexico.com

° FPAA Executive Vice President Allison Moore:

Amoore@freshfrommexico.com

www.freshfrommexico.com

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