Arizona enjoys a strong trading partnership with its NAFTA partners. To the north, Canada is the state’s second largest international market, purchasing 11% of Arizona’s worldwide merchandise exports. Bilateral trade flows grew to $3 billion in 2007. Despite their distance, the partners exchanged $8 million in tangible goods on an average day.
Arizona and Canada share a close relationship in the trade and manufacture of airplanes. In 2007, the state supplied Canada with $141 million in aircraft engines and parts and $43 million in aircraft parts, not including engines. In return, the Canadian aerospace industry, which comprises over 400 firms, manufactured and supplied the state with $102 million in complete aircraft. In total, the partners exchanged $675 million in components and finished goods from the transportation sector, pointing to the high degree of integration shared by manufacturers on both sides of the border.
For the first time ever, a sitting Governor of Arizona led a three-day trade delegation to Canada. Making stops in Winnipeg, Ottawa and Toronto, Governor Janet Napolitano met with Prime Minister Stephen Harper, Minister of International Trade David Emerson, Terry Mathews of Mitel Corporation, provincial representatives and officials from the Toronto Stock Exchange, among many others. This historic visit highlighted the growing strong and dynamic relationship that is evolving between the State of Arizona and Canada.
Through collaboration with the Canadian Consulate, the University of Arizona attracted Canadian institutional support for a proposed Department of Homeland Security (DHS) Center of Excellence in Border Security for which international collaboration was a prerequisite.
The DHS grant was awarded to UA in February 2008 and will garner $15 million in research over the next six years. UA in collaboration with its Canadian and U.S. partners will spearhead a research effort to bring innovative technology solutions to the demands of 21st century border security and commerce.
Some of the leading Canadian companies including Stantec Engineering, Bombardier, Mitel Networks, Quadra Mining and American Bonanza Gold Corp., invested over $1 billion into the Arizona economy in 2007. Arizona’s economy is ripe for investment in the high-tech, engineering and information technology sectors. As such, Canada has capitalized on these strengths and has become one of the top sources for foreign direct investment into the state.
June 2008
