Arizona-Sonora Partnership: A History of Collaboration and Innovation

The Arizona-Sonora Border Subregion

The AriSonora Region is characterized by the major U.S.-Mexico crossing at the city of Nogales, famous for its competitive position as a fruit and vegetable trade corridor. More than $35 billion worth of goods flowed across the Arizona-Sonora border in 2023. Both state capitals of Phoenix and Hermosillo are about 180 miles from the U.S.-Mexico border. The region is characterized by metal ore mining, audio and video equipment, and aerospace components. The aerospace sector employs over 18,000 professionals on both sides of the border, with Arizona focused on defense and Sonora more commercial-focused.

The Arizona-Sonora Border Subregion is made up of Yuma, Pima, Santa Cruz and Cochise together with the Sonoran municipios of San Luis Río Colorado, Puerto Peñasco, General Plutarco Elías Calles, Caborca, Altar, Sáric, Nogales, Santa Cruz, Naco, and Agua Prieta. There are six ports of entry on the Arizona-Sonora border. From east to west these paired towns are: Douglas/ Agua Prieta, Naco/Naco, Nogales/Nogales, Sasabe/Sasabe, Lukeville/ Sonoyta, and San Luis Rio Colorado, which has no corresponding town on the Arizona side.

Read more about the region in the Border Boom e-book.

A History of Collaboration and Innovation

A Legacy of Trade and Cooperation

The Arizona-Sonora relationship has been a cornerstone of cross-border collaboration for decades, driven by shared economic interests and geographical proximity. Over the years, robust communication channels, trade agreements, and joint initiatives have created a model of interdependence and mutual growth.

The Twin Plant Model: A Cross-Border Manufacturing Strategy

A hallmark of this partnership is the "twin plant" operations model. This approach leverages the strengths of each region:

• Arizona: Focuses on advanced manufacturing, research, and value-added processes.
• Sonora: Excels in labor-intensive and manual manufacturing tasks, supported by a skilled workforce and cost efficiencies.

This synergy has enabled businesses to optimize supply chains, reduce costs, and remain competitive in global markets.

Political and Cultural Relations: Building Bridges Across Borders

Strong political and cultural ties have been instrumental in fostering this collaboration. Multiple agreements between the state governments of Arizona and Sonora have paved the way for:

• Secure business environments for cross-border operations.
• Streamlined trade processes through shared infrastructure.
• Cooperative programs to enhance economic development on both sides of the border.
  
  

The Role of Sonoran Engineers in Arizonan Success

A unique aspect of the Arizona-Sonora partnership is the critical support provided by Sonoran engineers to Arizonan companies.

• Hiring Trends: Many Arizona-based companies employ Mexican engineers due to their technical expertise and cross-border mobility.
• Educational Adaptation: Institutions in Sonora have tailored their curricula to align with U.S. requirements, ensuring that engineers are well-equipped to contribute effectively.
• Cross-Border Collaboration: This collaboration highlights the importance of an integrated workforce, where cultural and technical fluency enhances project outcomes.

Creator: DANNY JOHNSTON | Credit: AP

The Twin Cities Model 

Phoenix, Arizona and Hermosillo, Sonora have celebrated a sister city relationship since 1976, marking the first of such designations for the city of Phoenix. 

Phoenix and Hermosillo: Manufacturing and Innovation Hubs

Phoenix, Arizona’s capital and largest city, is a major center for aerospace, technology, and advanced manufacturing. Its sister city, Hermosillo, is an industrial powerhouse in Mexico, home to a well-established automotive sector led by companies such as Ford and an expanding aerospace cluster. The synergies between these two cities lie in their complementary capabilities:

• Supply Chain Connectivity: With Phoenix’s strong logistics infrastructure and Hermosillo’s manufacturing base, companies can efficiently move goods and components across the border, reducing time-to-market and optimizing production costs.

• Workforce Development: Universities and technical institutions in both cities collaborate to train a bilingual, binational workforce that meets industry needs, particularly in engineering, manufacturing, and high-tech sectors.

• Trade Facilitation: Programs such as Unified Cargo Processing (UCP) at border crossings streamline customs procedures, making it easier for companies in Phoenix to import and export goods from Hermosillo and vice versa.

Tucson and Nogales: Trade and Logistics Powerhouses

The Tucson-Nogales corridor is another successful example of the Twin Sister Cities Model, serving as a major gateway for trade between Arizona and Sonora. Tucson’s role as a distribution and logistics hub is complemented by Nogales’ position as a key entry point for Mexican exports, particularly in agribusiness and electronics.

• Agricultural Trade: Nogales is a crucial transit point for Mexican produce entering the U.S., with Arizona handling a significant portion of fresh fruit and vegetable imports. Tucson’s cold storage and distribution facilities help ensure that these goods reach national markets efficiently.

• Maquiladora Industry: Nogales hosts numerous maquiladoras (manufacturing plants) that assemble goods for export, taking advantage of the region’s skilled labor force and Arizona’s warehousing and distribution centers.

• Bilateral Investment: Joint economic development initiatives encourage investment from Tucson-based firms in Nogales and vice versa, particularly in the logistics, transportation, and manufacturing sectors.

Economic Cooperation Initiatives

The Arizona-Sonora economic partnership hs been strengthened through several key initiatives aimed at fostering cross-border collaboration and economic growth:

Ari-Son Council

Established in 2014, this binational council comprises local elected officials from Arizona and Sonora. It works with stakeholders across government and the business community to enhance dialogue and strategic cross-border economic development efforts. The council focuses on expanding local government connections, sharing best practices, and identifying areas for collaboration.

Sun Corridor Inc. and Sonora Global Memorandum of Understanding

In February 2024, Sun Corridor Inc., representing Southern Arizona, and Sonora Global, the economic development organization for Sonora, Mexico, signed a historic MOU to promote trade and economic development as a megaregion. This agreement aims to enhance cross-border cooperation, develop inter-regional marketing plans, and strategize on cross-border talent development.

Arizona-Mexico Commission (AMC)

Founded in 1959, the AMC is a bilateral non-profit organization that works to improve economic prosperity and quality of life in Arizona through collaborations with Mexico. Chaired by the Governor of Arizona, the AMC focuses on areas such as economic development, trade, tourism, and health services.

CANAMEX Trade Corridor

As part of the strategic economic development vision initiated in the 1990s, the CANAMEX Trade Corridor was developed to enhance transportation and trade routes from Canada through the United States to Mexico, passing through Arizona and Sonora. This initiative has improved infrastructure and facilitated increased trade and economic integration between the regions.

Binational Energy Collaboration

In November 2024, the Sonora-United States Commission and the Arizona-Mexico Commission were re-launched to strengthen the border region in the energy sector. This collaboration includes memorandums of understanding focusing on education, water quality, and the environment, aiming to promote sustainable energy generation and address shared energy challenges.

These initiatives reflect a concerted effort by Arizona and Sonora to leverage their geographic proximity and complementary economic strengths, fostering a robust and dynamic cross-border partnership.

Creator: © Lucas Jackson / Reuters | Credit: REUTERS

Prodensa: Leadership in the Mission

Recognizing the importance of the Arizona-Sonora partnership and economic zone, Prodensa has joined efforts to bring knowledge and awareness for business operating in and around the region. 

Arizona-Mexico Commission 2024

This event, themed "A Sustainable & Interconnected Megaregion," focused on strengthening socio-economic relations between Arizona and Sonora. Key areas of discussion included clean energy, advanced manufacturing technology, quality education, and strategic infrastructure. The meeting featured participation from over 400 special guests, including Arizona Governor Katie Hobbs and Sonora Governor Alfonso Durazo Montaño.

Moderator: Emilio Cadena (Prodensa)

Speakers: Fernando Garcia (Arizona Commerce Authority), Chris Camacho(Greater Phoenix Economic Council, Pedro Casas Alatriste (AmCham Mexico), Francisco Cervantes Diaz (Consejo Coordinador Empresarial), Jorge Lomelin (Mexico Pacific)

Phoenix Global Forum

Hosted by Phoenix Sister Cities in partnership with the International Economic Forum of the Americas (IEFA), the event convened over 350 international executives and global leaders to discuss key topics such as semiconductors, aerospace, biotechnology, healthcare, water and energy management, and sustainability.

The forum served as a platform for decision-makers and experts to explore solutions to global challenges, emphasizing innovation through connection and collaboration. Notable speakers included Emilio Cadena, CEO of Prodensa; Laurent Germain, CEO of Egis; Judy Marks, Chair and CEO of Otis Worldwide Corporation; and Reta Jo Lewis, Chairwoman of the U.S. Export-Import Bank.

The event highlighted Phoenix's and Arizona's strengths in these sectors, aiming to foster future innovation through global collaboration.

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