Resolution of Support For Extending the Border Zone in Arizona

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2 Resolution of Support For Extending the Border Zone in Arizona For COG and MPO consideration Initiated and championed by the MAG region Extension would include the entire state of Arizona Supports streamlining of visa processes for Mexican nationals traveling to Arizona for tourism and business Non-binding. Federal action would be required.

3 Supporters as of Dec. 11, 2013 Western Arizona Council of Governments Yuma Metropolitan Planning Organization Inter Tribal Council of Arizona Flagstaff Metropolitan Planning Organization Nogales City Council

4 Border Zone Recognized by the U.S. State Department and U.S. Dept. of Homeland Security Within the Border Zone, there are reduced entry requirements for Mexican nationals traveling for tourism and business (i.e., can use Border Crossing Card) Generally 25 miles from the U.S./Mexico Border into the U.S extension in Arizona to 75 miles 2013 extension in New Mexico to 55 miles Travel outside of Border Zone requires additional processing (i.e., completion of Form I-94, Arrival/Departure Record)

5 Border Zone in Arizona

6 Border Crossing Card (BCC) Issued by U.S. Dept. of State Serves as a B1/B2 Visa Only visa documentation necessary for travel within the Border Zone Cannot be used for air travel Secure numerous, layered security features BCC holders undergo extensive vetting by CBP and DOS Efficient Uses Radio Frequency Identification 20% faster than machine-read ID 60% faster than paper documentation

7 Resolution Rationale Growth of Mexico s economy 14 th largest economy in % GDP growth in 2012 compared with 2.2% for the U.S. Growing middle class Importance of tourism to Arizona economy $7.6 billion to Arizona s GDP in 2012 Maintain security BCC is one of the most secure travel documents used at the border Improve Land Port of Entry processing efficiency Increased use of BCC will reduce necessity of secondary processing (i.e., I-94 Form) Travelers with BCCs do not need to leave their vehicles Allows CBP to reallocate that staff time to other security enhancing activities

8 Mexican Visitors to Arizona: Visitor Characteristics and Economic Impacts Surveys and data collection conducted by the UA Eller College in 1991, 1999, and 2007/2008 (July/June) 24M alien crossings from Mexico to Arizona between 2007/2008 Average of $7.3M spent in Arizona per day 99 percent of Mexican visitors enter Arizona through the LPOEs 99 percent of visitor parties are from Sonora, Arizona 64% leisure Largest sector is personal shopping (57.44%) 36% business

9 Factors Influencing the Mexican Visitors Border Crossings and Spending Pattern

10 Factors Influencing Mexican Visitors Border Crossings and Spending Patterns Exchange rates changes in the real exchange rate [Peso to Dollar] have statistically significant impacts on total retail sales... Maquiladora sector employment Maquiladora employees are a significant component of cross-border shopping Ripple effects of expansions and contractions in this sector Retail sector changes in Mexico Increasing availability of U.S. retail outlets (e.g., Costco, Wal-Mart, Home Depot) Post 9/11 border security policies (e.g., WHTI) It is now harder and more expensive to obtain an entry visa, while increased border security at border crossings is causing delays at the border. Fewer visits, but spending more per visit. Growth of online retail

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12 Entry Requirements BCC holder traveling within border zone Mexican National Non-BCC holder Canadian National Passport required to enter U.S. No Yes Yes Passport fees N/A 10 year: $136 USD 10 year: C$160 Separate B1/B2 visa No Yes No BCC and B1/B2 visa fees $160 $160 N/A Visa length of validity 10 years 10 years N/A Arrival/ Departure Record required (Form 1-94) No Yes No Form I-94 cost and time burden N/A $6 per visit; 8 minutes N/A