Brief: The Robust Canada-Arizona Partnership in Trade, Technology, and Tourism
This is a brief for our January 9, 2024 program featuring Ambassador Kirsten Hillman, Canada's Ambassador to the United States.
Strong economic ties and collaboration across various sectors characterize the Canada-Arizona relationship. Despite the geographical distance, the two regions are deeply interconnected, particularly in the tourism, aerospace, technology, and agriculture industries. Arizona annually exports a significant amount of goods and services to Canada, contributing to a substantial economic partnership. This relationship is further emphasized by the presence of Canadian businesses in Arizona, ranging from aerospace and engineering to financial services and security.
In 2020, the economic ties between Arizona and Canada were particularly pronounced. According to data from the United States Census Bureau and the U.S. Trade Representative, the total trade between the two regions amounted to approximately $5.2 billion, showcasing the importance of this partnership.12 Canada consistently ranks as one of Arizona's top trading partners, with exports to Canada supporting over 236,000 jobs within the state. Notably, Arizona's key exports to Canada include aircraft components ($1.2 billion), electronics ($650 million), and aerospace products ($450 million), reflecting the diversified nature of the trade relationship.
Furthermore, Canadian investments in Arizona have substantially impacted the local economy. Reports from the Arizona Commerce Authority indicate that Canadian direct investment in Arizona reached $1.12 billion in recent years.3 This investment has been distributed across various sectors, including aerospace, technology, and real estate, contributing significantly to the state's economic growth and job creation. Canadian companies like Bombardier have significantly invested in Arizona's aerospace sector, creating high-skilled jobs and fostering innovation. The aerospace sector holds a pivotal role in Arizona's economy, and specific data from industry reports and press releases demonstrate the extent of collaboration with Canada. Canadian aerospace companies have collaborated with Arizona-based firms, resulting in the exchange of technology and expertise. These partnerships have led to notable achievements, such as developing advanced aerospace components.
The Arizona Commerce Authority has recently announced its plans to open five new trade offices in various countries across the globe, including Canada. In a House panel, the Authority revealed that the purpose of these offices is to encourage foreign investment in the state of Arizona and help local companies expand their reach globally. These trade offices will be opened over the next several months.4
Energy security is a critical facet of the Arizona-Canada relationship, supported by specific data from the U.S. Energy Information Administration. Canada serves as a major supplier of crude oil to the United States, including Arizona. In recent years, Arizona has received a significant portion of its crude oil imports from Canada, ensuring a consistent and reliable energy supply for the state's industries and households.
Beyond trade and energy, tourism and cultural exchange are thriving components of this dynamic partnership. According to the Arizona Office of Tourism, each year, thousands of Canadian tourists choose Arizona as their destination, contributing substantially to the local tourism industry. On average, about 975,000 Canadian visitors spend an estimated $1.4 billion in Arizona annually, supporting local businesses in sectors such as hotels, restaurants, and entertainment venues.5 This influx of Canadian tourists further solidifies the economic ties between the two regions.
In summary, the relationship between Arizona and Canada holds immense importance for both regions. Economically, it contributes to the growth and stability of Arizona, creating jobs and prosperity. Energy collaboration ensures a stable and reliable energy supply. The bonds of tourism and educational partnerships promote cultural exchange and understanding, while collaborations in industries like aerospace drive innovation and technological advancements. Together, these aspects enhance the global presence of both Arizona and Canada, enabling them to compete effectively in the international arena. This partnership underscores the significance of international cooperation in today's interconnected world, benefitting both regions and their people.
Exports to Canada, The University of Arizona | Eller College of Management, azmex.eller.arizona.edu/exports/exports-to-canada. Accessed 3 Jan. 2024.
Total Imports from Canada, The University of Arizona | Eller College of Management, azmex.eller.arizona.edu/imports/imports-from-canada/total. Accessed 3 Jan. 2024.
“International Trade Plan House - Committee on International Trade.” Arizona House Committee on International Trade , Apr. 2023. https://www.azleg.gov/press/house/56LEG/1R/230413INTTRADEPLAN.pdf
Schutsky, Wayne. “Arizona to Open 5 New Foreign Trade Offices Overseas.” KJZZ, KJZZ, 12 Dec. 2023, kjzz.org/content/1865461/arizona-open-5-new-foreign-trade-offices-overseas.
“Newsroom: Boosting the Economic Impact of Canadian Snowbirds in Arizona.” Maricopa Association of Governments, Maricopa Association of Governments, 22 July 2022, azmag.gov/Newsroom/MAG-News/boosting-the-economic-impact-of-canadian-snowbirds-in-arizona.
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