PRODUCED BY RESEARCH SUPPORTED BY
TRADE AND
COMPETITIVENESS
IN NORTH AMERICA
El Colegio
de la Frontera
Nort e
A FOCUS ON THE
CALI BAJA MEGA-REGION
The North American Free Trade Agreement (NAFTA) was enacted on January 1, 1994, and
was the first reciprocal agreement of its kind between industrial and developing countries.
Broadly, the agreement sought to lower trade barriers and increase trade and investment
between the United States, Canada, and Mexico.
NORTH AMERICAN TRADE
IN THE AGE OF NAFTA
$1.3T
NORTH AMERICAN TRADE FAST FACTS
5M
28
25
123K
6M
U.S. jobs supported by
trade with Mexico
U.S. states that have
Mexico as #1 or #2 trading
partner
workers hired in U.S.
for every 10 workers
hired in Mexico
(multinational companies)
jobs supported by
Mexican investment
truck crossings
(2017)
U.S. MEXICO TRADE
FAST FACTS
value of trade between
U.S., Canada, and Mexico
(2014)
$3.6B
14M
This summary uses available data to analyze and illuminate
how NAFTA has heightened economic competitiveness across
North America and spurred growth in Cali Baja’s innovation
economy, making it one of the most beneficial and significant
trade agreements in history.
daily value of trade
conducted in North America
U.S. jobs supported
by trade with Canada
and Mexico
40%
U.S. imports from
Mexico originally
sourced from U.S.
25%
U.S. imports from
Canada originally
sourced from U.S.
566K
#1
$26.8B
311%
California jobs
dependent on trade
with Mexico
Mexico is California’s
largest export market
(2015)
value of California’s
exports to Mexico
growth in California’s
exports to Mexico
(1993-2015)
CALIFORNIA MEXICO
TRADE FAST FACTS
TRADE & PRODUCTION We Make Things Together
With the rise of global value chains, cities that are highly specialized in specific industries have been able
to leverage free trade to increase local and global growth. The Cali Baja mega-region’s combined
comparative advantages on both sides of the border have allowed it to emerge as a global hub for
high-tech research and development and advanced manufacturing.
A medical device or automobile
may cross the border multiple times
before it is finished. This trade in
intermediate inputs means that 40
percent of U.S. imports from Mexico
are American-made (compared to 4
percent of U.S. imports from China).
73.6M
$24.3B
$136B
$132B
NORTHBOUND CROSSINGS
(vehicle passengers & pedestrians)
2017
1.4M
NORTHBOUND TRUCK
CROSSINGS
2017
TOTAL FOREIGN EXPORTS
2013*
CALI BAJA: OUR BINATIONAL MEGA-REGION
San Diego’s top trading partners are Mexico and Canada,
respectively. But San Diego’s exports to Mexico, at almost $6
billion per year, are five times its exports to Canada. This is in
large part due to cross border production with Tijuana. One
third of San Diego’s exports to Mexico are destined for
neighboring Baja California.
SAN DIEGO EXPORTS
value of U.S. intermediate
inputs consumed by Mexico
value of Mexico intermediate
inputs consumed by U.S.
50%
share of U.S. – Mexico
trade attributed to
intermediate inputs
The Cali Baja mega-region is home to the world’s largest medical
device cluster, due in part to significant foreign direct investment
from global firms that often co-locate on both sides of the border.
Firms like Thermo Fisher Scientific & BD benefit from all the
mega-region has to offer including specialized production
processes and a highly-skilled labor force.
VALUE OF THE CO-PRODUCING
MANUFACTURING SUPPLY CHAIN
WITHIN CALI BAJA
$2.5 BILLION
3.0%
1.7%
1.5%
9.8%
11.7%
13.9%
3.0%
3.3%
4.0%
4.0%
i
Jobs Know No Borders
TRADE & MANUFACTURING
Cali Baja’s manufacturing sector has emerged as
one of the world’s strongest cross border supply
chains. The competitive advantage resulting from
this integrated, co-producing sector fuels the
innovation economy and fosters competitiveness,
all while supporting high-paying jobs on both
sides of the border.
Cali Baja specializes in advanced
manufacturing, producing many
high-value goods, including
medical devices, semiconductors,
aerospace parts, and audio and
video equipment.
i
i
The economies of San Diego, Imperial, and Baja California are
complementary, relying on one another to supply labor. In the U.S.,
nearly 87 percent of manufacturing job losses from 2000 to 2010 were
caused by productivity increases as opposed to the relocation of jobs
attributed to trade.
SPOTLIGHT: MEDICAL DEVICES
Audio & Video Equipment
MFG
Audio & Video Equipment
MFG
Metal
Production &
Processing
Transportation
MFG
Transportation
MFG
Semiconductor &
Other Component
MFG
Medical
Equip. &
Supplies MFG
Comms
Equip. MFG
Plastics
Product MFG
Semiconductor & Other
Component MFG
TOTAL EXPORTS = $2.1B
SAN DIEGO & IMPERIAL BAJA CALIFORNIA BAJA CALIFORNIA SAN DIEGO & IMPERIAL
BAJA CALIFORNIA
SAN DIEGO & IMPERIAL
TOTAL EXPORTS = $4.1B
7.1M
2.2M
TOTAL
POPULATION
2018
TOTAL JOBS
2013*
BAJA CALIFORNIA
SAN DIEGO
COUNTY
IMPERIAL
COUNTY
OUR BINATIONAL MEGA-REGION AT A GLANCE
The Cali Baja mega-region includes San Diego County, Imperial County, and the State of
Baja California. It is a globally unique binational region that offers one of the world’s
most competitive and innovative business environments by leveraging complementary
resources and capabilities.
*Most recent year available for Baja California
If Baja California were a country, it would be
San Diego’s second largest trading partner
MANUFACTURING EMPLOYMENT SHARE BY INDUSTRY
Medical Equip. & Supplies Manufacturing
Semiconductor & Other Electronic
Component Manufacturing
Audio & Video Equipment Manufacturing
Plastics Product Manufacturing
Motor Vehicle Parts Manufacturing
Other
Navigational, Measuring, Electromedical, &
Control Instruments Manufacturing
Aerospace Product & Parts Manufacturing
Medical Equipment & Supplies Manufacturing
Pharmaceutical & Medicine Manufacturing
Ship & Boat Building
Other
AN ESTIMATED $6.2B OF CALI BAJA’S
TOTAL FOREIGN EXPORTS STAY WITHIN
THE BINATIONAL MEGA-REGION.
55.8%
13.7%
10.3%
8.4%
6.9%
4.9%
6.0%
64.8%
10.1%
6.3%
6.0%
6.8%
Note: Data reflects 2013, the most recent available for Baja California
TOTAL MANUFACTURING
JOBS = 418.3K
Against the backdrop of rapid changes in global production, Cali Baja must identify and
maintain the sources of its competitiveness in the 21st century innovation economy. Cross
border production sharing has made North America more integrated, more resilient, and
more competitive; it has also served to insulate our economies from other global
competitors, such as China. By 2020, however, more than half of all U.S. exports will
be in services, not goods.
THE FUTURE
FRONTIERS OF TRADE
KEY TRADED SERVICES IN CALI BAJA’S
INNOVATION ECONOMY
$3.5M$7.6M
$3.1M
$2M $2M
SCIENTIFIC RESEARCH &
DEVELOPMENT SERVICES
COMPUTER SYSTEMS DESIGN
& RELATED SERVICES
OTHER PROFESSIONAL,
SCIENTIFIC, & TECHNICAL
SERVICES
SOFTWARE
PUBLISHERS
DATA PROCESSING, HOSTING,
& RELATED SERVICES
Note: Data reflects 2013, the most recent available for Baja California
51%
of total trade
within Cali Baja
is in the service
sector
The future of North American trade is not about avocados and
dairy, or even automobiles and medical devices, but about the ways
in which high value services cross borders, and the framework for
IP protection, data transfer and privacy, and sustainability that will
govern and secure tomorrow’s global economy.
RELEASED JUNE 2018
KEY TAKEAWAYS
IN PARTNERSHIP WITH
UNDERWRITTEN BY
Sources: Baja California, COPLADE ; Bureau of Labor Statistics; Bureau of Transportation Statistics; INEGI; State of California,
Department of Finance; UC San Diego Center for U.S.-Mexican Studies; U.S. Chamber of Commerce; Wilson Center Mexico Institute.
FREE TRADE BOOSTS JOBS AND STRENGTHENS NORTH AMERICA’S ECONOMY
Nearly $3.6 billion in trade occurs daily between the U.S., Canada, and Mexico, and 14 million
jobs in the U.S. are supported by North American trade.
WE DEPEND ON EACH OTHER
Mexico is California’s largest export market, with annual exports totaling $26.8 billion.
Today, trade with Mexico supports more than 566,000 jobs in California.
WE MAKE THINGS TOGETHER
The Cali Baja mega-region is globally competitive because of the complementary nature of our
economies. In fact, the mega-region’s co-producing manufacturing supply chain accounts for
$2.5 billion in trade.
WE SPECIALIZE IN HIGH-VALUE GOODS AND SERVICES
Globally recognized as a leader in advanced manufacturing, Cali Baja produces commodities
including medical devices, semiconductors, aerospace parts, and audio and video equipment.
Together, the mega-region’s manufacturing sector directly employs 418,300 workers.
HIGH-VALUE SERVICES ARE THE FUTURE OF TRADE IN NORTH AMERICA
Today, more than 51 percent of total trade within the Cali Baja mega-region is in the service
sector. Establishing a robust framework for IP protections, data transfer, and privacy will be
essential in ensuring that North America remains competitive in the global economy.
