Stop CANAMEX, Stop the Intermountain West Corridor and I-11! Stop the Sun Corridor! Stop the 202!
Showing posts with label trade with mexico. Show all posts
Showing posts with label trade with mexico. Show all posts

Wednesday, November 23, 2016

Nov 2016 Updates

Court refuses to block construction of South Mountain Freeway

"A federal appeals court has refused to issue an emergency order to stop construction of a new Phoenix freeway.
The 9th Circuit U.S. Circuit Court of Appeal’s action Monday means construction of the South Mountain Freeway can proceed while the appeals court considers an appeal."

More...

Benefit show for Standing Rock and No 202 Resistance


Foreign Trade Zone Sweetheart Deal for Monsanto Delayed

The Pima County board of supervisors voted to delay the decision to afford Monsanto tax breaks on the land they purchased in Avra Valley for a giant greenhouse in which to seed for GMO corn. The land lies between a proposed Interstate 11 alignment and the I-10.

Monsanto was hoping to quietly benefit from their land becoming designated as a Foreign Trade Zone (FTZ). FTZs function like inland ports in which businesses get tax breaks and duty exemptions and deferrals, as tax incentives. The presence and authority of the Customs and Border Protection (CBP) in these foreign trade zones have unknown implications for migrants within them.

See: Dozens Tell Pima County Supervisors: “Say No to Monsanto”, Pima County supervisors postpone vote on tax breaks for Monsanto, Details of Monsanto deal with Pima County are released | Government and politics, and The Big Fix and How It Works: Pima County’s “Project Corn”

Thursday, November 3, 2016

Public Opposes New Interstate 11 in Southern Arizona

This media release was sent via email from the Avra Valley Coalition.
 
News from the Avra Valley Coalition:             Contact: Albert Lannon, 520-622-3561, albertlannon@powerc.net

Public Opposes New Interstate 11 in Southern Arizona

A review of the public comments gathered at five “public scoping meetings” in June, 2015, by the Arizona Department of Transportation shows a large majority favoring “enhancing or expanding existing highways and freeways” rather than building a new highway.  Written comments from the more than 500 people attending those meetings run seven to one opposing a new interstate.  Most attendees came from the Tucson-Marana area and most of  those objected specifically to a new highway through the Avra Valley as proposed by Pima County Administrator Chuck Huckelberry.

According to ADOT Community Relations Manager Laura Douglas about 150 people attended the Tucson meeting, with another 150  in Marana; Casa Grande had 51 attendees, Buckeye  53, Nogales 41, and Wickenburg 95.  An additional 300 comments were received outside of the public scoping meetings, but those are not yet available for review.  While some of the attendees thanked ADOT “for allowing all the input,” it is not clear that the voice of the public will be heard in determining the future of I-11.

Project Director Jay Van Echo acknowledged in a May 18 meeting with Avra Valley activists that there were only two possible routes, along the existing I-10 or through the Avra Valley.  According to emails obtained by the Arizona Daily Independent, the Avra Valley route as first choice was made before the $15 million Tier One Environmental Impact Study was underway.  Here is a June 10, 2016, email from Pima County Economic Development Director John Moffat to County Administrator Huckelberry and his assistant, Nanette Slusser:

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While the Pima County Board of Supervisors is on record in Resolution 2007-343 opposing any I-10 bypass in Pima County, Huckelberry and his staff have been allowed to use county resources to promote the Avra Valley route, and the BOS supported the McCain-Kirkpatrick-Grijalva amendments to the FAST Act designating I-11 and its Sonoran Corridor leg, formerly named “I-11” on county maps, as interstates eligible for federal funds.

Opponents of I-11 note that planners envision a future with research and development in Arizona and Nevada and manufacture and assembly in Mexico where they believe wages will be lower than in China.  They call that “integrative manufacturing.”  They also hope to attract American companies from China to Mexico, called “nearshoring,” and to steal jobs from the West Coast to the expanding Port of Guaymas.  An Avra Valley route would hurt tourism at places like the Desert Museum and Saguaro National Park, take away Kitt Peak’s needed darkness, and lose jobs along the existing I-10 corridor.  It would also negatively impact communities and wildlife, along with ancient archeological sites.

Candidates for the Board of Supervisors Ally Miller and Kim DeMarco have publically opposed an Avra Valley I-11 route, while the other incumbents have been silent as the County Administrator beats the drums.  The Green Party candidates also oppose it, while Steve Christy – who served as chair of the State Transportation Board when the I-11 EIS was approved – favors the Avra Valley route.

The Sonoran Corridor, listed as an “auxiliary highway” to avoid the bypass conflict, was shown on county maps as I-11 and its curious configuration links with the “Huckelberry Highway” at I-19.  The Sonoran Corridor was also rejected by voters in last November’s bond election, but that hasn’t slowed down Huckelberry or BOS Chair Sharon Bronson from looking for ways to advance it.

Bronson’s opponent in the election, Kim DeMarco, along with L.D. 11 state legislators Steve Smith and Vince Leach, have publically stated their support for double-decking part of I-10 rather than ruining the Avra Valley.  That option, according to ADOT, would cost one-third that of a new highway and save taxpayers nearly $2 billion.  LD 11 State Senate candidate Ralph Atchue isn’t sure how much input state legislators will have, and prefers the highway not go through the Avra Valley.

Wednesday, June 22, 2016

Interstate 11: NAFTA Trade Corridor

Arizona’s economic destiny has everything to do with international trade, specifically trade with Mexico, or at least that’s the myth fueling the planned construction of a road that would cut through the state.

The trade corridor, designated Interstate 11 (I-11), does not yet have a definite route, aside from the first portion called the Boulder City Bypass which is already under construction and scheduled for completion in 2018. ADOT planned several “public scoping meetings” for the last week of June to discuss their plans with the public. What we do know is that it is intended to officially span Arizona and Nevada, as part of a larger concept of a trade corridor connecting Mexico and Canada.

There are several problems with the I-11 and the trade corridor in general. Carving out this route across the land will undoubtedly cause massive damage to the earth, living beings, and sites that are invaluable to indigenous and other people. Big semi trucks and perhaps trains transporting products each way will bring increased traffic, pollution, and safety issues. The road will contribute to increased need for more oil and gas extraction, and will lead to more development and sprawl.

The route is an extension of the North American Free Trade Agreement (NAFTA) between Mexico, the US, and Canada; which has varyingly afflicted each country involved, to which many workers can attest and as mass migration illustrates. The claim is that NAFTA’s corridors will advance economic development, which is usually code for “the rich get richer”, and just as NAFTA only bolstered corporate interests, so will its interstates. The corridors allow for more imports of products made in Mexico as well as from Asia, produced at very low wages. The trade routes additionally contribute to the already damaging extraction of resources such as oil, minerals, and water.

Governor Ducey claims that increasing trade with Mexico will improve the economy and well-being of both countries, but this is more likely just media spin to attain infrastructural improvements for business gains. Ducey and others have sought to re-brand Arizona to the Mexican business class by distancing themselves from SB1070. While there is no doubt that 1070 is a terrible discriminatory law, the casting of the bill as the villain serves a purpose to shift attention away from free trade and its impacts, particularly displacement/migration, but also the disappearances and murders.

The US is complicit in the violent acts against Mexican people, such as the disappearances of the students of Ayotzinapa, and what’s happening now in Oaxaca, among so many other examples. This is not to mention what’s going on in El Salvador, Guatemala, and Nicaragua and the Mexican government’s involvement in trying to curb migration from these countries.

NAFTA requires the violence of border security, of displacement and loss of jobs, but also state repression and the violence of the drug trade and drug war; which are all intimately connected.

Increased movement of goods across the US/Mexico border means increased import of illicit drugs. More drugs come through the official ports of entry than by foot between the ports (Ducey’s Strikeforce focuses on the latter). Increased presence of meth and heroin in particular contributes to a major public health problem in the US that the government treats as a security issue rather than through the more successful approaches of prevention and treatment. The movement of more drugs, therefore, means more militarization of the border region (not to mention south of the border through the Merida Initiative and CARSI), detrimental to communities in the areas affected. Many US officials on both sides of the border, given authority and impunity, continue to be implicated in the drug trade as well.

Would those pushing the free-market policies in Mexico acknowledge their impact on the rise of the drug trade due to expansion of infrastructure and also recognize the role of their trade policies that benefit major corporations in contributing to the contrast between the profitability of drug-trafficking in relation to the poverty? On the contrary, the “drug war” is to some degree an attempt to manage, not stop the drug trade; but the purpose is mainly to further facilitate access to land, resources and cheap labor. A trade corridor to facilitate trade only perpetuates these problems.


Interstate 11, Intermountain West Corridor, and Canamex

Interstate 11 has been in the works for years. After much lobbying, the interstate was designated as such by congress through MAP-21 legislation in 2012, due to its role in completing the international trade corridor for freight traffic connecting Mexico and Canada. The portion between Phoenix and Las Vegas, Route 93, was considered inadequate. The rest of what was called the "Canamex Corridor" spanning western North America already exists. In the Interstate 11 Study website's own words: "... the Canamex corridor is composed of a myriad of existing Interstate corridors and state highways, and is not a continuous route due to a gap in the designation between I-10 and US 93. Implementation of the [I-11] Corridor can fill this gap..." However, as the years have gone by and different influences come into play, the emphasized international trade route has changed in some ways. The Interstate 11 in Nevada and Arizona is now part of a larger concept called the Intermountain West Corridor, which is a route somewhat different from Canamex but would also connect Mexico and Canada through Arizona.

Because an interstate could include access to some federal funding, some people and organizations in southern Arizona have been pushing to have the Interstate 11 officially run beyond Phoenix, down through Tucson and Nogales to the border with Mexico, even though Canamex already does. ADOT reported on December 4, 2015 that "The Fixing America’s Surface Transportation Act”, or FAST Act, formally designates Interstate 11 throughout Arizona. It states that the I-11 corridor will generally follow Interstate 19 from Nogales to Tucson, Interstate 10 from Tucson to Phoenix, and US 93 from Wickenburg to the Nevada state line. Nevadans have expanded I-11 in their state as well, joining Las Vegas to Reno, connecting to Interstate 80.

The Sonoran Corridor, which would run through Avra Valley and benefit defense and technology corporations like Raytheon, may act as a piece of the Interstate 11 by connecting Interstate 19 with Interstate 10 south of Tucson. In reference to the legislation introduced, McCain said, “The Sonoran Corridor project will have a significant impact on state, regional, and national commerce by connecting major trade routes and improving transportation along the Canamex Corridor and the future Interstate-11."

Carlos Slim and Doug Ducey, from azmc.org
Due to the 2015 meetings between Governor Doug Ducey and Mexican billionaire Carlos Slim, Mexico may in the future also officially recognize I-11 as extending to Mexico City. Although perhaps not officially, Canamex currently has its southernmost point at the Port of Guaymas where powerful mining companies such as Freeport McMoran (who was present at the meetings in Mexico City) and BHP Billiton (of Resolution Copper who plans to destroy Oak Flat/Apache Leap with their copper mine) do business. Canamex would also be an important corridor of TPP trade due to its Pacific seaport in Guaymas, Mexico, and its proximity to the west coast in general.

What resulted in the Ducey’s meetings in Mexico was less specific than extending I-11 to the city. It was a Memorandum of Understanding to “conduct a study on how to further optimize the Arizona-Mexico trade corridor, including road and rail infrastructure and industrial clusters." Mexico has already made improvements to Route 15 at the behest of Arizona officials.

Despite the high degree of interest in the construction of new roads for moving products, an overarching motivation mustn't be overlooked. As explained in More than Bricks and Mortar, the primary incentive is likely a growing effort on the part of financial institutions and those who see common interests to find more profit-making opportunities.
"... 'infrastructure' is less about financing development (which is at best a sideshow) than about developing finance..." "what is being constructed are the subsidies, fiscal incentives, capital markets, regulatory regimes and other support systems necessary to transform 'infrastructure' into an asset class that should yield above average profits.
Currently there is no source of funds in either state, so the project will likely be composed of public-private partnerships, similar to that of the South Mountain Freeway (which will also support a lot of the trade traffic in and out of Phoenix), a government subsidy to corporations, effectively. Public-private partnerships are just such a way to create opportunities to use “innovative financial mechanisms” (low-interest rate loans, tax-free bonds) to leverage a state’s assets. It may end up with tax increases, involve toll concessions, and/or bankrupt governments.

The Interstate in Arizona alone, including the studies, even in the areas where Interstate would would be redundant in relation to Canamex, will cost billions upon billions of dollars.


Who’s Involved?

The Arizona-Mexico Commission (AMC) is said to be the "god father" of the Canamex Corridor by AMC's Canamex expert, former US Representative, Jim Kolbe. There had been a Canamex Coalition and an Arizona Governor’s Task Force which seemed to have lost steam during the recession, but now the Transportation and Trade Corridor Alliance (TTCA), according to AMC’s website, “encompasses the former Canamex Task Force."

TTCA was instituted in early 2012 by Arizona Governor Jan Brewer. According to a press release back then, "ADOT – in collaboration with the Arizona-Mexico Commission and the Arizona Commerce Authority – will bring together public and private sector partners to assess opportunities for Arizona to pursue investments in trade corridors such as the newly-designated Interstate 11, and to explore enhancements to border infrastructure. The Alliance will help identify how best to take advantage of the state’s current resources and guide future investment in a strategic way to increase the capacity of existing corridors – all with the ultimate goal of improving Arizona’s competitiveness in a global marketplace."

According to one I-11 Study document, the CAN-DO (Connecting Arizona and Nevada - Delivering Opportunities) Coalition, a nonprofit corporation, also now known as I-11 Coalition, "played a strong role in lobbying for the designation of this corridor as 'Interstate 11' in MAP‐21." A couple of the coalition members had been involved in Canamex. U.S. Senators John McCain, R-AZ and Jeff Flake, R-AZ carried the project forward into law.

One of the directors of the I-11 Coalition, multi-millionaire sports executive Jerry Colangelo, along with colleague Michael Ingram (on the board of directors of the AMC), who would both profit from one of the proposed I-11 alignments along their El Dorado Holdings, Inc. Douglas Ranch project, discussed I-11 with Carlos Slim back in April 2015. Colangelo and Ingram are both on the board of directors of the Arizona Commerce Authority. The AMC has coordinated various meetings with Mexican officials and businessmen and played a major role in the opening of trade offices in Arizona and Mexico to facilitate this relationship.

Jim Kolbe, AMC’s Canamex expert also co-chairs the TTCA. He is also described as having been "a leading advocate in Congress for NAFTA" when he incorrectly argued in 1993 that NAFTA would not cause job migration, and still argues that NAFTA is working. Perhaps more notably, Kolbe is a consultant with McLarty Associates on their Mexico Team and the Central America Team. McLarty Associates’ president, Thomas F. “Mack” McLarty III, “was a key figure in the creation of the North American Free Trade Agreement (NAFTA) and the Free Trade Area of the Americas (FTAA).” McLarty and colleagues have multiple connections to the Security and Prosperity Partnership (SPP) (see Highway to Hell?).

The SPP was interested in making Canamex a reality. Launched in 2005 as an extension of NAFTA, the partnership lasted until 2009 but clearly lives on through Kolbe and his colleagues. The SPP, which was secretive and not an official treaty, called for “maximization of North American economic competitiveness in the face of growing exports from India and China; expedited means of resource (oil, natural gas, water, forest products) extraction; secure borders against ‘organized crime, international terrorism, and illegal migration’; standardized regulatory regimes for health, food safety, and the environment; integrated energy supply through a comprehensive resource security pact (primarily about ensuring that the US receives guaranteed flows of the oil in light of ‘Middle East insecurity and hostile Latin American regimes’); and coordination amongst defense forces…” according to Left Turn. It is worth noting that SPP sought to undermine labor laws and promote temporary worker programs as part of their intensification of “neoliberalism through an increased reliance on labor flexibility as a means of increasing profits,” as Left Turn also notes. Kolbe, McLarty, and their colleagues’ role in the drug war is also important.

Lastly, the earliest mention of the Canamex Corridor known to this author is the 1993 Arizona Trade Corridor Study, on which John McNamara, then of BRW, Inc., worked. McNamara now works as as a Deputy Project Manager for AECOM, which is the primary consultant for the I-11 Study. Michael Kies, ADOT project director for the I-11 Study, has also worked for AECOM. He worked for AECOM on the Arizona Rail Framework Study and the State Rail Plan. He was an AECOM project consultant on an ADOT project to make I-10 5 lanes each way from Tangerine Road to I-8. The article on this project stated, "An improved I-10 can 'support the objectives of the CANAMEX trade corridor, which includes this important segment of I-10,' literature indicates. The CANAMEX corridor presumes greater traffic between Mexico and Canada through the U.S. I-10 is 'not only an important east-west freight route,' but decision-makers 'expect freight movements to increase north and south.'" AECOM also plays a major role in pushing for public-private partnerships. The AECOM Global Cities Institute also produced the 2010 Sun Corridor, Future Corridor report which sought to position the “Sun Corridor,” a region spanning urban areas of Arizona (see Megapolitan in a Mega-Drought? A Guide to the Sun Corridor) to “become a major player in continental and international trade” exploiting its “location along the NAFTA highway.”


You can find more on these topics at http://stopcanamex.blogspot.com/search/label/Interstate%2011

Wednesday, December 16, 2015

Arizona-Mexico Trade: Inroads to private gain, Part 3: Shifting Border Enforcement

This is part three of a series. View Part 1, primarily on trade infrastructure here and Part 2 primarily on trade-related public relations and the drug war here.

Arizona Governor Doug Ducey has been portraying the state's five-year-old Senate Bill 1070 like it's an unfortunate relic of the past that Arizona needs to get beyond in order to have a cozy trade relationship with Mexico. This trade relationship is seen as the more sensible of only two options within a perspective that never acknowledges migration as a symptom of so-called free trade. SB 1070 can be sacrificed—though seemingly only in the realm of the media—for the sake of trade with Mexico, partly because the US is now essentially paying the Mexican government to assist in curbing migration. This may mean less reliance on Arizona resources, but at what cost?

The US-funded collaboration with the governments of Mexico and some of Central America to manage migration and the drug trade, with mass-scale violence as a consequence, is for the purpose of a business climate friendlier to trade and investment in the border states, and those countries south of the border. The military and paramilitary violence and the displacement of people outside of Arizona borders is invisible to us, as it relieves law enforcement resources in each state (though tax payers still pay for it). What would be more visible is the transportation infrastructure to facilitate Arizona-Mexico trade—the Interstate 11 and the South Mountain Freeway—multi-billion dollar projects that provide major opportunities for private profit subsidized by taxes. The impacts of Ducey's new Arizona Border Strike Force Bureau remain to be seen but will undoubtedly further militarize Arizona and especially the border region.

SB 1070 has become politically inconvenient for much of the Arizona business community. With the participation of the press (a sampling: 1, 2, 3, 4, 5, 6, 7), Ducey has been making a point since June to re-brand Arizona to the Mexican business class by distancing himself from the controversial law and contrasting himself with former Governor Jan Brewer (who passed SB 1070 into law) in conjunction with making a trip to Mexico to meet with Mexican officials and business people.

The denunciation of SB 1070 is simply part of a public relations campaign. While there is no doubt that 1070 is a terrible discriminatory law, the casting of the bill as the villain serves a purpose to shift attention away from the impacts of free trade. Many of the same methods by which the US has been working with Mexico and Central America to create a more friendly business climate has much to do with why many people have to migrate in the first place.

Guatemala, El Salvador, and Honduras are the countries that most non-Mexican migrants in Arizona (and other states) come from. Many are refugees from violence, as all three countries are among the top ten with the highest homicide rates. It isn't a stretch to say that the trade relationship relies on and causes violence and other harm for the purposes of maintaining a cheap labor force and gaining access to land and resources, whether we're talking about Central America or Mexico. The chaos and fear, and the security response which involves militarization and paramilitarization, brings more of an advantage than not in promoting free trade.

Ducey's interest is in helping portray Mexico as stable and ripe for investment. Arizona's proximity to Mexico and the alleged promise of Mexico's economic growth means Arizona has a specific interest in promoting itself and Mexico, so they can take part in the competitiveness that Arizona/Mexico trade supposedly brings, which includes cheap labor and federal funding for trade infrastructure. 

Although immigration enforcement in Arizona is not incompatible with trade, and in fact is often a response to the consequences of the impacts of free trade, SB 1070-type laws are far less preferable than border controls and enforcement at or south of the border, which are increasing. One reason SB1070 is unpalatable is because it represents the myths perpetuated of the spillover violence from the border. Despite the exaggerated criminality meant to instill fear of migrants from south of the border and pass legislation like SB 1070, there is still clearly a problem of organized crime and violence. As described in Part 2, the violence has gotten worse, not because Mexicans are criminals, but in part due to the effects of US policy and cooperative efforts between the US and Mexico to manage the economic environment through militarization. The US has to pretend things in Mexico have improved because they cannot otherwise justify spending billions of dollars on the Mérida Initiative with its lack of success against the international drug trade.

Now that a federal judge upheld the so-called “papers, please” provision—one of the most controversial of SB 1070—Ducey has only vaguely responded through his spokesperson, stressing the importance of public safety and border security in addition to "a respectful and productive relationship with our neighbor to the south." Even now that Maricopa County Sheriff Joe Arpaio is experiencing the most embarrassing point of his career, Ducey, who was endorsed by Arpaio, has never criticized the controversial sheriff for the harm he's caused migrants (or others who have been racially profiled).

The importance will become clear of the shared ideology between that of Ducey, his associate Jim Kolbe, who is CANAMEX expert of the Arizona-Mexico Commission, and Kolbe's close colleagues who have been pointedly influential regarding NAFTA, Plan Colombia, and/or the Mérida Initiative. The history of and relationship between trade, military intervention, and the drug war south of the border reveals the true intentions of US dominance and private gain.

Lastly, the contrast between Ducey and Brewer that Ducey is playing on is a bit off the mark. Brewer was readily involved in maintaining and expanding the cross-border trade relationship, but the role of the private sphere is likely more important than either governor.

Friday, December 4, 2015

Interstate 11 update

If you're unclear about the relationship between the Interstate 11/Intermountain West Corridor and CANAMEX, read Filling in the I-11/CANAMEX Gaps, which was written about a year and a half ago, but is still pretty accurate, other than the status of I-11.

Here's the latest from McCain's website:

Washington, D.C. – Today, the U.S. Senate delivered final passage of the Fixing America's Surface Transportation Act (FAST Act), a five-year, bipartisan, bicameral bill that provides authorization and funding to enhance roads, bridges, and transit programs in Arizona and across the country. This bill is vital to providing state and local officials in Arizona certainty to set transportation priorities, invest in critical infrastructure and plan wisely. It also includes measures supported by Senator John McCain (R-AZ) that would pave the way for establishing the Sonoran Corridor and the future Interstate 11 (I-11). These roads will ensure that Arizona has the infrastructure it needs to develop significant international trade routes for the Western United States. The FAST Act will now be sent to President Obama’s desk for signature.
Senator McCain originally introduced these measures in the Senate with the Sonoran Corridor Interstate Development Act of 2015 and the Intermountain West Corridor Development Act of 2015, which were ultimately included as part of the FAST Act. These provisions will designate the Sonoran Corridor as a future interstate to connect I-19 to I-10 south of the Tucson International Airport, and the future I-11 from Phoenix north to Las Vegas and I-80, and south to Arizona’s southern border. Congresswoman Martha McSally (R-AZ) also sponsored these measures in the House of Representatives.
“This long-term authorization bill provides the funding certainty that state and local officials in Arizona need to repair our aging roads and improve critical infrastructure, while improving safety for all Americans in transit,” said Senator McCain. “I’m particularly proud that this bill includes measures that I cosponsored that will enable Arizona to become a key part of an international trade route that reaches all the way to the southern border, driving economic growth statewide. While this legislation is not perfect, it advances important provisions to help improve our nation’s infrastructure and connect Arizona’s businesses and communities to major domestic and international trade partners.”
Arizona Governor Doug Ducey and leaders from across Arizona also praised the legislation:
“I commend Congress for passing a long-term transportation bill to support critical transportation projects serving our state,” said Arizona Governor Doug Ducey. “This action today will further our mission of creating a transportation system that drives Arizona’s economic development, and attracts business and commerce throughout the state. Transportation is a key element in growing our economy and providing opportunity for all.”
“I am so thankful for Senator McCain and Representative McSally’s leadership in getting this designation added to the transportation bill and through the Congress,” said Sharon Bronson, chair of the Pima County Board of Supervisors. “Their leadership, combined with the strong bipartisan support this project received from the entire Arizona Congressional delegation, resulted in a major victory for the people of southern Arizona and the entire state. The Sonoran Corridor has the potential to be the most significant economic development effort in the county’s history. The very foundation, the very backbone of the entire effort is the auxiliary highway connecting the two interstates. This designation is the first, vital step on the long road we still have to travel for funding and construction. The future prosperity of our region just got a little brighter today.”
“I'm very pleased this project has made it past this hurdle,” said Tucson Mayor Jonathan Rothschild. “The Sonoran Corridor is important to our airport, our major employers, and our regional economy.”
“The Tucson Hispanic Chamber and our affiliated chambers in Nogales, Douglas and Sierra Vista applaud Senator McCain and Congresswoman McSally for their leadership in advancing these major trade route designations for the state of Arizona,” said Lea Márquez Peterson, president of Tucson Hispanic Chamber of Commerce. “The passage of these measures will enhance the importance of a key trading route from Mexico to the United States.”
The Sonoran Corridor will create an alternative route that will enable the hundreds of thousands of freight vehicles traveling through the Mariposa Port of Entry in Nogales each year to avoid having to pass through the congested city of Tucson to reach major trade routes using I-10. This development is estimated to reduce total travel by 12 miles and 20 minutes per truck, connecting southern Arizona to agricultural regions, infrastructure and manufacturing centers, and existing high priority corridors of the National Highway System. The Sonoran Corridor will also be home to the new Aerospace Parkway next to Tucson International Airport, which has the potential to become one of the largest manufacturing and logistics hubs in the Southwest.
The future I-11 will extend from Arizona’s southern border through Phoenix to Las Vegas and north through the State of Nevada, ensuring the future interstate is connected to the Northwestern United States and plays a key role as an international trade route. Specifically, its designation would provide both states’ Departments of Transportation the flexibility to develop a Northern Nevada and Southern Arizona connectivity corridors as part of the I-11 effort. This full north-to-south, Canada-to-Mexico interstate system is critical for our nation’s mobility, economy, and national defense.
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Thursday, August 27, 2015

Arizona-Mexico Trade: Inroads to private gain, Part 2: Blowing Smoke

Read Part 1 of these series, about the infrastructure and people behind the AZ/Mexico trade corridor here.

Remember when Phoenix was being called the number two kidnapping capital of the world? And when former governor Jan Brewer claimed that beheaded bodies related to illegal border crossings had been found in the Arizona desert? Even if you don't, you might recall that the sorts of things that Donald Trump is saying about migrants were more acceptable not that long ago by many politicians who distance themselves from those remarks today in the interest of building a trade relationship with Mexico.

Even while the beheadings and the scale of the kidnappings were not true, gruesome violence does occur in Mexico, partially due to US policy. But with the new governor, Doug Ducey, hammering the idea via the press that the Arizona-Mexico trade relationship relies on Arizona repairing its reputation with Mexico after the disgrace of SB 1070—with no mention of violence in Mexico—it appears that not only is the fear-mongering no longer politically useful, but it is to be avoided in the interest of the image of Mexican security.

While the myths about spillover violence were used to sow fear of border-crossers, to pass laws like SB 1070 and to secure the border, they also had the effect of scaring away business and slowing movement of goods and impacting business trips and tourism. Considering Ducey has made no effort to make Arizona more safe for migrants, it becomes clear that he and others are more concerned about the business climate than with SB 1070 itself. A focus on what seems to almost be characterized as rudeness on the part of Arizona distracts from the real issues, most likely on purpose.

Let's be real here: the benefit of trade (and border enforcement) for US business is considerably related to access to cheap labor on both sides of the border. The competitive advantage sought by Arizona requires poverty, political stability and security, and infrastructure in Mexico, imposed upon the people through displacement, dispossession, and repression. The North American Free Trade Agreement (NAFTA) played a major role in accomplishing this. The Mérida Initiative, supposedly meant to combat the drug trade, is a continuation of this effort.

A well-designed effort on the part of Mexico, especially with the latest president, has been made to direct attention away from what was and is happening in Mexico so rich men can benefit from (more) foreign investment. In the US, officials and the media have followed suit to initiate the trade corridor through Arizona, and to justify all the money spent on the drug war via the Mérida Initiative (over $2 billion since it began in 2008); for to acknowledge the continuing violence is to admit the failure of Mexican President Enrique Peña Nieto, and the failure of the purported goals of the North American Free Trade Agreement (NAFTA) and the Mérida Initiative.

John McCain's recent announcements of the legislation that facilitates the Intermountain West Corridor/Interstate 11 trade corridor curiously reference Arizona's southern border while minimizing or avoiding direct mention of Mexico, which may speak to the public's current concerns about Mexico due to drug lord "El Chapo" Guzman's escape and the lesser-known murder of a journalist and activists from Veracruz in Mexico City.

Back in 2010, McCain was repeating the fear about Phoenix's alleged high rate of kidnappings. A few months ago, no such mention of the violence on either side of the border was included in his article promoting Arizona-Mexico trade that was printed just days after mass graves were found during the search for the missing students of Ayotzinapa; and in response, protesters, demanding to know where the students were, had set the Guerrero capitol statehouse on fire. While some, including parents of missing students, have posed the idea that the Mérida Initiative is related to what happened in Guerrero, McCain believes that “the Mérida Initiative may be more important than any agreement that we've made." Meanwhile, his proposals for Comprehensive Immigration Reform are heavy on border militarization.

Today, of the 129 bodies found in those mass graves, none of them have definitely been identified as any of the 43 disappeared students, which means the story the government told based on their "investigation" (using torture to gain confessions) is not true, and also leaves the mystery of those 129 bodies. There are many other examples that point to something being especially wrong in Mexico.

When references in Arizona media were made to the organized crime in Mexico and the potential of spillover, it was never acknowledged that in many ways free trade facilitated an increase in organized crime by shifting drug smuggling routes and creating a situation in which the drug trade was lucrative with fewer other means of income to survive on available. It definitely was never mentioned that the Mérida Initiative has been shown to increase homicides, torture, and other such violence. And it was most certainly never mentioned that many of the homicides and disappearances, such as those targeting activists and journalists, are actually the responsibility of law enforcement or military.


Buying Credibility

When Peña Nieto ended up on the cover of Time Magazine in February 2013 accompanied by the words "Saving Mexico," many Mexicans were dumbfounded and disgusted. A similar response was evoked when he appeared a couple months later among the list of the same magazine's 100 most influential people. Evidence shows that there has been a calculated—and costly—effort to paint a pretty picture of Mexico with a very proficient public relations campaign.

The latter Time feature was penned by Bill Richardson, described simply as a former Governor of New Mexico even though he was instrumental in coordinating Democrat support for NAFTA in the early nineties, and when he wrote the Time piece he worked for a company called APCO World Wide, a pro-free trade global opinion research consultancy (he's also very much in favor of the Mérida Initiative). APCO Worldwide was enlisted through NODO Research for a public relations campaign for which Nieto paid around $50,000. Two payments were also made to Time Warner that year totaling approximately $43,000, which seems to be for a 14-page advertorial TIME had printed only two months before, of which, as Bill Conroy of Narco News pointed out, the "Saving Mexico" story generously echoed.

Peña Nieto has made many efforts to improve Mexico's image in conjunction with his own. The Dallas News reports,
According to a recent report from the Observatory of Violence in the Media, an independent watchdog group, coverage of organized crime and violence in the Mexico City press took a dive during the first three months in office of President Enrique Peña Nieto: The use of the words homicide, narcotrafficking and cartel declined by half from the year before. Similar results were found for TV and radio. 
The Mexican government was claiming that crime has gone down in recent years, which many have said isn't true. Many crimes go unreported due to the growing distrust of the police. Even the way statistics on crime are gathered and interpreted has changed, making them appear more favorable. In some cases violence has become more isolated to certain areas in Mexico.

Peña Nieto's stature relied heavily on the 2014 capture of "El Chapo" Guzman, head of the Sinoloa Cartel, who had been on the run for over a decade. With "El Chapo's" second prison escape this July and the poor state of the economy, it's clear that Nieto is in a bad position.

The Washington Post discussed Nieto's ongoing scandals in relation to the recent escape of "El Chapo" Guzman.
But as [Jeremy] McDermott from InSight Crime pointed out, the jail break is just the latest in a string of high-profile problems for Peña Nieto.
“He’s had some very severe setbacks,” McDermott said. “The killing of the 43 students. A series of accusations of human rights abuses against the military. And now the escape of El Chapo.” Add to the list a political scandal in which the first lady purchased a luxurious house on credit from a developer who received lucrative government contracts.
The president, his wife, and the finance minister were recently cleared by none other than a friend of Peña Nieto of any wrongdoing related to the conflict of interest allegations.

Accessing Cheap Labor

Officials and businessmen in Arizona are just as interested in portraying Mexico as a viable business partner mainly because they want that to be true. They are also interested in drawing businesses to Arizona by portraying Arizona as a good choice due to its proximity to Mexico and its infrastructure. Mexico's attractiveness for business has to do with cheap labor, and less strict environmental and labor laws. Even Mexico's ports are more attractive for these reasons than California ports for those businesses shipping between other countries such as China.

Central to the collaboration on Arizona-Mexico trade with Governor Ducey is one of the few beneficiaries of NAFTA-related privatization reforms, Carlos Slim, who made dozens of billions of dollars over the years since he gained access to the Mexican telecommunications industry monopoly. It almost seems that Slim is portrayed as proof of Mexico's economic development success, even while he made his money off the backs of millions of Mexicans. Slim, the second richest man in the world, visited Arizona in the spring, and then hosted Ducey and various Arizona officials and business people in Mexico City this past June.

After various media outlets approvingly covered the Arizona governor's visit to Mexico City, Ducey finally shared his own perspective in a July 4th op-ed.
Mexico is an important ally to advancing in the global economy — it is forecast to be the world's fifth-largest economy by 2050. The ascending and fast-growing Mexican economy will be good for both sides of the border, and it is not just all about GDP, job growth and investment.
As the Mexican people reap the benefits of free-market reforms taking place in Mexico today, and the resulting economic growth, we can expect to see a positive impact on security — specifically, border security. And that's something every Arizonan can get behind.
The forecast of Mexico's economic growth is highly questionable. Accounts of whether or not NAFTA was beneficial to the average Mexican, how opening up PEMEX to privatization will affect the country, and to what degree Peña Nieto has been successful in curtailing homicides, kidnappings, the drug trade, and other organized crime, are all disputed. Nonetheless, this is not an argument over whether Mexico is a smart investment for Arizona. The point is that we are being sold lies — or guesses at best — about political and economic stability in Mexico so business and politicians can gain support for building trade infrastructure and continue the militarization through the Mérida Initiative, which comes at a high human cost with the use of our tax dollars.


Even if there is a growing Mexican middle class as some claim, businesses involved are still looking to benefit from cheap labor and minimal environmental standards more than they're interested in a larger Mexican consumer base. Either way, oil prices are down and Mexico's economy is doing much more poorly than predicted. One of the reasons Mexico is expected to host more manufacturing facilities is that Chinese workers' wages have slowly increased, making Mexican labor more attractive.

As Albert Lannon of the Avra Valley Coalition pointed out, the I-11 Corridor Justification report use of certain projections to explain the benefits of the Interstate meant as a trade corridor is telling.
The planners predict that, as Chinese wages rise, Mexico will become more attractive to corporations. With U.S. manufacturing labor costs at 100 on an [Arizona Department of Transportation] index, China is 5 and Mexico 12. As “trade with Mexico expands,” the report argues, so will “the current trend of moving manufactured goods production … to Mexico... Mexico was the most popular choice for nearshoring, where hourly compensation costs are nearly as low as China.”
The report suggests “industry clusters” and “integrative manufacturing” to house the making of parts in the U.S., with assembly in Mexico...
The report discusses planned improvements at the Mexican port of Guaymas for container traffic. That impacts high-paying jobs in the West Coast stevedoring, trucking and warehouse industries. The report discusses receiving even more goods from Asia as another “alternative future scenario.
In their discussion of marketing I-11 to the public, the pitch is “enhancing economic vitality” and “commercial opportunities.” I-11 is being sold as a way for corporations to make more money. Period. There is no expressed interest in workers except as cheap labor across the border.
Interstate 11 is the primary project Arizona is attempting to accomplish in order to facilitate trade with Mexico. Despite the fact that many people in both Arizona and Mexico lost jobs due to the free market reforms, Arizona officials and businessmen are looking to extend NAFTA trade, with the participation of the Arizona Department of Transportation (ADOT).


Securing Trade

Ducey implies that trade with Mexico will slow migration, that economic development will improve security by increasing incentives for Mexicans to stay in Mexico (and presumably also not get involved in criminal activity). The pro-NAFTA crowd likes to pretend that free trade doesn't rely on forces that make labor cheap in Mexico, which is a primary causal factor of migration. Migrant labor is kept cheap mainly through criminalization.

The public relations strategy of the governor essentially involves apologizing for the disrepute SB 1070 caused for Arizona, although this isn't quite the misdeed Arizona should make up for. (Not to mention that criminalization of migrants is not decreasing and border militarization is only increasing.)

While Arizona is unlikely to broach the subject of the corruption of the Mexican government, considering Arizona was rated the most corrupt state in the US by a Harvard study last year, the state can hardly take the moral high ground in comparison to Mexico anyway. The real harm Arizona is perpetrating is through pushing trade (which encourages the neoliberal reforms on the part of the Mexican government, such as austerity measures), and its promotion and/or use of the Mérida Initiative and other intervention to support this trade, via the federal government.

Free trade policy means accumulation: cheap labor, privatization, and resource extraction. Through the support of NAFTA, NAFTA-related infrastructure such as Canamex/Interstate 11, and the Mérida Initiative, Arizonans and other U.S. officials have made things far worse in Mexico. The Mérida Initiative as an extension of NAFTA has largely benefited the capitalist class and transnational companies (many US-owned).

The Mérida Initiative, also called Plan Mexico, has its emphasis, like Plan Columbia, on the supply-side rather than largely US demand for drugs, but does not even seem to be intended to stop the drug trade. It is a "drug war" aid package costing more than $2 billion, involving training and military hardware provided to the Mexican military. It not only increases US political power and control in Mexico, it provides the US military industrial complex with further profits.

Dawn Paley, author of Drug War Capitalism, laid out in her book many examples of militarization related to the Mérida Initiative occurring in places of interest to transnational corporations and leading to increases in homicides. "Without a drug war, Mexico would have continued to implement neoliberal reforms, but there is little doubt that the fear, distraction, and terror created by the war, as well as the special funding provided through it, helped speed up the reform process." 

Many have linked what happened to the disappeared 43 students to the Mérida Initiative. Chicago-based group Semillas Autónomas (Seeds of Autonomy) wrote,
Ayotzinapa students and their parents, as well as the National Indigenous Congress, have always insisted that the violence that has engulfed Mexico over the past decades is not simply a matter of narco-trafficking and a few “corrupt” officials. They accuse that governing through violence and terror is the nature of the colonial state, and that the so-called “War on Drugs” — sponsored by the US and carried out on both sides of the border — is actually a war against the poor, campesinxs, indigenous, and resistant peoples of the Americas.
"El Chapo" Guzman's prison break is a major blow to the assertion that the Mexican government is no longer colluding in the drug trade on a massive scale. But it would be a mistake to portray the problems in Mexico as due to some natural tendency towards corruption and violence. The US government, partly through the Mérida Initiative, described as "arming NAFTA," has played an immense role in contributing to these problems, with the participation of the Mexican ruling elite. These consequences of arming NAFTA do not outweigh the governmental gains made through militarization.

Explaining the context behind the Mérida Initiative, Dawn Paley described in a journal article about how an earlier phase of the drug war in Latin America relates to the current context,
What are the primary insights from Plan Colombia from the perspective of the U.S. government? First, that the war on drugs can be used as a mechanism to promote business-friendly policies and, second, that the paramilitarism that results from militarizing drug trafficking and drug production can assist in the maintenance of control over territories and populations. A refined version of the comprehensive U.S.-backed “drug war” strategy is what has been applied in Mexico, beginning in 2007. Seen through this lens, the war on drugs appears to be a bloody fix to the United States’ economic woes. The drug war, as embodied in Plan Colombia, Plan Mérida, and [Central America Regional Security Initiative (CARSI)], combines terror with policy making in a neoliberal mix, cracking open social worlds and territories previously unavailable to globalized capitalism. 
One of the main advantages of the Mérida Initiative for corporations is that "The violence deployed by the state and justified with claims of combating trafficking can lead to urban and rural populations being displaced, clearing territory for corporations to extract natural resources, and impacting land ownership and property values," wrote Paley in her book Drug War Capitalism. The violence of the "drug war" can also undermine labor organizing, journalism, and other forms of resistance.

The US government (not innocent of corruption itself) likely took into account the risks involved with providing this aid to a government with a reputation for its high level of corruption, but found it worth it anyway. The Mérida Initiative seems meant to manage violence and other crime, to create a sort of political stability that is favorable to foreign investment but that functions to facilitate control and access via violence or the threat of it.

Aside from the infrastructure such as roads, ports, and rail to support trade, Arizona has more of a role in relation to the Mérida Initiative, besides just McCain's support for it. Arizona has connections to people and policy relating to other interventions in Latin America. Discussed elsewhere on this blog is how one of the main proponents of NAFTA and the CANAMEX trade corridor in Arizona, Jim Kolbe and colleagues of his were also involved in the creation of NAFTA. One of whom, John Negroponte as Ambassador to Honduras, also played a role in the Iran/Contra Affair. The other, Henry Kissinger, was complicit in the military coup against Allende in Chile. Negroponte was also involved with promoting the Mérida Initiative.

Arranged in meetings between Arizonan and Mexican officials, the Querobabi military checkpoint along Route 15 between Hermosillo and Nogales is currently being "improved" upon with $6.8 million from the US government in Mérida Initiative funds (plus funding from the Mexican government). It is too soon to say what the consequences of this will be. It could be that Ducey is not as concerned about border security at the border because some of it is being taken care of via the Mérida Initiative on the other side of the border. That some of the equipment provided to the military at this checkpoint so close to Arizona will be used in the drug trade is a concern, however.

The significance of the corridor south from Arizona stretching to the coast or to Mexico City will rise if trade increases. Fortunately, Sonora has not faced a large amount of violence, but has seen NAFTA-related growth of a mining industry and expansion of the hydraulic society to serve agribusiness. The water wars there could just be the beginning, especially as Arizona (which is cutting back on agriculture to maintain urban water supplies) becomes dependent on produce imported from Mexico.

While those of us in Arizona do not have to contend with the same kind of force when it comes to resisting megaprojects such as Interstate 11 or the Resolution Copper mine, Sonora and other areas along Route 15 might be affected.

Abel Barrera, director of a human rights group in Guerrero was quoted in Drug War Capitalism,
What we've seen up until now is that the militarization is not only a way to enter into the territories, but that it serves to impose megaprojects. [The police and army] are the offensive front that goes and enters into territories in order to guarantee that transnational capital can be established there, and install itself via mines, megaprojects, dams, and ecotourism projects. Regardless of the fact that they are in their own lands, a village cannot go against a mine or a multinational company. Companies need a guarantee that capital is worth more than the lives of the peasants that are blocking it.
As of now, the unofficial plan is to connect the Interstate 11 to Mexico City, which means the area of San Francisco Xochicuautla, Lerma, in the State of Mexico, where Grupo Higa (the same construction group that has been more than favored by Peña Nieto) plans to build a road connecting Mexico City to a nearby airport to the west would be more significant as part of an official trade corridor. Even without involving the drug war, the indigenous people's resistance is met with worsening force.

Arizona is being plundered as well. Destruction, displacement, and desecration happens or would happen in the name of economic development in Arizona, especially affecting many indigenous people. The border militarization and the wall, the South Mountain Freeway, Resolution Copper's land grab of the Oak Flat area, the coal and uranium mining up northall are justified in the name of economic development, when really it is a few who gain profits at the expense of the people and the land.


In the same way that immigration enforcement is not meant to stop migration but to render migrants a permanent underclass, US intervention in Mexico is meant not to stop, but to manage, the movement of drugs, organized crime, and the associated violence. The US certainly is not interested in curtailing the demand for drugs north of the border (for which they could put more resources towards public health and treatment), nor the movement of arms southward. Although the violence has consequences for business, in broader terms it also has its benefits. As long as it is isolated and it can be mostly ignored, it is beneficial to business interests.

Are Donald Trump's racist comments about migrants worse in comparison to all of this? The bi-partisan effort to gain access to Mexican resources is portrayed as a friendly transaction while Trump plays an extremist role that makes anything else seem reasonable. It is necessary to cut through the smokescreen and see how the projects in Arizona are connected to the plunder of Mexico.

Read Part 3 here.

Wednesday, August 5, 2015

Arizona-Mexico Trade: Inroads to private gain, Part 1


This series is dedicated to Krazy Bill.


If Arizona destroys part of South Mountain/Moahdak Do'ag to build the freeway, it will to a large degree support the trade traffic recently being promoted by the new Governor Doug Ducey in collaboration with one of the biggest beneficiaries of NAFTA-related reforms, the Mexican extreme billionaire Carlos Slim.
 
Yes, the South Mountain Freeway/Loop 202 extension concept dates before NAFTA, but Arizona's promotion of trade with Mexico has accelerated in the past couple of years, with an emphasis on the Phoenix/Tucson area as a trade hub called the Sun Corridor. Another road, Interstate 11, a mega-project that would connect Las Vegas with Phoenix and beyond creates a north-south trade route.

Costing billions of our tax dollars, the planned roads and other infrastructure would physically facilitate the trade that business and politicians desire. The federal and local facilitation of a public-private partnership (P3) arrangement, also aligned with free market ideology, is what seems to be pushing the Loop 202 plan along. A P3 can be understood as federal subsidization for private companies to build infrastructure that would prioritize projects that would benefit other private companies, such as mining companies--again, with our tax dollars.

There is a much-increased emphasis on infrastructure for trade with Mexico—a country whose people, except for the rich minority, were and continue to be negatively impacted by NAFTA and associated reforms and intervention including the drug war. The international trade corridor through Arizona would further promote the use of cheap labor south of the border, which also impacts US jobs, as many have experienced.

Ducey has gotten a lot of positive press in Arizona for reaching out to Mexico, but one can't help but notice, if one is aware of the circumstances in Mexico, the complete silence in this same press coverage around the recent and continuing homicides, disappearances, torture, massacres, and kidnappings in Mexico—something that should factor into a discussion on trade with our "good neighbor" to the south. Whether the authors and editors are ignorant, in denial, or playing pretend, this speaks to the successful public relations campaign to brand Mexico as tame and stable. The denial also stems from the fact that the same policies that support free trade with Mexico are largely to blame for this violence.

It wasn't that long ago that the threat of spillover violence was used to justify anti-immigrant laws and border militarization, but now the tragedy and turmoil that is in large part due to these free trade reforms can be ignored with the help of some very powerful people. Does Ducey actually believe that increasing trade with Mexico will improve the economy and well-being of both countries, as he says, or is it just media spin to attain infrastructural improvements for business gains?

Despite his expensive PR campaign, Mexico's president Enrique Peña Nieto is suffering a crisis of legitimacy, not only because of "El Chapo" Guzman's recent escape from prison, but due to the recent attack on the students of Ayotzinapa last fall—to name only the most attention-grabbing recent incidents. Meanwhile, the violence in Mexico would not be what it is if it weren't for neoliberal reforms and especially the Mérida Initiative, a U.S./Mexico plan purportedly meant to curtail the drug trade, but with the effect of benefiting transnational corporations seeking to accumulate more wealth from Mexico at the same time as increasing militarization and violence across the country.

The following is part one of a series in which the broader implications of Arizona-Mexico trade will be discussed as it relates to the public relations campaign to portray a calm and secure Mexico ready for trade. Both in Ducey's constant references to SB 1070 and Jan Brewer, and in Peña Nieto's enlistment of pro-NAFTA international consulting agency, can be seen a propaganda campaign to portray Mexico, NAFTA, and the drug war, as successful while achieving a misdirection away from Arizona and the U.S.'s role in perpetuating the violence. (See Part 2 here). Increased trade with Mexico will lead to increased border militarization, with consequences for those living along the border and those trying to cross. Attempting to politically and economically stabilize Mexico for transnational investment comes at an immense price. The series will address the pivotal roles of Governor Ducey and Carlos Slim (and a few other players) in the countries' relationship and what Slim's wealth and influence represent (Part 4 is in progress). The promotion of economic development is not about improving our lives, but is about cheap labor, resource extraction, and privatization (See Part 3 here). The relationship between Ducey and at least one mining company that epitomizes this, exploiting its workers and contaminating the environment, will be discussed as well. Finally, how trade and infrastructure impact and create demand for water will likely be included in the series.


The Roads

Back in April, multi-millionaire sports executive Jerry Colangelo and another Arizonan in real estate, Michael Ingram, who would both profit from one of the proposed alignments for Interstate 11, extolled the corridor in conversation with Carlos Slim, convincing him to promote its extension down to Mexico City.

Similar discussions about facilitating Arizona-Mexico trade were continued when Governor Ducey, claiming to polish Arizona's reputation that former Governor Brewer tarnished with SB 1070, took a trip to Mexico city in June, meeting with Slim again and also meeting with mining executives, other business leaders, and working on a few agreements with Mexican officials.

Arizona sees a lot of room for improvement if the state is to compete with Texas, California, and New Mexico in facilitating trade with Mexico. Arizona infrastructure, like roads such as the South Mountain Freeway Loop 202 Extension and Interstate 11, as well as border ports, rail, etc. are being built or expanded at the behest of business interests looking to create an international trade corridor through Arizona.

Interstate 11 has been in the works for years. After much lobbying, the interstate was designated as such by congress through MAP-21 legislation in 2012, due to its importance in completing the international corridor for trade freight traffic between Phoenix and Las Vegas since Route 93 was inadequate. The rest of what was called the "Canamex Corridor" already exists. However, as the years have gone by and different influences come into play, the emphasized international trade route has changed in some ways.

For example, likely due to the influence of Harry Reid and others in Nevada, the international trade corridor referenced with the Interstate 11 is called the Intermountain West Corridor and is a more western route north of Las Vegas to go through Reno then Oregon and Washington, rather than cutting over to Utah then through Idaho and Montana.

Because an interstate promises access to some federal funding, some people and organizations south of Phoenix have been pushing to have the Interstate 11 officially run down through Tucson and Nogales to the border with Mexico, as well. On July 30, the US Senate passed the Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act, which "would designate the Sonoran Corridor as a future interstate to connect I-19 to I-10 south of the Tucson International Airport, and extend the future I-11 from Phoenix north to Las Vegas and I-80, and south to Arizona’s southern border."

Update: ADOT reported on December 4, 2015 that "The Fixing America’s Surface Transportation Act, or FAST Act, formally designates Interstate 11 throughout Arizona. It states that the I-11 corridor will generally follow Interstate 19 from Nogales to Tucson, Interstate 10 from Tucson to Phoenix, and US 93 from Wickenburg to the Nevada state line. From there, the Interstate 11 corridor extends north through Nevada, and is designated as an interstate highway north of Las Vegas, through Reno, connecting to Interstate 80...
ADOT is beginning work on a Tier 1 Environmental Impact Statement covering the area between Nogales and Wickenburg." More information at ADOT's website.

The Sonoran Corridor, which would run through Avra Valley and benefit corporations like Raytheon, may act as a piece of the Interstate 11 by connecting Interstate 19 with Interstate 10 south of Tucson. In reference to the legislation introduced, McCain said, “The Sonoran Corridor project will have a significant impact on state, regional, and national commerce by connecting major trade routes and improving transportation along the CANAMEX Corridor and the future Interstate-11.” I-11 legislation, a few steps from being enacted, would lead the way for funding from the federal government.

"Specifically, its designation would provide both states’ Departments of Transportation the flexibility to develop a Northern Nevada and Southern Arizona connectivity corridors as part of the I-11 effort," states the DRIVE Press Release. This means it'll be easier to prioritize and get financing for the transportation routes that are meant for trade.

Additional efforts in Nevada are being made to get funding for the interstate. Currently there is no sources of funds in either state, even for the route that is already designated as an interstate, and it will likely be composed of public-private partnerships, facilitated and incentivized by the federal government, either way. The first portion, the Boulder City Bypass, which may be contaminated with asbestos, is already under construction.

Now due to the meetings with Carlos Slim, Mexico may in the future also officially recognize I-11 as extending to Mexico City. Although perhaps not officially, the trade corridor called Canamex currently has its southernmost point at the Port of Guaymas where powerful mining companies such as Freeport McMoran (who was present at the meetings in Mexico City) and BHP Billiton (of Resolution Copper who plans to destroy Oak Flat/Apache Leap with their copper mine) do business. Mexico has already made improvements to Route 15 at the behest of Arizona officials.

An announcement came out prior to Ducey's trip to Mexico that it was expected that the meetings would result in four agreements, one of which included I-11's extension to Mexico City, but only three agreements resulted. What resulted regarding the I-11 issue was less specific according the the US Embassy website:
"[A Memorandum of Understanding] between Arizona Department of Transportation (ADOT) and the Ministry of Communications and Transportation of Mexico (SCT) for the establishment of a binational commission that will endeavor to conduct a study on how to further optimize the Arizona-Mexico trade corridor, including road and rail infrastructure and industrial clusters."
From Transportation and Trade Corridor Alliance website. The small square does not seem to include the Loop 202 extension but clearly that area is quite central to the trade corridor traffic flows.

While Interstate 11 is a long way from being completed, the Loop 202 South Mountain Freeway is nearing the beginning of construction, unless it is stopped. It has been pointed out by critics that the road is meant as a truck bypass, and although it is not part of the official CANAMEX Corridor route, it had been proposed as such (among other options) due to its location. Its position in relation to Phoenix and other freeways means it would very likely be used by many freight trucks with business in Phoenix. As shown in the TTCA website capture, the Loop 202 is in an area very central to the key commerce corridors.

From ADOT 3D Fly-Through Video
To the dismay of many, largely because it would "remove over 4 Million cubic yards of South Mountain and make a cut 20 stories high and wide enough for 8-10 lanes through 3 mountain ridges," things are moving along on the freeway. However, a lawsuit poses a serious challenge to the project. Protecting Arizona's Resources and Children (PARC brought the first lawsuit, and the the Gila River Indian Community brought the second lawsuit. (Update, read Judge rules in favor of freeway, opposition builds). A failed attempt at getting a temporary injunction against the freeway is a setback but is not wholly discouraging. Other forms of resistance including a recent protest against a Loop 202 networking event, provide avenues for those outside the legal system, especially those who don't have much faith that the system works in favor of the people or the environment, especially indigenous people and sacred sites.

Currently, there's a shortlist for the public-private partnership to build the Loop 202. ADOT announced it would release a final Request for Proposals late this past spring, but it has not yet been seen. A developer will supposedly be chosen by the end of this year. ADOT is in the process of right-of-way acquisition. (Update: Connect 202 Partners was selected.)

As discussed in the "Trade and Growth" section of the post on this blog entitled "South Mountain Freeway Justified by Controversial Traffic Projections?" the traffic projections for the road, among other problems, likely were influenced by knowledge of the intentions and plans for the international trade corridor and its geographical relationship to the road.


The (Public-) Private Interests

Ducey may be taking credit for initiating a trade relationship with Mexico, but much has been in the works over the last few years. Notably, two Arizona trade offices have been opened in Mexico. Arizona, with the cooperation of Mexico has initiated upgrades to border ports and security, and expansion of a military checkpoint between Hermosillo and the border with Arizona, with Mérida Initiative funds. Of course, the Interstate 11 has been in study phase since 2012 as well.

The Arizona Department of Transportation (ADOT) has led the charge in driving these projects, along with the Arizona-Mexico Commission (AMC), the Arizona Commerce Authority (ACA) and their offspring: the Transportation and Trade Corridor Alliance (TTCA). The TTCA was created by former governor Jan Brewer as a public-private partnership unit that would carry on the role of the Governor's Camamex Taskforce (which had been started by the previous governor, Janet Napolitano). Led by members of ADOT, AMC, and ACA, with various private participants (including Freeport McMoran), the TTCA acts as Arizona's freight advisory committee. The AMC, with members including the governor and the director of ADOT, as described in Arizona's Roads Meant for Trade with Mexico Despite Corruption and Violence?, is largely responsible for moving the trade corridor along.

As outlined in From Ayotzinapa to Arizona: NAFTA Persists, AMC Canamex Expert and co-chair of the TTCA, Jim Kolbe, a former Congressman, was involved in the passing of NAFTA twenty years ago, along with various current colleagues.

A number of organizations including ACA as a presenting partner, and AMC as a sponsor, were involved in putting on the Carlos Slim event in Phoenix in April. Both men reported to have discussed I-11 with Slim, who are interested in the road passing along their Douglas Ranch project, are on the board of directors of the ACA; Jerry Colangelo also having been on the board of directors of the Interstate 11 Coalition, and Michael Ingram also on the board of directors of the AMC.

Marco Lopez, who works for Carlos Slim, was involved in the AMC and was central to the coordination of Slim and Ducey's meetings wrote in April for the Arizona Republic,
In 2009, Gov. Jan Brewer passed HB 2396 to promote the use of public private partnerships to improve Arizona's aging transportation infrastructure. We need to be far more aggressive in using that law to leverage private sector capital and expertise so we can improve and build new transportation infrastructure and safely increase the flow of trade and commerce into the United States and Mexico.
The AMC and the TTCA are very much in favor of the public-private partnership (P3) approach to the problem of lack of funds for transportation infrastructure. Essentially a form of privatization that is subsidized via federal incentives such as tax-free bonds and loans with low interest rates, P3s allow for the leveraging of state assets for projects that might not otherwise have funding. It is largely a project of financial institutions and consultants who profit off of complicated financial strategies, and is promoted by construction companies and engineering firms due to the promise of more funded projects. State officials are interested in gaining access to federal funding and being able to advance projects that businesses gain from, such as the Interstate 11 which would benefit Jerry Colangelo and others with real estate along a possible route.

Again, the plan is for the South Mountain Freeway to be a public-private partnership. It is likely to be a test run for more P3s in Arizona, including the Interstate 11.

Arizona officials would argue that all of this is for economic development. That's what they said about NAFTA and NAFTA has led to the enrichment of the few, and problems for many many others. Trade with Mexico benefits the mining and energy companies, and industries that rely on cheap labor and low environmental standards. Arizona wants to deny the damage it does by continuing this trade relationship, but check back for subsequent parts of this series that explores this further.

Read Part 2 here
Read Part 3 here.