Project Agriculture

Arizona’s agricultural trade relationship with Canada continues to demonstrate both strength and strategic importance. In 2023, Arizona exported $556 million in agricultural products to Canada, contributing to a total bilateral agricultural trade value of $869 million. This included $134 million in fresh and chilled vegetables, underscoring Arizona’s role as a reliable supplier of high-quality produce. In return, Canada exported $313 million in processed food products to Arizona, highlighting the complementary and integrated nature of this cross-border relationship (Source: Agriculture and Agri-Food Canada).

Canada also plays a critical upstream role in Arizona’s agricultural productivity by supplying potash and other essential fertilizers. This foundational input underscores the deeply interdependent nature of the relationship—one that extends beyond trade flows into supply chain resilience. Recognizing this, the Canada Arizona Business Council (CABC) has launched initiatives to explore how emerging technologies and evolving supply chains will shape the future of agriculture across Arizona, Canada, and Mexico.

Canada, Mexico, and Arizona share a long-standing and highly respected agricultural partnership. Canada remains Arizona’s leading export destination, accounting for approximately 33% of total exports, followed by Mexico at 22% and China at 13%. Arizona’s agricultural exports reflect a diverse and productive sector, including fruits, winter vegetables, nuts, seeds, wheat, hay, cotton, eggs, beef, and dairy. This diversity strengthens Arizona’s position within North America’s integrated food system (Source: Agriculture and Agri-Food Canada).

Maintaining and strengthening these trade relationships is essential to the long-term success of Arizona’s agricultural sector. Trade policy—including tariffs, regulatory alignment, and dispute resolution mechanisms—continues to influence cross-border flows. Under the framework of the United States–Mexico–Canada Agreement, Arizona is well positioned to benefit from enhanced collaboration in agricultural research, pest management, and shared technological innovation.

Mexico remains a critical partner in this trilateral system. In 2022, Mexico exported $43.4 billion in agricultural goods to the United States, while the U.S. exported $28.4 billion to Mexico—accounting for approximately 70% of Mexico’s total agricultural imports (Source: International Trade Administration). Within Arizona, the Port of Nogales serves as one of the most important land ports in North America for fresh produce, facilitating a substantial share of U.S.-Mexico agricultural trade and reinforcing Arizona’s role as a critical logistics hub.

Labor also remains a key component of this ecosystem. Seasonal agricultural labor—much of which originates from Mexico—continues to support Arizona’s production capacity. At the same time, the sector is undergoing a significant workforce transition. Advances in agricultural technology are shifting labor demand away from purely manual roles toward higher-skilled positions involving equipment operation, data analysis, and systems management. Ensuring that workforce development and labor policies evolve accordingly will be essential to sustaining productivity.

This transformation is at the core of the CABC’s agricultural initiative, which brings together farmers, agribusiness leaders, educational institutions, and policymakers to address the sector’s evolving needs. Key focus areas include energy requirements for advanced farming systems, water efficiency, climate adaptation, and workforce reskilling.

Across Arizona, Canada, and Mexico, agricultural producers are rapidly adopting next-generation technologies. Precision agriculture tools—including drone monitoring, robotic harvesting, soil sensors, satellite imaging, blockchain-based traceability systems, and advanced data analytics—are reshaping how food is produced and distributed. These innovations are improving yields, optimizing resource use, and advancing sustainability goals by reducing water consumption and minimizing chemical inputs. At the same time, regenerative agriculture practices, such as cover cropping and soil health management, are enhancing long-term productivity and environmental resilience.

Together, Arizona, Canada, and Mexico have built one of the most integrated and interdependent agricultural systems in the world. This collaboration is driving innovation, strengthening regional supply chains, and reducing reliance on distant global markets. In doing so, it enhances North American food security, economic resilience, and climate adaptability.

The Canada Arizona Business Council remains committed to advancing this dialogue—raising awareness, fostering cross-border partnerships, and supporting initiatives that position agriculture at the forefront of North America’s economic and technological future.