Arizona Gov. Doug Ducey, Sen. Joni Ernst, R-Iowa, and Robert O鈥橞rien, the former national security advisor, discussed border security, the crisis in Ukraine, global competitiveness and more on last week in Phoenix organized by the Bastion Institute and moderated by Arizona 番茄社区 of Commerce & Industry President and CEO Danny Seiden. 

The border crisis 

O鈥橞rien, the 27th national security advisor, spoke on the important distinction between the ongoing conversation over immigration and the national security implications of the situation at the border. 

鈥淲hat folks don鈥檛 understand about the border issue is that it鈥檚 not an immigration issue. It gets conflated with it for political wins, but it鈥檚 a national security issue,鈥� O鈥橞rien said. 鈥淎dditionally, it鈥檚 a public health situation. These people are coming to the border where there is no testing, no mask, and no vaccination card required.鈥� 

Ernst said the illicit drug trade occurring at the border affects the entire country.  

鈥淲e鈥檝e stopped traffickers that have enough fentanyl to kill every United States citizen,鈥� she said. 鈥淭o have a sovereign country you have to have borders that are being controlled.鈥� 

Globalization and competitiveness 

All the panelists agreed on the importance of increasing domestic manufacturing as a means of lessening the U.S.鈥� reliance on foreign supply chains. 

O鈥橞rien cited his concern over the U.S.鈥� ability to access silicon chips. 

鈥淲e鈥檝e allowed our supply chain to be outsourced,鈥� O鈥橞rien said. 鈥淚t鈥檚 one thing to outsource with our allies and trust partners. But we need to onshore to the extent that we can.鈥� 

Under Gov. Ducey, Arizona has successfully recruited companies that are looking to onshore their work in the U.S. Recent economic development wins for the state include Taiwan Semiconductor Manufacturing Company鈥檚 (TSMC) new facility in North Phoenix and the expansion of Intel in Chandler, both multi-billion-dollar investments. 

Gov. Ducey said that the goal is to 鈥渞epatriate manufacturing back to North America. A strong North America is going to be more powerful, peaceful and productive.鈥� 

Ernst stressed the importance of the federal government maintaining a soft touch when it comes to economic regulations, citing the need for the U.S. to domestically extract the critical minerals necessary for technological components.

鈥淥ur role as the federal government should be that we are encouraging American innovation and competitiveness,鈥� she said. 鈥淲hen you have a government that is so prohibitive when it comes to mining and drilling, we鈥檙e not going to be able to compete with near-peer competitors.鈥� 

The war in Ukraine

Ernst discussed the economic impact of the war between Ukraine and Russia and its effect on the U.S. and our national security interests in the region.  

鈥淥ur markets are dependent on stabilization in Europe,鈥� she said. 鈥淲e have some oversight to deal with it in Congress. We need to win the war there so it doesn鈥檛 spread.鈥� 

Gov. Ducey spoke to the duty the U.S. has to help other democracies saying, 鈥淯kraine鈥檚 cause is our cause. We can get materials and weapons to the people who are ready and eager to use them.鈥� 

O鈥橞rien said the world is closely watching the U.S.鈥� reaction to the war and its level of intervention. If other countries’ leaders believe that Putin has gotten away with this invasion, they will follow suit, he said. 

鈥淲hat we鈥檙e doing in Ukraine is telling for the Pacific,鈥� he said, referring to China. 鈥淲e鈥檝e got to get serious about helping Ukraine because that sends a message.鈥� 

The panel concluded with optimistic sentiments about the future of the United States, its institutions and its role in the world. 

鈥淎merica is fundamentally strong. We鈥檙e going through a tough time; we have before and we鈥檒l get through it again,鈥� O鈥橞rien said. 

The Bastion Institute, the event organizer, is focused on promoting the importance of America’s engagement and strength abroad and the impact that has on Americans here at home.

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Border state governors, including Ariz. Gov. Doug Ducey, are calling on the Biden administration to continue the use of Title 42, a Trump-era public health measure that permits the expulsion of migrants at the United States-Mexico border as a means to slow the cross-border spread of Covid-19.

Ducey sent a letter to Biden on July 16, , 鈥淎s Arizona continues to deal with the man-made crisis at our border, ending Title 42 will threaten the health and safety of not only Arizonans, but all Americans, and our already broken border will explode, overwhelming border patrol, law enforcement, non-profits and health care professionals.鈥�

The governor was joined by border state members of congress Rep. Debbie Lesko, R-Ariz., Rep. Yvette Herrell, R-N.M., and Rep. Randy Weber, R-Texas, in backing a resolution in support of Title 42.

鈥淒uring my recent trip to the Southern Border, agents from throughout our immigration system鈥擟ustoms and Border Protection Office of Field Operations and Air and Marine Operations, Border Patrol, and Immigration and Customs Enforcement鈥攁ll highlighted the importance of Title 42 Public Health Authorities in protecting our nation from COVID-19 and enhancing our border security,鈥� Lesko said in a .

The Biden administration is under pressure from progressive groups like the American Civil Liberties Union to drop its use of Title 42.

The Trump administration in 2020 enacted Title 42, which allows for the expulsion of undocumented migrants through the public health authority held by the federal government. The previous administration justified Title 42鈥檚 adoption under the Public Health Service Act of 1944, which allows for the director of Disease Controlif they believe that 鈥渢here is a serious danger to the introduction of a communicable disease into the United States.鈥�

Despite the opposition from progressive interest groups, the Biden administration has not ended Title 42鈥檚 use. The administration has cited Covid-19 concerns, including recurring outbreaks and variants of the virus, as justification for leaving the policy in place. 

Homeland Security Secretary Alejandro Mayorkas said, 鈥渋s driven by the public health imperative. It is not a tool of immigration. It is a tool of public health to protect not only the American people but the migrants themselves.鈥� 

The ACLU, a , and other progressive groups last week took the battle over the measure to court, arguing that it is being used as an anti-immigration tool rather than as part of a Covid-19 mitigation effort. 

While Title 42 has been in effect, the U.S.-Mexico border has seen record numbers of asylum seekers. 

In the first six months of 2021 there were more than at the border, of which 575,000 were immediately turned away under Title 42. 

Dylan Corbett, the executive director of the Hope Border Institute, the migrant surges are indicative of the need for broader immigration system reforms.

鈥淭hat means things like making sure that we are rebuilding our refugee system to receive refugees from around the world, that we are taking positive steps to receive asylum-seekers and restore the process of asylum at the border,鈥� he said. 

The Centers for Disease Control earlier this month issued an announcement about extending the order because the risk of transmission of Covid-19 at the border is still prominent. 

The agency that the order 鈥渟hall remain in effect until the CDC Director determines that the danger from covered noncitizens has ceased to be a serious danger to the public health, and the order is no longer necessary to protect the public health.鈥�

The debate over Title 42鈥檚 use is occurring alongside the severe restrictions on so-called 鈥渘on-essential鈥� border crossings at the U.S. northern and southern borders that apply to documented travelers, including from neighboring Canada and Mexico.

The U.S. since March of last year has limited the entries at land border ports of entry only to those crossers engaged in what DHS deems essential travel, like traveling to work or school.  

The restrictions at the land ports of entry, which apply to documented Canadian and Mexican nationals as well as travelers from outside North America, do not exist in the air environment, which means a Mexican national with a valid visa can fly into the U.S., but cannot drive.

The restrictions have harmed border community economies, according to business community advocates.

Jason Wells, executive director of the San Ysidro 番茄社区 of Commerce south of San Diego, said his community has struggled. 

鈥淪ad part is, 1,900 jobs were lost, 1,900 families that counted on mom or dad for a job to put food on the table, those jobs don鈥檛 exist anymore,鈥� Wells . 鈥淟ook, on San Ysidro Boulevard, 95% of our clientele is coming from Mexico, and the vast majority of these are pedestrians with tourist visas, precisely those that can鈥檛 come across today and haven鈥檛 been able to for 18 months.鈥�

The mayors of San Diego and surrounding Imperial Beach, Chula Vista, National City, and Coronado co-signed a last month to Mayorkas about the consequences of the travel restrictions. 

鈥淥ur region is suffering from a weekly economic hit to our retail sector of at least $7.5 million due to the continuation of non-essential travel restrictions,鈥� they wrote. 

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Arizona U.S. Senators Kyrsten Sinema and Mark Kelly updated the business community on legislation important to industry and commerce Wednesday during the Arizona 番茄社区 of Commerce & Industry鈥檚 annual 2021 Update from Capitol Hill.

The two senators detailed measures in the recent federal relief package that will benefit businesses in Arizona and priorities for the rest of 2021. They also fielded questions about top business concerns including corporate tax rates, preservation of the filibuster, and the feared Pro Act, which has been labeled 鈥渢he worst bill in Congress鈥� by many in the business community.  

Neil Bradley, executive vice president and chief policy officer of the U.S. 番茄社区 in Washington, D.C., also offered an insider view into the goings on in the nation鈥檚 capital as far as business is concerned. More than 500 attended the virtual event, which was sponsored by Salt River Project and the Arizona Indian Gaming Association. 

How businesses are benefiting from recent federal relief bill 

Senator Sinema (D) talked about measures she has successfully supported and lobbied for in the federal relief packages including the most recent $1.9 trillion .

Sinema emphasized her record of working across the aisle despite criticism from party loyalists at times. For her, ensuring that Arizona employers and employees weather the pandemic is her first priority, not party politics, she said.

鈥淥ver the past year, employers have had to make tough choices, adapt, and contend with bureaucratic obstacles that delayed relief,鈥� Sinema said. 鈥淭hat鈥檚 why as a member of the Senate bipartisan group on Covid relief, I listened closely to Arizona leaders and worked to ensure that the new relief law addresses Arizona鈥檚 urgent needs.鈥� 

Among the measures Sinema helped to pass are:

Restaurant relief fund: Sinema and Sen. Roger Wicker, R-Miss., introduced and helped pass a restaurant relief fund of $28.6 billion to help small and mid-sized restaurants, bars, caterers, food trucks, breweries and other food service providers in need of assistance with rent and operational expenses. It provides grants of up to $10 million per entity with a maximum of $5 million per location based on the difference between 2020 and 2019 revenue. 

Save our Stages Act This legislation created a $15 million fund to provide relief to the entertainment industry like nightclubs, theaters and concert halls. 

Employee Retention Tax Credit This is a refundable against certain employment taxes equal to 50 percent of the qualified wages an eligible employer paid to employees after March 12, 2020, and before January 1, 2021. Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make. Also, if the employer’s employment tax deposits are not sufficient to cover the credit, the employer may get an advance payment from the IRS.

CHIPS for America Act Another bipartisan effort led by Sinema resulted in the CHIPS Act being adopted in December. The CHIPS Act — Creating Helpful Incentives to Produce Semiconductors — established federal grants to enable advanced research and development, secure the supply chain and ensure long-term national security and economic competitiveness. 

Soon after Congress passed the act, announced a $20 billion expansion of its manufacturing operation with two new factories in Arizona, Sinema said. The project is expected to create more than 3,000 permanent, high-wage jobs and more than 3,000 construction jobs, beginning this year. 

Relief for border communities The measure provides $110 million to help border cities and towns overwhelmed trying to provide humanitarian aid to asylum seekers flooding across the border. 

Looking ahead: immigration, infrastructure, broadband

Sen. Kelly, who stepped into public office in December, said he spent his first five months doing a 鈥渓ot of listening鈥� to ascertain what is the most effective use of federal dollars in Arizona. Protecting public health while encouraging economic development are top priorities. 

鈥淭here鈥檚 a lot of work ahead to beat this virus and rebuild our economy. That鈥檚 been my focus,鈥� said Kelly, who also spoke about his commitment to working in a bipartisan manner. 

In the coming months, Kelly said he is focused on a number of packages with business in mind including:

Infrastructure Congress has failed to pass a major infrastructure bill in the past but there could be enough momentum to get it done this year. The bill would include funding for not only roads and bridges but water and wastewater facilities and the expansion of broadband to shrink the digital divide between the haves and the have nots.

Immigration reform Another top priority is to finally pass immigration reform to secure a future workforce for the state and provide a pathway to citizenship for longtime immigrant employees as well as Dreamers, young adults who were brought here as children by their undcoumented relatives.

Upgrades to ports of entry Keeping the border secure and expanding trade in Arizona will require investing in new technology and infrastructure at ports of entry, another key goal, Kelly said.

鈥淭he federal government is failing our state when it comes to border security,鈥� Kelly said. 鈥淲e need a secure, orderly and safe process at the border.鈥�

Business worries: corporate taxes, filibuster, the PRO Act 

U.S. 番茄社区 executive Bradley rounded out the event by touching on a number of concerns to businesses. 

One is the growing national debt from three massive Covid relief packages, topping $5 trillion. In order to accomplish an infrastructure package and other important projects, federal relief in the last round should have been more focused and targeted to real need, he said.

鈥淲hen you think of last spring, we knew Congress had to provide broad based support. But what we鈥檝e seen is not every family, every industry and every state needs relief,鈥� Bradley said. 

Bradley also talked about President Biden鈥檚 proposal to raise the corporate tax rate from 21 to 28 percent. He does not believe the measure has enough support to succeed, but if it does, it will risk the progress Arizona and the nation have made in becoming more globally competitive, he said. 

Changing the corporate tax rate would likely reverse the successes that followed passage of the Tax Cuts and Jobs Act of 2017, he said. Prior to the Act, the nation had one of the highest corporate tax rates in the world. American companies were looking abroad for growth and new investment. 

鈥淭ax changes would give a leg up for competitors abroad. Why would we want to do that?鈥� he said.

When asked about efforts by many Democrats in Congress to remove the filibuster, Bradley said that would likely hurt the nation, too. With strong division between the right and the left, the filibuster ensures that that congressional members have to work to find common ground, he said.

Another concern is the proposed PRO Act of 2021, which also does not appear to have strong support in Congress, Bradley said. The Act would force employees to pay union dues regardless of whether they support a union, threaten private ballots in union elections, and strip workers of their independent contractor classification.

It鈥檚 an issue that is extremely worrisome to Arizona businesses, said Garrick Taylor, interim president and CEO of the Arizona 番茄社区. 

鈥淭his proposal is a litany of almost every failed idea from the past three decades of labor policy,鈥� Taylor said. 鈥淚t would undermine workers rights, most likely trap employers in a maze of labor disputes and force individuals to pay union dues regardless of their wishes.鈥�

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A bipartisan bill making its way through Congress could be a major step forward to expand modern border security technology to help streamline commerce, safeguard intellectual property and derail criminals along the Southwest border. 

Expanding technology like autonomous towers, ground sensors, electro-optical cameras, lasers, chemical detectors, X-rays and other devices would aid U.S. Customs and Border Protection (CBP) in carrying out its two-fold mission: to facilitate trade and protect national security, proponents of the bill said.  

鈥淥ur bipartisan bill improves border security technology to help strengthen security and keep Arizona safe,鈥� said Arizona Sen. Kyrsten Sinema, who introduced the bill in the Senate along with Texas Senator John Cornyn (R). 

Continuing to modernize technology along the heavily trafficked border is particularly important for Arizona, which relies heavily on trade and supply chains with Mexico, said Glenn Hamer, president and CEO of the Arizona 番茄社区 of Commerce and Industry. 

鈥淭he trade flows between Arizona and Sonora and the rest of Mexico are central to the state鈥檚 overall economic health,鈥� Hamer said. 鈥淒ata reveals that Arizona trade with Mexico in 2018 was over $16 billion, a 7.7% increase from the previous year.鈥�

Bill would assess technology gaps 鈥渕ile-by-mile鈥�

The bill, the Southwest Border Security Technology Improvement Act of 2020, would require the Department of Homeland Security (DHS) to assess the technology needs along every mile of the 2,000 mile border in conjunction with physical barriers. 

Under the legislation, Homeland Security would take a more detailed look at emerging technologies, including manned and unmanned aerial systems, tower-based surveillance technology, and tunnel and other detection devices. DHS also would be required to consider and examine the impact of public health emergencies like the coronavirus on border security. 

The analysis would help the agency strengthen terrorist prevention, reduce criminal activity and explore new technologies, the co-sponsors said.

DHS would be required to report back on areas where improvements could be made. A border security technology plan then would be developed to procure or develop identified technologies. 

The bill recently cleared the Senate Homeland Security and Governmental Affairs Committee and now is on its way to the full Senate. A mirror version of the bill was introduced in the House last week by Rep. Xochitl Torres Small (D-N.M.) and Rep. Dan Crenshaw (R-Texas).

Among those in support of the bill are the Border Trade Alliance, the Border Patrol Council and the National Treasury Employees Union, which represents the nation鈥檚 CBP officers and trade enforcement specialists.

U.S. investing in unmanned towers, sensors, imaging technologies 

Over the past few years, border agencies have been investing more in emerging commercial technologies for more efficient operations and capabilities.

In the past two years, Homeland Security has been investing in , formerly known as Innovative Towers, that operate off-grid with 100 percent renewable energy and provide autonomous surveillance operations 24 hours per day. CBP recently entered into a contract with 鈥渧irtual border wall鈥� startup Anduril for over 140 unmanned surveillance towers to put in place in 2021 and 2022.

The agency also is testing technology at ports of entry that will allow CBP personnel to see an image inside commercial trucks at a border crossing before drivers pull up for inspection. The technology would make it easier for officers to make faster and better informed decisions about which cargo trucks to stop for more thorough inspections.

To read the bill in its entirety, go to: .

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