Rep. Raul Grijalva, D-Ariz., and other members of Congress said immigration reform should consider the global economy. (Credit: Mark Wilson / Getty Staff/ Getty Images)

Lawmakers on Capitol Hill and officials in Mexico City are concerned that the new Arizona immigration law ignores the intertwined economies of Mexico and the American Southwest.

Rep. Luis Gutierrez, D-Ill., chairman of the Hispanic Caucus Immigration Task Force, and representatives of other minority caucuses have joined to denounce the new Arizona immigration law that he says would disrupt business with Mexico and create "second-class citizens."

Sen. Robert Menendez, D-N.J., is also speaking out against the tough new law signed last week by Arizona Gov. Jan Brewer (R). Menendez, who joined Gutierrez and other members of Congress at a press conference Wednesday, said he expects excessive arrests, arguing that by requiring police to check immigration status in cases "where a reasonable suspicion exists that a person is an alien," the law allows police to detain people at will.

"They could be detained for months before their citizenship is determined," Menendez said. "What constitutes 'reasonable suspicion?' Is it the calloused hands of a farm worker?"

The Mexican government denounced the law and issued an advisory on Tuesday warning Mexican citizens not to travel to Arizona for business or tourism. This move was intended not only to protect travelers against wrongful arrest but also to "put the squeeze on Arizona," because Mexico is that state's largest trading partner, said Christopher Sabatini, senior director of policy for the Council of the Americas.

"In the immigration debate, we lose the perception of the extent to which we've become integrated with Mexico," Sabatini said. "People come across the border to the Southwest and spend money all the time, even for a night out. But Mexican immigrants in Arizona are already saying 'what's the point?' They could just move to another state. The effect of losing that low-skilled labor is very powerful as Arizona begins to grow its economy again."

Rep. Yvette Clarke, D-N.Y., touted Gutierrez' comprehensive immigration bill as a long-term solution to issues like remittances, trade visits and work visas. Clarke said she fears that detentions in Arizona or other states that pass similar laws could stem remittance flows and lead Mexican families to "extreme measures to survive," including even more illegal immigration.

"People are going to work to support their families, and this law will create pressure on how frequently that money comes, creating a cycle," Clarke said.

Rep. Mike Honda, D-Calif., chairman of the Congressional Asian Pacific American Caucus, called for federal immigration reform to address remittances and work visas with immigrants from all nations. While Honda said reform should factor in the security risks from international crime and Mexico's drug war, he cautioned that "whenever you sensationalize something, people get hurt."

According to a recent report from the Inter-American Development Bank and the Inter-American Dialogue, remittances have decreased since 2007 due to the recession.

This impact was alleviated by the peso's decreasing value against the dollar, which made smaller payments go farther, according to Andrew Selee, director of the Woodrow Wilson Center's Mexico Institute.

The unintended consequences of immigration reform may come up when Mexican President Felipe Calderon addresses a joint session of Congress on May 19. Calderon has spoken against the Arizona law, but Honda said he expects him to approach federal immigration reform as a separate debate.

Sabatini said Calderon would have to address immigration reform on his visit, but there would be little he could do to influence it.

"No one is looking over their shoulder at what the Mexican government is thinking, unfortunately," Sabatini said. "He might stiffen Obama's spine, but it won't change the tone in Congress."