1 | 1 | | By: Guillen H.C.R. No. 108 |
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6 | 6 | | HOUSE CONCURRENT RESOLUTION |
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7 | 7 | | WHEREAS, The State of Texas and Mexico have greatly benefited |
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8 | 8 | | from their strong economic relationship and long history of |
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9 | 9 | | bilateral trade; and |
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10 | 10 | | WHEREAS, Fresh tomatoes imported from Mexico contribute more |
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11 | 11 | | than $7.5 billion to the U.S. economy and support nearly 50,000 |
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12 | 12 | | jobs; more than half of the imported tomatoes enter through ports in |
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13 | 13 | | Pharr and Laredo, with an estimated value of nearly $1.5 billion; |
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14 | 14 | | and |
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15 | 15 | | WHEREAS, The Suspension Agreement on Fresh Tomatoes from |
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16 | 16 | | Mexico, or the Tomato Suspension Agreement, is the result of a |
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17 | 17 | | collaborative effort involving the U.S. Department of Commerce and |
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18 | 18 | | nearly 700 producers and exporters of fresh tomatoes grown in |
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19 | 19 | | Mexico; the agreement first became effective on November 1, 1996, |
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20 | 20 | | and its most recent update went into effect on September 19, 2019; |
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21 | 21 | | and |
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22 | 22 | | WHEREAS, Under the Tomato Suspension Agreement, signatory |
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23 | 23 | | producers and exporters must sell Mexican tomatoes at or above a |
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24 | 24 | | specific reference price to eliminate the injurious effects of |
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25 | 25 | | exports of fresh tomatoes to the United States; the agreement has |
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26 | 26 | | helped to bring stability to the tomato market while complying with |
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27 | 27 | | U.S. trade laws, and it has established strong enforcement and |
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28 | 28 | | monitoring mechanisms; in addition, the agreement ensures that U.S. |
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29 | 29 | | consumers have access to a wide selection of fresh tomatoes |
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30 | 30 | | year-round; and |
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31 | 31 | | WHEREAS, The termination of the Tomato Suspension Agreement |
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32 | 32 | | would subject U.S. companies to a 17.09 percent tariff on each |
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33 | 33 | | shipment of tomatoes imported from Mexico, resulting in severe |
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34 | 34 | | economic harm to numerous businesses and communities in Texas; the |
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35 | 35 | | estimated potential loss to the state's economy is more than $4.5 |
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36 | 36 | | billion and 32,000 jobs; the vast majority of produce warehouses in |
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37 | 37 | | the Rio Grande Valley would see immediate and severe reductions in |
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38 | 38 | | their business, and many would face the threat of closure; |
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39 | 39 | | moreover, high duties on tomatoes would negatively impact consumers |
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40 | 40 | | by inflating prices and limiting the supply of vine-ripened and |
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41 | 41 | | specialty tomatoes, which are predominantly imported by Texas |
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42 | 42 | | companies; and |
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43 | 43 | | WHEREAS, Countless businesses, residents, workers, and |
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44 | 44 | | citizens of Texas have benefited from the Tomato Suspension |
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45 | 45 | | Agreement, and its continuation is vital to the economy of the Lone |
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46 | 46 | | Star State; now, therefore, be it |
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47 | 47 | | RESOLVED, That the 89th Legislature of the State of Texas |
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48 | 48 | | hereby respectfully urge the U.S. Department of Commerce to |
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49 | 49 | | maintain the Tomato Suspension Agreement; and, be it further |
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50 | 50 | | RESOLVED, That the Texas secretary of state forward an |
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51 | 51 | | official copy of this resolution to the U.S. Secretary of Commerce. |
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