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