By Cuellar of Hidalgo                                 H.C.R. No. 16
       74R1713 CCK-D
                                 CONCURRENT RESOLUTION
    1-1        WHEREAS, In 1992, the United Mexican States lowered from $300
    1-2  to $50 its daily individual limit on the value of goods that may be
    1-3  purchased in the United States and carried back duty-free across
    1-4  the border; and
    1-5        WHEREAS, On purchase amounts in excess of that limit, Mexican
    1-6  consumers who shop in the United States are charged a substantial
    1-7  tariff of 38.2 percent; and
    1-8        WHEREAS, This combination of a low limit and a high duty has
    1-9  contributed to a deterioration in the health of the Texas border
   1-10  economy as international sales by this state's merchants decline
   1-11  severely; and
   1-12        WHEREAS, Additionally, reduced buying from Texas retailers
   1-13  threatens sales tax revenue on which Texas counties and cities
   1-14  depend to sustain vital governmental functions and services; and
   1-15        WHEREAS, The $50 limit on duty-free goods is contrary to the
   1-16  spirit of the North American Free Trade Agreement, the purpose of
   1-17  which is to remove trade barriers rather than erect new ones; and
   1-18        WHEREAS, The economic impact of the duty-free limit, which
   1-19  affects negatively both Texas businesses and their Mexican
   1-20  customers, makes imperative a formal overture for alternative trade
   1-21  arrangements between the two nations; now, therefore, be it
   1-22        RESOLVED, That the 74th Legislature of the State of Texas
   1-23  hereby respectfully request the government of the United Mexican
   1-24  States to abolish its $50 limit on duty-free goods or to raise the
    2-1  limit significantly or reciprocate United States duty provisions;
    2-2  and, be it further
    2-3        RESOLVED, That official copies of this resolution be prepared
    2-4  and forwarded to the president of the United Mexican States and to
    2-5  the presiding officers of the Senate and Chamber of Deputies of the
    2-6  General Congress of the United Mexican States as an official
    2-7  request by the Legislature of the State of Texas.