By Gutierrez                                          H.R. No. 1368

         75R17532 AMB-D                           

                                 R E S O L U T I O N

 1-1           WHEREAS, The Lone Star State has benefited from the North

 1-2     American Free Trade Agreement (NAFTA) through a dramatic increase

 1-3     in trade with Mexico;  from 1995 to 1996 alone, Texas exports to

 1-4     our southern neighbor jumped by nearly 23 percent; and

 1-5           WHEREAS, Texas values its prosperous economic relationship

 1-6     with Mexico; however, for the mutually beneficial  exchange of

 1-7     goods to endure and to flourish, both parties must fully respect

 1-8     the provisions of the NAFTA agreement in spirit and in practice;

 1-9     and

1-10           WHEREAS, The Texas Produce Association has expressed concern

1-11     that Mexico is dumping onions into the U.S. market below production

1-12     costs, in direct violation of NAFTA; and

1-13           WHEREAS, Onion production is crucial to the economy of South

1-14     Texas, and ensuring fair play in the market is essential for Texas

1-15     trade; as a result, this possible transgression is of concern not

1-16     only to the many families in the Lower Rio Grande Valley whose

1-17     livelihoods depend on the market for locally grown onions, but to

1-18     the state as a whole, which has the sacred duty to protect the

1-19     right of Texas agriculture to fair and legal competition; and

1-20           WHEREAS, The state can fulfill its obligation to Texas and

1-21     U.S. onion growers by using available tools established for the

1-22     specific purpose of targeting and counteracting unfair and illegal

1-23     international trade practices; and

1-24           WHEREAS, NAFTA provides for emergency action, designed to

 2-1     determine if a U.S. industry has been injured by Mexican imports or

 2-2     if a threat of injury exists, and the U.S. Trade Act of 1974 allows

 2-3     for the International Trade Commission to study the impact of

 2-4     imports on domestic industry; if a determination is made that

 2-5     foreign competition is harming a domestic industry, then both

 2-6     provisions are grounds for imposing import restrictions or other

 2-7     protections; and

 2-8           WHEREAS, The time for action on this pressing issue is upon

 2-9     us, and without further delay the state should move to support the

2-10     onion growers who are a long-standing pillar of the Texas

2-11     agricultural community; now, therefore, be it

2-12           RESOLVED, That the House of Representatives of the 75th Texas

2-13     Legislature hereby encourage the governor of Texas to use the tools

2-14     at his disposal to seek federal emergency action in behalf of the

2-15     U.S. and Texas onion industries to establish the impact of Mexican

2-16     onion exports on the domestic market and to determine if Mexico is

2-17     violating U.S. trade law or international trade agreements; and, be

2-18     it further

2-19           RESOLVED, That the secretary of state forward an official

2-20     copy of this resolution to the governor of the State of Texas.