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HOUSE CONCURRENT RESOLUTION
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WHEREAS, The State of Texas and Mexico have greatly benefited |
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from their strong economic relationship and long history of |
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bilateral trade; and |
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WHEREAS, Fresh tomatoes imported from Mexico contribute more |
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than $7.5 billion to the U.S. economy and support nearly 50,000 |
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jobs; more than half of the imported tomatoes enter through ports in |
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Pharr and Laredo, with an estimated value of nearly $1.5 billion; |
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and |
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WHEREAS, The Suspension Agreement on Fresh Tomatoes from |
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Mexico, or the Tomato Suspension Agreement, is the result of a |
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collaborative effort involving the U.S. Department of Commerce and |
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nearly 700 producers and exporters of fresh tomatoes grown in |
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Mexico; the agreement first became effective on November 1, 1996, |
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and its most recent update went into effect on September 19, 2019; |
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and |
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WHEREAS, Under the Tomato Suspension Agreement, signatory |
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producers and exporters must sell Mexican tomatoes at or above a |
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specific reference price to eliminate the injurious effects of |
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exports of fresh tomatoes to the United States; the agreement has |
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helped to bring stability to the tomato market while complying with |
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U.S. trade laws, and it has established strong enforcement and |
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monitoring mechanisms; in addition, the agreement ensures that U.S. |
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consumers have access to a wide selection of fresh tomatoes |
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year-round; and |
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WHEREAS, The termination of the Tomato Suspension Agreement |
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would subject U.S. companies to a 17.09 percent tariff on each |
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shipment of tomatoes imported from Mexico, resulting in severe |
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economic harm to numerous businesses and communities in Texas; the |
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estimated potential loss to the state's economy is more than |
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$4.5 billion and 32,000 jobs; the vast majority of produce |
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warehouses in the Rio Grande Valley would see immediate and severe |
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reductions in their business, and many would face the threat of |
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closure; moreover, high duties on tomatoes would negatively impact |
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consumers by inflating prices and limiting the supply of |
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vine-ripened and specialty tomatoes, which are predominantly |
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imported by Texas companies; and |
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WHEREAS, Countless businesses, residents, workers, and |
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citizens of Texas have benefited from the Tomato Suspension |
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Agreement, and its continuation is vital to the economy of the Lone |
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Star State; now, therefore, be it |
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RESOLVED, That the 89th Legislature of the State of Texas |
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hereby respectfully urge the U.S. Department of Commerce to |
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maintain the Tomato Suspension Agreement; and, be it further |
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RESOLVED, That the Texas secretary of state forward an |
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official copy of this resolution to the U.S. Secretary of Commerce. |
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