SCR41 - Urging the United States Department of Commerce to maintain the Tomato Suspension Agreement.

  89R16397 TBO-D     By: Blanco S.C.R. No. 41       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.