House Concurrent Resolution No. 108 emphasizes the importance of the economic relationship between Texas and Mexico, particularly highlighting the significant role of fresh tomato imports from Mexico, which contribute over $7.5 billion to the U.S. economy and support nearly 50,000 jobs. The resolution discusses the Tomato Suspension Agreement, established in 1996 and updated in 2019, which regulates the pricing of Mexican tomatoes to prevent market disruption and ensure a stable supply for U.S. consumers. This agreement has been beneficial in maintaining compliance with U.S. trade laws and providing a variety of fresh tomatoes year-round.
The resolution warns that terminating the Tomato Suspension Agreement would impose a 17.09 percent tariff on Mexican tomato imports, potentially leading to a loss of over $4.5 billion and 32,000 jobs in Texas. It highlights the adverse effects on local businesses, particularly in the Rio Grande Valley, where many produce warehouses could face severe reductions in operations or closure. The resolution calls on the U.S. Department of Commerce to maintain the agreement, recognizing its critical role in supporting Texas's economy and the livelihoods of its residents.