FOR IMMEDIATE RELEASE
December 3, 1999
CONTACT: Lisette McSoud Mondello
SENATOR HUTCHISON POSTPONES MEXICAN CAR DEPOSIT HEARINGS AFTER MEXICO RESCINDS NEW PROGRAM
WASHINGTON, D.C. -- U.S. Senator Kay Bailey Hutchison today postponed the Senate Commerce Committee hearings into a controversial Mexican car deposit rule in response to the Mexican government's decision to suspend it indefinitely. The hearings, scheduled for December 6, 1999, would have considered the impact of this plan on trade and travel between the U.S. and Mexico. Tentatively scheduled to testify were business and elected leaders from across the U.S-Mexico border, members of Congress, and Clinton Administration officials.
"I commend the Mexican government for its common sense response to the concerns I and others have raised," Senator Hutchison said. "Mexico is a friend, and we can resolve this matter in a way that doesn't violate the spirit of openness that has been so successful since NAFTA."
"Just this week, I've been from one end of the Texas border to the other -- McAllen to El Paso – and heard firsthand the problems the Mexican plan would have caused both countries," added the Senator.
On December 1, the Government of Mexico imposed a significant fee for passenger vehicles that travel more than 15 miles into the interior of Mexico. For new cars, the fee would have been as high as $800. Mexican officials contended that the measure was needed to stem the flow of stolen vehicles into their country.
"I am committed to working with our own Justice Department and Customs Service, and with Texas border communities, to help Mexican officials address this problem," said the Senator. "Mayor Carlos Ramirez of El Paso has offered a good proposal, and there are others we should consider."
Mayor Ramirez proposed that local law enforcement on the American side of the border confirm a vehicle's registration prior to its crossing the border. He estimated the cost at just $12 to $20 dollars per vehicle.
"I am encouraged by President Zedillo's decision to suspend the proposed car deposit," said Mayor Ramirez. "This would have crippled the flow of business and tourism between our two countries, and seriously strained our relationship. I will be working with Senator Hutchison and others to address the Mexican government's concerns about stolen vehicles."
John Adams, chairman of the Laredo Chamber of Commerce, echoed the sentiment. "The speed with which Senator Hutchison and the Commerce Committee initiated this hearing is a good example of how critical it is to respond to issues like this before they have a major impact all along the border."
In McAllen, Steve Ahlenius, President of the Chamber of Commerce, said, "Our hope is that they will not try to bring this back in some other form. I want to commend Senator Hutchison and Congressman Hinojosa for their success in making this a national issue."
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