[Congressional Record Volume 143, Number 103 (Monday, July 21, 1997)]
[Senate]
[Pages S7769-S7770]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DOMENICI:
  S. 1039. A bill to designate a commercial zone within which the 
transportation of certain passengers or property in commerce is exempt 
from certain provisions of chapter 135, of title 49, United States 
Code; to the Committee on Commerce, Science, and Transportation.


                   The New Mexico Commercial Zone Act

  Mr. DOMENICI. Mr. President, today I rise to introduce the New Mexico 
Commercial Zone Act of 1997. This legislation will establish a much 
needed zone in New Mexico to facilitate the trade and transportation of 
raw materials and merchandise across our border with Mexico.
  Mr. President, now that America is witnessing the economic benefits 
of the North American Free Trade Agreement [NAFTA] and trade with 
Mexico is growing at a record pace, it has become clear to New Mexico 
that we must establish a commercial zone to take full advantage of the 
economic possibilities available to border States.
  Mr. President, this legislation has the support of New Mexico's 
Governor, Gary Johnson, the State Economic Development Department, the 
New Mexico Border Authority, the United States-Mexico Chamber of 
Commerce, the New Mexico food processing industry, the New Mexico Motor 
Carriers Association, and the Cities of Las Cruces and Deming.
  In the past, commercial zones were created by the Interstate Commerce 
Commission in numerous States to facilitate local border trade and 
transportation activities. They also serve to control movement and 
uphold American vehicle safety requirements for foreign vehicles 
operating within the United States.
  It is within the limits of these zones that commercial vehicles of 
either Mexican or Canadian registry are authorized to deliver products 
from their country to a United States distribution point or warehousing 
facility. In addition to permitting these vehicles to pick up loads of 
products which are destined for export into their respective countries.
  Mr. President, commercial zones similar to the one I propose today 
have been established in the States of: New York, South Carolina, West 
Virginia, Louisiana, Pennsylvania, Washington, Illinois, Colorado, 
Kentucky, Minnesota, California, Texas, Arizona, and the District of 
Columbia.
  Since the passage of NAFTA, these zones have been very important to 
border States because they are serving as the transition boundaries for 
all Mexican commercial traffic.
  Mr. President, it is clear that if we do not establish a commercial 
zone in New Mexico, my State will remain at a tremendous disadvantage 
to other border States. We will continue to be one step behind in 
attracting NAFTA-related businesses and building upon our current trade 
relationship with Mexico.
  Despite the fact that New Mexico does not yet have a commercial zone, 
we are taking steps to increase trade with our neighbors. We have began 
to put the necessary border infrastructure in place and are laying the 
foundation for a winning partnership with Mexico.
  We have moved to develop a state-of-the-art Port of Entry at Santa 
Teresa which will facilitate efficient border crossings and will soon 
begin construction on a intermodal transportation center. This center 
will help expedite international cargo transfers not only for New 
Mexico, but for the rest of the country once its construction has been 
completed.
  Since the passage of NAFTA, New Mexico has witnessed its exports to 
Mexico increase by over 1,000 percent--a percentage which represents 
one of the largest explosions in exports by any State in the Nation.
  Unfortunately, New Mexico still lags behind 35 other States in the 
amount of exports being sent to Mexico. It is becoming 
increasingly clear to the people of New Mexico that one component is 
still missing. The establishment of a New Mexico commercial zone.

  Mr. President, this dilemma will not be more apparent than late this 
summer when the Mexican chili crops are ready for harvest. Because 
without a commercial zone, these farmers will not be able to process 
their chili crops in the many food processors located in southern New 
Mexico.
  For a Mexican farmer to sell chili to our food processors, that 
farmer must transport the chili crop to the border station, unload the 
cargo, and then reload it onto an American carrier to travel the 
remaining 30 miles to the processing plant.
  Mr. President, this is clearly not an economic incentive for 
conducting business with New Mexico food processors.
  Mr. President, we passed NAFTA to begin creating new jobs and 
business opportunities for American businesses.
  Unfortunately, what we are seeing in New Mexico, is one of the first 
opportunities for new business, just slip through our finger tips--
because we do not have a commercial zone.
  Mr. President, this issue will not only affect the owners of these 
processors, but also the 3,000 New Mexicans who work at these plants 
and rely on that income to survive.
  The apprehension among these workers is growing everyday because if 
Congress does not resolve this issue, there will not be enough work to 
go around this summer in southern New Mexico.
  Mr. President, I believe that by establishing this commercial zone we 
will not only be helping New Mexico but also the American consumer. 
Because as trade with Mexico continues to increase, so will the demand 
for more efficient border crossings. And if you have ever traveled to 
any of the busier border crossings, you would quickly notice the long 
lines of commercial trucks sitting idle and waiting for hours to cross 
into the United States.
  By establishing this commercial zone in New Mexico, we can help 
alleviate some of this traffic and make the process more efficient.
  Mr. President, this is the economic reality we are facing in New 
Mexico unless this legislation is passed. I believe New Mexico has laid 
the foundation for developing a winning trade partnership with Mexico.
  Simply put, this legislation puts New Mexico on a level playing field 
with other border States so that we can continue our efforts to make a 
brighter future for New Mexico residents.
  In closing, I have three letters supporting this legislation, and I 
would ask unanimous consent to submit for the Record.
  There being no objection, the letters were ordered to be printed in 
the Record, as follows:

                                                      M.A. & Sons,


                                               Chile Products,

                                          Derry, NM, June 9, 1997.
     Senator Pete Domenici,
     Building D, Suite 1,
     Las Cruces, NM.
       Dear Senator Domenici: We are writing to thank you for your 
     leadership in working to resolve the D.O.T. enforcement of 
     the ``Commercial Zone'' at the Port of Columbus, New Mexico. 
     Your sponsorship of legislation to address this problem is 
     very much appreciated and will ensure that the Port of 
     Columbus will remain a viable Port of Entry for New Mexico.
       We, as importers of red chile from Mexico for processing, 
     need the Port of Columbus ``Commercial Zone'' to be expanded 
     as your legislation is proposing in order to remain 
     competitive and continue to employ people in the State of New 
     Mexico at our chile processing plant. We have found the Port 
     of Entry at Columbus to be efficient and able to provide the 
     service that we need. We want to continue to use this Port 
     instead of other Ports of Entry that are located further away 
     from the origin of the chile in Mexico. Using other Ports of 
     Entry would add time and money to the product and this can be 
     avoided by using the Port of Columbus.
       Thank you again for your leadership in this issue that is 
     important to us and the State of New Mexico. If you need any 
     additional information please feel free to contact me.
           Sincerely,
                                                 Mary Alice Garay,
     Owner.
                                  ____

                                              State of New Mexico,


                              Economic Development Department,

                                      Santa Fe, NM, June 18, 1997.
     Senator Pete V. Domenici,
     Hart Senate Office Building,
     Washington, DC.
       Dear Senator: The New Mexico Economic Development 
     Department and the New Mexico Border Authority wish to 
     express their

[[Page S7770]]

     support for a Southern New Mexico Border Commercial Zone.
       The establishment of a commercial zone to cover portions of 
     two counties (Dona Ana and Luna) will encourage warehouses 
     and manufacturing plants in New Mexico's border areas. The 
     historical means of establishing Commercial Zones has been to 
     use a population formula which does not work for sparsely 
     populated Southern New Mexico. New Mexico is poised for 
     industrial and commercial growth in the border area, and 
     needs a Commercial Zone to avoid being at a competitive 
     disadvantage with other border states. Of particular and 
     immediate interest is the use of a Commercial Zone for 
     produce from Mexico moving to food processing plants in New 
     Mexico.
       We strongly applaud your efforts to establish a New Mexico 
     Commecial Zone.
           Sincerely,
                                                 Gary D. Bratcher,
     Cabinet Secretary.
                                  ____

         United States-Mexico Chamber of Commerce, Camara de 
           Comercio Mexico-Estados Unidos,
                                     Washington, DC, July 9, 1997.
     Hon. Pete Domenici,
     U.S. Senate,
     Washington, DC,
       Dear Senator Domenici: The United States-Mexico Chamber of 
     Commerce is happy to hear of your sponsorship of the New 
     Mexico Commercial Zone Act of 1997. The legislation will 
     certainly benefit the economic development of your state 
     while supporting jobs on both sides of the border. Regional 
     prosperity is crucial to an economically and environmentally 
     stable border region.
       Until NAFTA's cross-border trucking provisions take effect, 
     the extension of commercial zones at the state level is both 
     commercially and politically viable. In the case of New 
     Mexico, it is especially crucial because it does not have the 
     same ``twin city'' arrangements as other border states and, 
     therefore, cannot take advantage of existing commercial 
     zones. Economic development and jobs in Las Cruces and Deming 
     are left vulnerable to transportation inefficiency.
       As NAFTA continues to benefit its three signatory nations, 
     it would be unfortunate to keep regions, states or cities 
     from enjoying its full benefits. Current trucking provisions 
     amount to non-tariff barriers. The Chamber supports removal 
     of those barriers and we support your initiative.
           Sincerely,
                                                Albert C. Zapanta,
                                                        President.
                                 ______