[Congressional Record (Bound Edition), Volume 149 (2003), Part 16]
[Senate]
[Page 22473]
[From the U.S. Government Publishing Office, www.gpo.gov]




PARITY AMONG COUNTRIES PARTY TO THE NORTH AMERICAN FREE TRADE AGREEMENT

  Mr. BURNS. Mr. President, I ask unanimous consent that the Finance 
Committee be discharged from further action on S. Res. 119, and the 
Senate proceed to its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered. The clerk 
will report.
  The assistant legislative clerk read as follows:

       A resolution (S. Res. 119) expressing the sense of the 
     Senate that there should be parity among the countries that 
     are parties to the North American Free Trade Agreement with 
     respect to the personal exemption allowance for merchandise 
     purchased abroad by returning residents, and for other 
     purposes.

  There being no objection, the Senate proceeded to consider the 
resolution.
  Mr. BURNS. Mr. President, I ask unanimous consent that the resolution 
be agreed to, the preamble be agreed to, the motion to reconsider be 
laid upon the table, and that any statements regarding this matter be 
printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The resolution (S. Res. 119) was agreed to.
  The preamble was agreed to.
  The resolution, with its preamble, reads as follows:

                              S. Res. 119

       Whereas the personal exemption allowance is a vital 
     component of trade and tourism;
       Whereas many border communities and retailers depend on 
     customers from both sides of the border;
       Whereas a United States citizen traveling to Canada or 
     Mexico for less than 48 hours is exempt from paying duties on 
     the equivalent of $200 worth of merchandise on return to the 
     United States, and for trips over 48 hours United States 
     citizens have an exemption of up to $800 worth of 
     merchandise;
       Whereas a Canadian traveling in the United States is given 
     no exemption for trips of less than 24 hours;
       Whereas a Canadian traveling in the United States is 
     allowed a duty-free personal exemption allowance equivalent 
     to, in Canadian currency--
       (1) $50 worth of merchandise, if the trip is over 24 hours 
     but not over 48 hours;
       (2) $200 worth of merchandise, if the trip is over 48 hours 
     but not more than 7 days; and
       (3) $750 worth of merchandise, if the trip is for over 7 
     days;
       Whereas Mexico has a 2-tiered personal exemption allowance 
     for its returning residents, set at the equivalent of $50 
     worth of merchandise for residents returning by car and the 
     equivalent of $300 worth of merchandise for residents 
     returning by plane;
       Whereas Canadian and Mexican retail businesses have an 
     unfair competitive advantage over many American businesses 
     because of the disparity between the personal exemption 
     allowances among the 3 countries;
       Whereas the State of Maine legislature passed a resolution 
     urging action on this matter;
       Whereas the disparity in personal exemption allowances 
     creates a trade barrier by making it difficult for Canadians 
     and Mexicans to shop in American-owned stores without facing 
     high additional costs;
       Whereas the United States entered into the North American 
     Free Trade Agreement with Canada and Mexico with the intent 
     of phasing out tariff barriers among the 3 countries; and
       Whereas it violates the spirit of the North American Free 
     Trade Agreement for Canada and Mexico to maintain restrictive 
     personal exemption allowance policies that are not 
     reciprocal: Now, therefore, be it
       Resolved, That it is the sense of the Senate that the 
     United States Trade Representative and the Secretary of the 
     Treasury, in consultation with the Secretary of Commerce, 
     should continue discussions with officials of the Governments 
     of Canada and Mexico to achieve parity by harmonizing the 
     personal exemption allowance structure of the 3 NAFTA 
     countries at or above United States exemption levels.

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