The New York Times
December 3, 1999

Mexico Suspends Border Car-Deposit Program

          By THE ASSOCIATED PRESS

          MEXICO CITY -- Faced with angry opposition from both sides of
          the border, Mexican officials have suspended a controversial
          program to charge cars registered in the United States up to $800 to
          cross into Mexico.

          On orders from President Ernesto Zedillo, the program -- which went
          into effect on Wednesday -- has been suspended "until further notice,"
          the Interior Ministry said in a news release Thursday night.

          During the suspension, a "careful analysis" of the program will be
          performed and modifications will be suggested, the release said.

          Under the program, people taking their cars past a 15-mile strip along
          the Mexico's border with the United States were required to pay a
          refundable deposit of up to $800, depending on the age of the vehicle.

          Drivers could recover their deposits if they left the country within six
          months.

          The Baja California peninsula and some parts of Sonora State were
          exempted to preserve easy access to Mexico's west-coast beaches.

          The Mexican government said the car-deposit program was necessary to
          prevent the illegal importation of cars into Mexico and to protect its
          domestic car industry. Opponents of the plan have argued that it would
          damage Mexico's tourism industry.

          Mexico's senate added its voice to the chorus of program opponents
          today, urging the government to terminate the program.

          Zedillo's decision was in response to that request as well as to the
          vehement opposition from across the border, the Interior Ministry's news
          release said.