[Federal Register Volume 61, Number 234 (Wednesday, December 4, 1996)]
[Presidential Documents]
[Pages 64439-64440]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31006]
Presidential Documents
Federal Register / Vol. 61, No. 234 / Wednesday, December 4, 1996 /
Presidential Documents
[[Page 64439]]
Memorandum of November 28, 1996
Action Under Section 203 of the Trade Act of 1974
Concerning Broom Corn Brooms
Memorandum for the Secretary of the Treasury, the
Secretary of Commerce, the Secretary of Agriculture,
the Secretary of Labor, [and] the United States Trade
Representative
On August 1, 1996, the United States International
Trade Commission (USITC) submitted to me a report that
contained: (1) a determination pursuant to section 202
of the Trade Act of 1974 (``the Trade Act'') that
imports of broom corn brooms are being imported into
the United States in such increased quantities as to be
a substantial cause of serious injury to the domestic
industry; and (2) a finding pursuant to section 311(a)
of the North American Free-Trade Agreement (NAFTA)
Implementation Act (``NAFTA Act'') and that imports of
broom corn brooms produced in Mexico account for a
substantial share of total imports of such brooms and
contribute importantly to the serious injury caused by
imports.
On August 30, 1996, I determined to take appropriate
and feasible action that will facilitate efforts by the
domestic industry to make a positive adjustment to
competition from imports of broom corn brooms. I did
not implement at that time any of the actions
recommended by the USITC, because I determined that it
would be more appropriate first to seek a negotiated
solution with appropriate foreign countries that would
address the serious injury to our domestic broom corn
broom industry, promote positive adjustment, and strike
a balance among the various interests involved.
I therefore directed the Trade Representative to
negotiate and conclude, within 90 days, agreements of a
type described in section 203(a)(3)(E) of the Trade
Act, and to carry out any agreements reached. I also
directed the Secretaries of Agriculture, Commerce, and
Labor to develop and present, within 90 days, a program
of measures designed to enable our domestic industry
producing broom corn brooms to adjust to import
competition.
The Trade Representative has informed me that her
negotiations did not result in agreements meeting the
goals that I had previously set. Therefore, after
considering all relevant aspects of the investigation,
including the factors set forth in section 203(a)(2) of
the Trade Act, and the results of the activities
undertaken over the previous 90 days, I have
implemented actions of a type described in section
203(a)(3). I have determined that these actions will
facilitate efforts by the domestic industry to make a
positive adjustment to import competition and provide
greater economic and social benefits than costs.
Specifically, I have proclaimed tariff relief for a
period of three years that will provide time for the
domestic industry to implement an adjustment plan that
will facilitate its positive adjustment to import
competition. This action meets the needs of the
domestic industry, while striking a balance with the
other interests of the United States by providing the
minimum tariff relief necessary to promote such
adjustment. No tariff relief is being provided on four
of the six tariff subheadings subject to the injury
determination. In addition, for the largest tariff
subheading, duty-free treatment will be provided on a
substantial annual quantity of broom corn broom imports
from all import sources. In short, this action provides
the domestic industry with substantial temporary relief
from increased import competition, while
[[Page 64440]]
also assuring our trading partners significant
continued duty-free access to the United States market.
I also note the substantial resources identified by the
Departments of Agriculture and Commerce that can
provide loans, grants, technical and in-kind assistance
to the domestic industry as it implements its
adjustment plan. Taken together, these programs have
the potential to match the financial contribution that
the domestic industry will make as it implements its
adjustment plan. I urge the domestic industry to submit
the necessary applications for consideration under the
individual programs, and direct the Secretaries of
Agriculture and Commerce to provide the appropriate
assistance to the industry in completing the
application process. I also direct the Departments of
Agriculture and Commerce to give priority consideration
to adjustment assistance requests, with the intent of
providing the maximum appropriate assistance available.
The Trade Adjustment Assistance (TAA) program of the
Department of Labor has already provided support for
employees of broom corn broom manufacturers that have
been laid off due to import competition. This
assistance remains available, and I instruct the
Secretary of Labor to give priority consideration to
processing such TAA requests.
An additional issue considered during the course of the
last 90 days was the possible circumvention of U.S.
customs laws. As a result of information provided by
the broom corn broom industry and other information
collected by the U.S. Customs Service, an investigation
is underway to determine whether any imports of broom
corn brooms are entering the commerce of the United
States in a manner inconsistent with U.S. law. I
instruct the Secretary of the Treasury to pursue this
matter with the intent of concluding this investigation
within 90 days, and taking any other steps necessary to
ensure broom corn broom imports do not circumvent U.S.
law.
I also note that, pursuant to Section 204 of the Trade
Act, the International Trade Commission will monitor
developments with respect to the domestic industry,
including progress and specific efforts made by workers
and firms in the domestic industry to make a positive
adjustment to import competition.
The United States Trade Representative is authorized
and directed to publish this determination in the
Federal Register.
(Presidential Sig.)
THE WHITE HOUSE,
Washington, November 28, 1996.
[FR Doc. 96-31006
Filed 12-3-96; 8:45 am]
Billing code 3190-01-M
