[Federal Register Volume 59, Number 79 (Monday, April 25, 1994)]
[Presidential Documents]
[Pages 19627-19628]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10094]
[[Page Unknown]]
[Federal Register: April 25, 1994]
Presidential Documents
Federal Register
Vol. 59, No. 79
Monday, April 25, 1994
____________________________________________________________________
Title 3--
The President
Memorandum of April 21, 1994
Import Relief Determination Under Section 406 of
the Trade Act of 1974 on Honey From the People's
Republic of China
Memorandum for the United States Trade Representative
Pursuant to section 406 of the Trade Act of 1974 (19
U.S.C. 2436) and sections 202 and 203 of the Trade Act
of 1974 (as those sections were in effect on the day
before the date of the enactment of the Omnibus Trade
and Competitiveness Act of 1988), I have determined the
action I will take with respect to the affirmative
determination of the United States International Trade
Commission (USITC), on the basis of its investigation
(No. TA-406-13), that market disruption exists with
respect to imports from China of honey provided for in
heading 0409 and subheadings 1702.90 and 2106.90 of the
Harmonized Tariff Schedule of the United States.
After considering all relevant aspects of the
investigation, including those set forth in section
202(c) of the Trade Act of 1974, I have determined that
import relief for honey is not in the national economic
interest of the United States. However, I am directing
the United States Trade Representative (USTR), in
consultation with the appropriate agencies, to develop
a plan to monitor imports of honey from China. The
monitoring program is to be developed within thirty
days of this determination.
In determining not to provide relief, I considered its
overall costs to the U.S. economy. The USITC majority
recommendation for a quarterly tariff rate quota (a 25
percent ad valorem charge on the first 12.5 million
pounds each quarter, increasing to 50 percent on
amounts above that level), to be applied for three
years, would cost consumers about $7 million while
increasing producers' income by just $1.9 million.
Overall, national income would be reduced by
approximately $1.2 million. The other forms of relief
recommended by other Commissioners would also result in
substantial costs to consumers while offering little
benefit to producers and reducing national income.
In addition, the gap between production and consumption
in the United States is approximately 100 million
pounds, with imports of honey from China helping to
fill that gap at the low end for industrial use. Any
restrictions on imports of honey from China would
likely lead to increased imports from other countries
rather than significantly increased market share for
U.S. producers.
Although rising somewhat since 1991, U.S. honey
inventories are not large by historical experience,
either in absolute amounts or relative to consumption.
Honey stocks reported by the U.S. Department of
Agriculture were much higher in the mid-1980's (about
75 percent of consumption in 1985 and 1986), before
falling to their lowest level in a decade in 1991 (26.6
percent of consumption). 1993 stocks were 37.8 percent
of consumption, well below the 1980-1993 average level
of 46.4 percent.
The U.S. government has supported honey producers since
1950, in part, to ensure enough honeybees would be
available for crop pollination. This is an important
national interest. I believe that current trends in the
provision of pollination and honey production will not
be significantly affected by not providing relief. Crop
producers indicate that they believe pollination will
still be cost effective even if service prices rise.
I have also concluded that, in this case, imposing
trade restrictions on imports of honey would run
counter to our policy of promoting an open and fair
international trading system.
This determination is to be published in the Federal
Register.
(Presidential Sig.)>
[FR Doc. 94-10094
Filed 4-21-94; 4:18 pm]
Billing code 3190-01-M
