[Congressional Record Volume 142, Number 11 (Friday, January 26, 1996)]
[Senate]
[Pages S441-S442]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 AMENDING THE TRADE ACT OF 1974 TO CLARIFY THE DEFINITIONS OF DOMESTIC 
    INDUSTRY AND LIKE ARTICLES IN CERTAIN INVESTIGATIONS INVOLVING 
                    PERISHABLE AGRICULTURAL PRODUCTS

  Mr. GRAHAM. Mr. President, earlier this afternoon on behalf of my 
colleague Senator Mack and myself, the Senate was asked to consider, by 
unanimous consent, S. 1463. It is my understanding that unanimous 
consent has now been granted.
  Mr. President, I rise to urge the immediate adoption of S. 1463, a 
bill that advances fairness for American farmers in crisis.
  The bill, which I introduced last December on behalf of myself and 
Senator Mack of Florida, would make it easier for seasonal industries, 
such as winter vegetable growers, to seek relief under section 202 of 
the Trade Act of 1974.
  Sections 201-204 of the Trade Act of 1974 authorizes the President, 
after an investigation and determination by the International Trade 
Commission, to withdraw or modify concessions or impose duties for a 
limited period of time on imports of like or directly competitive 
articles.
  Section 202(c)(6) defines ``domestic industry'' as the producers as a 
whole of the article or those producers whose collective production of 
the article constitutes a major portion of the total domestic industry, 
including flexibility to define the industry as a limited geographic 
area.
  During early 1995, the domestic winter tomato industry sought relief 
for injury resulting from surges of imports of Mexican tomatoes. The 
International Trade Commission, viewing the domestic industry as 
nationwide and year-round, denied relief.
  In its opinion, the ITC recognized that perishable agricultural 
products have limited marketability. Page I-12 of the opinion states:

       The perishable nature of fresh-market tomatoes precludes 
     the interchangeability of tomatoes harvested and marketed at 
     different times of the year. Given that a fresh-market 
     mature-green or vine-ripe tomato harvested in any month would 
     not be suitable for consumption after about three weeks, 
     arguably a tomato harvested in one month could not be 
     substituted for a tomato harvested a month later.

  Nonetheless, the ITC determined that, under the statutory definition, 
the appropriate domestic industry included all growers and packers of 
fresh tomatoes during the entire calendar year.
  This legislation is intended to facilitate a different result by the 
ITC in cases with facts similar to those presented in the case filed by 
the winter tomato growers. If this legislation is enacted, industries 
such as the winter tomato industry would be deemed to be a separate 
industry under the modified definition of a domestic industry.
  Currently, seasonal growers may be considered to be part of an 
industry that grows, ships, and sells during an entirely different time 
during the year. For example, fresh tomato growers in California grow, 
harvest, and sell during the late spring, summer, and fall, while those 
in Florida do the same thing in the late fall, winter, and early 
spring. Quite literally, while one group is in business, the other is 
not. While the product may be the same, it is a fact that the market, 
the competition, and the trade involved are totally separate.
  S. 1463 would modify the definition of domestic industry in section 
202 cases involving perishable agricultural products. In those cases, 
the ITC would be authorized to define the industry to include only 
domestic producers who produce the product during a particular growing 
season if two things are proven.

[[Page S442]]

  First, the domestic producers must sell all or almost all of the 
production during that growing season. Under this requirement, however, 
sales of a perishable agricultural product during the weeks immediately 
following the end of the growing season would not disqualify a seasonal 
industry.
  Second, during the growing season, other domestic producers of the 
article who produce in a different growing season must not supply, to 
any substantial degree, demand for the article. Again, this would not 
preclude the other industry from selling any produce during the growing 
season.
  Instead, the purpose of these two limitations is to preclude 
arbitrary season cutoffs from meeting the standard. The scope of the 
modified definition is limited to situations where international 
producers compete directly with domestic producers of the same like 
product during the same growing season.
  This does not mean that there cannot be any overlap between the 
partial-year growing season in which the domestic industry alleges 
injury and another growing season. Various factors such as weather 
conditions may cause one growing season to begin early or end late and 
yet not affect a separate growing season.
  While this change will allow the ITC to conclude that a partial-year 
industry constitutes a domestic industry under section 202, I believe 
that it is consistent with the NAFTA and other international 
obligations.
  This amendment, by itself, will not solve the myriad post-NAFTA 
challenges facing America's winter vegetable industry. Domestic winter 
growers are suffering from dramatic increases in imports of Mexican 
squash, eggplant, sweet corn, beans, bell peppers, tomatoes, and other 
vegetables. These crops are seasonal and perishable.
  Without prompt legislative reform, the domestic winter vegetable 
industry will soon end its second post-NAFTA growing season with unfair 
rules and hampered ability to redress harm. In human terms, too many 
farm families have bankrupted, stopped production, and lost confidence 
in their Government to assure fairness.
  In addition to S. 1463, we should enact and implement additional 
legislative and administrative measures to make NAFTA work as it was 
designed.
  But today, we do have a chance to take a positive step toward 
fairness for American farmers. Let us not forfeit that chance as we 
contemplate adjournment until next month. On behalf of fundamental 
fairness for farm families, I urge you to support this bipartisan 
reform.
  I would like at this time, therefore, to ask unanimous consent that 
the Finance Committee be discharged from further consideration of S. 
1463, a bill to clarify the definitions of domestic industry and like 
articles in certain trade actions involving perishable agricultural 
products, that the Senate then proceed to its immediate consideration, 
that the bill be read three times, passed, and the motion to reconsider 
be laid upon the table; further, that any statements relating thereto 
be placed in the Record at the appropriate place as if read; provided 
further that the above occur without intervening action or debate.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill was ordered to be engrossed for a third reading, was read 
the third time, and passed as follows:

                                S. 1463

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. DEFINITIONS OF DOMESTIC INDUSTRY AND LIKE OR 
                   DIRECTLY COMPETITIVE ARTICLES.

       (a) Definition of Domestic Industry.--Section 202(c)(4) of 
     the Trade Act of 1974 (19 U.S.C. 2252(c)(4)) is amended--
       (1) by striking ``and'' at the end of subparagraph (B),
       (2) by striking the period at the end of subparagraph (C) 
     and inserting ``; and'', and
       (3) by adding at the end the following new subparagraph:
       ``(D) may, in the case of one or more domestic producers 
     who produce a like or directly competitive perishable 
     agricultural product during a particular growing season, 
     limit the domestic industry to those producers if the 
     producers sell all or almost all of their production of the 
     article in that growing season and the demand for the article 
     is not supplied, to any substantial degree, by other domestic 
     producers of the article who produce the article in a 
     different growing season.''.
       (b) Definition of Like or Directly Competitive Article; 
     Consideration of Imported Article.--Section 202(c)(6) of such 
     Act is amended by adding at the end the following new 
     subparagraphs:
       ``(E) In the case of a perishable agricultural product 
     produced by a domestic industry described in paragraph 
     (4)(D), the term `like or directly competitive article' means 
     only the articles produced by the industry during the 
     applicable growing season.
       ``(F) In the case of a perishable agricultural product, the 
     Commission may limit its consideration to imported articles 
     that are entered, or withdrawn from warehouse for 
     consumption, during the same growing season as the like or 
     directly competitive product.''.
       (c) Relief Limited to Certain Imported Products.--Section 
     202(d)(4) of the Trade Act of 1974 (19 U.S.C. 2252(d)(4) is 
     amended by adding at the end the following new subparagraph:
       ``(E) The Commission may, in the case of a perishable 
     agricultural product, limit provisional relief to imported 
     articles that are entered, or withdrawn from warehouse for 
     consumption, during the same growing season as the like or 
     directly competitive product.''.
       (d) Conforming Amendment.--Section 202(d)(5) of the Trade 
     Act of 1974 (19 U.S.C. 2252(d)(5)) is amended in the matter 
     preceding subparagraph (A), by striking ``subsection'' and 
     inserting ``section''.
       (e) Effective Date.--The amendments made by this Act apply 
     with respect to investigations initiated pursuant to section 
     202(b) of the Trade Act of 1974 (19 U.S.C. 2252(d)) and 
     requests for provisional relief initiated pursuant to section 
     202(d) of such Act (19 U.S.C. 2252(d)) after the date of the 
     enactment of this Act.

     

                          ____________________