[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