[Federal Register Volume 61, Number 172 (Wednesday, September 4, 1996)]
[Presidential Documents]
[Pages 46697-46698]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-22756]



[[Page 46695]]


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Part III





The President





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Memorandum of August 30, 1996--Determinations Under Section 203 of the 
Trade Act of 1974 and Section 304 of the North American Free Trade 
Agreement Implementation Act Concerning Broom Corn Brooms
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  Federal Register / Vol. 61, No. 172 / Wednesday, September 4, 1996 / 
Presidential Documents  

 ___________________________________________________________________

 Title 3--
 The President

[[Page 46697]]

                Memorandum of August 30, 1996

                
Determinations Under Section 203 of the Trade Act 
                of 1974 and Section 304 of the North American Free 
                Trade Agreement Implementation Act Concerning Broom 
                Corn Brooms

                Memorandum for the United States Trade Representative, 
                the Secretary of Agriculture, the Secretary of 
                Commerce, [and] the Secretary of Labor

                On August 1, 1996, the United States International 
                Trade Commission (USITC) submitted to me a report that 
                included:

                    (a) 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 producing an article like or directly 
                competitive with the imported article;
                    (b) a finding pursuant to section 311(a) of the 
                North American Free Trade Agreement (NAFTA) 
                Implementation Act (``NAFTA Act'') 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; but that imports of broom corn brooms produced 
                in Canada do not account for a substantial share of 
                total imports and thus do not contribute importantly to 
                the serious injury caused by imports;
                    (c) a determination under section 302 of the NAFTA 
                Act that, as a result of the reduction or elimination 
                or a duty provided for under the NAFTA, broom corn 
                brooms produced in Mexico are being imported into the 
                United States in such increased quantities (in absolute 
                terms) and under such conditions so that imports of the 
                article, alone, constitute a substantial cause of 
                serious injury to the domestic industry producing an 
                article that is like, or directly competitive with, the 
                imported article; and
                    (d) recommendations for action by the President in 
                response to these determinations.

                Pursuant to section 203(a) of the Trade Act, I have 
                determined to take appropriate and feasible action 
                within my power that will facilitate efforts by the 
                domestic industry to make a positive adjustment to 
                competition from imports of broom corn brooms. I have 
                not implemented at this time any of the actions 
                recommended by the USITC, because I believe 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.

                Therefore, after considering all relevant aspects of 
                the investigation, including the factors set forth in 
                section 203(a)(2) of the Trade Act, I hereby direct 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. Not later than the end of this 90-
                day period, I would implement action of a type 
                described in section 203(a)(3). I hereby direct the 
                Secretaries of Agriculture, Commerce, and Labor to 
                develop and present to me, within 90 days, a program of 
                measures designed to enable our domestic industry 
                producing broom corn brooms to adjust to import 
                competition.

[[Page 46698]]

                I agree with the USITC's finding under section 311(a) 
                of the NAFTA Act, and therefore determine, pursuant to 
                section 312(a) of the Act, that imports of broom corn 
                brooms from Mexico account for a substantial share of 
                total imports of such brooms and contribute importantly 
                to the serious injury caused by imports; but that 
                imports of broom corn brooms from Canada do not account 
                for a substantial share of total imports and thus do 
                not contribute importantly to the serious injury caused 
                by imports. Therefore, pursuant to section 312(b) of 
                the NAFTA Act, agreements reached, and action of a type 
                described in section 203(a)(3) of the Trade Act, would 
                apply to imports of broom corn brooms from Mexico, but 
                would not apply to imports of broom corn brooms from 
                Canada. Also, in light of the USITC's findings, any 
                agreements and action would not apply to imports of 
                broom corn brooms from Israel.

                As a result of the action I have taken under section 
                203 of the Trade Act, I have fully preserved my ability 
                to implement tariff increases of a magnitude equal to 
                or greater than the increases recommended by USITC 
                commissioners under section 303 of the NAFTA Act. 
                Section 203 of the Trade Act also authorizes a wider 
                array of types of action than the tariff increases 
                permitted under the NAFTA Act. Thus, through section 
                203 of the Trade Act, I maintain the full power to 
                address the serious injury found by the USITC to have 
                resulted from the reduction in tariffs under the NAFTA. 
                For these reasons, I have determined that additional 
                action under section 304 of the NAFTA Act is not 
                necessary and would not provide greater benefits than 
                costs.

                The United States Trade Representative is authorized 
                and directed to publish this determination in the 
                Federal Register.

                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, August 30, 1996.

[FR Doc. 96-22756
Filed 9-3-96; 10:24 a.m.]
Billing code 3190-01-M