[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