[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)]
[Notices]
[Page 14476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7742]


-----------------------------------------------------------------------

INTERNATIONAL TRADE COMMISSION

[Investigation No. TA-201-67]


Wheat Gluten

Determination

    On the basis of the information in the investigation, the 
Commission unanimously--
    (1) determines, pursuant to section 202(b) of the Trade Act of 
1974, that wheat gluten 1 is 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; and
---------------------------------------------------------------------------

    \1\ The imported article covered by this investigation is wheat 
gluten, the natural protein portion of wheat that is extracted after 
wheat is milled into flour. Wheat gluten is provided for in 
subheadings 1109.00.10 and 1109.00.90 of the Harmonized Tariff 
Schedule of the United States (HTS).
---------------------------------------------------------------------------

    (2) makes negative findings, pursuant to section 311(a) of the 
North American Free-Trade Agreement (NAFTA) Implementation Act, with 
respect to imports of wheat gluten from Canada and Mexico.

Findings and Recommendations With Respect to Remedy

    The Commission unanimously--
    (1) Recommends that the President impose a quantitative 
restriction, for a 4-year period, on imports of wheat gluten that are 
the subject of this investigation, in the amount of 126 million pounds 
in the first year, to be increased by 6 percent each subsequent year 
that the action is in effect;
    (2) Recommends that, within the overall quantitative restriction, 
the President allocate separate quantitative restrictions for the 
European Union, Australia, and ``all other'' non-excluded countries, 
taking into account the disproportional growth and impact of imports of 
wheat gluten from the European Union;
    (3) Having made negative findings with respect to imports of wheat 
gluten from Canada and Mexico under section 311(a) of the NAFTA 
Implementation Act, recommends that such imports be excluded from the 
quantitative restriction;
    (4) Recommends that this import relief action not apply to any 
imports of wheat gluten from Israel, or to any imports of wheat gluten 
entered duty free from beneficiary countries under the Caribbean Basin 
Economic Recovery Act or the Andean Trade Preference Act; and
    (5) Recommends that the President undertake international 
negotiations to address the underlying cause of the increase in imports 
of wheat gluten or otherwise to alleviate the injury to the domestic 
industry.
    The Commission finds that this remedy will address the serious 
injury that it has found to exist and will be the most effective in 
facilitating the efforts of the domestic industry to make a positive 
adjustment to import competition.

Background

    Following receipt of a petition filed on September 19, 1997, on 
behalf of the Wheat Gluten Industry Council, the Commission, effective 
September 19, 1997, instituted investigation No. TA-201-67, Wheat 
Gluten, under section 202 of the Trade Act of 1974 to determine whether 
wheat gluten is being imported into the United States in such increased 
quantities as to be a substantial cause of serious injury, or the 
threat thereof, to the domestic industry producing an article like or 
directly competitive with the imported article.
    Notice of the institution of the Commission's investigation and of 
the scheduling of public hearings to be held in connection therewith 
was given by posting copies of the notice in the Office of the 
Secretary, U.S. International Trade Commission, Washington, DC, and by 
publishing the notice in the Federal Register of October 1, 1997 (62 FR 
51488). The hearing in connection with the injury phase of the 
investigation was held on December 16, 1997, and the hearing on the 
question of remedy was held on February 10, 1998. Both hearings were 
held in Washington, DC; all persons who requested the opportunity were 
permitted to appear in person or by counsel.
    The Commission transmitted its determination in this investigation 
to the President on March 18, 1998. The views of the Commission are 
contained in USITC Publication 3088 (March 1998), entitled ``Wheat 
Gluten: Investigation No. TA-201-67.''

    Issued: March 19, 1998.

    By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 98-7742 Filed 3-24-98; 8:45 am]
BILLING CODE 7020-02-P