[Federal Register Volume 64, Number 71 (Wednesday, April 14, 1999)]
[Notices]
[Pages 18448-18449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9329]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. TA-201-68]


Lamb Meat

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 lamb meat 1 is being imported into the United 
States in such increased quantities as to be a substantial cause of the 
threat of serious injury to the domestic industry producing an article 
like or directly competitive with the imported article; and
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    \1\  The imported article covered by this investigation is 
fresh, chilled, or frozen lamb meat. Excluded from the scope of the 
investigation are imports of live lambs and sheep and meat of mature 
sheep (mutton). Lamb meat is provided for in subheadings 0204.10.00, 
0204.22.20, 0204.23.20, 0204.30.00, 0204.42.20, and 0204.43.20 of 
the Harmonized Tariff Schedule of the United States (HTS).
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    (2) Makes negative findings, pursuant to section 311(a) of the 
North American Free-Trade Agreement (NAFTA) Implementation Act (19 
U.S.C. 3371(a)), with respect to imports of lamb meat from Canada and 
Mexico.

Recommendations With Respect to Remedy

    The Commission 2 (Chairman Bragg and Commissioners 
Crawford and Askey) recommends:
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    \2\  The Commission notes that, pursuant to section 330(d)(2) of 
the Tariff Act of 1930 (19 U.S.C. 1330(d)(2)), the remedy 
recommendation of Chairman Bragg and Commissioners Crawford and 
Askey in this investigation is to be treated as the remedy finding 
of the Commission for purposes of section 203 of the Trade Act.
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    (1) That the President impose a tariff-rate quota system, for a 4-
year period, on imports of lamb meat that are the subject of this 
investigation, as follows (all weights are in terms of carcass-weight 
equivalents):
    First year: 20 percent ad valorem on imports over 78 million 
pounds;
    Second year: 17.5 percent ad valorem on imports over 81.5 million 
pounds;
    Third year: 15 percent ad valorem on imports over 81.5 million 
pounds; and
    Fourth year: 10 percent ad valorem on imports over 81.5 million 
pounds;
    (2) That the President implement appropriate adjustment assistance 
measures, drawing on authorized programs at the U.S. Department of 
Agriculture and the U.S. Department of Commerce providing specialized 
direct payments, research, and animal health programs, in such 
combination as to most effectively ``facilitate efforts by the domestic 
industry to make a positive adjustment to import competition and 
provide greater economic and social benefits than costs.'' In this 
context, we recommend that the President look to the industry's report 
by PriceWaterhouseCoopers and its recommendations when considering 
adjustment assistance options;
    (3) Having made negative findings with respect to imports of lamb 
meat from Canada and Mexico under section 311(a) of the NAFTA 
Implementation Act, that such imports be excluded from the tariff-rate 
quota; and
    (4) That the tariff-rate quota not apply to imports of lamb meat 
from Israel, or to any imports of lamb meat entered duty-free from 
beneficiary countries under the Caribbean Basin Economic Recovery Act 
or the Andean Trade Preference Act.
    Vice Chairman Miller and Commissioner Hillman recommend:
    (1) That the President increase the rate of duty, for a 4-year 
period, on imports of lamb meat the subject of this investigation, to 
the rates of duty as follow: 22 percent ad valorem in the first year of 
relief, 20 percent ad valorem in the second year, 15 percent ad valorem 
in the third year, and 10 percent ad valorem in the fourth year;
    (2) That the President identify and implement adjustment measures 
and other action authorized under law that is likely to facilitate 
positive adjustment to import competition; specifically, that the 
President make assistance available to the lamb meat industry through 
Federal programs, primarily those administered by the U.S. Department 
of Agriculture, and take action to ensure that the National Sheep 
Industry Improvement Center is fully operational;
    (3) Having made negative findings with respect to imports of lamb 
meat from Canada and Mexico under section 311(a) of the NAFTA 
Implementation Act, that such imports be excluded from the increased 
tariffs;
    (4) That the increased rates of duty not apply to imports of lamb 
meat from Israel, or to any imports of lamb meat entered duty-free from 
beneficiary countries under the Caribbean Basin Economic Recovery Act 
or the Andean Trade Preference Act.
    Commissioner Koplan recommends:
    (1) That the President impose a quantitative restriction, for a 4-
year period, on imports of lamb meat the subject of this investigation, 
as follows: 52 million pounds in the first year, 56 million pounds in 
the second year, 61 million pounds in the third year, and 70 million 
pounds in the fourth year (all

[[Page 18449]]

quantities are carcass-weight-equivalents);
    (2) That the President, within the overall quantitative 
restriction, provide separate allocations for Australia, New Zealand, 
and ``all other'' countries in proportion to their average share of 
imports entered during calendar years 1995-1997;
    (3) That the President take all action necessary to ensure that the 
National Sheep Industry Improvement Center is fully operational as soon 
as possible, and that the President make available either through the 
Center or directly to the industry the full measure of Federal 
assistance programs, including those administered by the U.S. 
Department of Agriculture.
    (4) Having made negative findings with respect to imports of lamb 
meat from Canada and Mexico under section 311(a) of the NAFTA 
Implementation Act, that such imports be excluded from the quota; and
    (5) That the quota not apply to imports of lamb meat from Israel, 
or to any imports of lamb meat entered duty-free from beneficiary 
countries under the Caribbean Basin Economic Recovery Act or the Andean 
Trade Preference Act.
    The Commissioners find that the respective actions that they have 
recommended will address the threat of serious injury found to exist 
and be 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 October 7, 1998, on behalf 
of the American Sheep Industry Association, Inc., Harper Livestock 
Company, National Lamb Feeders Association, Winters Ranch Partnership, 
Godby Sheep Company, Talbott Sheep Company, Iowa Lamb Corporation, 
Ranchers' Lamb of Texas, Inc., and Chicago Lamb and Veal Company, the 
Commission, effective October 7, 1998, instituted investigation No. TA-
201-68, Lamb Meat, under section 202 of the Trade Act of 1974 to 
determine whether lamb meat 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 23, 1998 (63 
F.R. 56940). The hearing in connection with the injury phase of the 
investigation was held on January 12, 1999, and the hearing on the 
question of remedy was held on February 25, 1999. 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 April 5, 1999. The views of the Commission are 
contained in USITC Publication 3176 (April 1999), entitled Lamb Meat: 
Investigation No. TA-201-68.

    Issued: April 7, 1999.

    By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 99-9329 Filed 4-13-99; 8:45 am]
BILLING CODE 7020-02-P