[Federal Register Volume 64, Number 132 (Monday, July 12, 1999)]
[Presidential Documents]
[Pages 37393-37394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17789]


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                         Presidential Documents 
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  Federal Register / Vol. 64, No. 132 / Monday, July 12, 1999 / 
Presidential Documents  

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 Title 3--
 The President

[[Page 37393]]

                Memorandum of July 7, 1999

                
Action Under Section 203 of the Trade Act of 1974 
                Concerning Lamb Meat

                Memorandum for the Secretary of the Treasury, the 
                Secretary of Agriculture, the United States Trade 
                Representative, the Director of the Office of 
                Management and Budget, [and] the Director of the 
                National Economic Council

                On April 5, 1999, the United States International Trade 
                Commission (USITC) submitted a report to me that 
                contained: (1) a determination pursuant to section 202 
                of the Trade Act of 1974, as amended (the ``Trade 
                Act''), that imports of lamb meat are being imported 
                into the United States in such increased quantities as 
                to be a substantial cause of threat of serious injury 
                to the domestic lamb meat industry; and (2) negative 
                findings made pursuant to section 311(a) of the North 
                American Free Trade Agreement Implementation Act (the 
                ``NAFTA Implementation Act'') with respect to imports 
                of lamb meat from Canada and Mexico.

                After considering all relevant aspects of the 
                investigation, including the factors set forth in 
                section 203(a)(2) of the Trade Act, I have implemented 
                actions of a type described in section 203(a)(3). I 
                have determined that the most appropriate action is a 
                tariff-rate quota on imports of lamb meat with an 
                increase in currently scheduled rates of duties for 
                imports within and above the tariff-rate quota level. I 
                have proclaimed such action for a period of 3 years and 
                1 day in order to facilitate efforts by the domestic 
                industry to make a positive adjustment to import 
                competition.

                Specifically, I have established a tariff-rate quota 
                for lamb meat in an amount equal to 31,851,151 kg. in 
                the first year (July 22, 1999, through July 21, 2000), 
                an amount that is equal to imports of lamb meat during 
                calendar year 1998. The tariff-rate quota amount will 
                increase by 857,342 kg. annually in the second and 
                third years of relief. I have also established 
                individual country allocations for product imported 
                from Australia, New Zealand, and an ``other country'' 
                category within the tariff-rate quota, which reflect 
                the actual shares of each country in calendar year 
                1998. I have established increased rates of duty for 
                imports within the tariff-rate quota amount: namely 9 
                percent ad valorem for imports in the first year of 
                relief; 6 percent ad valorem for imports in the second 
                year; and 3 percent ad valorem for imports in the third 
                year. I have established increased rates of duty for 
                imports above the tariff-rate quota levels: namely, 40 
                percent ad valorem in the first year of relief, 32 
                percent ad valorem in the second year, and 24 percent 
                ad valorem in the third year.

                I have also determined that implementation of 
                adjustment assistance measures based on authorized 
                programs of the Department of Agriculture will 
                facilitate efforts by the domestic lamb meat industry 
                to make a positive adjustment to import competition. In 
                this regard, I instruct the United States Trade 
                Representative (the USTR), the Secretary of Agriculture 
                (the Secretary), the Director of the Office of 
                Management and Budget, and the Director of the National 
                Economic Council, in consultation with the U.S. 
                industry, to transmit to me a set of substantial 
                adjustment assistance measures that would improve the 
                competitiveness of the U.S. industry and facilitate 
                efforts by the industry to adjust to import 
                competition.

[[Page 37394]]

                I further determine, pursuant to section 312(a) of the 
                NAFTA Implementation Act, that imports of lamb meat 
                produced in Canada and Mexico do not account for a 
                substantial share of total imports of lamb meat and are 
                not contributing importantly to the threat of serious 
                injury. Therefore, pursuant to section 312(b) of the 
                NAFTA Implementation Act, the safeguard measure will 
                not apply to imports of lamb meat, whether fresh/
                chilled or frozen, that are the product of Canada or 
                Mexico. Similarly, the safeguard measure will not apply 
                to imports of lamb meat that are the product of Israel, 
                beneficiary countries under the Caribbean Basin 
                Economic Recovery Act or the Andean Trade Preference 
                Act, or other developing countries that have accounted 
                for a minor share of lamb meat imports.

                I have determined that the actions described above will 
                facilitate efforts by the domestic industry to make a 
                positive adjustment to import competition and provide 
                greater economic and social benefits than costs. These 
                actions will provide the domestic industry with 
                necessary temporary relief from increasing import 
                competition as well as assistance from existing U.S. 
                Government programs, while also assuring our trading 
                partners continued access to the United States market. 
                The over-quota tariff rates I have established will 
                provide substantial certainty to the domestic lamb 
                industry regarding import levels.

                Pursuant to section 204 of the Trade Act, the USITC 
                will monitor developments with respect to the domestic 
                industry, including the progress and specific efforts 
                made by workers and firms to make a positive adjustment 
                to import competition. The USITC will provide to me and 
                to the Congress a report on the results of its 
                monitoring no later than the date that is the mid-point 
                of the period during which the action I have taken 
                under section 203 of the Trade Act is in effect. In 
                this regard, I instruct the USTR, in consultation with 
                the Secretary, and the Director of the Office of 
                Management and Budget to transmit to the USITC no later 
                than 30 days from today a list of benchmarks that the 
                USTR recommends that the USITC use in connection with 
                its monitoring and in preparing its report. These 
                benchmarks are to be focused on industry efforts to 
                adjust to import competition and on price trends for 
                domestic and imported lamb meat.

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

                    (Presidential Sig.)

                THE WHITE HOUSE

                    Washington, July 7, 1999.

[FR Doc. 99-17789
Filed 7-9-99; 8:45 am]
Billing code 3190-01-M