[Federal Register Volume 68, Number 82 (Tuesday, April 29, 2003)]
[Presidential Documents]
[Pages 23019-23020]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-10732]



[[Page 23017]]

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Part VI





The President





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Memorandum of April 25, 2003--Presidential Determination on Wire Hanger 
Imports from the People's Republic of China
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  Federal Register / Vol. 68, No. 82 / Tuesday, April 29, 2003 / 
Presidential Documents  

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 Title 3--
 The President

[[Page 23019]]

                Memorandum of April 25, 2003

                
Presidential Determination on Wire Hanger Imports 
                from the People's Republic of China

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

                Pursuant to section 421 of the Trade Act of 1974, as 
                amended (19 U.S.C. 2451), I have determined the action 
                I will take with respect to the affirmative 
                determination of the United States International Trade 
                Commission (USITC Investigation TA-421-2) regarding 
                imports of certain steel wire garment hangers from 
                China. After considering all relevant aspects of the 
                investigation, I have determined that providing import 
                relief for the U.S. wire hanger industry is not in the 
                national economic interest of the United States. In 
                particular, I find that import relief would have an 
                adverse impact on the United States economy clearly 
                greater than the benefits of such action.

                The facts of this case indicate that imposing 
                additional tariffs on Chinese imports would affect 
                domestic producers unevenly, favoring one business 
                strategy over another. While most of the producers 
                would likely realize some income benefits, additional 
                tariffs would disrupt the long-term adjustment strategy 
                of one major producer, which is based in part on 
                distribution of imported hangers, and cause that 
                producer to incur substantial costs.

                In addition, most domestic producers, including the 
                petitioners, have begun to pursue adjustment 
                strategies. While these strategies have included 
                consolidation, modernization of production facilities, 
                and expansion into complementary products and services, 
                domestic producers are also expanding their use of 
                imports. Indeed, a substantial part of the surge in 
                imports during the most recent period measured was 
                brought in by domestic producers themselves, including 
                the petitioners.

                Moreover, after 6 years of competing with Chinese 
                imports, domestic producers still account for over 85 
                percent of the U.S. wire hanger market. With this 
                dominant share of the market, domestic producers have 
                the opportunity to adjust to competition from Chinese 
                imports even without import relief.

                Furthermore, there is a strong possibility that if 
                additional tariffs on Chinese wire hangers were 
                imposed, production would simply shift to third 
                countries, which could not be subject to section 421's 
                China-specific restrictions. In that event, import 
                relief would have little or no benefit for any domestic 
                producer.

                Additional tariffs would have an uneven impact on 
                domestic distributors of wire hangers. For some 
                distributors, the tariffs would likely lead to some 
                income benefits. However, the tariffs would likely harm 
                other distributors in light of their business models.

                Additional tariffs would also likely have a negative 
                effect on the thousands of small, family-owned dry-
                cleaning businesses across the United States that would 
                either have to absorb the resulting increased costs or 
                pass them on to their customers.

                The circumstances of this case make clear that the U.S. 
                national economic interest would not be served by the 
                imposition of import relief under section 421. I remain 
                fully committed to exercising the important authority 
                granted

[[Page 23020]]

                to me under section 421 when the circumstances of a 
                particular case warrant it.

                Section 421 is not the only avenue available to the 
                petitioning domestic producers as they seek to adjust 
                to import competition. I hereby direct the Secretary of 
                Commerce and the Secretary of Labor to expedite 
                consideration of any Trade Adjustment Assistance 
                applications received from domestic hanger producers or 
                their workers and to provide such other requested 
                assistance or relief as they deem appropriate, 
                consistent with their statutory mandates.

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

                    (Presidential Sig.)B

                THE WHITE HOUSE,

                    Washington, April 25, 2003.

[FR Doc. 03-10732
Filed 4-28-03; 10:55 am]
Billing code 3190-01-M