[Federal Register Volume 71, Number 3 (Thursday, January 5, 2006)]
[Presidential Documents]
[Pages 871-872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-156]



[[Page 869]]

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Part VI





The President





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Presidential Determination No. 2006-7 of December 30, 2005--
Presidential Determination on Imports of Circular Welded Non-Alloy 
Steel Pipe From the People's Republic of China
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  Federal Register / Vol. 71, No. 3 / Thursday, January 5, 2006 / 
Presidential Documents  

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 Title 3--
 The President

[[Page 871]]

                Presidential Determination No. 2006-7 of December 30, 
                2005

                
Presidential Determination on Imports of Circular 
                Welded Non-Alloy Steel Pipe 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) regarding imports of circular welded 
                non-alloy steel pipe (steel pipe) from China 
                (Investigation No. TA-421-6). After considering all 
                relevant aspects of the investigation, I have 
                determined that providing import relief for the U.S. 
                steel pipe industry is not in the national economic 
                interest of the United States. In particular, I find 
                that the 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 any import relief, 
                including either of the USITC's proposed remedies, is 
                likely to be ineffective because of the extent to which 
                imports from third countries would likely replace 
                curtailed Chinese imports. A large number of third 
                countries--the USITC documents more than 50 of them--
                supply the U.S. market with steel pipe. Although 
                antidumping duties currently apply to imports from 
                eight of those countries, there are many other 
                countries currently supplying steel pipe to the U.S. 
                market that could fill the void created by curtailed 
                Chinese imports. Under these circumstances, import 
                relief would likely not provide a meaningful benefit to 
                domestic producers.

                In addition, imposing import relief would cost U.S. 
                consumers substantially more than the increased income 
                that could be realized by domestic producers. According 
                to USITC estimates, the USITC's recommended quota 
                remedy would generate costs for U.S. consumers five 
                times greater than the additional income that could be 
                realized by domestic producers. Under the USITC's 
                recommended tariff rate quota remedy, the costs would 
                be four times greater than the income generated by 
                domestic producers.

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

                I hereby direct the Secretary of Commerce and the 
                Secretary of Labor to expedite consideration of any 
                Trade Adjustment Assistance applications received from 
                domestic producers or their workers, consistent with 
                their statutory mandates.

[[Page 872]]

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

                    (Presidential Sig.)B

                THE WHITE HOUSE,

                    Washington, December 30, 2005.

[FR Doc. 06-156
Filed 1-4-06; 11:42 am]
Billing code 3190-01-P