    [Weekly Compilation of Presidential Documents Volume 30, Number 16 (Monday, April 25, 1994)]
    [Pages 873-874]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Message to Congress Reporting on Trade With China

    April 21, 1994

    To the Congress of the United States:

        Pursuant to section 406 of the Trade Act of 1974 (19 U.S.C. 2436)
    and sections 202 and 203 of the Trade Act of 1974 (as those sections
    were in effect on the day before the date of the enactment of the
    Omnibus Trade and Competitiveness Act of 1988), I have determined the
    action I will take with respect to the affirmative determination of the
    United States International Trade Commission (USITC), on the basis of
    its investigation (No. TA-406-13), that market disruption exists with
    respect to imports from China of honey provided for in heading 0409 and
    subheadings 1702.90 and 2106.90 of the Harmonized Tariff Schedule of the
    United States.
        After considering all relevant aspects of the investigation,
    including those set forth in section 202(c) of the Trade Act of 1974, I
    have determined that import relief for honey is not in the national
    economic interest of the United States. However, I am directing the
    United States Trade Representative (USTR), in consultation with the
    appropriate agencies to develop a plan to monitor imports

    [[Page 874]]

    of honey from China. The monitoring program is to be developed within
    thirty days of this determination.
        Since I have determined that the provision of import relief is not
    in the national economic interest of the United States, I am required by
    that section 203(b) of the Trade Act of 1974 to report to Congress on
    the reasons underlying this determination.
        In determining not to provide import relief, I considered its
    overall costs to the U.S. economy. The USITC majority recommendation for
    a quarterly tariff rate quota (a 25 percent ad valorem charge on the
    first 12.5 million pounds each quarter, increasing to 50 percent on
    amounts above that level), to be applied for three years, would cost
    consumers about $7 million while increasing producers' income by just
    $1.9 million. The other forms of relief recommended by other
    Commissioners would also result in substantial costs to consumers while
    offering little benefit to producers.
        In addition, the gap between production and consumption in the
    United States is approximately 100 million pounds, with imports of honey
    from China helping to fill that gap at the low end for industrial use.
    Any restrictions on imports of honey from China would likely lead to
    increased imports from other countries rather than significantly
    increased market share for U.S. producers.
        Although rising somewhat since 1991, U.S. honey inventories are not
    large by historical experience, either in absolute amounts or relative
    to consumption. Honey stocks reported by the U.S. Department of
    Agriculture were much higher in the mid-1980's (about 75 percent of
    consumption in 1985 and 1986), before falling to their lowest level in a
    decade in 1991 (26.6 percent of consumption). The 1993 stocks were 37.8
    percent of consumption, well below the 1980-1993 average level of 46.4
    percent.
        The U.S. government has supported honey producers since 1950, in
    part, to ensure enough honeybees would be available for crop
    pollination. This is an important national interest. I believe that
    current trends in the provision of pollination and honey production will
    not be significantly affected by not providing relief. Crop producers
    indicate that they believe pollination will still be cost effective even
    if service prices rise.
        I have also concluded that, in this case, imposing trade
    restrictions on imports of honey would run counter to our policy of
    promoting an open and fair international trading system.
                                                William J. Clinton
    The White House,
    April 21, 1994.

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