[Weekly Compilation of Presidential Documents Volume 32, Number 49 (Monday, December 9, 1996)]
[Pages 2447-2449]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Memorandum on Imports of Broom Corn Brooms

November 28, 1996

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

Subject: Action Under Section 203 of the Trade Act of 1974 Concerning 
Broom Corn Brooms

    On August 1, 1996, the United States International Trade Commission 
(USITC) submitted to me a report that contained: (1) a determination 
pursuant to section 202 of the Trade Act of 1974 (``the Trade Act'') 
that imports of broom corn brooms are being imported into the United 
States in such increased quantities as to be a substantial cause of 
serious injury to the domestic industry; and (2) a finding pursuant to 
section 311(a) of the North American Free-Trade Agreement (NAFTA) 
Implementation Act (``NAFTA Act'') and that imports of broom corn brooms 
produced in Mexico account for a substantial share of total imports of 
such brooms and contribute importantly to the serious injury caused by 
imports.
    On August 30, 1996, I determined to take appropriate and feasible 
action that will facilitate efforts by the domestic industry to make a 
positive adjustment to competition from imports of broom corn brooms. I 
did not implement at that time any of the actions recommended by the 
USITC, because I determined that it would be more appropriate first to 
seek a negotiated solution with appropriate foreign countries that would 
address the serious injury to our domestic broom corn broom industry, 
promote positive adjustment, and strike a balance among the various 
interests involved.
    I therefore directed the Trade Representative to negotiate and 
conclude, within 90 days, agreements of a type described in section 
203(a)(3)(E) of the Trade Act, and to carry out any agreements reached. 
I also di

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rected the Secretaries of Agriculture, Commerce, and Labor to develop 
and present, within 90 days, a program of measures designed to enable 
our domestic industry producing broom corn brooms to adjust to import 
competition.
    The Trade Representative has informed me that her negotiations did 
not result in agreements meeting the goals that I had previously set. 
Therefore, after considering all relevant aspects of the investigation, 
including the factors set forth in section 203(a)(2) of the Trade Act, 
and the results of the activities undertaken over the previous 90 days, 
I have implemented actions of a type described in section 203(a)(3). I 
have determined that these actions will facilitate efforts by the 
domestic industry to make a positive adjustment to import competition 
and provide greater economic and social benefits than costs.
    Specifically, I have proclaimed tariff relief for a period of three 
years that will provide time for the domestic industry to implement an 
adjustment plan that will facilitate its positive adjustment to import 
competition. This action meets the needs of the domestic industry, while 
striking a balance with the other interests of the United States by 
providing the minimum tariff relief necessary to promote such 
adjustment. No tariff relief is being provided on four of the six tariff 
subheadings subject to the injury determination. In addition, for the 
largest tariff subheading, duty-free treatment will be provided on a 
substantial annual quantity of broom corn broom imports from all import 
sources. In short, this action provides the domestic industry with 
substantial temporary relief from increased import competition, while 
also assuring our trading partners significant continued duty-free 
access to the United States market.
    I also note the substantial resources identified by the Departments 
of Agriculture and Commerce that can provide loans, grants, technical 
and in-kind assistance to the domestic industry as it implements its 
adjustment plan. Taken together, these programs have the potential to 
match the financial contribution that the domestic industry will make as 
it implements its adjustment plan. I urge the domestic industry to 
submit the necessary applications for consideration under the individual 
programs, and direct the Secretaries of Agriculture and Commerce to 
provide the appropriate assistance to the industry in completing the 
application process. I also direct the Departments of Agriculture and 
Commerce to give priority consideration to adjustment assistance 
requests, with the intent of providing the maximum appropriate 
assistance available.
    The Trade Adjustment Assistance (TAA) program of the Department of 
Labor has already provided support for employees of broom corn broom 
manufacturers that have been laid off due to import competition. This 
assistance remains available, and I instruct the Secretary of Labor to 
give priority consideration to processing such TAA requests.
    An additional issue considered during the course of the last 90 days 
was the possible circumvention of U.S. customs laws. As a result of 
information provided by the broom corn broom industry and other 
information collected by the U.S. Customs Service, an investigation is 
underway to determine whether any imports of broom corn brooms are 
entering the commerce of the United States in a manner inconsistent with 
U.S. law. I instruct the Secretary of the Treasury to pursue this matter 
with the intent of concluding this investigation within 90 days, and 
taking any other steps necessary to ensure broom corn broom imports do 
not circumvent U.S. law.
    I also note that, pursuant to section 204 of the Trade Act, the 
International Trade Commission will monitor developments with respect to 
the domestic industry, including progress and specific efforts made by 
workers and firms in the domestic industry to make a positive adjustment 
to import competition.
    The United States Trade Representative is authorized and directed to 
publish this determination in the Federal Register.
                                            William J. Clinton

[Filed with the Office of the Federal Register, 8:45 a.m., December 3, 
1996]

Note: This memorandum was released by the Office of the Press Secretary 
on December 2, and it was published in the Federal Register on December 
4.

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