[Weekly Compilation of Presidential Documents Volume 35, Number 27 (Monday, July 12, 1999)]
[Pages 1310-1311]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Memorandum on Imports of Lamb Meat

July 7, 1999

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, the Director of the National Economic 
Council

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

    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 
875,342 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,

[[Page 1311]]

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.
    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 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.
                                            William J. Clinton

[Filed with the Office of the Federal Register, 8:45 a.m., July 9, 1999]

Note: This proclamation was published in the Federal Register on July 
12.