[Weekly Compilation of Presidential Documents Volume 41, Number 52 (Monday, January 2, 2006)]
[Pages 1921-1922]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
 Presidential Determination on Imports of Circular Welded Non-Alloy 
Steel Pipe From the People's Republic of China

December 30, 2005

 Presidential Determination No. 2006-07

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

Subject: Presidential Determination on Imports of Circular Welded Non-
Alloy Steel Pipe from the People's Republic of China

    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

[[Page 1922]]

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

Note: An original was not available for verification of the content of 
this memorandum.