I

106TH CONGRESS

2D SESSION H. R. 5381

To provide for a more restrictive tariff-rate quota on imports of tobacco.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 4, 2000

Mr. FLETCHER (for himself, Mr. EWING, Mr. BOUCHER, Mr. WHITFIELD, Mr.

LEWIS of Kentucky, and Mr. MCINTYRE) introduced the following bill;

which was referred to the Committee on Ways and Means

A BILL

To provide for a more restrictive tariff-rate quota on imports

of tobacco.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Tobacco Farmers

5 Trade Fairness Act’’.

6 SEC. 2. TARIFF-RATE QUOTA ON TOBACCO.

7 (a) FINDINGS.—The Congress finds the following:

8 (1) On September 12, 1995, the tariff-rate

9 quota on imports of tobacco was implemented by a
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1 Presidential proclamation to limit the volume of

2 such imports.

3 (2) The tariff-rate quota permits imports for

4 consumption of up to 331,700,000 pounds declared

5 weight of flue-cured, burley, and other light air6 cured tobaccos at levels of duty agreed to in the

7 World Trade Organization.

8 (3) Under the national marketing quotas pro9 claimed by the Secretary of Agriculture under part

10 I of subtitle B of title III of the Agricultural Adjust11 ment Act of 1938 (7 U.S.C. 1311 et seq.), the

12 amount of burley tobacco that the United States

13 farmers are permitted to grow has been cut by 65

14 percent over the past 3 years, and the quota amount

15 for flue-curred farmers was reduced by 28 percent in

16 1999.

17 (4) Buying intentions of United States burley

18 tobacco purchasers have dropped from 473,400,000

19 pounds in 1997 to 291,000,000 pounds in 1999, and

20 buying intentions of United States flue-cured to21 bacco purchasers have dropped from 535,000,000

22 pounds to 327,000,000 pounds over the same period

23 of time.

24 (5) By comparison, imports of burley tobacco

25 have dropped only 20,000,000 pounds between 1997
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1 and 1998. Over the first three quarters of the 1999

2 marketing year, imports exceeded 1998 imports by

3 5,000,000 pounds.

4 (6) Therefore, companies in the United States

5 are using an increased percentage of foreign tobacco.

6 The import share of burley tobacco used increased

7 from 27 percent when the tariff-rate quotas were

8 implemented to 37 percent in 1999. The import

9 share of foreign flue-cured tobacco also increased

10 over the same period of time from 23 percent to 32

11 percent.

12 (7) Yet, even though the import share of to13 bacco has increased, only 48 percent of the tariff14 rate quota was used in 1998.

15 (8) The tariff-rate quota on tobacco has not

16 been effective in limiting the amount of foreign to17 bacco imported into the United States and must be

18 renegotiated in order to achieve the purpose for

19 which it was originally established.

20 (b) RENEGOTIATION OF TARIFF-RATE QUOTA.—The

21 President shall, in the first negotiations held after the en22 actment of this Act under the auspices of the World Trade

23 Organization, take the necessary steps to renegotiate the

24 tariff-rate quota on imported tobacco so that—
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1 (1) the quantity of tobacco receiving pref2 erential tariff treatment is 50 percent of the quan3 tity receiving preferential tariff treatment under the

4 tariff-rate quota in effect on the date of the enact5 ment of this Act; and

6 (2) thereafter, the quantity of tobacco receiving

7 preferential tariff treatment under the tariff-rate

8 quota is reduced in each calendar year by the same

9 percentage as any reduction in the national mar10 keting quota referred to in subsection (a)(3) in the

11 preceding calendar year.

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