Presidential Documents

30363

Title 3—

The President

Federal Register / Vol. 63, No. 106 /Wednesday, June 3, 1998 / Presidential Documents

Memorandum of May 30, 1998

Action Under Section 203 of the Trade Act of 1974

Concerning Wheat Gluten

Memorandum for the Secretary of the Treasury[,] the Secretary of

Agriculture[, and] the United States Trade Representative

On March 18, 1998, 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 (19 U.S.C. 2252) (the ‘‘Trade

Act’’) that imports of wheat gluten 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) negative findings made pursuant

to section 311(a) of the North American Free Trade Agreement Implementation Act (the ‘‘NAFTA Implementation Act’’) (19 U.S.C. 3371(a)) with respect

to imports of wheat gluten 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 (19 U.S.C. 2253),

I have implemented actions of a type described in section 203(a)(3). Specifically, I have determined that the most appropriate action is a quantitative

limitation on imports of wheat gluten. I have proclaimed such action for

a period of approximately 3 years in order to provide time for the domestic

industry to implement an adjustment plan that will facilitate its positive

adjustment to import competition. I have set the quantitative limitation

at an amount equal to 126.812 million pounds in the first year, an amount

which represents total average imports in the crop years ending June 30,

1993, through June 30, 1995. This amount will increase by six percent

annually for the duration of the relief period. I believe that this amount

is the relief necessary to remedy the serious injury and to promote positive

adjustment. The quota is allocated based on average import shares in the

period covered by the crop years ending June 30, 1993, through June 30,

1995. Shares of countries excluded from the quota are assigned on a pro

rata basis to countries subject to the quota. To ensure that the quota is

substantially filled, I have authorized the United States Trade Representative

to reallocate any significant unused quota allocations. I considered taking

other forms of action, such as increasing tariffs on imports of wheat gluten,

and have determined that action in such forms would not, in light of

the nature of trade in wheat gluten, meet the goals of remedying serious

injury and facilitating industry adjustment.

I agree with the USITC’s findings under section 311(a) of the NAFTA Implementation Act, and therefore determine, pursuant to section 312(a) of the

NAFTA Implementation Act, that imports of wheat gluten produced in Canada do not contribute importantly to the serious injury caused by imports

and that imports of wheat gluten produced in Mexico do not account for

a substantial share of total imports of such wheat gluten. Therefore, pursuant

to section 312(b) of the NAFTA Implementation Act, the quantitative limitation will not apply to imports of wheat gluten from Canada or Mexico.

Similarly, the limitation will not apply to imports of wheat gluten from

Israel, and beneficiary countries under the Caribbean Basin Economic Recovery Act (CBERA) and the Andean Trade Preference Act (ATPA), in light

of the USITC’s statement that its recommendation does not apply to imports

from those countries. Moreover, other developing countries that have ac-
30364 Federal Register / Vol. 63, No. 106 /Wednesday, June 3, 1998 / Presidential Documents

counted for a minor share of wheat gluten imports are excluded from the

quantitative limitation.

As an additional means of arriving at a long-term solution to this trade

issue, I have directed the United States Trade Representative, with the

assistance of the Secretary of Agriculture, to seek to initiate international

negotiations to address the underlying cause of the increase in imports

of the article or otherwise to alleviate the injury found to exist.

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. This action

provides the domestic industry with necessary temporary relief from increased import competition, while also assuring our trading partners significant continued access to the United States market.

I also note that, pursuant to section 204 of the Trade Act, the USITC

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, and will

provide to me and to the Congress a report of its monitoring no later

than the date that is the midpoint of the period the action is in effect.

The United States Trade Representative is authorized and directed to publish

this determination in the 

œ–

Federal Register.

THE WHITE HOUSE,

Washington, May 30, 1998. [FR Doc. 98–14932

Filed 6–2–98; 8:45 am]

Billing code 3190–01–P