[Federal Register Volume 60, Number 240 (Thursday, December 14, 1995)]
[Proposed Rules]
[Pages 64131-64132]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30501]



=======================================================================
-----------------------------------------------------------------------

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

15 CFR Part 2013


Weekly Allocation of NAFTA Tariff-Rate Quotas for Fresh Tomatoes

AGENCY: Office of the Untied States Trade Representative.

ACTION: Advance notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Office of the United States Trade Representative is 
considering a proposal to allocate on a weekly basis the seasonal 
tariff-rate quotas for fresh tomatoes which were established under the 
North American Free Trade Agreement. Public comment is invited.

DATES: Written comments must be received on or before March 13, 1996.

ADDRESSES: Comments should be mailed to Leonard W. Condon, Deputy 
Assistant United States Trade Representative for Agricultural Affairs, 
Office of the United States Trade Representative, 600 17th Street NW., 
Washington, DC 20508. Envelopes should be marked: ``Tomato ANPR''.

FOR FURTHER INFORMATION CONTACT:
Leonard W. Condon (202) 395-9564.

SUPPLEMENTARY INFORMATION: Article 302(4) of the North American Free 
Trade Agreement (NAFTA) provides that each NAFTA party `` * * * may 
adopt or maintain import measures to allocate in-quota imports made 
pursuant to a tariff rate quota set out in Annex 302.2, provided that 
such measures do not have trade restrictive effects on imports 
additional to those caused by the imposition of the tariff rate 
quota.''
    Section 321(c) of the North American Free Trade Agreement 
Implementation Act (19 U.S.C. 3391(c)) provides that in ``implementing 
the tariff rate quotas set out in the United States Schedule to Annex 
302.2 of the Agreement, the President shall take such action as may be 
necessary to ensure that imports of agricultural goods do not disrupt 
the orderly marketing of commodities in the 

[[Page 64132]]
United States.'' The President has delegated this authority with 
respect to the tomato tariff-rate quotas (TRQ's) to the United States 
Trade Representative (USTR).
    Concern has been expressed about the impact on domestic markets of 
surges in imports of Mexican tomatoes. Allocation of the existing 
seasonal TRQ's on a weekly basis is an option which could address that 
concern. USTR is considering that option and seeking public comment.
    Mexico typically supplies over 90 percent of U.S. fresh tomato 
imports. During the winter months, more than 25 percent of the fresh 
tomatoes consumed in the United States are grown in Mexico.
    In accordance with terms of the NAFTA, this proposal would affect 
only tomatoes imported into the United States from Mexico during the 
periods March 1 through July 14 through the year 2002 and November 15 
through February until February 2003. Tomatoes entered from Mexico 
eligible for the in-quota tariff would be charged the declining NAFTA 
rate. All other Mexican tomatoes would be charged the most favored 
nation rate.
    Tariffs on tomatoes imported from Mexico during the period July 15 
through November 14 are being phased out over five years. No TRQ's 
apply from July 15 through November 14. Entries during this period 
would be unaffected.
    Allocation Methodology: One method for allocating the in-quota 
quantity for each of the tariff-rate quotas would be to distribute the 
specified quantity evenly on a weekly basis throughout each TRQ period. 
Since the in-quota quantity for each TRQ increases each year, an annual 
re-calculation of the weekly TRQ's would be necessary.
    The following is an example of how the in-quota quantity could be 
distributed on a weekly basis:
    According to U.S. Note 10 to subchapter VI of chapter 99 of the 
HTS, for the period November 15, 1995 through February 29, 1996, the 
in-quota quantity is 177,469,000 kilograms (kg.).
    The seasonal TRQ would be divided evenly into weekly allocations. 
The period from November 15, 1995, through February 29, 1996, includes 
14 complete weeks and portions of two weeks at the beginning and end of 
the period. To calculate the weekly allocation for the season, the 
total seasonal TRQ of 177,469,000 kg would be divided by 107, the total 
number of days in the period. A week would be defined as a seven-day 
period running from Monday through Sunday. The daily amount would be 
multiplied times 7 to establish an allocation for each of 14 full 
weeks. For the period November 15 through November 19, the daily amount 
would be multiplied by 5 and for the February 26 through February 29 
period, the daily amount would be multiplied by 4. This establishes a 
weekly allocation of 11,610,121 kg. for each of the 14 full weeks, an 
allocation of 8,292,248 kg. for the November 15-18, 1995, period, and 
6,634,358 kg. for the February 26-29, 1996, period.
    For the period November 15, 1995, through February 29, 1996, the 
tariff on tomatoes imported form Mexico within the weekly quotas would 
be 2.6 cents per kilogram. The tariff on any amounts which exceed the 
weekly quotas would be 3.2 cents per kilogram.
    USTR is particularly interested in comments from the public which 
address the following points:
    (a) To what extent do surges in imports of Mexican tomatoes 
disrupt, or threaten to disrupt, the U.S. market for fresh tomatoes?
    (b) Would a weekly allocation of the current seasonal TRQ's be an 
effective mechanism for moderating any disruption that might otherwise 
occur?
    (c) If the seasonal TRQ is to be sub-divided into weekly TRQ's, how 
should it be equitably allocated among the weeks?
    (d) Are there alternative mechanisms available to cushion the 
impact of surges in imports of Mexican tomatoes that could be more 
effective, but still consistent with U.S. obligations under NAFTA?

Written Comments

    Comments on the above Advance Notice of Proposed Rulemaking are 
invited. Written comments should be directed to Leonard W. Condon, 
Deputy Assistant United States Trade Representative for Agricultural 
Affairs, Office of the United States Trade Representative, Washington, 
DC, 20508. Comments, with two copies, should be received by March 13, 
1996.
Michael Kantor,
United States Trade Representative.
[FR Doc. 95-30501 Filed 12-13-95; 8:45 am]
BILLING CODE 3190-01-M