[Federal Register: April 29, 2003 (Volume 68, Number 82)]
[Presidential Documents]
[Page 23017-23020]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29ap03-151]
[[Page 23017]]
-----------------------------------------------------------------------
Part VI
The President
-----------------------------------------------------------------------
Memorandum of April 25, 2003--Presidential Determination on Wire Hanger
Imports from the People's Republic of China
Presidential Documents
___________________________________________________________________
Title 3--
The President
[[Page 23019]]
Memorandum of April 25, 2003
Presidential Determination on Wire Hanger Imports
from the People's Republic of China
Memorandum for the Secretary of Commerce, the Secretary
of Labor, and the United States Trade Representative
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 Investigation TA-421-2) regarding
imports of certain steel wire garment hangers from
China. After considering all relevant aspects of the
investigation, I have determined that providing import
relief for the U.S. wire hanger industry is not in the
national economic interest of the United States. In
particular, I find that 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 imposing
additional tariffs on Chinese imports would affect
domestic producers unevenly, favoring one business
strategy over another. While most of the producers
would likely realize some income benefits, additional
tariffs would disrupt the long-term adjustment strategy
of one major producer, which is based in part on
distribution of imported hangers, and cause that
producer to incur substantial costs.
In addition, most domestic producers, including the
petitioners, have begun to pursue adjustment
strategies. While these strategies have included
consolidation, modernization of production facilities,
and expansion into complementary products and services,
domestic producers are also expanding their use of
imports. Indeed, a substantial part of the surge in
imports during the most recent period measured was
brought in by domestic producers themselves, including
the petitioners.
Moreover, after 6 years of competing with Chinese
imports, domestic producers still account for over 85
percent of the U.S. wire hanger market. With this
dominant share of the market, domestic producers have
the opportunity to adjust to competition from Chinese
imports even without import relief.
Furthermore, there is a strong possibility that if
additional tariffs on Chinese wire hangers were
imposed, production would simply shift to third
countries, which could not be subject to section 421's
China-specific restrictions. In that event, import
relief would have little or no benefit for any domestic
producer.
Additional tariffs would have an uneven impact on
domestic distributors of wire hangers. For some
distributors, the tariffs would likely lead to some
income benefits. However, the tariffs would likely harm
other distributors in light of their business models.
Additional tariffs would also likely have a negative
effect on the thousands of small, family-owned dry-
cleaning businesses across the United States that would
either have to absorb the resulting increased costs or
pass them on to their customers.
The 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
[[Page 23020]]
to me under section 421 when the circumstances of a
particular case warrant it.
Section 421 is not the only avenue available to the
petitioning domestic producers as they seek to adjust
to import competition. I hereby direct the Secretary of
Commerce and the Secretary of Labor to expedite
consideration of any Trade Adjustment Assistance
applications received from domestic hanger producers or
their workers and to provide such other requested
assistance or relief as they deem appropriate,
consistent with their statutory mandates.
The United States Trade Representative is authorized
and directed to publish this memorandum in the Federal
Register.
(Presidential Sig.)B
THE WHITE HOUSE,
Washington, April 25, 2003.
[FR Doc. 03-10732
Filed 4-28-03; 10:55 am]
Billing code 3190-01-M