July 16, 1987 Memorandum for the United States Trade Representative
Subject: Specialty Steel Import Relief Determination
Pursuant to section 203(h)(3) of the Trade Act of 1974 (P.L. 93 - 618), I have determined the action I will take with respect to the report of the U.S. International Trade Commission, transmitted to me on May 15, 1987, concerning the results of its investigation on the question of extending import relief granted to the specialty steel industry in 1983. This investigation was initiated as a result of a petition filed by the Specialty Steel Industry of the United States and the United Steelworkers of America.
I have determined that the extension of relief as provided under Proclamation 5074, as subsequently modified under my national policy for the steel industry, is consistent with our national economic interest.
I will, therefore, proclaim the extension of import relief in the form currently in effect. I will impose this relief for a period to extend from July 20, 1987, through September 30, 1989, in order to provide time for this industry to complete important investment projects, improve productivity, and regain profitability. I have decided to provide relief in a form consistent with my belief in minimal government interference in the marketplace, in a manner that facilitates the orderly adjustment of the industry while recognizing the substantial differences in the competitive conditions of the various segments of this industry.
For the ``flat-rolled'' products (stainless steel sheet and strip and stainless steel plate), I will proclaim the continuation of a degressive tariff, as modified by headnote 10(g)(i) of Subpart A, part 2 of the Appendix to the Tariff Schedules of the United States. The tariff will be decreased from 3 percent ad valorem in the first year, to 2 percent ad valorem in the second year, and to 1 percent in the final period (July 20, 1989, to September 30, 1989).
In recognition of the weaker competitive position of the stainless steel bar, rod, and alloy tool steel sectors, I will proclaim the extension of global quotas for these products in the form currently in effect, as modified by headnote 10(g)(ii) of Subpart A, part 2 of the Appendix to the Tariff Schedules of the United States.
In order to facilitate the orderly transition between my original import relief measure and the extension that I will proclaim, as well as to provide adequate time for the negotiation or renegotiation of orderly marketing agreements, I will extend the country allocations for stainless steel bar and wire rod and alloy tool steel for a period of 92 days, to end on October 19, 1987, at the levels cited in the Annex to my proclamation.
For stainless steel bar, imports will be limited during the remainder of the first year to 17,717 net tons; imports in the second year will be limited to 24,159 net tons; and imports in the final period will be limited to 4,977 net tons.
For stainless steel wire rod, imports will be limited during the remainder of the first year of extended import relief to 10,213 net tons; imports in the second year will be limited to 13,926 net tons; and imports in the final period will be limited to 2,869 net tons.
For alloy tool steel, imports will be limited to 13,182 net tons during the remainder of the first year of extended import relief; imports in the second year will be limited to 17,977 net tons; and imports in the final period will be limited to 3,703 net tons.
These limitations may be unilaterally allocated on a country-by-country basis, or bilateral agreements may be negotiated or renegotiated with countries that request such negotiations.
This determination shall be published in the Federal Register.
[Filed with the Office of the Federal Register, 11:27 a.m., July 17, 1987]
Note: The memorandum was printed in the ``Federal Register'' of July 20.