*EPF420 10/25/01
Text: USTR on Section 201 Steel Import Relief Decision Process
(Agency follows up USITC vote on injury to industry) (640)

The Office of the U.S. Trade Representative (USTR) has begun preparing for President Bush's decision about whether to impose temporary import protection for the domestic steel industry in the form of tariffs or quotas.

An October 25 USTR press release lays out the schedule ahead for the decision required after the U.S. International Trade Commission (USITC) determined that a surge of imports hurt the U.S. industry.

Under Section 201 of U.S. trade law, after USITC makes an affirmative injury determination the commissioners make recommendations to the president about what form of relief to offer. They might recommend tariffs, quotas or what are called tariff-quotas -- high tariffs applied on imports above a certain quota.

The president can accept or modify the USITC recommendations or do nothing at all. Bush would likely make a decision by early March.

Section 201 requires that the industry must plan and carry out a program of structural adjustment in order to get the temporary import protection.

Following is the text of the press release:

(begin text)

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C.
20508
October 25, 2001

USTR Announces Schedule for Next Phase of Section 201 Proceeding on Certain Steel Imports

WASHINGTON -- The Office of the United States Trade Representative today announced procedures for considering whether to impose a safeguard action on certain steel products under Section 201 of the Trade Act of 1974, which could include a tariff, tariff-rate quota, or quota.

Section 201 allows the President to impose special import restrictions or other measures to assist domestic producers if the U.S. International Trade Commission (ITC) finds that imports are injuring or threatening to injure those producers. Domestic producers should use the time afforded by Section 201 measures to restructure or otherwise adjust to increased import competition.

On October 22, 2001, the ITC found that increased imports of certain steel products have caused or are threatening to cause serious injury to U.S. steel producers. The ITC will now prepare a recommendation as to what action the President should take in response to the import surge. It will announce its recommendation on November 30, 2001. The ITC will follow its announcement with a report on the results of its proceedings that will be sent to the President by December 19, 2001, after which the President will have up to 75 days to decide on appropriate action.

An interagency group chaired by USTR, with representatives from the Departments of Commerce, Labor, State, and Treasury, as well as the Office of Management and the Budget and the Council of Economic Advisors, will advise the President on appropriate action to take.

The interagency group will begin its work by requesting information on domestic producers' plans to adjust to import competition. Comments will be due on November 5, 2001. Interested persons will have an opportunity to respond to those plans by November 19, 2001.

The interagency group will also consider any requests for the exclusion of particular products from the coverage of the safeguard action that are submitted by noon on November 13, 2001. Interested persons will have an opportunity to respond to these requests by November 27, 2001.

Written comments on what action the President should take should be submitted no later than noon on December 28, 2001, and responses to written comments should be submitted no later than January 8, 2002.

The schedule and other requirements for submitting comments and relevant data are now available on the USTR website, www.ustr.gov, and will also be published in the Federal Register.

(end text)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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