*EPF206 10/29/2002
Trade Panel Recommends Quotas on Imports of Chinese Devices
(President Bush to decide on any further action) (270)

By Andrzej Zwaniecki
Washington File Staff Writer

Washington -- The U.S. International Trade Commission has recommended that President Bush impose temporary quantitative restrictions on U.S. imports from China of certain electromechanical devices called pedestal actuators.

The commissioners proposed October 29 import quotas ranging from 4,425 to 5,626 units of these devices in 2003, with the ceiling increased by 2 percent to as much as 15 percent in 2004 and 2005.

In addition, Commissioner Stephen Koplan recommended that the president direct the Labor and Commerce departments to consider expeditiously trade adjustment assistance for firms and workers affected by the imports if they ask for such assistance.

President Bush is not bound by USITC recommendations; under the statute he can accept them, modify them or do nothing at all.

A week earlier the USITC had voted 3-2 that imports of actuators -- devices used for moving objects -- from China caused market disruptions affecting domestic producers. Two commissioners who voted in the negative were excluded from the remedy phase of the investigation.

The case is the first to be filed under section 421 of U.S. trade law, which was added by the U.S.-China Relations Act of 2000, the legislation implementing the bilateral agreement related to China's accession to the World Trade Organization. Under this provision domestic producers can receive import relief if the USITC finds that Chinese products are being imported into the United States in such quantities or under such conditions as to cause, or threaten to cause, market disruption to the domestic producers of similar or directly competitive products. According to the statute, market disruption occurs when a rapid increase in imports is a significant cause of injury, or threat of injury, to a domestic industry.

(The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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