*EPF120 01/27/2003
USITC Finds Imports of Chinese Wire Hangers Disrupt U.S. Market
(Remedy recommendations to follow ruling by February 18) (290)

Washington -- The U.S. International Trade Commission (USITC) has ruled that imports of certain steel wire garment hangers from China are causing market disruptions affecting U.S. producers.

The commission will recommend to President Bush and U.S. Trade Representative Robert Zoellick by February 18 potential remedies under which domestic producers can obtain relief.

The USITC voted 5-0 to make an affirmative determination in the case filed under Section 421 of U.S. trade law. Section 421 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.

President Bush will make the final decision concerning whether to provide relief to U.S. producers of steel wire hangers and the type and duration of any such relief.

Earlier in January the president decided against providing such relief for domestic producers of certain electromechanical devices called pedestal actuators, ending the first case filed under Section 421. The USITC had ruled that imports of these devices from China caused market disruptions affecting domestic producers. Bush said, however, that providing import relief for the U.S. industry would not be in the "national economic interest."

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

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