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NEWS RELEASE 99-165; DECEMBER 8, 1999 December 8, 1999
News Release 99-165
Inv. No. TA-201-70

ITC ANNOUNCES RECOMMENDATIONS AND VIEWS ON REMEDY
IN ITS GLOBAL SAFEGUARD INVESTIGATION
INVOLVING IMPORTS OF CIRCULAR WELDED CARBON QUALITY LINE PIPE

The U.S. International Trade Commission (ITC) today announced the recommendations and views on remedy that its members will forward to the President in its global safeguard investigation regarding imports of circular welded carbon quality line pipe.

Today's action follows the Commission's October 28, 1999, determinations in the injury phase of this investigation, in which five Commissioners made affirmative determinations and one made a negative determination.

Under the statute, only those Commissioners who made affirmative determinations were eligible to vote on the remedy recommendation. However, the Commissioner who made a negative determination may submit separate views regarding what action, if any, the President should take. The Commission will submit its report to the President by December 17, 1999. The report will include the Commissioners' determinations, recommendations, views, and statements. The President, not the Commission, will make the final decision whether to provide relief to the U.S. industry and the type and amount of relief.

Vice Chairman Marcia E. Miller and Commissioners Jennifer A. Hillman and Stephen Koplan announced that they will recommend that the President impose a tariff rate quota on imports of circular welded carbon quality line pipe for a four-year period. The in-quota amount would be 151,124 short tons in the first year of the remedy and would be increased by 10 percent annually in years two, three, and four of the remedy. In each year of this recommended remedy, any over-quota imports would be subject to a 30 percent ad valorem tariff in addition to the current U.S. tariffs. These Commissioners further will recommend that the President, in allocating the overall quota, recognize the disproportionate growth and impact of the imports from Korea; that the President initiate international negotiations with Korea to address the underlying cause of the import surge and the serious injury to the domestic industry; and that the tariff rate quota not apply to imports of these products from Canada, Mexico, Israel, and any imports entered duty-free from the beneficiary countries under the Caribbean Basin Economic Recovery Act or the Andean Trade Preference Act.

Chairman Lynn M. Bragg and Commissioner Thelma J. Askey announced that they will recommend that the President impose a duty, in addition to the current rate of duty, for a four-year period on all imports of line pipe that are within the scope of the investigation as follows: 12.5 percent ad valorem in the first year of relief; 11 percent ad valorem in the second year of relief; 9.5 percent ad valorem in the third year of relief; and 8 percent ad valorem in the fourth year of relief. These Commissioners will also recommend that the duty increase not apply to imports of these products from Canada, Israel, and any imports entered duty-free from the beneficiary countries under the Caribbean Basin Economic Recovery Act or the Andean Trade Preference Act. Commissioner Askey, having made a negative finding with respect to imports of line pipe from Mexico under section 311(a) of the NAFTA Implementation Act, will recommend that imports from Mexico be excluded from the duty increase. Chairman Bragg, having made an affirmative finding under section 311(a) of the NAFTA Implementation Act, will recommend that imports from Mexico be subject to the duty increase.

Commissioner Carol T. Crawford, because she made a negative determination on injury, was not eligible to vote on remedy. She stated that she does not believe that any import relief is appropriate in this investigation. Her views on injury and her statement addressing the selection of a remedy, if any, will be submitted to the President by December 17, 1999.

On October 28, 1999, Vice Chairman Miller and Commissioners Hillman and Koplan determined that circular welded carbon quality line pipe is being imported in such increased quantities as to be a substantial cause of serious injury to the domestic circular welded carbon quality line pipe industry. Chairman Bragg and Commissioner Askey determined that circular welded carbon quality line pipe is being imported in such increased quantities as to be a substantial cause of the threat of serious injury to the domestic circular welded carbon quality line pipe industry. Commissioner Crawford determined that circular welded carbon quality line pipe is not being imported into the United States in such increased quantities as to be a substantial cause of serious injury or threat of serious injury to the domestic circular welded carbon quality line pipe industry.

Under section 311 of the North American Free Trade Agreement (NAFTA) Implementation Act, the Commissioners who made affirmative determinations were required to find whether imports of circular welded carbon quality line pipe from Canada and Mexico account for a substantial share of total imports and whether they contribute importantly to the serious injury or threat of serious injury. Vice Chairman Miller and Commissioners Hillman, Koplan, and Askey made negative findings with respect to such line pipe from Canada and Mexico. Chairman Bragg found that imports of such pipe from Canada account for a substantial share of total imports but do not contribute importantly to the threat of serious injury to the domestic industry. She further found that imports of such pipe from Mexico account for a substantial share of imports and contribute importantly to the threat of serious injury to the domestic industry.

The Commission's public report to the President Circular Welded Carbon Quality Line Pipe (Inv. No. TA-201-70, USITC Publication 3261, December 1999) will contain the views of the Commissioners and information developed during the investigation. A copy may be requested after January 7, 2000, by calling 202-205-1809 or writing to The Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

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