The Commission made an affirmative determination, finding that certain steel wire garment hangers from China are being imported into the United States in such increased quantities or under such conditions as to cause market disruption to the domestic producers of like or directly competitive products. Chairman Deanna Tanner Okun, Vice Chairman Jennifer A. Hillman, and Commissioners Lynn M. Bragg, Marcia E. Miller, and Stephen Koplan voted in the affirmative.
As a result of the affirmative determination, the Commission will consider the issue of remedy. It will send its report, including its remedy proposal, to the President and the U.S. Trade Representative by February 18, 2003. The President will make the final decision concerning whether to provide relief to the industry and the type and duration of any such relief.
Section 421 was added to the Trade Act of 1974 by the U.S.-China Relations Act of 2000 and implements a transitional bilateral safeguard provision in the U.S.-China agreement relating to China's accession to the World Trade Organization. Domestic producers can obtain relief under this provision if the Commission finds that Chinese products are being imported into the United States in such increased quantities or under such conditions as to cause or threaten to cause market disruption to the domestic producers of like or directly competitive products. The statute states that market disruption "exists whenever imports of an article like or directly competitive with an article produced by a domestic industry are increasing rapidly, either absolutely or relatively, so as to be a significant cause of material injury, or threat of material injury, to the domestic industry." "Significant cause" is defined by the statute as "a cause which contributes significantly to the material injury of the domestic industry, but need not be equal to or greater than any other cause." Similar to global safeguard investigations, if the Commission makes an affirmative determination, it also proposes a remedy to the President. The President makes the final decision concerning whether to provide relief to the U.S. industry and if so, the type and duration of relief.