Memorandum From the President on the American Leather Wearing Apparel Industry

Memorandum for the United States Trade Representative
Subject: Determination Under Section 202(b) of the Trade Act; Leather Wearing Apparel

Pursuant to section 202(b)(1) of the Trade Act of 1974 (P.L. 93-618, 88 Stat. 1978), I have determined the action I will take with respect to the report of the United States International Trade Commission (USITC), transmitted to me on January 24, 1980, concerning the results of its investigation of a petition for import relief filed by the National Outerwear and Sportswear Association, the Amalgamated Clothing and Textile Worker's Union, the International Ladies' Garment Workers Union, the United Food and Commercial Workers Union, and the Tanners' Council of America, Inc., on behalf of the domestic industry producing leather wearing apparel, provided for in item 791.76 of the Tariff Schedules of the United States (TSUS).

After considering all relevant aspects of the case, including those considerations set forth in section 202(c) of the Trade Act of 1974, I have determined that expedited adjustment assistance is the most effective remedy for the injury suffered by the domestic leather wearing apparel industry, and that import relief is not in the national economic interest.

Expedited adjustment assistance is the only positive action that would aid the adjustment process of the industry without being inflationary or possibly causing a further erosion in consumer demand by further increasing prices. Firm adjustment assistance would facilitate the purchase of new equipment and the implementation of new marketing techniques that the industry has stated would be its primary adjustment actions if import relief were granted.

The imposition of import relief itself would have an inflationary impact and consumer cost that I consider unacceptable in light of the strong emphasis that this Administration places on its anti-inflation efforts.

Also, it is not clear that the industry would be in a position to compete once relief expires.

I have directed the Secretaries of Commerce and Labor to give expeditions consideration to any petitions for adjustment assistance filed by firms producing leather wearing apparel, by their workers, and by communities impacted by imports of such articles.

This determination is to be published in the FEDERAL REGISTER.

JIMMY CARTER
[Filed with the Office of the Federal Register, 4:18 p.m., March 24, 1980]