Memorandum From the President on the American Porcelain-on-Steel Cookware Industry

Memorandum for the Special Representative for Trade Negotiations
Subject: Determination Under Section 202(a) of the Trade Act; Porcelain-on-Steel Cookware

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 November 5, 1979, concerning the results of its investigation of a petition for import relief filed by counsel for General Housewares Corporation on behalf of the domestic industry producing cooking ware of steel, enameled or glazed with vitreous glasses, provided for in item 653.97 of the Tariff Schedules of the United States.

After considering all relevant aspects of the case, including those set forth in section 202(c) of the Trade Act of 1974, I have determined that provision of import relief in the form of increased tariffs for four years is in the national economic interest. These increased tariffs will apply to all U.S. imports of porcelain-on-steel cookware except teakettles and imports valued over $2.25 per pound. The additional duties will be 20, 20, 15 and 10 cents per pound, respectively, in the first, second, third, and fourth years of the relief period.

I have decided to modify the USITC remedy by: (1) excluding teakettles; (2) reducing by one year the duration of import relief; and (3) imposing additional specific tariffs that are somewhat smaller than those recommended by the USITC. My decision to exclude teakettles is based on the fact that they are not produced domestically in a wide range of shapes and styles.

This four-year relief program should be sufficient to enable the sole remaining domestic producer of porcelain-on-steel cookware to adjust to import competition during the relief period. At the same time, the less-restrictive relief that I will proclaim will reduce the adverse effects of providing relief on U.S. consumers of porcelain-on-steel cookware and on our international economic interests.

In conjunction with providing import relief, I hereby direct you to request that the USITC advise me of the probable economic effect on the domestic porcelain-on-steel cookware industry of the termination of import relief after two years. This advice is to include a review of the progress and specific efforts being made by the domestic producer of porcelain-on-steel cookware to adjust to import competition. I also direct you to request, on my behalf, advice regarding termination of relief from the Secretaries of Commerce and Labor. This USITC, Commerce, and Labor advice is to be provided to me, through you, three months prior to the expiration of the second year of relief. It is my intention to continue relief for the entire four-year period if the domestic producer has begun to make reasonable progress toward adjustment to import competition during the first and second years of import relief and if a continuation of relief is necessary to further this adjustment process.

As required by section 203(e)(1) of the Trade Act of 1974, these additional tariffs will be implemented by Presidential Proclamation no later than January 17, 1980, which is 15 days after this determination.

This determination is to be published in the FEDERAL REGISTER.

JIMMY CARTER

[Filed with the Office of the Federal Register, 11:11 a.m., January 2, 1950]