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MemoMemorandumClinton · D Quiet signal

Presidential Memorandum

Action Under Section 203 of the Trade Act of 1974 Concerning Wheat Gluten

TradeTradeEconomy & LaborEconomy & Labor

In simple terms

President Clinton imposed a three-year quantitative limit (quota) on wheat gluten imports starting at 126.812 million pounds annually, increasing 6% each year, following a USITC finding that surging imports were seriously injuring the domestic industry. Canada, Mexico, Israel, CBERA and ATPA beneficiary countries, and minor developing-country suppliers were excluded from the quota.

Federal Register Open PDF 63 FR 30363

Record & deadlines

  1. Signed

    Signed by the President

  2. FR published

    Published in the Federal Register · 63 FR 30363

    Federal Register PDF

  3. USITC monitoring report due at midpoint of relief period

  4. quota effective period begins (approximately 3 years from proclamation)

Key directives

  • proclaim quantitative limitation on wheat gluten imports for approximately 3 years
  • set initial quota at 126.812 million pounds
  • increase quota amount by 6% annually
  • allocate quota based on 1993-1995 average import shares
  • reallocate unused shares of excluded countries to quota-subject countries on pro rata basis
  • authorize USTR to reallocate significant unused quota allocations
  • exempt Canada, Mexico, Israel, CBERA and ATPA beneficiaries, and minor developing countries
  • direct USTR with Agriculture Secretary assistance to seek international negotiations
  • USTR to publish determination in Federal Register

Who is ordered

What to expect

Immediate

  • quantitative limitation proclaimed effective
  • quota allocation based on 1993-1995 average import shares
  • USTR authorized to reallocate unused quota allocations

Near term (90d)

  • USTR to seek initiation of international negotiations with Agriculture Secretary assistance

Long term

  • quota increases 6% annually for approximately 3 years
  • USITC monitoring report due at midpoint of relief period (~18 months)
  • domestic industry expected to implement adjustment plan

Risks & tensions

  • WTO consistency of safeguard measure may be challenged by affected trading partners
  • quota reallocation authority creates implementation uncertainty
  • bilateral/multilateral negotiations mandate is vague on format or forum
  • 6% annual quota growth may not match actual import demand growth
Presidential Memorandum: Action Under Section 203 of the Trade Act of 1974 Concerning Wheat Gluten · Executive Orders