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MemoMemorandumClinton · D Quiet signal

Presidential Memorandum

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

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

Impact dates

  1. USITC monitoring report due at midpoint of relief period

  2. 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

Timeline

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