Action Under Section 203 of the Trade Act of 1974 Concerning Lamb Meat

Impact dates

1. Date TBD

   adjustment assistance measures due to President from USTR/Secretary/OMB/NEC

2. Date TBD

   USITC mid-point monitoring report due to President and Congress

3. Jul 21, 2002

   safeguard measure expires (3 years and 1 day from July 22, 1999)

4. Aug 6, 1999

   benchmark list due to USITC from USTR/Secretary/OMB

5. Jul 22, 1999

   tariff-rate quota takes effect

Key directives

• Establish tariff-rate quota of 31,851,151 kg for first year (July 22, 1999 – July 21, 2000), increasing 857,342 kg annually in years 2 and 3
• Set in-quota duties: 9% year 1, 6% year 2, 3% year 3
• Set over-quota duties: 40% year 1, 32% year 2, 24% year 3
• Allocate quota shares to Australia, New Zealand, and 'other country' based on 1998 import shares
• Exempt Canada, Mexico, Israel, Caribbean Basin, Andean, and minor developing countries from safeguard
• Instruct USTR, Secretary of Agriculture, OMB Director, and NEC Director to propose substantial adjustment assistance measures
• Instruct USTR, Secretary of Agriculture, and OMB Director to transmit benchmarks to USITC within 30 days
• Authorize USTR to publish memorandum in Federal Register

Who is ordered

• Secretary of the Treasury · Treasury
• Secretary of Agriculture · Department of Agriculture
• United States Trade Representative · USTR
• Director of the Office of Management and Budget · Office of Management and Budget
• Director of the National Economic Council · NEC

Timeline

Risks & tensions

• WTO compatibility of safeguard measure may be challenged by affected exporters
• Bilateral trade friction with Australia and New Zealand likely
• Exemption structure for preferential trade partners creates complex administrative enforcement
• Quasi-judicial USITC monitoring with congressionally mandated report creates ongoing political exposure
• Adjustment assistance benchmarks requested but not yet defined—vague deliverable