ExecutiveOrdersEO
Proc 6961--ProclamationClinton · D

Proclamation 6961--

To Facilitate Positive Adjustment to Competition From Imports of Broom Corn Brooms

President Clinton issued a trade safeguard proclamation imposing increased duties and tariff-rate quotas on imported broom corn brooms for three years following a USITC finding of serious injury to the domestic industry. The action applies to imports from most countries except Canada, Israel, and certain developing countries, with special provisions for Mexico under NAFTA and temporary suspension of duty-free treatment for CBERA and ATPA beneficiary countries.

Federal Register Open PDF 61 FR 64431

Impact dates

  1. NAFTA rate of duty period for Mexican goods ends

  2. Three-year safeguard period ends; automatic restoration of MX, E, and J duty preference symbols unless earlier modified or terminated

  3. Safeguard measures take effect; increased duties and tariff-rate quotas begin

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

Other industrial

Mechanisms

TariffQuota

Role pressure

  • ProtectiveDomestic producer — Higher duties and quotas on imports shield domestic broom corn broom manufacturers from competition found to cause serious injury
  • AdverseImporter — Increased duties and tariff-rate quotas raise costs and limit quantities of imported brooms from most countries
  • MixedTrading-partner exporter — Mexican exporters lose NAFTA preferences temporarily but receive dedicated NAFTA rate 1999-2004; CBERA/ATPA countries lose duty-free access temporarily; Canada and Israel exempted

Geographies

USMXCAOTHER

Exposure dates

  • — Safeguard measures take effect; increased duties and tariff-rate quotas begin
  • — Three-year safeguard period ends; automatic restoration of MX, E, and J duty preference symbols unless earlier modified or terminated
  • — NAFTA rate of duty period for Mexican goods ends

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

MMM3MAAPLAppleCATCaterpillarFCXFreeport-McMoRanGEVGE VernovaHONHoneywellSPYSPDR S&P 500 ETF

Confidence: high · Policy alerts

Key directives

  • Increase or impose duties on broom corn brooms (except whisk brooms) under HTS subheadings 9603.10.50 and 9603.10.60
  • Establish tariff-rate quotas for specified brooms
  • Delete 'MX' symbol for Mexican goods November 28, 1996 through November 27, 1999
  • Suspend duty-free entry for CBERA and ATPA beneficiary countries
  • Modify HTS as specified in Annex sections A, B, and C

Who is ordered

Timeline

Immediate

  • Increased duties and tariff-rate quotas take effect at 12:01 a.m. on November 28, 1996
  • Duty-free entry suspended for CBERA and ATPA beneficiary countries
  • NAFTA 'MX' duty preference symbol deleted for Mexican brooms

Near term (90d)

  • USTR negotiations with Mexico were to conclude (already failed by signing date)

Long term

  • Three-year safeguard period expires November 27, 1999
  • NAFTA rate of duty applies to Mexican goods November 28, 1999 through December 31, 2004
  • CBERA and ATPA duty-free preferences automatically restore after November 27, 1999 unless earlier modification or termination

Risks & tensions

  • USTR negotiations with Mexico failed, forcing unilateral safeguard action
  • Temporary suspension of CBERA/ATPA preferences may strain relations with beneficiary developing countries
  • Narrow product scope (broom corn brooms) limits broader trade policy precedent
  • Automatic reversion of preferences in 1999 creates cliff effect for domestic industry
Proclamation 6961--: To Facilitate Positive Adjustment to Competition From Imports of Broom Corn Brooms · Executive Orders