ExecutiveOrdersEO
Proc 6982--ProclamationClinton · D Quiet signal

Proclamation 6982--

To Implement an Agreement To Eliminate Tariffs on Certain Pharmaceuticals and Chemical Intermediates

This proclamation implements a WTO multilateral agreement to eliminate tariffs on certain pharmaceutical products and chemical intermediates, while also correcting technical errors from the Uruguay Round by increasing tariffs on 25 products that were erroneously included in the prior pharmaceuticals agreement. The modifications to the Harmonized Tariff Schedule take effect as specified in the annexed technical provisions.

Federal Register Open PDF 62 FR 16039

Impact dates

  1. HTS modifications effective as provided in Annex

  2. End of 60-day consultation period with Congressional Committees

  3. USTR submitted report to Congressional Committees

Market exposure

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

Sectors

PharmaOther industrial

Mechanisms

TariffMinimum import price

Role pressure

  • ProtectiveImporter — Tariff elimination on covered pharmaceuticals and chemical intermediates reduces import costs
  • AdverseDomestic producer — Elimination of tariffs on pharmaceuticals and chemical intermediates increases import competition; however, restored tariffs on 25 erroneously included products provides partial protection
  • MixedTrading-partner exporter — Benefits from tariff elimination on covered products but faces restored tariffs if products were among 25 erroneously included

Geographies

USEUJPCH

Illustrative public companies

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

MMM3MAAPLAppleCATCaterpillarLLYEli LillyFCXFreeport-McMoRanGEVGE VernovaHONHoneywellJNJJohnson & JohnsonMRKMerckNVSNovartisPFEPfizerSPYSPDR S&P 500 ETF

Confidence: medium · Policy alerts

Key directives

  • Modify Schedule XX and pharmaceutical appendix to HTS per Annex
  • Increase tariffs on 25 products erroneously included in Uruguay Round pharmaceuticals agreement
  • Implement tariff eliminations on certain pharmaceuticals and chemical intermediates per WTO agreement

Timeline

Immediate

  • Proclamation signed April 1, 1997
  • Supersession of inconsistent prior proclamations and executive orders

Near term (90d)

  • HTS modifications take effect per Annex provisions (specific dates vary by product line)

Long term

  • Permanent tariff elimination on covered pharmaceuticals and chemical intermediates
  • Restored tariff rates on erroneously included products

Risks & tensions

  • Annex with specific effective dates omitted from text (graphics not reproduced)
  • Potential trade friction with partners whose products face restored tariffs due to error correction
  • Bilateral vs multilateral tariff commitments may create competitive asymmetries
Proclamation 6982--: To Implement an Agreement To Eliminate Tariffs on Certain Pharmaceuticals and Chemical Intermediates · Executive Orders