ExecutiveOrdersEO
Proc 7103--ProclamationClinton · D Quiet signal

Proclamation 7103--

To Facilitate Positive Adjustment to Competition From Imports of Wheat Gluten

President Clinton issued Proclamation 7103 imposing quantitative limitations (quotas) on wheat gluten imports for 3 years plus one day, with annual 6% quota increases in years two and three, following a USITC determination of serious injury to the domestic industry. The quotas took effect June 1, 1998, with exemptions for Canada, Mexico, Israel, CBERA/ATPA beneficiary countries, and certain developing countries.

Federal Register Open PDF 63 FR 30359

Impact dates

  1. Quotas expire (3 years plus one day)

  2. Second year quota limit increases 6%

  3. Quantitative limitations effective for goods entered or withdrawn from warehouse

Key directives

  • Impose quantitative limitations on wheat gluten imports (HTS 1109.00.10, 1109.00.90) for 3 years plus one day
  • Increase quota limits by 6% annually in second and third years
  • Exclude Canada, Mexico, Israel, CBERA/ATPA beneficiaries, and listed developing countries from restrictions
  • Authorize USTR to reallocate underutilized quota quantities after Federal Register notice
  • Modify HTS subchapter III of chapter 99 per Annex

Who is ordered

Timeline

Immediate

  • Quantitative limitations effective June 1, 1998 at 12:01 a.m. EDT
  • HTS subchapter III of chapter 99 modified per Annex

Near term (90d)

  • First quota period begins; quota allocation among countries takes effect

Long term

  • Second year quota limit increases 6% (June 1, 1999)
  • Third year quota limit increases 6% (June 1, 2000)
  • Quotas expire after 3 years plus one day (June 1, 2001)

Risks & tensions

  • Trade dispute risk with excluded vs. non-excluded countries; potential WTO challenge under safeguard rules (GATT Article XIX)
  • USTR reallocation authority provides flexibility but creates uncertainty for importers
  • Quota system may create perverse incentives for early-year import surges
Proclamation 7103--: To Facilitate Positive Adjustment to Competition From Imports of Wheat Gluten · Executive Orders