Proclamation 5718

by Ronald Reagan

By the President of the United States of America
A Proclamation

1. On June 5, 1987, the United States International Trade Commission (USITC) reported to the President the results of its investigation under section 406 of the Trade Act of 1974 (19 U.S.C. 2436) (the Trade Act) with respect to imports from the People's Republic of China (the PRC) of ammonium paratungstate (APT) and tungstic acid provided for in items 417.40 and 416.40, respectively, of the Tariff Schedules of the United States (TSUS) (19 U.S.C. 1202). The USITC determined that market disruption within the meaning of section 406 of the Trade Act exists with respect to imports from the PRC of APT and tungstic acid. To remedy this market disruption, the USITC recommended that, for the next 5 years, the combined volume of imports of APT and tungstic acid from the PRC be limited to the larger of 1.116 million pounds of tungsten content per year or 7.5 percent of U.S. consumption.

2. On August 5, 1987, pursuant to sections 406, 202, and 203 of the Act (19 U.S.C. 2436, 2252, and 2253), and after taking into account the considerations specified in section 202(c) of the Trade Act (19 U.S.C. 2252(c)), I determined to provide import relief for the domestic industry in the form of a negotiated orderly marketing agreement. To this end, I directed the United States Trade Representative (the USTR) to negotiate and conclude an orderly marketing agreement with the PRC and to report the results of such negotiations to me within 50 days.

3. Section 406(b)(2) of the Trade Act (19 U.S.C. 2436(b)(2)) requires that if import relief consists of, or includes, an orderly marketing agreement, then such agreement shall be entered into within 60 days after a presidential determination to provide relief.

4. Pursuant to the authority vested in the President by the Constitution and the statutes of the United States, including section 203(a)(4) of the Trade Act (19 U.S.C. 2253(a)(4)), an agreement for orderly trade was signed on September 28, 1987, between the Government of the United States of America and the Government of the People's Republic of China limiting the export from the PRC, and the import into the United States, of APT and tungstic acid provided for in items 417.40 and 416.40, respectively, of the TSUS.

5. Pursuant to section 203(k)(1) of the Trade Act (19 U.S.C. 2253(k) (1)), I have considered the relation of such action to the international obligations of the United States. Since February 1, 1980, the United States and the PRC have had in effect a bilateral trade agreement under which I have determined, pursuant to section 405 of the Trade Act (19 U.S.C. 2435), a satisfactory balance of concessions has been maintained during the life of such agreement, and for which I reconfirm that actual or foreseeable reductions in U.S. tariffs and nontariff barriers to trade resulting from multilateral negotiations are, and continuously have been, satisfactorily reciprocated by the PRC. The present agreement for orderly trade is within the parameters of the safeguard measures envisioned by the bilateral trade agreement.

6. In accordance with section 203(d)(2) of the Trade Act (19 U.S.C. 2253(d)(2)), I have determined that the level of import relief hereinafter proclaimed permits the importation into the United States of a quantity or value of articles that is not less than the average annual quantity or value of such articles imported into the United States from the PRC in the 1982-1984 period, which I have determined to be the most recent representative period for imports of such articles.

Now, Therefore, I, Ronald Reagan, President of the United States of America, acting under the authority vested in me by the Constitution and the statutes of the United States, including sections 203, 406, and 604 of the Trade Act (19 U.S.C. 2253, 2436, and 2483), section 332 of the Tariff Act of 1930, and section 301 of title 3, United States Code, do proclaim that-

(l) An orderly marketing agreement was entered into on September 28, 1987, between the Government of the United States of America and the Government of the People's Republic of China, with respect to trade in APT and tungstic acid, effective October 1, 1987. The agreement for orderly trade is to be implemented according to its terms and as directed in this Proclamation, including the Annex thereto.

(2) Subpart A, part 2 of the Appendix to the TSUS is modified as set forth in the Annex to this Proclamation.

(3) The President's authority under section 203(e)(3) of the Trade Act (19 U.S.C. 2253(e)(3)) to determine that the agreement is no longer effective is hereby delegated to the USTR. In the event of such a determination, the USTR shall prepare such Federal Register notice as may be appropriate to implement import relief authorized by section 203(e)(3) of the Trade Act.

(4) The USTR shall take such actions and perform such functions for the United States as may be necessary concerning the administration, implementation, modification, amendment or termination of the agreement described in paragraph (1) of this Proclamation, and any action that may be subsequently required to implement paragraph (3) of this Proclamation. In carrying out his responsibilities under this paragraph, the USTR is authorized to direct and delegate to appropriate officials or agencies of the United States, authority to perform any functions necessary for the administration and implementation of the agreement, or in the event he determines the agreement to be no longer effective, such further action as he deems necessary and appropriate consistent with this Proclamation. The USTR is authorized to make any changes in part 2 of the Appendix to the TSUS that may be necessary to carry out the agreement or such other action as may be required should he determine the agreement to be no longer effective. Any such changes in the agreement shall be effective after their publication in the Federal Register.

(5) The U.S. Customs Service shall take such actions as the USTR shall determine are necessary to carry out the agreement described in paragraph (1) of this Proclamation, or to implement any import relief implemented pursuant to paragraphs (3) and (4) of this Proclamation, or any modification thereof, with respect to the entry, or withdrawal from warehouse for consumption, into the United States of products covered by such agreement or by such other import relief.

(6) The U.S. Customs Service shall collect and assemble such data as are necessary to monitor compliance with the agreement. Such data shall include import statistics with respect to tungsten oxide, provided for in item 422.42, part 2C, schedule 4 of the TSUSA, as well as data for APT and tungstic acid.

In Witness Whereof, I have hereunto set my hand this 2nd day of October, in the year of our Lord nineteen hundred and eighty-seven, and of the Independence of the United States of America the two hundred and twelfth.

RONALD REAGAN

[Filed with the Office of the Federal Register, 3:36 p.m., October 2, 1987]