For Immediate Release
Office of the Press Secretary
January 17, 2003
Memorandum for the United States Trade Representative
Subject: Presidential Determination on Pedestal Actuator
Imports from the People's Republic of China
Pursuant to section 421 of the Trade Act of 1974, as amended
(19 U.S.C. 2451), I have determined the action I will take with respect to the affirmative determination of the United States International Trade Commission (USITC) regarding imports of pedestal actuators from China. The USITC, on the basis of its investigation (No. TA-421-1), determined that pedestal actuators from China are being imported into the United States in such increased quantities or under such conditions as to cause market disruption to the domestic producers of like or directly competitive products.
After considering all relevant aspects of the investigation, I have
determined that providing import relief for the U.S. pedestal
actuator
industry is not in the national economic interest of the United
States.
In particular, I find that the import relief would have an adverse
impact
on the United States economy clearly greater than the benefits of
such
action.
In determining not to provide import relief, I considered its
overall
costs to the U.S. economy. The facts of this case indicate that
imposing
the USITC's recommended quota would not likely benefit the domestic
producing industry and instead would cause imports to shift from
China to
other offshore sources.
Even if the quota were to benefit the primary domestic producer,
the cost
of the quota to consumers, both the downstream purchasing industry
and
users of the downstream products, would substantially outweigh any
benefit to producers' income. The USITC's analysis confirms this
conclusion.
In addition, downstream industries are already under pressure to
migrate
production offshore to compete with lower-cost imports of finished
products. Higher component costs resulting from import relief
would add
to this pressure. Given the significantly larger number of workers
in
the downstream purchasing industry when
compared with the domestic pedestal actuator industry, I find that
imposing import restrictions would do more economic harm than
good.
Finally, a quota would negatively affect the many disabled and
elderly
purchasers of mobility scooters and electric wheelchairs, the
primary
ultimate consumers of pedestal actuators.
You are authorized and directed to publish this memorandum in the
Federal Register.
GEORGE W. BUSH
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