Committee on Ways and Means, Full Committee, Explanation of H.J. Res. 84

EXPLANATION OF H. J. RES. 84
DISAPPROVING THE PRESIDENT'S STEEL SAFEGUARD ACTION

April 24, 2002

Present law and description of steel investigation

Title II of the Trade Act of 1974 authorizes safeguard actions to be taken when imports of an article are increasing in such quantities as to be a cause of substantial harm on the domestic industry producing the like product.

On June 22, 2001, USTR Robert Zoellick requested the International trade Commission (ITC) to initiate a section 201 investigation of the effect of steel imports on the U.S. steel industry.

In a section 201 investigation, the ITC determines whether an article is being imported in such increased quantities that it is a substantial cause of serious injury, or threat thereof, to the U.S. industry producing an article like or directly competitive with the imported article. After the ITC makes an affirmative or evenly decided injury determination, the ITC then recommends to the President relief that would prevent or remedy the injury and facilitate industry adjustment to import competition.

On October 22, 2001, the ITC made an affirmative determination of injury caused by U.S. steel imports. On December 19, 2001, the ITC transmitted to the President its remedy recommendations. The imported steel products covered by the ITC's remedy recommendations in the year 2000 accounted for 27 million tons of steel (74 percent of the imports under investigation) valued at $10.7 billion.

The President, not the ITC, makes the final decision whether to provide relief to the U.S. industry and the type and amount of relief.

On March 5, 2002, President Bush announced trade remedies for all products on which the ITC had found substantial injury except two specialty categories (tool steel and stainless steel flanges and fittings). All remedies were imposed as of March 20, 2002, and are effective for three years.

Section 203(c) states that if the President's remedy action differs from the ITC's remedy recommendation, the Congress may enact a joint resolution within 90 days to disapprove the President's remedy and instead enact the ITC's remedy.

H.J. Res. 84 was introduced on March 7, 2002 to disapprove the President's action.

Explanation of resolution

House Joint Resolution 84 states that Congress disapproves the action taken by the President under section 203 of the Trade Act of 1974 regarding steel imports, which was transmitted to Congress on March 5, 2002. The effect of the resolution is to enact instead the remedy recommendations of the International Trade Commission transmitted to the President on December 19, 2001.

Procedures for consideration of H.J. Res. 84

Congress has 90 calendar days (excluding weekends and recess) from the date of transmittal (March 5) to disapprove the President's action (i.e., approximately September 16).

Disapproval takes the form of a joint resolution disapproving the President's action and has the effect of enacting the remedy recommendations of the International Trade Commission transmitted to the President on December 19, 2001. The text of the disapproval resolution is set forth in the Act and must be voted on in that form. It is not amendable.

House Action: The Committee on Ways and Means must report the resolution of disapproval (either favorably or unfavorably) within 30 calendar days after its introduction (excluding weekends and recess, i.e., by May 6) or be subject to discharge after that period. On the floor, a motion to proceed to the consideration of the resolution is highly privileged and is not debatable. Amendments to the motion are not in order. Floor debate is limited to 20 hours.

Senate Action: The Finance Committee must report any resolution of disapproval within 30 calendar days after its introduction (excluding weekends and recess). Floor procedures are identical to the House. No resolution on steel has been introduced in the Senate.

If the President vetoes the joint resolution, Congress may still disapprove the President's steel remedy if each House votes to override the veto on or before the last day of the 90-day period (approximately September 16).