The U.S. International Trade Commission (ITC) today announced the remedy proposals it will forward to the President and the U.S. Trade Representative (USTR) in its China safeguard investigation concerning certain ductile iron waterworks fittings from China.

Today's action follows the Commission's December 4, 2003, determination on market disruption in the investigation. All six Commissioners voted in the affirmative, finding that certain ductile iron waterworks fittings 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.

Chairman Deanna Tanner Okun and Commissioners Stephen Koplan, Charlotte R. Lane, and Daniel R. Pearson announced that they will propose that the President impose a tariff-rate quota for a three-year period. In the first year, they will propose an additional 50 percent tariff on imports exceeding 14,324 short tons; in the second year, an additional 40 percent tariff on imports exceeding 15,398 short tons; and in the third year, an additional 30 percent tariff on imports exceeding 16,553 short tons. They further will recommend that, if applications are filed, the President direct the U.S. Department of Commerce and the U.S. Department of Labor to provide expedited consideration of trade adjustment assistance for firms and/or workers affected by the subject imports.

Vice Chairman Jennifer A. Hillman announced that she will propose that the President impose a quota on imports for a three-year period at the following levels: 14,324 short tons in the first year of relief; 15,398 short tons in the second year of relief; and 16,553 short tons in the third year of relief.

Commissioner Marcia E. Miller announced that she will propose that the President impose a tariff increase for a three-year period at the following levels: 50 percent ad valorem in the first year of relief; 40 percent ad valorem in the second year of relief, and 30 percent ad valorem in the third year of relief.

The Commission will submit its report to the President and the USTR by December 24, 2003. The report will include the Commissioners' determinations, views, and remedy proposals. The President, not the Commission, will make the final decision whether to provide relief to the U.S. industry and the type and amount of relief.

The Commission's public report to the President, Certain Ductile Iron Waterworks Fittings from China (Inv. No. TA-421-4, USITC Publication 3657, December 2003), will contain the views of the Commissioners and information developed during the investigation. A copy may be requested after January 14, 2004, by calling 202-205-1809 or writing to The Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.