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December 8, 1999

Remedy Recommendation of Commissioner Jennifer Hillman in the
Section 201 Investigation on Circular Welded Carbon Quality Line Pipe

I recommend that the President impose a tariff rate quota, for a 4-year period, on imports of circular welded carbon quality line pipe. The in-quota amount would be 151,124 tons in the first year of the remedy, and would be increased by 10 percent annually in years 2, 3, and 4 of the remedy. In each year of this recommended remedy, any over-quota imports would be subject to a 30 percent ad valorem tariff in addition to the current U.S. tariffs. I further recommend that the President, in allocating the overall quota, recognize the disproportionate growth and impact of the imports from Korea.

I recommend that the President initiate international negotiations with Korea to address the underlying cause of the import surge and the serious injury to the domestic industry.

Having made negative findings with respect to imports of subject line pipe from Canada and Mexico under Section 311(a) of the NAFTA Implementation Act, I recommend that such imports be excluded from this tariff rate quota. I further recommend that this tariff rate quota not apply to imports of subject line pipe from Israel, or to any imports entered duty-free from the beneficiary countries under the Caribbean Basin Economic Recovery Act or the Andean Trade Preference Act.

I find that this remedy would address the serious injury I found and would be the most effective in facilitating positive adjustment by the domestic industry to import competition.