American Anhydrous Ammonia Industry Letter to the Speaker of the House and the president of the Senate Transmitting a Report.

Dear Mr. Speaker: (Dear Mr. President:)

In accordance with section 203 ( b ) ( 2 ) of the Trade Act of 1974, enclosed is a report to the Congress setting forth my determination that import relief for the U.S. anhydrous ammonia industry is not in the national economic interest, and explaining the reasons for my decision.

Sincerely,

JIMMY CARTER

IMPORT RELIEF ACTION

ANHYDROUS AMMONIA

As required under section 203(b)(2) of the Trade Act of 1974, I am transmitting this report to Congress setting forth the action I will take with respect to anhydrous ammonia covered by the affirmative finding on October 12, 1979 of the U.S. International Trade Commission (USITC) under section 406 of the Trade Act. As my action differs from that recommended by the USITC, I have included the reasons for my decision:

After considering all relevant aspects of the case, including those considerations set forth in section 202(c) of the Trade Act of 1974, I have determined that provision of import relief is not in the national economic interest for the following reasons:

(1) Anticipated conditions in the U.S. and overseas markets for anhydrous ammonia do not warrant import relief at this time. The industry is currently operating at 86 percent of capacity and should continue to operate at comparable levels, prices are sharply higher and expected to continue rising, and strong market conditions are projected for the current and next marketing years. Given anticipated growth in demand for grains and other crops, it is critical that farmers have access to sufficient fertilizer supplies at reasonable prices.

(2) Relief would not limit the growth in U.S. imports of anhydrous ammonia but will merely shift the source of foreign supplies from the Soviets to other lowcost producers. Thus, the domestic industry would realize little benefit from relief and relief would be unlikely to promote industry adjustment.

I have directed the U.S. Trade Representative to request the U.S. International Trade Commission to follow closely overall market conditions for ammonia until further notice and to issue annual reports beginning in November 1980. I would plan to have these reports discussed with appropriate Soviet officials through existing channels.