Letter to the Speaker of the House of Representatives Reporting on Increased Tariffs on Imports of Ball Bearings.

Dear Mr. Speaker:

On July 30, 1973, the Tariff Commission reported to me the results of its investigation under section 301 (b)(1) of the Trade Expansion Act of 1962 (TEA) on Antifriction Balls and Ball Bearings, Including Ball Bearings with Integral Shafts, and Parts Thereof. The Commission made an affirmative determination with regard to serious injury from increased imports of certain ball bearings entering the United States under two tariff items and found that the present rates of duty on such bearings should be doubled.

While I concur with the Tariff Commission that an increase in tariffs is warranted, I have determined after a comprehensive review of all aspects of this case, that in certain regards the remedy found by the Commission is not adequate while in other regards, it goes beyond the relief required to maintain a sound domestic industry. Accordingly, I have today proclaimed increases in the rate of duty on imports of certain radial ball bearings, these increases only to be applicable when such bearings enter the United States at values per unit which are injurious to the U.S. industry. For the bulk of the trade covered, these increases are greater than proposed by the Tariff Commission.

U.S. producers' shipments of bearings in the tariff categories receiving relief under my proclamation accounted for about three-quarters of the industry's aggregate 1973 shipments of bearings covered by the Commission's affirmative finding. In the case of three categories of bearings on which the Tariff Commission proposed an increase in the rate of duty, I have determined that the present statutory criteria for serious injury or threat thereof are not satisfied and that relief therefore would not be justified.

In addition to higher tariff protection, I consider that adjustment assistance offers a useful means for strengthening the competitive position of some domestic producers and for helping those workers who have suffered unemployment. My proclamation, therefore, provides that firms and workers in the domestic industry may request certifications of eligibility to apply for adjustment assistance.

It is my considered judgment that the remedies I have provided will amply meet the needs of the industry and its workers and will better serve the national interest than other alternative measures. However, if developments presently unforeseen should prevent the satisfactory adjustment of the industry to meet import competition under the tariff rates just proclaimed, the case can be reopened, with a new investigation instituted by the Tariff Commission any time after July 30, i.e. one year after the original Tariff Commission report.

This report is submitted pursuant to the requirements of section 351 (a) (2) of the Trade Expansion Act of 1962.

Sincerely,

RICHARD NIXON

[The Honorable Carl Albert, Speaker of the House of Representatives, Washington, D.G. 20515]