Memorandum From the President on the American Anhydrous Ammonia Industry

Memorandum for the Special Representative for Trade Negotiations
Subject: Determination under Section 406 and 202 of the Trade Act of 1974; Anhydrous Ammonia from the Union of Soviet Socialist Republics

Pursuant to section 406(b) and 202 of the Trade Act of 1974 (P.L. 93-618, 88 Stat. 1978), I have determined the action I will take with respect to the report of the United States International Trade Commission (USITC), transmitted to me on October 12, 1979, concerning the results of its investigation of a petition for import injury filed on behalf of 12 U.S. producers and one U.S. distributor of anhydrous ammonia provided for under items 417.22 and 480.65 of the Tariff Schedules of the United States (TSUS).

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 fob lowing 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 low-cost producers. Thus, the domestic industry would realize little benefit from relief and relief would be unlikely to promote industry adjustment.

You should request the U.S. International Trade Commission to issue a factual report on overall market conditions for ammonia as prescribed under section 332 of the Tariff Act of 1930. This report should be prepared on an annual basis, beginning in November 1980, until further notice. I would plan to have these reports discussed with appropriate Soviet officials through existing channels.

This determination is to be published in the FEDERAL REGISTER.

JIMMY CARTER

[Filed with the Office of the Federal Register, 12:10 p.m., December 11, 1979]