Proclamation 5601

By the President of the United States of America A Proclamation

1. On March 31, 1986, I announced my decision, pursuant to section 301(a) of the Trade Act of 1974, as amended (the Act) (19 U.S.C. 2411(a)), to take action in response to restrictions imposed by the European Economic Community (EEC) affecting imports of United States grain and oilseeds into Spain and Portugal. I determined that these restrictions deny benefits to the United States arising under the General Agreement on Tariffs and Trade (GATT) (61 Stat. (pts. 5 and 6)), are unreasonable, and constitute a burden and restriction on United States commerce (51 F.R. 18294). Accordingly, in Proclamation 5478 of May 15, 1986 (51 F.R. 18296), pursuant to section 301 (a), (b), and (d)(1) of the Act (19 U.S.C. 2411 (a), (b), and (d)(1)), I imposed quantitative restrictions on imports of certain articles from the EEC in response to the EEC restrictions in Portugal.

2. In Proclamation 5478, I also announced my decision, in response to the withdrawal of tariff concessions and the application of the EEC variable levy on Spanish imports of corn and sorghum, to suspend temporarily, pursuant to section 301 (a), (b), and (d)(1) of the Act, the tariff concessions made by the United States under the GATT on articles described in Annex II to that proclamation. I made no immediate change in the U.S. duty rates for these articles in order to afford the EEC an opportunity to provide, by July 1, 1986, adequate compensation for the imposition of variable levies on imports of corn and sorghum into Spain. I further stated that, in the event such compensation were not provided by July 1, 1986, I would proclaim increased duties for these articles as appropriate. Having due regard for the international obligations of the United States, I decided that any such increased duties on these articles would be applied on a most-favored-nation basis.

3. On July 2, 1986, the United States and the EEC reached an interim agreement whereby the EEC agreed to take measures to avoid harm to U.S. sales of corn and sorghum to the EEC for the 6-month period ending December 31, 1986. In return, the United States agreed to defer action on the imposition of increased duties on imports of certain articles into the United States during this period so as to allow time for negotiation of a definitive settlement.

4. Despite extensive negotiating efforts throughout 1986, the EEC has not yet agreed to provide satisfactory compensation. Accordingly, I have determined, pursuant to section 301 (a), (b), and (d)(1) of the Act, that increased duties should be imposed on a most-favored-nation basis on the articles provided for in the Annex to this proclamation. Pursuant to general headnote 4 to the Tariff Schedules of the United States (19 U.S.C. 1202), the U.S. rates of duty for countries not receiving most-favored-nation treatment will be modified accordingly.

5. In the event that the EEC provides adequate compensation for the imposition of variable levies on corn and sorghum imports, or if other circumstances so warrant, I am authorizing the United States Trade Representative to suspend, modify, or terminate the increased duties imposed by this proclamation upon publication in the Federal Register of notice of his determination that such action is in the interest of the United States. Such suspension, modification, or termination shall be on a most-favored-nation basis.

Now, Therefore, I, Ronald Reagan, President of the United States of America, acting under the authority vested in me by the Constitution and the statutes of the United States, including but not limited to section 301 (a), (b), and (d)(1) and section 604 of the Act (19 U.S.C.. 2483), do proclaim that:

1. Subpart B of part 2 of the Appendix to the Tariff Schedules of the United States is modified as provided in the Annex to this proclamation.

2. The United States Trade Representative is authorized to suspend, modify, or terminate the increased duties imposed by this proclamation upon publication in the Federal Register of his determination that such action is in the interest of the United States.

3. This proclamation shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 30, 1987. In Witness Whereof I have hereunto set my hand this 21st day of January, in the year of our Lord nineteen hundred and eighty-seven, and of the Independence of the United States of America the two hundred and eleventh.

RONALD REAGAN

[Filed with the Office of the Federal Register, 12:01 p.m., January 22, 1987]