64. Memorandum From Secretary of the Treasury Blumenthal to President Carter1
SUBJECT
- Steel Dumping Cases
The Treasury will announce on Monday, October 3, a “tentative determination” under the Anti-Dumping Act that carbon steel plate from Japan is being sold in this country at “less than fair value.” This determination is based on findings that Japanese producers have been marketing steel plate below the cost of production. Based on this determination, the Customs Service will be directed immediately to withhold appraisement of the affected merchandise. Importers will then be required to post bonds sufficient to cover estimated dumping duties on all further imports equal to the average margins of dumping found. These margins are about 32% in this case.
A final determination must follow in ninety days; if affirmative, the matter will go to the International Trade Commission for their determination whether a domestic industry is being injured by sales at “less than fair value.”
In 1976 imports of this product from Japan were about $174 million, thus far the largest volume of trade potentially affected by the 1974 cost-of-production amendments to the anti-dumping law.
[Page 215]We also understand that a petition alleging dumping of a number of steel sheet products from European Community countries may be filed in coming weeks.
- Source: Carter Library, Staff Office Files, Council of Economic Advisers, Charles L. Schultze Subject Files, Box 80, [Steel] [4]. No classification marking. Marked “F.Y.I.” A stamped notation reads: “The President has seen,” and Carter initialed “C” at the top of the page.↩
- Blumenthal signed “Mike” above this typed signature.↩