Weekly Allocation of NAFTA Tariff-Rate Quotas for Fresh Tomatoes

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

15 CFR Part 2013

Weekly Allocation of NAFTA Tariff-Rate Quotas for Fresh Tomatoes

AGENCY: Office of the Untied States Trade Representative.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The Office of the United States Trade Representative is

considering a proposal to allocate on a weekly basis the seasonal

tariff-rate quotas for fresh tomatoes which were established under the

North American Free Trade Agreement. Public comment is invited.

DATES: Written comments must be received on or before March 13, 1996.

ADDRESSES: Comments should be mailed to Leonard W. Condon, Deputy

Assistant United States Trade Representative for Agricultural Affairs,

Office of the United States Trade Representative, 600 17th Street NW.,

Washington, DC 20508. Envelopes should be marked: ``Tomato ANPR''.

FOR FURTHER INFORMATION CONTACT:

Leonard W. Condon (202) 395-9564.

SUPPLEMENTARY INFORMATION: Article 302(4) of the North American Free

Trade Agreement (NAFTA) provides that each NAFTA party `` * * * may

adopt or maintain import measures to allocate in-quota imports made

pursuant to a tariff rate quota set out in Annex 302.2, provided that

such measures do not have trade restrictive effects on imports

additional to those caused by the imposition of the tariff rate

quota.''

Section 321(c) of the North American Free Trade Agreement

Implementation Act (19 U.S.C. 3391(c)) provides that in ``implementing

the tariff rate quotas set out in the United States Schedule to Annex

302.2 of the Agreement, the President shall take such action as may be

necessary to ensure that imports of agricultural goods do not disrupt

the orderly marketing of commodities in the

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United States.'' The President has delegated this authority with

respect to the tomato tariff-rate quotas (TRQ's) to the United States

Trade Representative (USTR).

Concern has been expressed about the impact on domestic markets of

surges in imports of Mexican tomatoes. Allocation of the existing

seasonal TRQ's on a weekly basis is an option which could address that

concern. USTR is considering that option and seeking public comment.

Mexico typically supplies over 90 percent of U.S. fresh tomato

imports. During the winter months, more than 25 percent of the fresh

tomatoes consumed in the United States are grown in Mexico.

In accordance with terms of the NAFTA, this proposal would affect

only tomatoes imported into the United States from Mexico during the

periods March 1 through July 14 through the year 2002 and November 15

through February until February 2003. Tomatoes entered from Mexico

eligible for the in-quota tariff would be charged the declining NAFTA

rate. All other Mexican tomatoes would be charged the most favored

nation rate.

Tariffs on tomatoes imported from Mexico during the period July 15

through November 14 are being phased out over five years. No TRQ's

apply from July 15 through November 14. Entries during this period

would be unaffected.

Allocation Methodology: One method for allocating the in-quota

quantity for each of the tariff-rate quotas would be to distribute the

specified quantity evenly on a weekly basis throughout each TRQ period.

Since the in-quota quantity for each TRQ increases each year, an annual

re-calculation of the weekly TRQ's would be necessary.

The following is an example of how the in-quota quantity could be

distributed on a weekly basis:

According to U.S. Note 10 to subchapter VI of chapter 99 of the

HTS, for the period November 15, 1995 through February 29, 1996, the

in-quota quantity is 177,469,000 kilograms (kg.).

The seasonal TRQ would be divided evenly into weekly allocations.

The period from November 15, 1995, through February 29, 1996, includes

14 complete weeks and portions of two weeks at the beginning and end of

the period. To calculate the weekly allocation for the season, the

total seasonal TRQ of 177,469,000 kg would be divided by 107, the total

number of days in the period. A week would be defined as a seven-day

period running from Monday through Sunday. The daily amount would be

multiplied times 7 to establish an allocation for each of 14 full

weeks. For the period November 15 through November 19, the daily amount

would be multiplied by 5 and for the February 26 through February 29

period, the daily amount would be multiplied by 4. This establishes a

weekly allocation of 11,610,121 kg. for each of the 14 full weeks, an

allocation of 8,292,248 kg. for the November 15-18, 1995, period, and

6,634,358 kg. for the February 26-29, 1996, period.

For the period November 15, 1995, through February 29, 1996, the

tariff on tomatoes imported form Mexico within the weekly quotas would

be 2.6 cents per kilogram. The tariff on any amounts which exceed the

weekly quotas would be 3.2 cents per kilogram.

USTR is particularly interested in comments from the public which

address the following points:

(a) To what extent do surges in imports of Mexican tomatoes

disrupt, or threaten to disrupt, the U.S. market for fresh tomatoes?

(b) Would a weekly allocation of the current seasonal TRQ's be an

effective mechanism for moderating any disruption that might otherwise

occur?

(c) If the seasonal TRQ is to be sub-divided into weekly TRQ's, how

should it be equitably allocated among the weeks?

(d) Are there alternative mechanisms available to cushion the

impact of surges in imports of Mexican tomatoes that could be more

effective, but still consistent with U.S. obligations under NAFTA?

Written Comments

Comments on the above Advance Notice of Proposed Rulemaking are

invited. Written comments should be directed to Leonard W. Condon,

Deputy Assistant United States Trade Representative for Agricultural

Affairs, Office of the United States Trade Representative, Washington,

DC, 20508. Comments, with two copies, should be received by March 13,

1996.

Michael Kantor,

United States Trade Representative.

[FR Doc. 95-30501 Filed 12-13-95; 8:45 am]

BILLING CODE 3190-01-M