ExecutiveOrdersEO
MemoMemorandumClinton · D

Presidential Memorandum

Determinations Under Section 203 of the Trade Act of 1974 and Section 304 of the North American Free Trade Agreement Implementation Act Concerning Broom Corn Brooms

President Clinton directed the U.S. Trade Representative to negotiate agreements within 90 days to address serious injury to the domestic broom corn broom industry from Mexican imports, while declining immediate USITC-recommended tariffs. Secretaries of Agriculture, Commerce, and Labor were directed to develop a domestic industry adjustment program within the same 90-day period. Imports from Canada and Israel were excluded from potential remedies based on USITC findings.

Federal Register Open PDF 61 FR 46697

Impact dates

  1. Trade Representative must negotiate and conclude agreements; Secretaries must present adjustment program; President would implement action

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

Other industrial

Mechanisms

TariffQuota

Role pressure

  • ProtectiveDomestic producer — Memorandum explicitly seeks to facilitate positive adjustment to import competition and preserves ability to implement tariff increases; negotiations aim to reduce injury from Mexican imports
  • AdverseTrading-partner exporter — Mexican broom corn broom exporters face potential agreements restricting market access or fallback tariffs within 90 days
  • UncertainImporter — 90-day negotiation window creates uncertainty about future tariff levels; Canada and Israel exempted but Mexico targeted

Geographies

USMXCA

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

MMM3MAAPLAppleCATCaterpillarFCXFreeport-McMoRanGEVGE VernovaHONHoneywellSPYSPDR S&P 500 ETF

Confidence: medium · Policy alerts

Key directives

  • Trade Representative to negotiate and conclude agreements within 90 days under section 203(a)(3)(E) of Trade Act
  • Trade Representative to carry out any agreements reached
  • Secretaries of Agriculture, Commerce, and Labor to develop and present adjustment program within 90 days
  • President to implement section 203(a)(3) action by end of 90-day period if needed
  • USTR to publish determination in Federal Register

Who is ordered

Timeline

Immediate

  • Memorandum issuance
  • Publication in Federal Register
  • USITC report received (August 1, 1996)

Near term (90d)

  • Trade Representative must negotiate and conclude agreements by ~November 28, 1996
  • Secretaries must present adjustment program by ~November 28, 1996
  • President commits to implementing section 203(a)(3) action by end of 90-day period if no agreement reached

Long term

  • Potential tariff increases or other trade remedies if negotiations fail
  • Domestic industry adjustment to import competition
  • Precedent for NAFTA safeguard mechanism use

Risks & tensions

  • Negotiation-first approach delays immediate relief for injured domestic industry
  • 90-day deadline creates pressure for rapid agreement with Mexico or automatic fallback to unilateral action
  • Exclusion of Canada and Israel from remedies may create transshipment monitoring challenges
  • Preservation of broader section 203 authority over narrower NAFTA section 304 authority signals strategic flexibility but also legal complexity
  • Vague 'appropriate and feasible action' and 'positive adjustment' standards leave implementation scope uncertain
Presidential Memorandum: Determinations Under Section 203 of the Trade Act of 1974 and Section 304 of the North American Free Trade Agreement Implementation Act Concerning Broom Corn Brooms · Executive Orders