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1 1 (January 13, 2021)

handle is hein.crs/govebom0001 and id is 1 raw text is: Congressional Research Service Inforring the legislative debate since 1914 Safeguards: Section 201 of the Trade Act of 1974 On January 23, 2018, President Trump proclaimed a four- year safeguard measure on imports of certain crystalline silicon photovoltaic cells (CSPV) cells and modules, and a three-year safeguard on large residential washing machines. These safeguards, still in force, were issued under Section 201 of the Trade Act of 1974 (19 U.S.C. §2251), and imposed additional tariffs and quotas on U.S. imports of these products. The safeguards were instituted based on findings by the U.S. International Trade Commission (ITC) that the goods are being imported into the United States in such increased quantities that they are a substantial cause of serious injury to U.S. manufacturers. The ITC also recommended possible steps to remedy the injury. What Is Section 201? Section 201 or safeguard actions are designed to provide temporary relief for a U.S. industry (for example, additional tariffs or quotas on imports) in order to facilitate positive adjustment of the industry to import competition. Positive adjustment in the law means the ability of the industry to compete successfully with imports after termination of the safeguard measure, or the industry's orderly transfer of resources to other productive pursuits; and the ability of dislocated workers to transition productively. Section 201 actions are deemed consistent with U.S. international obligations provided that they conform to the World Trade Organization (WTO) Agreement on Safeguards. Section 201 Process Section 201 investigations are generally initiated by a written petition filed by a trade association, firm, union, or group of workers representing a U.S. industry. Petitioners must also include (with the petition or within 120 days) a plan to facilitate the industry's positive adjustment to import competition. Investigations may also be triggered by House Ways and Means or Senate Finance Committee resolutions, at the request of the U.S. Trade Representative (USTR), or at the ITC's own initiative. Injury Investigation The ITC's investigative process occurs in two phases. In each phase, the ITC must hold hearings, solicit public comments, and publish all findings in the Federal Register. In the first phase, the focus is on the affected U.S. industry and whether it is being seriously injured or threatened with serious injury; and, if so, whether an increase in imports are a substantial cause thereof. This phase must be completed within 120 days after the filing of the petition, unless the ITC determines that the investigation is extraordinarily complicated. In this case, it may take up to 30 additional days to make an injury determination. The timeline may be further extended if the petitioner has alleged critical circumstances or the product is perishable; because temporary relief may be provided in these cases. Updated January 13, 2021 Factors the ITC must consider when determining injury include (1) the significant idling of production facilities; (2) the inability of a significant number of firms to carry out domestic production at a reasonable level of profit; and (3) significant unemployment or underemployment within the U.S. industry. The ITC also considers import trends and other factors, as well as declines in production, profits, wages, productivity, and employment. The ITC makes its injury determination based on a vote of the Commissioners. If the Commission is equally divided, the President may select either option. Figure I. Section 201 Timeline Y~ R Petitionlfiled! /Investigation requested ¶t Tm inre r tin Td etomm sion cas iTC s mates r c rcum stanI I a e er l ir r and is p eislt I72d 'i htr r pe a n in s . If ?eT maesa affirmative injggeusry edeteineaton, i inv tw ins)ad rs its d l tt O Presidentdtrmides ddre the ept find y and postiv adusmnatimort cmpeti ation. ~I at may the Con rts;i(2)t a1 ariff-e uton te pro (3 Ii a i r imptnositionf, ran atittive restrition Source: Chart by CRS. Note: Timeline is extended if ITC determines case is complicated, critical circumstances are alleged, or merchandise is perishable. Remedy Recommendations If the ITC makes an affirmative injury determination, it considers actions that would address te serious injury and would be most effective in facilitating the industiy's positive adjustment to import competition. It may recommend: (1) an increase in, or imposition of, a duty on the imports; (2) a tariff-rate quota on the product; (3) a modification, or imposition of, any quantitative restriction on imports; or (4) any combination of these actions. In addition to tese remedies, the ITC may also recommend that the President initiate international negotiations or otherwise alleviate the injury or threat, or implement any other action authorized under law to facilitate positive import competition. Only those Commission members who concurred in te affirmative injury determination may vote on the recommended remedy, altough oter Commissioners may submit separate views. ITC Report to the President Unless an extension is granted, the ITC must report its findings to the President within 180 days of the petition filing. After submission, the ITC must also release its findings (business confidential information redacted) in the Federal Register. ittps://crsreports.cong ress.gc

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