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RCED-93-82R 1 (1993-04-21)

handle is hein.gao/gaobackhk0001 and id is 1 raw text is: UntdStates GAO General Accounting Office Washington, D.C. 20548 Resources, Community, and Economic Development Division B-251510l I UU April 21, 1993 148982 The Honorable Charles W. Stenholm The Honorable Steve Gunderson The Honorable Ralph Regula The Honorable David R. Obey The Honorable Jim Leach House of Representatives Section 702 of Public Law 96-39, the Trade Agreements Act of 1979 provides that if a party believes that imported quota cheese' is subsidized and that its price is undercutting U.S. prices, that party may petition the Secretary of Agriculture to investigate. In your June 11, 1992, letter to us, you stated that a section 702 complaint had been filed by the Farmers Union Milk Marketing Cooperative of Madison, Wisconsin. The complaint alleged that the price of Swiss cheese imported from Switzerland was being undercut. In your letter, you asked us to address a number of questions about the section 702 provision. In subsequent discussions with your office, it was agreed that most of the questions raised in your letter would be addressed by the U.S. Department of Agriculture's (USDA) investigation of the complaint, and that our work would be limited to providing information on -- how the Farmers Union Milk Marketing Cooperative case was resolved, -- how effective the section 702 remedy is, and -- what other remedies for countering unfair dairy import competition are available. In summary, our work showed that -- section 702 of the Trade Agreements Act of 1979 for addressing the price-undercutting of imported quota 'A quota is a limit on the quantity of a commodity that may be imported into a country. In the United States, import quotas were first imposed on dairy products in 1951. GAO/RCED-93-82R, Remedies to Counter Dairy Import Competition

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