91. Circular Instruction From the Department of State to Certain Diplomatic Missions1
SUBJECT
- New Increased Duties and/or Excise Taxes on Imports of Lead and Zinc
The Tariff Commission in 1954 found that lead and zinc were being imported into the United States in such increased quantities as to cause serious injury to the domestic mining industry. To remedy this injury the Commission recommended increased rates of duty. The rates recommended were 50 percent above those existing on January 1, 1945, the maximum permissible under trade agreements legislation.
The President at that time took no action on the Tariff Commission’s recommendations, but instead instituted stockpile programs to help domestic producers. The President’s 1954 announcement also contemplated voluntary action by the exporting countries to limit shipments so as not to take advantage of the U.S. stockpiling programs. Consultations were held with the major exporting countries at that time. The voluntary plan proved unsuccessful and imports of lead are up approximately 16 percent over 1954 levels and zinc up approximately 40 percent. Increases in imports have come from almost all exporting countries.
U.S. stockpiling programs are now approaching completion and, as part of a new long-range minerals program to be submitted to the Congress, the Administration is recommending that new excise taxes or a combination of duties and excise taxes be applied to imports of lead and zinc. The new rates will be approximately 3¢ per pound on lead and 2¢ per pound on zinc. These are slightly higher than the rates recommended by the Tariff Commission in 1954. It is proposed that the new rates be applicable on a sliding scale depending on the price of each metal. Proportional increases will also be recommended for lead and zinc ores and concentrates and lead and zinc semi-manufactures.
It is, of course, not known what action the Congress will take on the Administration’s proposals. The recent declines in lead and zinc prices have, however, precipitated considerable demands from producers, from labor and from the Congress for some kind of action to curb imports.
[Page 243]Representatives of the major producing countries in Washington have been informed of the Government’s intentions. The Canadian, Australian, Belgian and Peruvian representatives, the principal producing countries which are also Contracting Parties to the General Agreement on Tariffs and Trade, were informed that the United States recognized that it had commitments under the Agreement with respect to tariff treatment to be afforded these products. Pending enactment of legislation, however, it has not been determined under which article of the Agreement the United States would act.
- Source: Department of State, Central Files, 411.004/5–2957. Sent to Belgrade, Bonn, Brussels, Canberra, Copenhagen, Guatemala, La Paz, Lima, Madrid, Manila, Mexico City, Ottawa, Pretoria, Rabat, Rome, Tegucigalpa, and The Hague.↩