PROCESSED AGRICULTURAL PRODUCTS.

SEC. 1326. PROCESSED AGRICULTURAL PRODUCTS. (a) Definition of Industry Producing Processed Agricultural Products.— Paragraph (4) of section 771 (19 U.S.C. 1677(4)) is amended by adding at the end thereof the following new subparagraph: “(E) Industry producing processed agricultural products.— “(i) In general.— Subject to clause (v), in an investigation involving a processed agricultural product produced from any raw agricultural product, the producers or growers of the raw agricultural product may be considered part of the industry producing the processed product if— “(I) the processed agricultural product is produced from the raw agricultural product through a single continuous line of production; and “(II) there is a substantial coincidence of economic interest between the producers or growers of the raw agricultural product and the processors of the processed agricultural product based upon relevant economic factors, which may, in the discretion of the Commission, include price, added market value, or other economic interrelationships (regardless of whether such coincidence of economic interest is based upon any legal relationship). “(ii) Processing.— For purposes of this subparagraph, the processed agricultural product shall be considered to be processed from a raw agricultural product through a single continuous line of production if— “(I) the raw agricultural product is substantially or completely devoted to the production of the processed agricultural product; and “(II) the processed agricultural product is produced substantially or completely from the raw product. “(iii) Relevant economic factors.— For purposes of clause (i)(II), in addition to such other factors it considers relevant to the question of coincidence of economic interest, the Commission shall— “(I) if price is taken into account, consider the degree of correlation between the price of the raw agricultural product and the price of the processed agricultural product; and “(II) if added market value is taken into account, consider whether the value of the raw agricultural product constitutes a significant percentage of the value of the processed agricultural product. “(iv) Raw agricultural product.— For purposes of this subparagraph, the term ‘raw agricultural product’ means any farm or fishery product. “(v) Termination of this subparagraph.— This subparagraph shall cease to have effect if the United States Trade Representative notifies the administering authority and the Commission that the application of 102 STAT. 1204this subparagraph is inconsistent with the international obligations of the United States.”. (b) Threat of Material Injury.— Section 771(7)(F) (19 U.S.C. 1677(7)(F)) is amended— (1) by striking out “and” at the end of subclause (VII); (2) by striking out the period at the end of subclause (VIII) and inserting “, and”; and (3) by adding at the end thereof the following: “(IX) in any investigation under this title which involves imports of both a raw agricultural product (within the meaning of paragraph (4)(E)(iv)) and any product processed from such raw agricultural product, the likelihood that there will be increased imports, by reason of product shifting, if there is an affirmative determination by the Commission under section 705(b)(1) or 735(b)(1)with respect to either the raw agricultural product or the processed agricultural product (but not both).”. (c) Interested Parties.— Section 771(9) (19 U.S.C. 1677(9)) is amended— (1) by striking out “and” at the end of subparagraph (E); (2) by striking out the period at the end of subparagraph (F) and inserting in lieu thereof “, and”; and (3) by adding at the end thereof the following new subparagraph: “(G) in any investigation under this title involving an industry engaged in producing a processed agricultural product, as defined in paragraph (4)(E), a coalition or trade association which is representative of either— “(i) processors, “(ii) processors and producers, or “(iii) processors and growers, but this subparagraph shall cease to have effect if the United States Trade Representative notifies the administering authority and the Commission that the application of this subparagraph is inconsistent with the international obligations of the United States.”. (d) Conforming Amendments.— (1) Title VII of the Tariff Act of 1930 is amended by striking out “subparagraph (C), (D), (E), or (F) of section 771(9)” each place it appears and inserting in lieu thereof “subparagraph (C), (D), (E), (F), or (G) of section 771(9)”. (2) Title VII of the Tariff Act of 1930 is amended by striking out “subparagraph (C), (D), (E), and (F) of section 771(9)” each place it appears and inserting in lieu thereof “subparagraph (C), (D), (E), (F), or (G) of section 771(9)”. (3) Subsection (a) of section 516 of the Tariff Act of 1930 (19 U.S.C. 1516(a)) is amended by adding at the end thereof the following new paragraph: “(3) Any producer of a raw agricultural product who is considered under section 771(4)(E) to be part of the industry producing a processed agricultural product of the same class or kind as the designated imported merchandise shall, for purposes of this section, be treated as an interested party producing such processed agricultural product.”.