[Federal Register Volume 61, Number 203 (Friday, October 18, 1996)]
[Notices]
[Pages 54485-54486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26711]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-110]
Initition of Section 302 Investigation and Request for Public
Comment; Practices of the Government of Brazil Regarding Trade and
Investment in the Auto Sector
agency: Office of the United States Trade Representative.
action: Notice of initiation of investigation; request for written
comments.
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summary: The Acting United States Trade Representative (USTR) has
initiated an investigation under section 302(b)(1) of the Trade Act of
1974, as amended (the Trade Act), with respect to certain acts,
policies and practices of the Government of Brazil concerning the grant
of tariff-reduction benefits contingent on satisfying certain export
performance and domestic content requirements. The United States
alleges that these acts, policies and practices are inconsistent with
certain provisions of the General Agreement on Tariffs and Trade 1994
(GATT 1994), the Agreement on Trade-Related Investment Measures (TRIMS
Agreement), and the Agreement on Subsidies and Countervailing Measures
(SCM Agreement), each administered by the World Trade Organization
(WTO). USTR invites written comments from the public on the matter
being investigated.
dates: This investigation was initiated on October 11, 1996. Written
comments from the public are due on or before noon on Thursday,
November 14, 1996.
addresses: Office of the United States Trade Representative, 600 17th
Street, N.W., Washington, DC 20508.
for further information contact: Karen Chopra, Deputy Assistant U.S.
Trade Representative for the Western Hemisphere, (202) 395-5190, or
Amelia Porges, Senior Counsel for Dispute Settlement, (202) 395-7305.
supplementary information: Section 302(b)(1) of the Trade Act) (19
U.S.C. 2412(b)(1)), authorizes the USTR to initiate an investigation
under chapter I of Title III of the Trade Act (commonly referred to as
``section 301'') with respect any matter in order to determine whether
the matter is actionable under section 301. Matters actionable under
section 301 include, inter alia, the denial of rights of the United
States under a trade agreement, or acts, policies, and practices of a
foreign country that violate or are inconsistent with the provisions
of, or otherwise deny benefits to the United States under, any trade
agreement.
Investigation and Consultations
On October 11, 1996, having consulted with the appropriate private
sector advisory committees, the USTR determined that an investigation
should initiated to determine whether certain acts, policies and
practices of Brazil concerning trade and investment in the auto sector
are actionable under section 301(a). Brazil has adopted since December
1995 a series of decrees that provide that manufacturers of automobiles
may get reductions in duties on inputs and assembled vehicles if they
maintain a specified level of local content, and export an offsetting
amount of finished vehicles and parts and maintain specified ratios of
imported to domestic capital goods and of imported to domestic inputs.
Brazil also provides more favorable treatment to automobiles and auto
parts from Argentina.
The USTR believes that these acts, policies and practices of Brazil
are inconsistent with certain aspects of the GATT 1994, the TRIMs
Agreement, and the SCM Agreement. In particular, the program appears to
be inconsistent with the most-favored-nation treatment and national
treatment provisions found in Articles I and III of the GATT 1994; the
prohibition in Article 2 of the TRIMs Agreement on investment measures
that are inconsistent with the national treatment and quantitative
restriction provisions in the GATT 1994, and the prohibition on certain
subsidies in Articles 3 and 28.2 of the SCM Agreement.
In August 1996 the USTR invoked WTO dispute procedures and held
consultations with Brazil regarding its auto regime. As a result of
these consultations, Brazil has agreed to enter into intensive talks
with the United States. The goal of these talks is the removal of the
discriminatory impact of the Brazilian practices on U.S. exports.
Pending the outcome of these talks the USTR has decided pursuant to
section 303(b)(1)(A) of the Trade Act to delay for up to 90 days
requesting the consultations required under section 303(a) of the Trade
Act for the purpose of ensuring an adequate basis for such
consultations. Pursuant to section 303(b)(1)(B) of the Trade Act the
time limitations for making the determinations required by section 304
of the Trade Act will be extended for the period of the delay.
Public Comment: Requirements for Submissions
Interested persons are invited to submit written comments
concerning the acts, policies and practices of Brazil which are the
subject of this investigation, the amount of burden or restriction on
U.S. commerce caused by these acts, policies and practices, and the
determinations required under section 304 of the Trade Act. Comments
must be filed in accordance with the requirements set forth in 15 CFR
2006.8(b) (55 FR 20593) and must be filed on or before noon on
Thursday,
[[Page 54486]]
November 14, 1996. Comments must be in English and provided in twenty
copies to: Sybia Harrison, Staff Assistant to the Section 301
Committee, Room 223, Office of the U.S. Trade Representative, 600 17th
Street, NW, Washington, D.C. 20508.
Comments will be placed in a file (Docket 301-110) open to public
inspection pursuant to 15 CFR 2006.13, except confidential business
information exempt from public inspection in accordance with 15 CFR
2006.15. Confidential business information submitted in accordance with
15 CFR 2006.15 must be clearly marked ``BUSINESS CONFIDENTIAL'' in a
contrasting color ink at the top of each page on each of 20 copies, and
must be accompanied by a nonconfidential summary of the confidential
information. The nonconfidential summary shall be placed in the file
that is open to public inspection. An appointment to review the docket
(Docket No. 301-110) may be made by calling Brenda Webb (202) 395-6186.
The USTR Reading Room is open to the public from 10:00 a.m. to 12 noon
and 1:00 p.m. to 4:00 p.m., Monday through Friday, and is located in
Room 101.
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 96-26711 Filed 10-17-96; 8:45 am]
BILLING CODE 3190-01-M
