96-27142. Initiation of Section 302 Investigation and Request for Public Comment: Australian Subsidies Affecting Leather

[Federal Register Volume 61, Number 206 (Wednesday, October 23, 1996)]
[Notices]
[Pages 55063-55064]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27142]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. 301-107]


Initiation of Section 302 Investigation and Request for Public 
Comment: Australian Subsidies Affecting Leather

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of initiation of investigation; request for written 
comment.

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SUMMARY: The United States Trade Representative (USTR) has initiated an 
investigation under section 302(a) of the Trade Act of 1974, as amended 
(the Trade Act), with respect to certain acts, policies and practices 
of the Government of Australia with respect to subsidies affecting 
leather. USTR invites written comments from the public on the matters 
being investigated and the determinations to be made under section 304 
of the Trade Act.

DATES: This investigation was initiated on October 3, 1996. Written 
comments from the public are due on or before noon on Tuesday, November 
5, 1996.

ADDRESSES: Office of the United States Trade Representative, 600 17th 
Street, NW, Washington, D.C. 20508.

FOR FURTHER INFORMATION CONTACT:
Ron Lorentzen, Director for WTO Industrial Issues, [phone], or 
Audrey Winter, Associate General Counsel, [phone].

SUPPLEMENTARY INFORMATION: On August 19, 1996, the Coalition Against 
Australian Leather Subsidies filed a petition pursuant to section 
302(a) of the Trade Act (19 U.S.C. 2412(a)) alleging that certain 
subsidy programs of the Government of Australia constitute acts, 
policies and practices that violate, or are inconsistent with and 
otherwise deny benefits to the United States under the General 
Agreement on Tariffs and Trade 1994 (GATT) and the Agreement on 
Subsidies and Countervailing Measures (SCM Agreement). In particular, 
the petition alleges that the Government of Australia has instituted 
certain subsidy programs which provide substantial assistance to the 
domestic leather tanning industry in Australia in the form of credits 
for the export of eligible goods and services based upon the value 
added to the exported product in Australia. These credits can be used 
to offset duties on eligible imports or,

[[Page 55064]]

because they are freely transferable, can be sold to any importer of 
eligible goods. The petition also alleges that the subsidies have 
burdened and restricted U.S. commerce because they have enabled 
Australian leather tanners to substantially lower their prices to 
buyers of automobile upholstery leather for the U.S. market, thereby 
inflicting injury on U.S. leather tanners.

Investigation and Consultations

    On October 3, 1996, the USTR determined that an investigation 
should be initiated to determine whether certain acts, policies or 
practices of the Government of Australia regarding subsidies available 
to leather under the Textile, Clothing and Footwear Import Credit 
Scheme and any other subsidies to leather granted or maintained in 
Australia which are prohibited under Article 3 of the SCM Agreement are 
actionable under section 301.
    As required in section 303(a) of the Trade Act, the USTR has 
requested consultations with the Government of Australia regarding the 
issues under investigation. The request was made pursuant to Articles 1 
and 4 of the Understanding on Rules and Procedures Governing the 
Settlement of Disputes (DSU), Article 4.1 of the SCM Agreement, and 
Article XXIII:1 of GATT 1994 as incorporated in Article 30 of the SCM 
Agreement. If the consultations do not result in a satisfactory 
resolution of the matter, the USTR will request the establishment of a 
panel pursuant to Article 6 of the DSU and Article 4.4 of the SCM 
Agreement. USTR will seek information and advice from the petitioner 
and appropriate representatives provided for under section 135 of the 
Trade Act in preparing the U.S. presentations for such consultations.
    Under section 304 of the Trade Act, the USTR must determine within 
18 months after the date on which this investigation was initiated, or 
within 30 days after the conclusion of WTO dispute settlement 
procedures, whichever is earlier, whether any act, policy, or practice 
or denial of trade agreement rights described in section 301 of the 
Trade Act exists and, if that determination is affirmative, the USTR 
must determine what action, if any, to take under section 301 of the 
Trade Act.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the acts, policies and practices of Australia 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 Tuesday, 
November 5, 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 301-107) 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. Copies of the public version of the 
petition and other relevant documents are available for public 
inspection in the USTR Reading Room. An appointment to review the 
docket (Docket No. 301-107) 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. 96-27142 Filed 10-22-96; 8:45 am]
BILLING CODE 3190-01-M