[Federal Register Volume 63, Number 217 (Tuesday, November 10, 1998)]
[Notices]
[Pages 63099-63104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30225]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-100a]
Implementation of WTO Recommendations Concerning the European
Communities' Regime for the Importation, Sale and Distribution of
Bananas
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of proposed determination of action to be taken; request
for public comment; notice of public hearing.
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SUMMARY: The United States Trade Representative requests written
comments and invites testimony in the context of a public hearing on
its proposed determination that the imposition of prohibitive (100
percent ad valorem) duties on selected products from the European
Communities (EC) is an appropriate action under section 306(b) and
301(a) of the Trade Act of 1974, as amended, should the EC fail to
implement the recommendations of the World Trade Organization Dispute
Settlement Body concerning the EC's regime for the importation, sale,
and distribution of bananas within the prescribed reasonable period of
time, which expires on January 1, 1999. The products to be affected by
the proposed duty increase will be drawn from the list of products set
forth in the Annex to this notice. The USTR intends to publish a notice
on December 15, 1998 describing the actions that it would take,
beginning as early as February 1, 1999.
DATES: Requests to testify at the public hearing and written testimony
for the public hearing are due by noon on Monday, November 30, 1998;
the public hearing will be held on Wednesday, December 9, 1998; written
comments, in lieu of written and oral testimony, are due by noon on
Thursday, December 10, 1998; and rebuttal briefs, if needed, are due by
noon on Friday, December 11, 1998.
ADDRESSES: 600 17th Street, NW, Washington, DC 20508.
FOR FURTHER INFORMATION CONTACT: Rachel Shub, Associate General
Counsel, (202) 395-7305; or Ralph Ives, Deputy Assistant U.S. Trade
Representative, (202) 395-3320.
SUPPLEMENTARY INFORMATION: January 1, 1999 is the deadline for the
European Communities' (EC) implementation of the recommendations of the
World Trade Organization (WTO) Dispute Settlement Body (DSB) concerning
the EC's regime for the importation, sale, and distribution of bananas
(banana regime). On October 22, 1998, the United States Trade
Representative (USTR) published a notice [63 FR 56687] of a proposed
affirmative determination under section 306(b) of the Trade Act of
1974, as amended (Trade Act) (19 U.S.C. 2416), that the measures the EC
has undertaken to apply as of January 1, 1999 fail to implement the WTO
recommendations concerning the EC banana regime. Such a determination
will require the USTR also to determine what further action to take
under section 301(a) in the event the EC has failed to implement the
WTO recommendations by January 1, 1999.
Permissible actions under section 301(a) of the Trade Act include:
action to suspend, withdraw or prevent the application of benefits of
trade agreement concessions to the EC; imposition of duties or other
import restrictions on goods of the EC or fees or restrictions on
services of the EC; and restriction or denial of service sector access
authorizations with respect to services of the EC. The USTR proposes
that the imposition of prohibitive (100 percent ad valorem) duties on
selected products from the EC is an appropriate action should the EC
fail to implement the WTO recommendations within the prescribed
reasonable period of time. The products to be affected by the duty
increase will be drawn from the list of products set forth in the Annex
to this notice.
The USTR intends to publish a notice on December 15, 1998
describing the actions that it would take beginning February 1, 1999.
If the EC requests arbitration under Article 22.6 of the WTO Dispute
Settlement Understanding (DSU), the USTR would delay implementation of
action until the completion of the arbitration proceedings or until
March 3, 1999, whichever is earlier.
The announcement of the USTR's determination on December 15 and the
subsequent implementation of action are contingent upon the EC's
failure to suspend the implementation of its new banana regime and to
implement a regime consistent with the WTO's recommendations. The dates
on which the USTR intends to implement action--February 1 or no later
than March 3, 1999--correspond to the dates contemplated by sections
306(b) and 305(a) of the Trade Act as well as Article 22 of the DSU.
Section 306(b) of the Trade Act requires the USTR to determine what
further action it shall take under section 301(a) if the USTR considers
that a foreign country has failed to implement a recommendation made
pursuant to dispute settlement proceedings under the WTO. The USTR
shall make this determination no later than thirty days after the
expiration of the reasonable period of time provided for such
implementation under Article 21.3 of the DSU, which is January 31, 1999
in this case. Section 305(a)(1) requires the USTR to implement such
action by no later than thirty days after the date on which that
determination is made, or March 2 in this case.
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According to Article 22 of the DSU, the United States can request
DSB authorization to suspend the application of concessions or other
obligations to the EC for its failure to bring a measure into
compliance with a covered agreement or the WTO's recommendations within
the reasonable period of time. The United States may make its request
twenty days after the expiration of the reasonable period of time, or
January 21 in this case. Article 22.6 of the DSU provides that the DSB
shall grant the requested authorization not later than thirty days
after the expiration of the reasonable period, or January 31 in this
case. The DSB must decide by consensus to reject the request for
authorization. The EC may object to the level of suspension proposed or
the application of the principles and procedures specified in Article
22.3 of the DSU in considering the types of concessions or obligations
to suspend, in which case the matter shall be referred to arbitration.
The DSU requires that arbitration proceedings be completed within sixty
days after the expiration of the reasonable period of time, or March 2
in this case. The United States may not suspend concessions or other
obligations during the course of the arbitration proceedings.
Proposed Determination on Appropriate Action
The USTR proposes that the imposition of prohibitive (100 percent
ad valorem) duties on selected products from the EC is an appropriate
action should the EC fail to implement the WTO recommendations within
the prescribed reasonable period of time, which expires on January 1,
1999. The products to be affected by the duty increase will be drawn
from the list of products set forth in the Annex to this notice. The
USTR also has been considering whether appropriate action may include
the imposition of fees or restrictions on, or the restriction or denial
of authorizations for, EC services and service suppliers. If the USTR
intends to determine that any action with respect to services or
service suppliers would be practicable and effective, the USTR will
publish a further notice seeking comments on such proposed action.
In determining what action to take, the USTR will consider all
written comments, testimony, and rebuttal briefs submitted by
interested persons to the Section 301 Committee in accordance with the
procedures described below.
Public Comment on Proposed Action; Hearing Participation
In accordance with section 304(b) of the Trade Act, the USTR
requests all interested persons to provide written comments on the
proposed action. Written comments are due by noon on Thursday, December
10, 1998.
The USTR also invites interested persons to present written and
oral testimony and rebuttal briefs in the context of a public hearing
to be held pursuant to section 304(b) of the Trade Act. The hearing
will be held at 8:00 a.m. on Wednesday, December 9, 1998 in the Main
Hearing Room at the U.S. International Trade Commission, 500 E Street,
SW, Washington, DC 20436. Testimony at the public hearing should be
limited to no more than five minutes.
Written comments and written and oral testimony may address: the
appropriateness of imposing increased duties upon the products listed
in the Annex to this notice; the levels at which U.S. customs duties
should be set for particular items; the degree to which increased
duties might have an adverse effect upon U.S. consumers of the products
listed in the Annex; and any other matter relating to the appropriate
action to be taken under section 306(b) and 301(a). Interested persons
submitting written comments do not need to present written and oral
testimony as well.
Requests To Testify and Written Testimony: Interested persons
wishing to present testimony at the hearing must submit a written
request to do so by noon on Monday, November 30, 1998, together with
twenty copies of their complete written testimony. Requests to testify
must conform to the requirements of 15 CFR 2006.9 and include the
following information: (1) Name, address, telephone number, fax number,
firm or affiliation of the applicant, and interest of the applicant;
and (2) a brief summary of the comments to be presented. After
considering the request to present oral testimony, the Chairman of the
Section 301 Committee will notify the applicant of the time of his or
her testimony.
Rebuttal Briefs: To assure each party an opportunity to contest the
information provided by other parties, the USTR will entertain rebuttal
briefs filed by any party by noon on Friday, December 11, 1998. In
accordance with 15 CFR 2006.8(c), rebuttal briefs should be strictly
limited to demonstrating errors of fact or analysis not pointed out in
written or oral testimony and should be as concise as possible.
Requirements for Submissions: Written comments on the proposed
determination, written testimony, and rebuttal briefs must be filed in
accordance with the requirements set forth in 15 CFR 2006.8(b).
Comments must state clearly the position taken and describe with
particularity the supporting rationale, be in English, and be provided
in twenty copies to: Chairman, Section 301 Committee, Attn: EU--Bananas
Implementation of WTO Recommendations, Room 100.
Written comments, written testimony, and rebuttal briefs will be
placed in a file (Docket 301-100a) 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. Persons wishing to
submit business confidential information must certify in writing that
such information is confidential in accordance with 15 CFR 2006.15(b),
and such information must be clearly marked ``BUSINESS CONFIDENTIAL''
in a contrasting color ink at the top of each page on each of twenty
copies and must be accompanied by a nonconfidential summary of the
confidential information. The nonconfidential summary will be placed in
the docket that is open to public inspection.
An appointment to review Docket No. 301-100a may be made by calling
Brenda Webb at (202) 395-6186. The USTR Reading Room is open to the
public from 9:30 a.m. to 12 noon and 1:00 p.m. to 4:00 p.m., Monday
through Friday, and is located in Room 101 of the Office of the United
States Trade Representative.
Joanna K. McIntosh,
Chairman, Section 301 Committee.
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[FR Doc. 98-30225 Filed 11-9-98; 8:45 am]
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