[Federal Register Volume 59, Number 243 (Tuesday, December 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31214]
[[Page Unknown]]
[Federal Register: December 20, 1994]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Trade Policy Staff Committee; Generalized System of Preferences;
Initiation of a Review of ``Reverse Preferences''; Termination of the
Reviews of Worker Rights Practices and the Protection of Intellectual
Property Rights in the Dominican Republic
AGENCY: Office of the United States Trade Representative.
ACTION: Notice and solicitation of public comment.
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SUMMARY: The Uruguay Round Trade Agreements Act (UR Act) renewed the
Generalized System of Preferences (GSP) program until July 31, 1995.
The Statement of Administrative Action (SAA) that accompanies the UR
Act provides that USTR will initiate a review to determine whether any
GSP beneficiary country affords preferential treatment, as a result of
an economic association agreement or otherwise, to the products of a
developed country, other than the United States, that has, or is likely
to have, an adverse effect on U.S. commerce. This notice announces the
review and invites public comments.
This notice also announces the successful termination of the
reviews of worker rights practices and the protection of intellectual
property rights (IPR) in the Dominican Republic.
FOR FURTHER INFORMATION CONTACT:
GSP Subcommittee, Office of the United States Trade Representative, 600
17th Street, N.W., Room 513, Washington, D.C. 20506. The telephone
number is (202) 395-6971.
SUPPLEMENTARY INFORMATION:
I. Background
The GSP program offers duty-free access to the U.S. market for
specified products that are imported from designated developing
countries. The GSP program is authorized by Title V of the Trade Act of
1974, as amended (the ``GSP law'') (19 U.S.C. 2461 et seq.). The GSP
law expired on September 30, 1994, but the UR Act extended the current
GSP program without modification until July 31, 1995.
When the GSP program was originally enacted in 1974, the Congress
was concerned about giving duty-free privileges to some developing
countries that, in turn, treat imports from some developed countries
more favorably than imports from the United States. Such favorable
treatment is called a ``reverse preference,'' and it discriminates
against U.S. export interests.
Accordingly, section 502(b)(3) of the GSP law provides that the
President shall not designate a country as a GSP beneficiary if the
country ``affords preferential treatment to the products of a developed
country, other than the United States, which has, or is likely to have,
a significant adverse effect on United States commerce.''
Congressional and Administration concern about the adverse effect
of discriminatory ``reverse preferences'' on U.S. commerce has been
rekindled by recent complaints about ``reverse preferences'' that are
allegedly granted to imports from the European Union (EU) by some
agreements between the EU and countries in Central and Eastern Europe.
Therefore, as provided in the SAA that accompanies the UR Act, the
Administration intends to conduct a full review of ``reverse
preferences'' that may be granted by beneficiaries of the GSP program.
II. GSP Review
The SAA provides that, upon enactment, USTR will initiate a GSP
review to determine whether any GSP beneficiary grants preferential
treatment to imports from another developed country that has, or is
likely to have, an adverse effect on U.S. commerce. This review will
consider ``reverse preferences'' granted by any GSP beneficiary, but it
is expected to focus principally, although not exclusively, on
countries in Central and Eastern Europe that have association
agreements with the EU.
USTR is directed to solicit public comments and to seek information
from U.S. Embassies in GSP beneficiary countries. Ninety days
thereafter, USTR will determine whether the ``reverse preferences''
granted by a GSP beneficiary have or may have an adverse effect on U.S.
export interests sufficient to warrant further review. If so, USTR will
enter into bilateral consultations with that country with the goal of
eliminating the ``reverse preferences.'' Nine months later, USTR will
make a determination of whether the ``reverse preferences'' have, or
are likely to have, a significant adverse effect on U.S. commerce.
If USTR makes an affirmative determination, the country's status as
a beneficiary developing country will be withdrawn or suspended, unless
the country has agreed to eliminate the significant adverse effect. The
review will terminate if the determination is negative.
III. Public Comments
Interested parties are invited to submit comments regarding
discriminatory ``reverse preferences'' that are granted by a GSP
beneficiary country, and their effect on U.S. commerce. Interested
parties are invited to report on any association agreements, or similar
agreements, under which a GSP beneficiary country grants preferential
treatment to products of another developed country, that has or may
have an adverse effect on U.S. export interests. Preferential treatment
may include preferential tariff treatment, as well as preferential non-
tariff treatment (e.g., quotas). Interested parties are urged to give
specific examples of U.S. export interests that have been adversely
affected by ``reverse preferences.''
In particular, interested parties are urges to be as specific as
possible about: (1) Any product that is subject to different rates of
duty by a GSP beneficiary country depending upon whether the product is
imported from the United States or another developed country, such as
the EU; (2) the various, actual, applicable rates of duty (i.e., bound,
applied, preferential), as well as any scheduled rate reduction; (3)
the level of trade in the subject product that the United States and
other developed countries have with the GSP beneficiary; and (4) the
size of the market in the beneficiary country.
Comments must be submitted in 15 copies, in English, to the
Chairman of the GSP Subcommittee, Trade Policy Staff Committee, 600
17th Street, N.W., Room 513, Washington, D.C. 20506. Comments must be
received no later than 5 p.m. on Wednesday, January 25, 1995.
Information and comments will be subject to public inspection by
appointment with the staff of the USTR Public Reading Room, except for
information granted ``business confidential'' status pursuant to 15 CFR
2003.6 and 2007.7. If the document contains business confidential
information, 15 copies of a nonconfidential version of the submission
along with 15 copies of the confidential version must be submitted. The
confidential version of the submission should be clearly marked
``Submitted in Confidence'' at the top and bottom of each and every
page of the document. A nonconfidential summary of the confidential
information must be included with the confidential submission, along
with a written explanation of why the confidential material should be
protected. The version which does not contain business confidential
information (the public version) should also be clearly marked at the
top and bottom of each and every page (either ``public version'' or
``non-confidential'').
IV. Dominican Republic
In the 1993 Annual GSP Review, the GSP Subcommittee reviewed the
worker rights practices and the adequacy and effectiveness of IPR
protection in the Dominican Republic. Notwithstanding evidence of some
progress on worker rights and IPR protection in the Dominican Republic
during the course of the review, these two cases are continued when the
results of the 1993 Annual GSP Review were announced on July 1, 1994.
Since that decision, the Dominican Republic has made considerable
progress on worker rights and has continued to make progress on IPR
protection. In September, the Motion Picture Export Association of
America, the domestic petitioner in the IPR case, withdrew its
petition. In October, the AFL-CIO, the domestic petitioner in the
worker rights case, withdrew its petition. Based on the continuing
progress on worker rights and IPR protection in the Dominican Republic,
as well as the withdrawal of the two petitions, the GSP reviews have
been terminated.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.
[FR Doc. 94-31214 Filed 12-19-94; 8:45 am]
BILLING CODE 3190-01-M
