96-7093. WTO Dispute Settlement Proceedings Concerning U.S. Restrictions on Cotton and Manmade Fiber Underwear from Costa Rica

[Federal Register Volume 61, Number 58 (Monday, March 25, 1996)]
[Notices]
[Pages 12128-12129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7093]



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[[Page 12129]]


OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


WTO Dispute Settlement Proceedings Concerning U.S. Restrictions 
on Cotton and Manmade Fiber Underwear from Costa Rica

AGENCY: Office of the United States Trade Representative.

ACTION: Notice; Request for comments.

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SUMMARY: Pursuant to section 127(b)(1) of the Uruguay Round Agreements 
Act (URAA) (19 U.S.C. Sec. 3537(b)(1)), the Office of the United States 
Trade Representative (USTR) is providing notice that a dispute 
settlement panel convened under the Agreement Establishing the World 
Trade Organization (WTO) at the request of Costa Rica will examine a 
U.S. transitional safeguard restriction on cotton and man-made fiber 
underwear imports from Costa Rica (category 352/652) applied pursuant 
to the Uruguay Round Agreement on Textiles and Clothing (ATC). USTR 
also invites written comments from the public concerning the issues 
raised in the dispute.

DATES: Although USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted on or before April 22, 1996 in order to be assured of timely 
consideration by USTR in preparing its first written submission to the 
panel.

ADDRESSES: Comments may be submitted to the Office of the General 
Counsel, Attn: Costa Rica Underwear Dispute, Room 223, Office of the 
U.S. Trade Representative, 600 17th Street, N.W. Washington, D.C. 
20506.

FOR FURTHER INFORMATION CONTACT:
Alicia Greenidge, Special Counsel, at [phone] or Demetri 
Boutris, Associate General Counsel, at [phone], Office of the 
U.S. Trade Representative, 600 17th Street, N.W. Washington, DC 20506.

SUPPLEMENTARY INFORMATION: At the request of Costa Rica, a WTO dispute 
settlement panel will examine whether the United States application of 
a transitional safeguard on Costa Rican imports of cotton and man-made 
fiber underwear is consistent with U.S. obligations under the ATC. 
Effective June 23, 1995, the United States applied a restriction on 
imports of cotton and man-made fiber underwear from Costa Rica 
(category 352/652) (60 FR 32653, June 23, 1995). The U.S. took this 
action because it determined that such imports were contributing to 
serious damage or actual threat thereof to the U.S. industry. The U.S. 
applied the restriction in accordance with Article 6.10 of the ATC, 
which provides that members taking unilateral action must do so within 
30 days after a 60 day consultation period, which did not result in 
agreement. Pursuant to Article 6.10 of the ATC, the WTO Textiles 
Monitoring Body (TMB) automatically reviewed the case. After its 
examination of the case, the TMB determined that there was no serious 
damage to U.S. industry. However, the TMB reached a deadlock on the 
issue of threat of serious damage, it recommended further consultations 
between the U.S. and Costa Rica. No mutual solution was reached in 
those consultations and upon examination of the reports of the two 
countries, the TMB confirmed its earlier findings. Costa Rica requested 
consultations under Articles 4 of the WTO Dispute Settlement 
Understanding (DSU) and Article XXIII of GATT 1994. Consultations were 
held on January 18, 1996 and February 1, 1996. No mutual solution was 
reached during those consultations and Costa Rica requested panel 
review under the DSU on February 22, 1996.
    Members of the panel are currently being selected. The panel will 
meet with the parties to the dispute twice at WTO headquarters in 
Geneva, Switzerland to examine the dispute. The panel is expected to 
issue a report detailing its findings and recommendations in six to 
nine months.

Major Issues Raised by Costa Rica and Alleged Legal Basis of the 
Complaint

    Costa Rica has asserted that U.S. safeguard action is incompatible 
with the ATC, particularly Articles 2, 6, and 8; that the action 
directly or indirectly nullifies or impairs Costa Rica's WTO benefits, 
particularly under the ATC; and therefore, the U.S. must rescind the 
measure.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the dispute. The provisions of 15 CFR 
2006.13 (a) and (c) providing that comments received will be open to 
public inspection) and 2006.15 will apply to comments received. 
Comments must be in English and provided in fifteen copies. Pursuant to 
15 CFR 2006.15, confidential business information must be clearly 
marked ``BUSINESS CONFIDENTIAL'' in a contrasting color ink at the top 
of each page.
    Pursuant to section 127(e) of the URAA, USTR will maintain a public 
file on this dispute settlement proceeding, which will include a list 
of comments received, in the USTR Reading Room: Room 101, Office of the 
United States Trade Representative, 600 17th Street, N.W., Washington, 
DC 20506. An appointment to review the docket (Docket WTO/D/96-1, 
``Costa Rica-United States: U.S. Safeguard Restrictions on Underwear'') 
may be made by calling Brenda Webb, [phone]. The USTR Reading 
Room is open to the public from 10 a.m. to 12 noon and 1 p.m. to 4 p.m, 
Monday through Friday.
Irving Williamson,
Acting General Counsel.
[FR Doc. 96-7093 Filed 3-22-96; 8:45 am]
BILLING CODE 3190-01-M