[Federal Register Volume 64, Number 95 (Tuesday, May 18, 1999)]
[Notices]
[Page 27022]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-12433]
[[Page 27022]]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. WTO/D-163]
WTO Dispute Settlement Proceeding Regarding Korea--Measures
Affecting Government Procurement
AGENCY: Office of the United States Trade Representative.
ACTION: Notice; request for comments.
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SUMMARY: The Office of the United States Trade Representative
(``USTR'') is providing notice of the request for the establishment of
a dispute settlement panel under the Marrakesh Agreement Establishing
the World Trade Organization (``WTO''), by the United States, to
examine the Republic of Korea's government procurement practices in the
construction of the Inchon International Airport. In this dispute, the
United States alleges that these practices are inconsistent with
Korea's obligations under the Government Procurement Agreement
(``GPA''). USTR invites written comments from the public concerning the
issues raised in this dispute.
DATES: Although USTR will accept any comments received during the
course of the dispute settlement proceedings, comments should be
submitted by June 15, 1999, to be assured of timely consideration by
USTR in preparing its first written submission to the panel.
ADDRESSES: Comments may be submitted to Sandy McKinzy, Litigation
Assistant, Office of Monitoring and Enforcement, Room 122, Attn: Korea
Airport Procurement Dispute, Office of the United States Trade
Representative, 600 17th Street, NW, Washington, DC 20508.
FOR FURTHER INFORMATION CONTACT: John G. Ellis, Director for Government
Procurement Issues, (202) 395-3063; Mary Latimer, Director for Korean
Affairs, (202) 395-6813; or Stephen Kho, Assistant General Counsel,
(202) 395-3581.
SUPPLEMENTARY INFORMATION: Pursuant to section 127(b) of the Uruguay
Round Agreements Act (``URAA'') (19 U.S.C. 3537(b)(1)), USTR is
providing notice that on May 11, 1999, the United States submitted a
request for the establishment of a WTO dispute settlement panel to
examine whether certain government procurement measures, employed by
Korea in the construction of the Inchon International Airport, are
inconsistent with Korea's obligations under the GPA. The WTO Dispute
Settlement Body (``DSB'') will consider the United States' first
request for the establishment of a panel on May 26, 1999.
Major Issues Raised and Legal Basis of the Complaint
The United States asserts that the following Korean government
procurement practices are inconsistent with the GPA: (1) Requirements
that suppliers have manufacturing facilities in Korea before
participating in tender procedures; (2) requirements that foreign firms
partner with or act as subcontractors to Korean firms in order to
participate in tendering procedures; (3) absence of access to bid
challenge procedures for Inchon International Airport and other airport
procurements; and (4) impositions of deadlines for the receipt of
tenders that are shorter than the GPA-required 40 days.
As its defense, Korea is claiming that the entities responsible for
Inchon International Airport procurements are not within its GPA
obligations, and therefore not subject to the requirements of the GPA.
However, these entities are within the scope of Korea's GPA
obligations, pursuant to Article I(1) of the GPA. The United States
bargained in good faith for the coverage of all airport construction in
Korea during negotiations for Korea's accession to the GPA.
Consequently, the United States believes that the above measures are
inconsistent with Articles III, VIII, XI, XVI, and XX of the GPA. In
addition, whether or not these measures conflict with the provisions of
the GPA, they nullify or impair benefits accruing to the United States
under the GPA.
Public Comment: Requirements for Submissions
Interested persons are invited to submit written comments
concerning the issues raised in this dispute. Comments must be in
English and provided in fifteen copies to Sandy McKinzy at the address
provided above. A person requesting that information contained in a
comment submitted by that person be treated as confidential business
information must certify that such information is business confidential
and would not customarily be released to the public by the submitting
person. Confidential business information must be clearly marked
``BUSINESS CONFIDENTIAL'' in a contrasting color ink at the top of each
page of each copy.
Information or advice contained in a comment submitted, other than
business confidential information, may be determined by the USTR to be
confidential in accordance with section 135(g)(2) of the Trade Act of
1974 (19 U.S.C. 2155(g)(2)). If the submitting person believes that
information or advice may qualify as such, the submitting person--
(1) Must so designate the information or advice;
(2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE''
in a contrasting color ink at the top of each page of each copy; and
(3) Is encouraged to provide a non-confidential summary of the
information or advice.
Pursuant to section 127(e) of the URAA (19 U.S.C. 3537(e)), the
USTR will maintain a file on this dispute settlement proceeding,
accessible to the public, in the USTR Reading Room: Room 101, Office of
the United States Trade Representative, 600 17th Street, NW,
Washington, DC 20508. The public file will include a listing of any
comments received by the USTR from the public with respect to the
proceeding; the U.S. submissions to the panel in the proceeding, the
submissions, or non-confidential summaries of submissions, to the panel
received from other parties in the dispute, as well as the report of
the dispute settlement panel, and, if applicable, the report of the
Appellate Body. An appointment to review the public file (Docket WTO/D-
163, Korea Airport Procurement Dispute) may be made by calling Brenda
Webb, (202) 395-6186. The USTR Reading Room is open to the public from
9:30 a.m. to 12 noon and 1 p.m. to 4 p.m., Monday through Friday.
A. Jane Bradley,
Assistant U.S. Trade Representative for Monitoring and Enforcement.
[FR Doc. 99-12433 Filed 5-17-99; 8:45 am]
BILLING CODE 3190-01-M
