97-15624. Section 302 Investigation: Certain Subsidies Affecting Access to the European Communities' Market for Modified Starch

[Federal Register Volume 62, Number 114 (Friday, June 13, 1997)]
[Notices]
[Page 32398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15624]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. 301-111]


Section 302 Investigation: Certain Subsidies Affecting Access to 
the European Communities' Market for Modified Starch

AGENCY: Office of the United States Trade Representative.

ACTION: Notice.

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SUMMARY: The United States Trade Representative (USTR), following 
consultations with the petitioners, intends to consult with the 
European Communities (EC) regarding wheat gluten exports from the EC to 
the United States. These consultations will be conducted pursuant to a 
bilateral agreement with the EC on grains signed on July 22, 1996 
(Grains Agreement). Pending the outcome of these consultations, the 
USTR will not pursue consultations under the World Trade Organization 
(WTO) agreements and has terminated the investigation initiated on 
March 8, 1997, under section 302(a) of the Trade Act of 1974.

DATES: This investigation was terminated on June 6, 1997.

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

FOR FURTHER INFORMATION CONTACT: Ronald K. Lorentzen, Office of WTO and 
Multilateral Affairs, [phone]; William D. Hunter, Office of the 
General Counsel, [phone]; or Robert Cummings, Office of 
Agricultural Affairs, [phone].

SUPPLEMENTARY INFORMATION: On January 22, 1997, the U.S. Wheat Gluten 
Industry Council filed a petition pursuant to section 302(a) of the 
Trade Act of 1974 (Trade Act) (19 U.S.C. 2412(a)) alleging that certain 
subsidy schemes of the EC 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 
and the Agreement on Subsidies and Countervailing Measures. On March 8, 
1997, the Acting USTR initiated an investigation under section 302 with 
respect to the EC starch production refund program to determine whether 
subsidies granted under that program are causing or threatening to 
cause serious prejudice to U.S. interests with respect to U.S. exports 
of modified starch to the EC, or are nullifying or impairing benefits 
accruing to the United States under the WTO agreements. (62 F.R. 
12264). The Acting USTR also requested public comment on the matter 
under investigation. Pursuant to section 303(b)(1)(A) of the Trade Act, 
the Acting USTR decided to delay requesting consultations with the EC 
regarding the EC starch production refund program for up to 90 days for 
the purpose of verifying and improving the petition to ensure an 
adequate basis for consultations with the EC.

Investigation and Consultations

    Having reviewed the information obtained during the investigation, 
including written comments provided by interested persons, the USTR 
continues to have serious concerns about the effects on U.S. wheat 
gluten and wheat starch producers of EC policies that insulate European 
wheat starch and gluten producers from world competition and that 
subsidize European production and exports. Therefore, having consulted 
with the petitioner, the USTR has determined to consult with the EC 
under provisions of the Grains Agreement, and that, at this time, 
consultations will not be pursued under the WTO agreements. This 
decision will be reexamined at a later date, pending the outcome of 
consultations under the Grains Agreement. In light of the foregoing, 
the USTR is terminating the investigation under section 302.
    USTR will continue to work with the petitioner in developing 
information and analysis that may form the basis for further action, 
including possible action under section 301. In this regard, USTR, in 
response to a request by the petitioner, has initiated the information 
gathering procedures of section 308 of the Trade Act, and that process 
remains ongoing.
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 97-15624 Filed 6-12-97; 8:45 am]
BILLING CODE 3190-01-M