[Federal Register Volume 64, Number 118 (Monday, June 21, 1999)]
[Notices]
[Pages 33130-33131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15583]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. WTO/DS-166]
WTO Dispute Settlement Proceeding Regarding USA--Definitive
Safeguard Measures on Imports of Wheat Gluten
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 European Communities' (``EC'')
request for the establishment of a dispute settlement panel under the
Marrakesh Agreement Establishing the World Trade Organization
(``WTO''). The EC challenges the United States' action in imposing
temporary quantitative limitations on imports of wheat gluten in an
effort to aid the domestic industry to make a positive adjustment to
import competition. In this dispute the EC alleges that the United
States' safeguard measure is inconsistent with certain obligations
under the WTO Agreement on Safeguards (``Safeguards Agreement''),
Article XIX of the General Agreement on Tariffs and Trade 1994 (``GATT
1994''), and the WTO Agreement on Agriculture (``Agriculture
Agreement''). 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 July 19, 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: Wheat
Gluten, Office of the United States Trade Representative, 600 17th
Street, NW, Washington, DC 20508.
FOR FURTHER INFORMATION CONTACT: Marjorie Florestal, Assistant General
Counsel at (202) 395-3581 or Robert Cummings, Senior Economist at (202)
395-6127.
[[Page 33131]]
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 June 3, 1999, the EC submitted a request for the
establishment of a WTO dispute settlement panel to examine the U.S.
safeguard measure on imports of wheat gluten. The WTO Dispute
Settlement Body (``DSB'') is expected to establish a panel for this
purpose in July, 1999.
Major Issues Raised and Legal Basis of the Complaint
The EC challenges the safeguard measure on imports of wheat gluten
that the President established in Proclamation 7103 of May 30, 1998,
and described in the President's Memorandum of May 30, 1998, entitled
``Action Under section 203 of the Trade Act of 1974 Concerning Wheat
Gluten.'' The President's Proclamation and Memorandum were published in
the Federal Register in Vol. 63, No. 106, pp. 30359 and 30363 on June
3, 1998.
In the EC's view the U.S. measure violates the Safeguards
Agreement, Article XIX of the GATT 1994, and the Agriculture Agreement.
Specifically, the EC asserts violations of:
Articles 2.1 and 4 of the Safeguards Agreements because
the U.S. International Trade Commission allegedly failed to examine
``fundamental requirements'' under these provisions when it conducted
its investigation of the domestic industry.
Article 5 of the Safeguards Agreement because, in adopting
and applying the measure, the United States allegedly violated Article
5's rules on proportionality and allocation of quotas among supplying
countries.
Article 8 of the Safeguards Agreement because the United
States allegedly failed to maintain a substantially equivalent level of
concessions to affected WTO Members.
Article 12 of the Safeguards Agreement because the United
States allegedly failed to ``fully respect'' the notification
requirements therein.
Article 4.2 of the Agriculture Agreement because the
measure in effect allegedly constitutes a substantial breach of the
United States' obligations thereunder.
Article XIX of GATT 1994 because the United States
allegedly failed to fulfill ``relevant conditions'' under that Article,
and because the measure allegedly was designed and applied in order to
breach the most-favored-nation principle under Article I of GATT 1994,
particularly since the measure allegedly favored Australia in terms of
impact on trade.
On March 17, 1999, the EC requested consultations with the United
States, and these consultations were held in Geneva on May 3, 1999, but
did not lead to a satisfactory resolution of the matter.
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 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)), 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 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/DS-166, ``Wheat Gluten'') 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. 99-15583 Filed 6-18-99; 8:45 am]
BILLING CODE 3190-01-P
