[Federal Register Volume 61, Number 15 (Tuesday, January 23, 1996)]
[Notices]
[Pages 1789-1790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-857]



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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

Section 304 Determinations; Policies and Practices of the 
Government of Costa Rica Concerning the Exportation of Bananas to the 
European Union

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of determinations.

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SUMMARY: The United States Trade Representative (USTR) has determined 
pursuant to section 304(a)(1)(A)(ii) of the Trade Act of 1974, as 
amended (``the Trade Act'') that certain acts, policies and practices 
of the Government of Costa Rica affecting U.S. companies that export 
bananas from Costa Rica to the European Union (EU) are actionable under 
section 301(b)(1). The USTR has further determined pursuant to section 
304(a)(1)(B) of the Trade Act that, in light of substantial actions by 
the Government of Costa Rica to modify certain of its practices and its 
commitments to take certain future actions, the appropriate action is 
to direct USTR officials to implement a process aimed at addressing the 
remaining burden or restriction on U.S. commerce while monitoring, 
under section 306, Costa Rica's commitments made on January 6. Finally, 
the USTR has terminated the investigation initiated pursuant to Section 
302 of the Trade Act.

DATES: The investigation was terminated effective January 10, 1996.

FOR FURTHER INFORMATION CONTACT:
Ralph Ives, Deputy Assistant Trade Representative for the Western 
Hemisphere, (202) 395-5190, or Rachel Shub, Assistant General Counsel, 
(202) 395-7305.

SUPPLEMENTARY INFORMATION: On January 9, 1995, the USTR initiated an 
investigation under section 302(b)(1)(A) of the Trade Act to determine 
whether, as a result of Costa Rica's implementation of the Banana 
Framework Agreement (BFA) with the EU, certain acts, policies and 
practices of Costa Rica regarding the exportation of bananas to the EU 
are unreasonable or discriminatory and burden or restrict U.S. 
commerce, as set forth in section 301(b)(1). By Federal Register notice 
dated January 13, 1995 (60 FR 3284), the USTR requested written 
comments on the acts, policies and practices of the Government of Costa 
Rica covered by the investigation, the amount of any resulting burden 
or restriction on U.S. commerce, and the determinations required under 
section 304 of the Trade Act. On September 26, 1995, USTR initiated an 
investigation of the European Union's banana import regime pursuant to 
section 302(b) of the Trade Act (100 FR 52026; October 4, 1995).
    Section 403(a)(1)(A) of the Trade Act requires the USTR to 
determine whether any act, policy or practice of the Government of 
Costa Rica described in section 301(b)(1) exists. If that determination 
is affirmative, USTR must determine, subject to the direction of the 
President, what action, if any, is appropriate in response to any such 
act, policy or practice.

Reasons for Determinations

(1) Costa Rica's Acts, Policies and Practices

    On the basis of the investigation undertaken pursuant to section 
302 of the Trade Act, public comments received and consultations with 
the Government of Costa Rica and affected U.S. firms, the USTR has 
determined that certain acts, policies and practices of the Government 
of Costa Rica affecting U.S. companies that export bananas from Costa 
Rica to the European Union are actionable under section 301(b)(1). The 
Costa Rican decree implementing the BFA replicates discriminatory 
elements of the EU banana regime in requiring U.S. and other non-EU 
firms exporting bananas from Costa Rica to present an export 
certificate in order to import such bananas into the EU market, while 
exempting primarily EU firms from this requirement. Furthermore, Costa 
Rica's participation in the BFA has hindered efforts of the United 
States and several Latin American nations to persuade the EU to revise 
its banana import regime.

(2) U.S. Action

    Following bilateral consultations with U.S. officials, Costa Rica 
made substantial modifications in its banana export regime aimed at 
providing fair and equitable treatment to firms engaged in trade in 
bananas. In addition, on January 6, 1996, the United States and Costa 
Rica agreed to cooperate to address problems and trade distortions 
created by the EU banana 

[[Page 1790]]
regime. However, because Costa Rica has not fully addressed all the 
acts, policies and practices found actionable pursuant to section 
301(b)(1), the USTR has determined that the appropriate action at this 
time is to direct USTR officials to implement a process aimed at 
addressing the remaining burden or restriction on U.S. commerce while 
monitoring, under section 306, Costa Rica's commitments made on January 
6. Depending on these efforts, the USTR may seek recommendations with 
respect to any alternatives pursuant to section 301(b)(2).
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 96-857 Filed 1-22-96; 8:45 am]
BILLING CODE 3190-01-M