[Federal Register Volume 61, Number 198 (Thursday, October 10, 1996)]
[Notices]
[Page 53242]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26179]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

Action Under Section 305 of the Trade Agreements Act of 1979

AGENCY: Office of the United States Trade Representative.

ACTION: Action Under Section 305 of the Trade Agreements Act of 1979.

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    On July 1, 1996, I identified Germany as a country that maintains 
in government procurement of heavy electrical equipment, a significant 
and persistent pattern or practice of discrimination against United 
States products or services which results in identifiable harm to 
United States businesses. Pursuant to section 305(g)(2) of the Trade 
Agreements Act of 1979, as amended, I determined at that time that 
immediate imposition of the sanctions specified in section 305(g)(1)(B) 
of the Act would harm the public interest of the United States, and 
accordingly suspended imposition of those sanctions until September 30, 
1996, to allow more time for negotiation between the United States and 
the Commission of the European Communities, representing Germany.
    Prior to September 30, 1996, the United States held numerous 
consultations with the Commission of the European Communities, 
representing Germany, to address the discriminatory practices cited. On 
September 25, 1996, the German Cabinet approved a proposal for 
legislative reform of the procurement remedies system in Germany. I 
have also been assured by the German Government that prior to enactment 
of the reform legislation, the German Government will take a number of 
actions to ensure that procuring entities comply with their 
international obligations. These steps go a long way in addressing U.S. 
concerns. Until the legislation is actually enacted, however, there is 
no assurance that our concerns will be addressed in a permanent 
fashion. Therefore, I have determined to further suspend sanctions 
while legislation is pending and monitor developments in Germany. I 
will review my decision if the U.S. Government is dissatisfied with the 
details of the legislative reform package, there are unreasonable 
delays in the submission or passage of such legislation or U.S. firms 
experience difficulties with future procurements while legislation is 
pending. A first review will be conducted no later than December 1, 
1996.

    This determination shall be published in the Federal Register.

    Dated: October 1, 1996.
Ambassador Charlene Barshefsky,
Acting United States Trade Representative.
[FR Doc. 96-26179 Filed 10-9-96; 11:45 am]
BILLING CODE 3110-01-M