[Federal Register Volume 61, Number 203 (Friday, October 18, 1996)]
[Notices]
[Pages 54485-54486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26711]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-110]


Initition of Section 302 Investigation and Request for Public 
Comment; Practices of the Government of Brazil Regarding Trade and 
Investment in the Auto Sector

agency: Office of the United States Trade Representative.

action: Notice of initiation of investigation; request for written 
comments.

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summary: The Acting United States Trade Representative (USTR) has 
initiated an investigation under section 302(b)(1) of the Trade Act of 
1974, as amended (the Trade Act), with respect to certain acts, 
policies and practices of the Government of Brazil concerning the grant 
of tariff-reduction benefits contingent on satisfying certain export 
performance and domestic content requirements. The United States 
alleges that these acts, policies and practices are inconsistent with 
certain provisions of the General Agreement on Tariffs and Trade 1994 
(GATT 1994), the Agreement on Trade-Related Investment Measures (TRIMS 
Agreement), and the Agreement on Subsidies and Countervailing Measures 
(SCM Agreement), each administered by the World Trade Organization 
(WTO). USTR invites written comments from the public on the matter 
being investigated.

dates: This investigation was initiated on October 11, 1996. Written 
comments from the public are due on or before noon on Thursday, 
November 14, 1996.

addresses: Office of the United States Trade Representative, 600 17th 
Street, N.W., Washington, DC 20508.

for further information contact: Karen Chopra, Deputy Assistant U.S. 
Trade Representative for the Western Hemisphere, (202) 395-5190, or 
Amelia Porges, Senior Counsel for Dispute Settlement, (202) 395-7305.

supplementary information: Section 302(b)(1) of the Trade Act) (19 
U.S.C. 2412(b)(1)), authorizes the USTR to initiate an investigation 
under chapter I of Title III of the Trade Act (commonly referred to as 
``section 301'') with respect any matter in order to determine whether 
the matter is actionable under section 301. Matters actionable under 
section 301 include, inter alia, the denial of rights of the United 
States under a trade agreement, or acts, policies, and practices of a 
foreign country that violate or are inconsistent with the provisions 
of, or otherwise deny benefits to the United States under, any trade 
agreement.

Investigation and Consultations

    On October 11, 1996, having consulted with the appropriate private 
sector advisory committees, the USTR determined that an investigation 
should initiated to determine whether certain acts, policies and 
practices of Brazil concerning trade and investment in the auto sector 
are actionable under section 301(a). Brazil has adopted since December 
1995 a series of decrees that provide that manufacturers of automobiles 
may get reductions in duties on inputs and assembled vehicles if they 
maintain a specified level of local content, and export an offsetting 
amount of finished vehicles and parts and maintain specified ratios of 
imported to domestic capital goods and of imported to domestic inputs. 
Brazil also provides more favorable treatment to automobiles and auto 
parts from Argentina.
    The USTR believes that these acts, policies and practices of Brazil 
are inconsistent with certain aspects of the GATT 1994, the TRIMs 
Agreement, and the SCM Agreement. In particular, the program appears to 
be inconsistent with the most-favored-nation treatment and national 
treatment provisions found in Articles I and III of the GATT 1994; the 
prohibition in Article 2 of the TRIMs Agreement on investment measures 
that are inconsistent with the national treatment and quantitative 
restriction provisions in the GATT 1994, and the prohibition on certain 
subsidies in Articles 3 and 28.2 of the SCM Agreement.
    In August 1996 the USTR invoked WTO dispute procedures and held 
consultations with Brazil regarding its auto regime. As a result of 
these consultations, Brazil has agreed to enter into intensive talks 
with the United States. The goal of these talks is the removal of the 
discriminatory impact of the Brazilian practices on U.S. exports. 
Pending the outcome of these talks the USTR has decided pursuant to 
section 303(b)(1)(A) of the Trade Act to delay for up to 90 days 
requesting the consultations required under section 303(a) of the Trade 
Act for the purpose of ensuring an adequate basis for such 
consultations. Pursuant to section 303(b)(1)(B) of the Trade Act the 
time limitations for making the determinations required by section 304 
of the Trade Act will be extended for the period of the delay.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the acts, policies and practices of Brazil which are the 
subject of this investigation, the amount of burden or restriction on 
U.S. commerce caused by these acts, policies and practices, and the 
determinations required under section 304 of the Trade Act. Comments 
must be filed in accordance with the requirements set forth in 15 CFR 
2006.8(b) (55 FR 20593) and must be filed on or before noon on 
Thursday,

[[Page 54486]]

November 14, 1996. Comments must be in English and provided in twenty 
copies to: Sybia Harrison, Staff Assistant to the Section 301 
Committee, Room 223, Office of the U.S. Trade Representative, 600 17th 
Street, NW, Washington, D.C. 20508.
    Comments will be placed in a file (Docket 301-110) open to public 
inspection pursuant to 15 CFR 2006.13, except confidential business 
information exempt from public inspection in accordance with 15 CFR 
2006.15. Confidential business information submitted in accordance with 
15 CFR 2006.15 must be clearly marked ``BUSINESS CONFIDENTIAL'' in a 
contrasting color ink at the top of each page on each of 20 copies, and 
must be accompanied by a nonconfidential summary of the confidential 
information. The nonconfidential summary shall be placed in the file 
that is open to public inspection. An appointment to review the docket 
(Docket No. 301-110) may be made by calling Brenda Webb (202) 395-6186. 
The USTR Reading Room is open to the public from 10:00 a.m. to 12 noon 
and 1:00 p.m. to 4:00 p.m., Monday through Friday, and is located in 
Room 101.
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 96-26711 Filed 10-17-96; 8:45 am]
BILLING CODE 3190-01-M