[Federal Register Volume 62, Number 21 (Friday, January 31, 1997)]
[Notices]
[Pages 4826-4827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2427]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/D-13]


WTO Dispute Proceeding Regarding Argentina's Specific Duties on 
Textiles, Apparel and Footwear and Three Percent Ad Valorem Statistical 
Tax on Imports

agency: Office of the United States Trade Representative.

action: Notice; request for written comments.

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summary: Pursuant to section 127(b)(1) of the Uruguay Round Agreements 
Act (URAA) (19 U.S.C. 3537(b)(1)), the Office of the United States 
Trade Representative (USTR) is providing notice that the United States 
has requested the establishment of a dispute settlement panel under the 
Agreement Establishing the World Trade Organization (WTO) to examine 
certain acts, policies and practices of the Government of Argentina 
concerning the imposition of (1) specific duties on textiles, apparel 
and footwear above the 35 percent ad valorem rate to which Argentina is 
bound under the General Agreement on Tariffs and Trade 1994 (``GATT 
1994''); and (2) a statistical tax of 3 percent ad valorem on imports 
from sources other than MERCOSUR countries. The United States alleges 
that these acts, policies and practices are inconsistent with certain 
provisions of GATT 1994, the Agreement on Implementation of Article VII 
of the GATT 1994 and the Agreement on Textiles and Clothing. USTR 
invites

[[Page 4827]]

written comments from the public on the matters raised in this dispute.

dates: Comments should be submitted on or before March 3, 1997, to be 
assured of timely consideration by USTR in preparing its first written 
submission to the panel.

addresses: Comments must be submitted to Ileana Falticeni, Office of 
Monitoring and Enforcement, Room 501, Attn: Argentina Textiles, Apparel 
and Footwear Dispute, Office of the United States Trade Representative, 
600 17th Street, NW., Washington, DC 20508.

for further information contact: Karen James Chopra, Deputy Assistant 
United States Trade Representative for the Western Hemisphere, (202) 
395-5190, or Hal S. Shapiro, Assistant General Counsel, (202) 395-3582.

supplementary information: On January 22, 1997, the United States 
requested establishment of a WTO dispute settlement panel to examine 
whether Argentina's measures are inconsistent with Articles II, VII, 
VIII and X of the GATT 1994; Articles 1 through 8 of the Agreement on 
Implementation of Article VII of the GATT 1994; and Article 7 of the 
Agreement on Textiles and Clothing.

Major Issues Raised by the United States and Legal Basis of 
Complaint

    Under the GATT 1994, Argentina has agreed to a bound tariff rate of 
35 percent ad valorem for textiles, apparel and footwear. Beginning in 
September 1995, Argentina converted its tariff regime for textiles, 
apparel and footwear to specific duties that are in excess of 
Argentina's bound rate.
    Article II of the GATT 1994 provides that imports shall be exempt 
from all other duties or charges of any kind imposed on or in 
connection with importation in excess of those set forth in a WTO 
member's binding and that a WTO member shall not alter its method of 
determining dutiable value so as to impair the value of its tariff 
concessions. Article VII of the GATT 1994 and Articles 1 through 8 of 
the Agreement on Implementation of Article VII of the GATT 1994 set 
forth the bases for determining dutiable value. The United States 
contends that Argentina's specific duties are inconsistent with these 
provisions.
    Argentina also imposes a statistical tax of 3 percent ad valorem on 
imports. Article VIII of the GATT 1994 states that all fees and charges 
imposed by WTO members shall be limited to the approximate cost of 
services rendered and shall not represent an indirect protection to 
domestic products or a taxation of imports for fiscal purposes. In the 
view of the United States, Argentina's statistical tax is not limited 
to the amount of any service rendered, and it is an indirect protection 
of domestic products as well as a taxation of imports.
    Finally, Article 7 of the Agreement on Textiles and Clothing 
requires WTO members to take such actions as may be necessary to 
achieve improved access to markets for textile and clothing products. 
Argentina's specific duties and statistical tax hinder the achievement 
of improved import access, and the United States maintains that they 
are contrary to Article 7.

Public Comment

Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the dispute. Comments must be in 
English and provided in fifteen copies. A person requesting that 
information contained in a comment submitted by that person be treated 
as confidential must certify that such information is business 
confidential and would not customarily be released to the public by the 
commenter. Confidential business information must be clearly marked 
``BUSINESS CONFIDENTIAL'' in a contrasting color ink at the top of each 
page of each copy.
    A person requesting that information or advice contained in a 
comment submitted by that person, other than business confidential 
information, be treated as confidential in accordance with section 
135(g)(2) of the Trade Act of 1974 (19 U.S.C. 2155)--
    (1) must so designate that information or advice;
    (2) must clearly mark the material as ``CONFIDENTIAL'' in a 
contrasting color ink at the top of each page or each copy; and
    (3) is strongly encouraged to provide a non-confidential summary of 
the information or advice.
    Pursuant to section 127(e) of the URAA, 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 made to USTR from the 
public with respect to the proceeding; the United States submissions to 
the panel in the proceeding, the submissions, or non-confidential 
summaries of the submissions, to the panel received from other 
participants 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 file (Docket WTO/D-13) may be made by 
calling Brenda Webb at (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.
A. Jane Bradley,
Assistant U.S. Trade Representative for Monitoring and Enforcement.
[FR Doc. 97-2427 Filed 1-30-97; 8:45 am]
BILLING CODE 3190-01-M