[Federal Register Volume 62, Number 34 (Thursday, February 20, 1997)]
[Notices]
[Page 7815]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4181]



[[Page 7815]]

=======================================================================
-----------------------------------------------------------------------

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


WTO Dispute Settlement Proceeding Regarding Hungary's Export 
Subsidies on Agricultural Products (Docket No. WTO/D-14)

AGENCY: Office of the United States Trade Representative.

ACTION: Notice; request for comments.

-----------------------------------------------------------------------

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 
Hungary's export subsidies on agricultural products. More specifically, 
the United States alleges that Hungary's export subsidies are 
inconsistent with the obligations of the WTO Agreement on Agriculture, 
including, but not limited to, Article 3.3, Article 8 and Article 9.2. 
USTR also invites written comments from the public concerning the 
issues raised in the dispute.

DATES: Although USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted on or before March 17, 1997, to be assured of timely 
consideration by USTR in preparing its first written submission to the 
panel.

ADDRESSES: Comments may be submitted to Ileana Falticeni, Office of 
Monitoring and Enforcement, Room 501, Attn: Hungary Export Subsidies 
Dispute, Office of the U.S. Trade Representative, 600 17th Street, 
N.W., Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT:
William D. Hunter, Attorney, (202) 395-3582, or Marilyn Moore, Senior 
Economist, (202) 395-6127.

SUPPLEMENTARY INFORMATION: On January 9, 1997, the United States 
requested establishment of a WTO dispute settlement panel to examine 
whether Hungary's export subsidies on agricultural products are 
inconsistent with the obligations of the WTO Agreement on Agriculture. 
Argentina, Australia and New Zealand also requested the establishment 
of a panel. The WTO Dispute Settlement Body (DSB) considered the U.S. 
request at its meeting on January 22, 1997. Under the WTO Understanding 
on Rules and Procedures Governing the Settlement of Disputes, the DSB 
must establish a panel at the next DSB meeting where a panel request is 
on the agenda, unless the DSB determines by consensus otherwise. The 
next scheduled DSB meeting will be held on February 25, 1997. Under 
normal circumstances, the panel, which will hold its meetings in 
Geneva, Switzerland, would be expected to issue a report detailing its 
findings and recommendations within six to nine months after it is 
established.

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

    In Hungary's Schedule annexed to the Marrakesh Protocol to the 
General Agreements on Tariffs and Trade 1994 (Schedule), Hungary 
provided an exclusive list of the agricultural products or groups of 
products that would be eligible for particular categories of export 
subsidies. Hungary's Schedule also specified the maximum level of 
expenditure for such subsidies that may be allocated or incurred for 
each year with respect to each agricultural product or group of 
products, and the maximum quantity of each agricultural product or 
group of products for which such subsidies could be granted each year. 
In 1995, Hungary provided export subsidies on agricultural products 
that are not specified in its Schedule. In addition, in the case of 
agricultural products that are specified in its Schedule, Hungary 
provided export subsidies in excess of its specified budgetary outlay 
and quantity commitment levels. Both sets of circumstances continued in 
1996.
    Hungary's export subsidies appear to be inconsistent with Hungary's 
obligations to limit its export subsidies under the Agreement on 
Agriculture, including, but not limited to, Article 3.3, Article 8, and 
Article 9.2.

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 business information 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(g)(2))--
    (1) Must so designate that 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 
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 public file (Docket WTO/D-14 (``U.S.-
Hungary Export Subsidies'')), 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. 97-4181 Filed 2-19-97; 8:45 am]
BILLING CODE 3190-01-M