[Federal Register Volume 62, Number 50 (Friday, March 14, 1997)]
[Notices]
[Pages 12264-12265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6513]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. 301-111]


Initiation of Section 302 Investigation and Request for Public 
Comment: Certain Subsidies Affecting Access to the European 
Communities' Market for Modified Starch

AGENCY: Office of the United Trade Representative.

ACTION: Notice of initiation of investigation; request for written 
comment.

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SUMMARY: The Acting United States Trade Representative (Acting USTR) 
has initiated an investigation under section 302(a) of the Trade Act of 
1974 (the Trade Act) with respect to certain acts, policies and 
practices of the European Communities (EC), more specifically, the 
provision of subsides that affect access to the EC modified starch 
market. The Acting USTR invites written comments from the public on the 
matters being investigated and the determinations to be made under 
section 304 of the Trade Act.

DATES: This investigation was initiated on March 8, 1997. Written 
comments from the public are due on or before noon on Monday, April 14, 
1997.

ADDRESSES: Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, D.C. 20508.

FOR FURTHER INFORMATION CONTACT:
Ronald K. Lorentzen, Office of WTO and Multilateral Affairs, (202) 395-
3063; Audrey Winter, Office of the General Counsel, (202) 395-7305; or 
Marilyn Moore, Office of Agricultural Affairs, (202) 395-6127.

SUPPLEMENTARY INFORMATION: On January 22, 1997, the U.S. Wheat Gluten 
Industry Council filed a petition pursuant to section 302(a) of the 
Trade Act (19 U.S.C. 2412(a)) alleging that certain subsidy schemes of 
the EC constitute acts, policies and practices that violate, or are 
inconsistent with and otherwise deny benefits to the United States 
under, the General Agreement on Tariffs and Trade 1994 (GATT) and the 
Agreement on Subsidies and Countervailing Measures (SCM Agreement). In 
particular, the petition alleges that four EC subsidy programs ((1) the 
wheat export tax; (2) the starch production refund program; (3) the 
starch export restitution program; and (4) various quotas and other 
productions limits on other starches) violate EC obligations, cause 
serious prejudice to U.S. interests and nullify or impair U.S. benefits 
under the World Trade Organization (WTO) agreements insofar

[[Page 12265]]

as they directly or indirectly benefit EC production and export of 
wheat gluten to the United States and, in the case of the wheat export 
tax and the starch production refund program, displace or impede 
imports of modified starch from the United States to the EC. The 
petition also states that numerous other subsidy programs available 
within individual EC Member States may have benefited the production of 
wheat starch by EC producers.

Investigation and Consultation

    The Acting USTR has reviewed the allegation in the petition and has 
serious concerns about difficulties facing the U.S. wheat gluten and 
wheat starch industries. Accordingly, on March 8, 1997, the Acting USTR 
determined to initiate an investigation under section 302 with respect 
to the EC starch production refund program to determine whether 
subsidies granted under that program are causing or threatening to 
cause serious prejudice to U.S. interests with respect to U.S. exports 
of modified starch to the EC, or are nullifying or impairing benefits 
accruing to the United States under the WTO agreements. With respect to 
the other allegations in the petition regarding subsidized imports of 
EU wheat gluten into the United States, the Acting USTR has invited the 
petitioners to consider seeking additional information through the 
procedures provided for in section 308 of the Trade Act and USTR is 
prepared to continue working with them in the development of 
information and analysis which may form the basis for further action. 
Insofar as other U.S. trade laws are designed specifically to address 
the problems of increased and/or unfairly traded imports into the U.S. 
market, the Acting USTR noted that the petitioners may wish to explore 
more fully these other avenues of relief. The Acting USTR also intends 
to continue to pursue consultations with the EU regarding its wheat 
gluten exports to the United States, pursuant to a bilateral agreement 
with the EU on grains signed on July 22, 1996. In light of the 
foregoing, the Acting USTR decided at this juncture not to initiate an 
investigation under Section 302 with respect to these other allegations 
in the petition.
    Pursuant to section 303(b)(1)(A) of the Trade Act, the Acting USTR 
has decided to delay requesting consultations with the EC, required 
under section 303, on the EC starch production refund program for up to 
90 days for the purpose of verifying and improving the petition to 
ensure an adequate basis for consultations with the EC.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the acts, policies and practices of the EC 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 Monday, 
April 14, 1997. 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 301-111) 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. Copies of the public version of the 
petition and other relevant documents are available for public 
inspection in the USTR Reading Room. An appointment to review the 
docket (Docket No. 301-111) 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 1:00 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. 97-6513 Filed 3-13-97; 8:45 am]
BILLING CODE 3190-01-M