[Federal Register Volume 62, Number 200 (Thursday, October 16, 1997)]
[Notices]
[Pages 53853-53854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27304]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. 301-112]


Initiation of Section 302 Investigation and Request for Public 
Comment: Japan Market Access Barriers to Agricultural Products

AGENCY: Office of the United States Trade Representative.

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

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SUMMARY: The United States Trade Representative (USTR) has initiated an 
investigation under section 302(b)(1) of the Trade Act of 1974, (the 
Trade Act), with respect to certain acts, policies and practices of the 
Government of Japan concerning Japan's prohibition on imports of 
certain agricultural products. Specifically, for each agricultural 
product for which Japan requires quarantine treatment, Japan prohibits 
the importation of each variety of that product until the quarantine 
treatment has been tested for that variety, even though the treatment 
has proven effective with respect to other varieties of the same 
product. This redundant testing requirement has no apparent scientific 
basis but serves as a significant barrier to market access. The United 
States alleges that these acts, policies and practices are inconsistent 
with certain provisions of the Agreement on the Application of Sanitary 
and Phytosanitary measures, the General Agreement on Tariffs and Trade 
1994 (``GATT 1994''), and the Agreement on Agriculture. USTR invites 
written comments from the public on the matters being investigated.

DATES: This investigation was initiated on October 7, 1997. Written 
comments from the public are due on or before noon on Tuesday, November 
11, 1997.

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

FOR FURTHER INFORMATION CONTACT:
Audrae Erickson, Office of Agricultural Affairs (202) 395-6127, 
Elizabeth Hyman, Office of the General Counsel, (202) 395-3150, or 
Daniel Brinza, Senior Advisor and Special Counsel for Natural 
Resources, (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 1 of Title III of the Trade Act (commonly referred to as 
``section 301'') with respect to 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 7, 1997, having consulted with the appropriate private 
sector advisory committees, the USTR determined that an investigation 
should be initiated to assess whether certain acts, policies and 
practices of Japan regarding a prohibition on imports of certain 
agricultural products are actionable under section 301(a) and has 
requested the consultations required under section 303(a) of the Trade 
Act. For each agricultural product for which Japan requires quarantine 
treatment, Japan prohibits the importation of each variety of that 
product until the quarantine treatment has been tested for that 
variety, even though the treatment has proven effective with respect to 
other varieties of the same product. The relevant provisions of 
Japanese laws include the Plant Protection Law (Law No. 151) enacted 
May 4, 1950, as amended, and the Plant Protection Law Enforcement 
Regulation (Ministry of Agriculture, Forestry and Fisheries Ordnance 
No. 73) of June 30, 1950, as amended.
    For example, after years of effort by the United States, in January 
1995 Japan agreed to permit imports of U.S. Red Delicious and Golden 
Delicious apples based on Japan's determination that treatment of fruit 
from inspected orchards both with methyl bromide fumigation and a cold 
storage treatment would be effective against codling moth, a plant 
pest. However, Japan has refused to allow other varieties of apples, 
such as Gala, Fuji, Braeburn, Jonagold and Granny Smith, to be imported 
into Japan unless lengthy and expensive tests are performed on each 
variety to prove the efficacy of the same methyl bromide/cold storage 
treatment at killing codling moths. There is no scientific basis for 
distinguishing between different varieties of fruit in this respect. 
This practice of Japan affects not just apple imports, but imports of 
other fruit as well.
    The USTR believes that these measures are inconsistent with the 
obligations of Japan under several provisions of the WTO Agreements, 
including Articles 2, 3, 4, 5, 7 and 8 of the Agreement on the 
Application of Sanitary and Phytosanitary Measures; Article XI of the 
General Agreement on

[[Page 53854]]

Tariffs and Trade 1994; and Article 4 of the Agreement on Agriculture.
    On April 7, 1997, the Government of the United States requested 
consultations with Japan regarding these measures pursuant to Article 4 
of the Understanding on Rules and Procedures Governing the Settlement 
of Disputes (``DSU''), Article 11 of the Agreement on the Application 
of Sanitary and Phytosanitary Measures, Article XXIII of the General 
Agreement on Tariffs and Trade 1994, and Article 19 of the Agreement on 
Agriculture.
    Under section 304 of the Trade Act, the USTR must determine within 
18 months after the date on which this investigation was initiated, or 
within 30 days after the conclusion of World Trade Organization dispute 
settlement procedures, whichever is earlier, whether any act, policy, 
or practice or denial of trade agreement rights described in section 
301 of the Trade Act exists and, if that determination is affirmative, 
the USTR must determine what action, if any, to take under section 301 
of the Trade Act.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the acts, policies and practices of Japan 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 Tuesday, 
November 11, 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, DC 20508.
    Comments will be placed in a file (Docket 301-112) 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. 301-112) 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. 97-27304 Filed 10-15-97; 8:45 am]
BILLING CODE 3190-01-M