[Federal Register Volume 63, Number 100 (Tuesday, May 26, 1998)]
[Notices]
[Pages 28544-28545]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13885]


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

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Initiation of Section 302 Investigation and Request for Public 
Comment: Mexican Practices Affecting High Fructose Corn Syrup (HFCS)

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of initiation of investigation and request for comments.

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

SUMMARY: The United States Trade Representative (USTR) has initiated a 
Section 301 investigation with respect to certain acts, policies and 
practices of the Government of Mexico that affect access to the Mexican 
market for High Fructose Corn Syrup (HFCS). The USTR invites written 
comments from the public on the matters being investigated and the 
determinations to be made at the end of that investigation.

DATES: This investigation was initiated on May 15, 1998. Written 
comments from the public are due on or before noon on Friday, June 19, 
1998.

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

FOR FURTHER INFORMATION CONTACT:
John Melle, Senior Director, North American Affairs, (202) 395-3412 or 
Audrey Winter, Associate General Counsel, (202) 395-7305.

SUPPLEMENTARY INFORMATION: On April 2, 1998, the Corn Refiners 
Association, Inc., filed a petition pursuant to section 302(a) of the 
Trade Act of 1974, as amended, (the Trade Act) (19 U.S.C. 2411) 
alleging that certain acts, policies and practices of the Government of 
Mexico affecting HFCS are unreasonable, deny fair and equitable market 
opportunities for U.S. exporters of HFCS and are actionable under 
section 301. In particular, the petition alleges the following: In 
September 1997, with the support and encouragement of the Government of 
Mexico, representatives of the Mexican sugar industry and the Mexican 
soft drink bottling industry entered into an agreement to limit the 
soft drink industry's consumption of HFCS. The purpose and effect of 
this agreement are to restrict both the volume of HFCS imports from the 
United States and the manufacture of HFCS by the U.S. companies that 
have made investments in Mexican production facilities. In exchange for 
the soft drink industry's limitation of HFCS consumption, the Mexican 
sugar industry agreed to supply sugar to the soft drink bottlers at 
discounted, below-market prices. The Government of Mexico is actively

[[Page 28545]]

supporting this restraint agreement. The agreement has reduced U.S. 
exports of HFCS to Mexico and therefore burdened and restricted U.S. 
commerce.
    Section 302(a) of the Trade Act authorizes the USTR to initiate an 
investigation under chapter 1 of Title III of the Trade Act (commonly 
referred to as ``section 301'') in response to the filing of a petition 
pursuant to section 302(a)(1). Matters actionable under section 301 
include, inter alia, acts, policies, and practices of a foreign country 
that are unjustifiable, unreasonable, or discriminatory and burden or 
restrict U.S. commerce. An act, policy or practice is unjustifiable if 
it is in violation of, or inconsistent with the international legal 
rights of the United States. An act, policy or practice is unreasonable 
if the act, policy or practice, while not necessarily in violation of, 
or inconsistent with, the international legal rights of the United 
States, is otherwise unfair or inequitable. Unreasonable acts, policies 
or practices include, inter alia, denial of fair and equitable market 
opportunities.

Initiation of Investigation and Consultations

    On May 15, 1998, the USTR determined that an investigation should 
be initiated to determine whether certain acts, policies or practices 
of the Government of Mexico affecting access to the Mexican market for 
HFCS are unreasonable and burden or restrict U.S. commerce and are, 
therefore, actionable under section 301.
    Pursuant to section 303(a) of the Trade Act, the USTR has requested 
consultations with the Government of Mexico concerning the issues under 
investigation. USTR will seek information and advice from the 
appropriate representatives provided for under section 135 of the Trade 
Act in preparing the U.S. presentations for such consultations.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the petition and any other submissions 
to USTR in this investigation. In particular, comments are invited 
regarding (i) the acts, policies and practices of the Government of 
Mexico that are the subject of this investigation; (ii) the amount of 
burden or restriction on U.S. commerce caused by these act, policies 
and practices; (iii) the determinations required under section 304 of 
the Trade Act; and (iv) appropriate action under section 301 which 
could be taken in response.
    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 Friday, June 19, 1998. 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 301-118) 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. 301-118) 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. 98-13885 Filed 5-22-98; 8:45 am]
BILLING CODE 3190-01-M