[Federal Register Volume 63, Number 217 (Tuesday, November 10, 1998)]
[Notices]
[Pages 63099-63104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30225]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. 301-100a]


Implementation of WTO Recommendations Concerning the European 
Communities' Regime for the Importation, Sale and Distribution of 
Bananas

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of proposed determination of action to be taken; request 
for public comment; notice of public hearing.

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SUMMARY: The United States Trade Representative requests written 
comments and invites testimony in the context of a public hearing on 
its proposed determination that the imposition of prohibitive (100 
percent ad valorem) duties on selected products from the European 
Communities (EC) is an appropriate action under section 306(b) and 
301(a) of the Trade Act of 1974, as amended, should the EC fail to 
implement the recommendations of the World Trade Organization Dispute 
Settlement Body concerning the EC's regime for the importation, sale, 
and distribution of bananas within the prescribed reasonable period of 
time, which expires on January 1, 1999. The products to be affected by 
the proposed duty increase will be drawn from the list of products set 
forth in the Annex to this notice. The USTR intends to publish a notice 
on December 15, 1998 describing the actions that it would take, 
beginning as early as February 1, 1999.

DATES: Requests to testify at the public hearing and written testimony 
for the public hearing are due by noon on Monday, November 30, 1998; 
the public hearing will be held on Wednesday, December 9, 1998; written 
comments, in lieu of written and oral testimony, are due by noon on 
Thursday, December 10, 1998; and rebuttal briefs, if needed, are due by 
noon on Friday, December 11, 1998.

ADDRESSES: 600 17th Street, NW, Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT: Rachel Shub, Associate General 
Counsel, (202) 395-7305; or Ralph Ives, Deputy Assistant U.S. Trade 
Representative, (202) 395-3320.

SUPPLEMENTARY INFORMATION: January 1, 1999 is the deadline for the 
European Communities' (EC) implementation of the recommendations of the 
World Trade Organization (WTO) Dispute Settlement Body (DSB) concerning 
the EC's regime for the importation, sale, and distribution of bananas 
(banana regime). On October 22, 1998, the United States Trade 
Representative (USTR) published a notice [63 FR 56687] of a proposed 
affirmative determination under section 306(b) of the Trade Act of 
1974, as amended (Trade Act) (19 U.S.C. 2416), that the measures the EC 
has undertaken to apply as of January 1, 1999 fail to implement the WTO 
recommendations concerning the EC banana regime. Such a determination 
will require the USTR also to determine what further action to take 
under section 301(a) in the event the EC has failed to implement the 
WTO recommendations by January 1, 1999.
    Permissible actions under section 301(a) of the Trade Act include: 
action to suspend, withdraw or prevent the application of benefits of 
trade agreement concessions to the EC; imposition of duties or other 
import restrictions on goods of the EC or fees or restrictions on 
services of the EC; and restriction or denial of service sector access 
authorizations with respect to services of the EC. The USTR proposes 
that the imposition of prohibitive (100 percent ad valorem) duties on 
selected products from the EC is an appropriate action should the EC 
fail to implement the WTO recommendations within the prescribed 
reasonable period of time. The products to be affected by the duty 
increase will be drawn from the list of products set forth in the Annex 
to this notice.
    The USTR intends to publish a notice on December 15, 1998 
describing the actions that it would take beginning February 1, 1999. 
If the EC requests arbitration under Article 22.6 of the WTO Dispute 
Settlement Understanding (DSU), the USTR would delay implementation of 
action until the completion of the arbitration proceedings or until 
March 3, 1999, whichever is earlier.
    The announcement of the USTR's determination on December 15 and the 
subsequent implementation of action are contingent upon the EC's 
failure to suspend the implementation of its new banana regime and to 
implement a regime consistent with the WTO's recommendations. The dates 
on which the USTR intends to implement action--February 1 or no later 
than March 3, 1999--correspond to the dates contemplated by sections 
306(b) and 305(a) of the Trade Act as well as Article 22 of the DSU.
    Section 306(b) of the Trade Act requires the USTR to determine what 
further action it shall take under section 301(a) if the USTR considers 
that a foreign country has failed to implement a recommendation made 
pursuant to dispute settlement proceedings under the WTO. The USTR 
shall make this determination no later than thirty days after the 
expiration of the reasonable period of time provided for such 
implementation under Article 21.3 of the DSU, which is January 31, 1999 
in this case. Section 305(a)(1) requires the USTR to implement such 
action by no later than thirty days after the date on which that 
determination is made, or March 2 in this case.

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    According to Article 22 of the DSU, the United States can request 
DSB authorization to suspend the application of concessions or other 
obligations to the EC for its failure to bring a measure into 
compliance with a covered agreement or the WTO's recommendations within 
the reasonable period of time. The United States may make its request 
twenty days after the expiration of the reasonable period of time, or 
January 21 in this case. Article 22.6 of the DSU provides that the DSB 
shall grant the requested authorization not later than thirty days 
after the expiration of the reasonable period, or January 31 in this 
case. The DSB must decide by consensus to reject the request for 
authorization. The EC may object to the level of suspension proposed or 
the application of the principles and procedures specified in Article 
22.3 of the DSU in considering the types of concessions or obligations 
to suspend, in which case the matter shall be referred to arbitration. 
The DSU requires that arbitration proceedings be completed within sixty 
days after the expiration of the reasonable period of time, or March 2 
in this case. The United States may not suspend concessions or other 
obligations during the course of the arbitration proceedings.

Proposed Determination on Appropriate Action

    The USTR proposes that the imposition of prohibitive (100 percent 
ad valorem) duties on selected products from the EC is an appropriate 
action should the EC fail to implement the WTO recommendations within 
the prescribed reasonable period of time, which expires on January 1, 
1999. The products to be affected by the duty increase will be drawn 
from the list of products set forth in the Annex to this notice. The 
USTR also has been considering whether appropriate action may include 
the imposition of fees or restrictions on, or the restriction or denial 
of authorizations for, EC services and service suppliers. If the USTR 
intends to determine that any action with respect to services or 
service suppliers would be practicable and effective, the USTR will 
publish a further notice seeking comments on such proposed action.
    In determining what action to take, the USTR will consider all 
written comments, testimony, and rebuttal briefs submitted by 
interested persons to the Section 301 Committee in accordance with the 
procedures described below.

Public Comment on Proposed Action; Hearing Participation

    In accordance with section 304(b) of the Trade Act, the USTR 
requests all interested persons to provide written comments on the 
proposed action. Written comments are due by noon on Thursday, December 
10, 1998.
    The USTR also invites interested persons to present written and 
oral testimony and rebuttal briefs in the context of a public hearing 
to be held pursuant to section 304(b) of the Trade Act. The hearing 
will be held at 8:00 a.m. on Wednesday, December 9, 1998 in the Main 
Hearing Room at the U.S. International Trade Commission, 500 E Street, 
SW, Washington, DC 20436. Testimony at the public hearing should be 
limited to no more than five minutes.
    Written comments and written and oral testimony may address: the 
appropriateness of imposing increased duties upon the products listed 
in the Annex to this notice; the levels at which U.S. customs duties 
should be set for particular items; the degree to which increased 
duties might have an adverse effect upon U.S. consumers of the products 
listed in the Annex; and any other matter relating to the appropriate 
action to be taken under section 306(b) and 301(a). Interested persons 
submitting written comments do not need to present written and oral 
testimony as well.
    Requests To Testify and Written Testimony: Interested persons 
wishing to present testimony at the hearing must submit a written 
request to do so by noon on Monday, November 30, 1998, together with 
twenty copies of their complete written testimony. Requests to testify 
must conform to the requirements of 15 CFR 2006.9 and include the 
following information: (1) Name, address, telephone number, fax number, 
firm or affiliation of the applicant, and interest of the applicant; 
and (2) a brief summary of the comments to be presented. After 
considering the request to present oral testimony, the Chairman of the 
Section 301 Committee will notify the applicant of the time of his or 
her testimony.
    Rebuttal Briefs: To assure each party an opportunity to contest the 
information provided by other parties, the USTR will entertain rebuttal 
briefs filed by any party by noon on Friday, December 11, 1998. In 
accordance with 15 CFR 2006.8(c), rebuttal briefs should be strictly 
limited to demonstrating errors of fact or analysis not pointed out in 
written or oral testimony and should be as concise as possible.
    Requirements for Submissions: Written comments on the proposed 
determination, written testimony, and rebuttal briefs must be filed in 
accordance with the requirements set forth in 15 CFR 2006.8(b). 
Comments must state clearly the position taken and describe with 
particularity the supporting rationale, be in English, and be provided 
in twenty copies to: Chairman, Section 301 Committee, Attn: EU--Bananas 
Implementation of WTO Recommendations, Room 100.
    Written comments, written testimony, and rebuttal briefs will be 
placed in a file (Docket 301-100a) 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. Persons wishing to 
submit business confidential information must certify in writing that 
such information is confidential in accordance with 15 CFR 2006.15(b), 
and such information must be clearly marked ``BUSINESS CONFIDENTIAL'' 
in a contrasting color ink at the top of each page on each of twenty 
copies and must be accompanied by a nonconfidential summary of the 
confidential information. The nonconfidential summary will be placed in 
the docket that is open to public inspection.
    An appointment to review Docket No. 301-100a may be made by calling 
Brenda Webb at (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 of the Office of the United 
States Trade Representative.
Joanna K. McIntosh,
Chairman, Section 301 Committee.

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[FR Doc. 98-30225 Filed 11-9-98; 8:45 am]
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