[Federal Register Volume 63, Number 249 (Tuesday, December 29, 1998)]
[Notices]
[Pages 71665-71666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34497]


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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: Further request for comment.

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SUMMARY: On or before January 21, 1999, the United States Trade 
Representative (USTR) intends to request authorization from the Dispute 
Settlement Body (DSB) of the World Trade Organization (WTO) to suspend 
tariff concessions on certain products of the European Community (EC). 
The USTR is requesting comments on the possible inclusion of certain 
pork and certain olives in the request to the DSB.

DATES: Written comments from interested persons are due by noon on 
Wednesday, January 13, 1999 on the possible imposition of prohibitive 
(100% ad valorem) duties on certain pork provided for in subheading 
0210.19.00 of the Harmonized Tariff System of the United States (HTS) 
and certain olives provided for in HTS subheading 2005.70.6050.

ADDRESSES: 600 17th Street, NW, Washington, D.C. 20508.

FOR FURTHER INFORMATION CONTACT: Sybia Harrison, Staff Assistant to the 
Section 301 Committee (202) 395-3419; Joanna McIntosh, Associate 
General Counsel (202) 395-7305; or Ralph Ives, Deputy Assistant U.S. 
Trade Representative (202) 395-3320.

SUPPLEMENTARY INFORMATION: On September 25, 1997, the DSB adopted an 
Appellate Body report and panel report (as modified by the Appellate 
Body report) recommending that the EC bring its regime for the 
importation, sale, and distribution of bananas (banana regime) into 
conformity with the EC's obligations under the General Agreement on 
Tariffs and Trade 1994 and the General Agreement on Trade in Services 
(GATS). A WTO-appointed arbitrator subsequently determined that the 
``reasonable period of time'' for the EC to fully implement the DSB 
recommendations and rulings would expire on January 1, 1999.
    If the EC fails to bring its banana regime into compliance with its 
WTO obligations by January 1, 1999, Article 22 of the WTO Dispute 
Settlement Understanding (DSU) permits the United States on January 21, 
1999 to seek authorization from the DSB to suspend the application of 
concessions or other obligations accruing to the EC under the WTO 
Agreement. 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 by January 31 in this case. If, 
however, the EC objects 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, the proposed suspension of concessions shall be referred to 
arbitration. The DSU requires that such arbitration proceedings be 
completed within sixty days after the expiration of the reasonable 
period of time, or by March 2 in this case. Following the completion of 
arbitration proceedings and upon request, the DSB must grant 
authorization to suspend concessions or other obligations consistent 
with the arbitrator's decision. The United States may not suspend 
concessions or other obligations during the course of the arbitration 
proceedings.
    On or before January 21, 1999, the USTR intends to request 
authorization from the DSB to suspend tariff concessions on certain 
products of the EC should the EC fail to bring its banana regime into 
compliance with DSB recommendations within the prescribed reasonable 
period of time, which expires on January 1, 1999. On October 22, 1998 
and November 10, 1998, the USTR published notices [63 FR 56687 and 63 
FR 63099] describing and requesting comments and testimony on the 
United States proposed course of action to exercise its rights under 
Article 22 of the DSU.
    The written comments received in response to the October 22 Federal 
Register notice primarily registered concerns that the EC's proposed 
changes to its banana regime would not bring the regime into compliance 
with the DSB's recommendations and rulings within

[[Page 71666]]

the reasonable period of time and that the EC's impending failure to 
bring the banana regime into compliance would undermine the WTO dispute 
settlement system. The written comments received in response to the 
November 10 Federal Register notice and at the public hearing primarily 
focused on the extent to which the imposition of 100% ad valorem duties 
on the specific products listed in the Annex to that notice might have 
an adverse effect on U.S. consumers, workers, and industries. The USTR 
also received written comments and testimony requesting the imposition 
of increased duties on certain products of the EC not included in the 
Annex to the November 10 Federal Register notice.
    On December 21, 1998, the USTR announced in a press release the 
list of products of the EC for which the USTR intends to request 
authorization from the DSB to impose 100% ad valorem duties. [Press 
Release 98-113, www.ustr.gov.] The USTR also announced that comments 
would be sought on the possible inclusion of certain pork provided for 
in HTS subheading 0210.19.00 and certain olives provided for in HTS 
subheading 2005.70.6050 in the request to the DSB. The list of products 
announced in the December 21, 1999 press release is subject to revision 
depending on the comments received in response to this notice and on 
the results of arbitration, if requested by the EC.
    In accordance with the time frames set forth in Article 22 of the 
DSU for suspending concessions when a WTO member fails to bring its 
measures into compliance with DSB recommendations, the proposed 
increased duties would be assessed on the selected products that are 
entered, or withdrawn from warehouse for consumption, on or after 
February 1, 1999, unless the EC requests arbitration on the proposed 
suspension of tariff concessions, in which case the proposed increased 
duties would be assessed on the selected products that are entered, or 
withdrawn from warehouse for consumption, on or after March 3, 1999.
    The USTR subsequently will announce: (1) the USTR's determination 
to impose 100% ad valorem duties on certain products of the EU and 
instructions to the U.S. Customs Service to begin assessing the 
increased duties; (2) the date on which the increased duties will begin 
to be assessed; and (3) the list of products on which increased duties 
will be assessed. The increased duties would not be assessed on 
products of the Netherlands or Denmark.

Written Comments--Requirements for Submissions

    The USTR has determined that it may be appropriate to consider 
including two products in its request to the DSB for authorization to 
suspend tariff concessions on which the USTR has not previously sought 
public comment. Therefore, interested persons are invited to comment 
on: (1) the appropriateness of imposing 100% ad valorem duties on meat 
of swine other than hams, shoulders, bellies (streaky) and cuts 
thereof, salted, in brine, dried or smoked (HTS subheading 0210.19.00) 
and olives (not green), sliced in a saline solution, canned, pitted 
(HTS subheading 2005.70.6050); (2) the levels at which U.S. customs 
duties should be set for these particular products; and (3) the degree 
to which increased duties may have an adverse effect upon U.S. 
consumers of these products. The imposition of increased duties would 
apply to articles that are classified in HTS subheadings 0210.19.00 and 
2005.70.6050. The product descriptions provided above are not intended 
to delimit in any way the scope of the products that would be subject 
to increased duties.
    Comments must be filed in accordance with the requirements set 
forth in 15 CFR 2006.8(b) (55 FR 20593) and must be filed by noon on 
Wednesday, January 13, 1999. Comments must be in English and provided 
in twenty copies to: Sybia Harrison, Staff Assistant to the Section 301 
Committee, Room 416.
    Comments 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. 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 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.
Joanna K. McIntosh,
Chairman, Section 301 Committee.
[FR Doc. 98-34497 Filed 12-28-98; 8:45 am]
BILLING CODE 3190-01-P