[Federal Register Volume 64, Number 69 (Monday, April 12, 1999)]
[Notices]
[Pages 17712-17713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9067]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/D-138]


WTO Dispute Settlement Proceeding Regarding U.S. Countervailing 
Duties on Certain Hot-Rolled Lead and Bismuth Carbon Steel Products 
Originating in the United Kingdom

AGENCY: Office of the United States Trade Representative.

ACTION: Notice; request for comments.

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SUMMARY: The Office of the United States Trade Representative 
(``USTR'') is providing notice of the request for the establishment of 
a dispute settlement panel under the Marrakesh Agreement Establishing 
the World Trade Organization (``WTO''), by the European Communities 
(``EC'') to examine the imposition by the United States of 
countervailing duties on hot-rolled lead and bismuth carbon steel 
products (``leaded bar'') from the United Kingdom. In this dispute, the 
EC alleges that such imposition of countervailing duties is 
inconsistent with obligations of the United States under the WTO 
Agreement of Subsidies and Countervailing measures (``SMC Agreement''). 
The USTR invites written comments from the public concerning the issues 
raised in this dispute.

DATES: Although USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted by May 21, 1999, to be assured of timely consideration by the 
USTR in preparing its first written submission to the panel.

ADDRESSES: Comments may be submitted to Sandy McKinzy, Litigation 
Assistant, Office of Monitoring and Enforcement, Room 122, Attn: Leaded 
Bar Dispute, Office of the U.S. Trade Representative, 600 17th Street, 
NW., Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT: William D. Hunter, Office of the 
General Counsel, (202) 395-3582.

SUPPLEMENTARY INFORMATION: Pursuant to section 127(b)(1) of the Uruguay 
Round Agreements Act (``URAA'') (19 U.S.C. 3537(b)(1)), the USTR is 
providing notice that on January 14, 1999, the EC submitted a request 
for the establishment of a WTO dispute settlement panel to examine the 
imposition by the United States of countervailing duties on leaded bar 
originating in the United Kingdom. On January 22, 1999, the EC 
submitted a revision of its request. The WTO Dispute Settlement Body 
established a panel for this purpose on February 17.

Major Issues Raised and Legal Basis of Complaint

    In its request for the establishment of a panel, as revised, the EC 
alleges the following:

    The US refuses to take account of the privatisation or change of 
ownership of the body receiving a subsidy, even, if at a full market 
price, and to consider whether the subsidy still provides a benefit 
when assessing or reassessing, the countervailable subsidy. Instead 
the US considers that the subsidy ``travels with'' the assets when 
they are transferred. The US allocates the amount of the subsidy to 
the new owners of the assets according to a methodology which has no 
rational basis and has never been explained or justified in the 
determinations.
    In particular, no attempt has ever been made in the final 
determinations to justify or rationlise what benefits continue to 
result from subsidies following privatisation or sale of assets at 
fair market prices. The US methodology relied entirely on the 
presumption (based mostly on pre-WTO legislation and practice) that 
benefits from prior subsidies pass-through without the need to show 
that a benefit continues to be conferred as mandated by the [SCM 
Agreement].

    The EC alleges that the imposition of countervailing duties in the 
circumstances described above constitutes a violation of Articles 
1.1(b), 10, 14, and 19.4 of the SCM Agreement.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in this dispute. Comments must be in 
English and provided in fifteen copies to Sandy McKinzy at the address 
provided above. A person requesting that information contained in a 
comment submitted by that person be treated as confidential business 
information must certify that such information is business confidential 
and would not customarily be released to the public by the submitting 
person. Confidential business information must be clearly marked 
``BUSINESS CONFIDENTIAL''

[[Page 17713]]

in a contrasting color ink at the top of each page of each copy.
    Information or advice contained in a comment submitted, other than 
business confidential information, may be determined by the USTR to be 
confidential in accordance with section 135(g)(2) of the Trade Act of 
1974 (19 U.S.C. 2155(g)(2)). If the submitting person believes that 
information or advice may qualify as such, the submitting person--
    (1) Must so designate the information or advice;
    (2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE'' 
in a contrasting color ink at the top of each page of each copy; and
    (3) Is encouraged to provide a non-confidential summary of the 
information or advice.
    Pursuant to section 127(e) of the URAA (19 U.S.C. 3537(e)), the 
USTR will maintain a file on this dispute settlement proceeding, 
accessible to the public, in the USTR Reading Room: Room 101, Office of 
the United States Trade Representative, 600 17th Street, N.W., 
Washington, D.C. 20508. The public file will include a listing of any 
comments received by the USTR from the public with respect to the 
proceeding; the U.S. submissions to the panel in the proceeding, the 
submissions, or non-confidential summaries of submissions, to the panel 
received from other parties in the dispute, as well as the report of 
the dispute settlement panel, and, if applicable, the report of the 
Appellate Body. An appointment to review the public file (Docket WTO/D-
138) 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 p.m. 
to 4 p.m., Monday through Friday.
A. Jane Bradley,
Assistant U.S. Trade Representative for Monitoring and Enforcement.
[FR Doc. 99-9067 Filed 4-9-99; 8:45 am]
BILLING CODE 3190-01-M