[Federal Register Volume 64, Number 71 (Wednesday, April 14, 1999)]
[Notices]
[Pages 18469-18472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9288]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Request for Public Comment Regarding Negotiations on Market 
Access and Other Issues in the World Trade Organization (WTO) and Under 
the Free Trade Area of the Americas

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Request for comments and notice of public hearings.

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SUMMARY: The interagency Trade Policy Staff Committee (TPSC) will 
convene public hearings and seeks additional public comment as part of 
its efforts to develop proposals and positions concerning the agenda of 
the third Ministerial Conference of the World Trade Organization (WTO), 
including articles that may be the subject of market access 
negotiations. A request was made in March 1999 to the U.S. 
International Trade Commission (ITC) to consider various scenarios for 
the modification, reduction and or elimination of duties on all 
articles in the Harmonized System Tariff Schedule of the United States 
(HTSUS), in the context of WTO or FTAA negotiations. This is the second 
invitation by the TPSC seeking public comment with respect to the 
development of the agenda, scope, content and timetables for 
negotiations or further work in the WTO, including additional 
consultations with non-governmental statekholders. The Administration 
seeks views on the broadest possible range of issues for consideration, 
including possible subject matter and approaches to any new 
negotiations or future work in the WTO. The WTO General Council has 
been instructed to prepare recommendations regarding the launch of 
further trade negotiations and work in the WTO, which will be 
considered and approved by WTO Members meeting at their next 
Ministerial to be held in the United States during the fourth quarter 
of 1999. The TPSC request for public comments and convocation of public 
hearings regarding the FTAA negotiations will be issued at a later 
date.

FOR FURTHER INFORMATION CONTACT: For procedural questions concerning 
public comments and/or public hearings contact Gloria Blue, Executive 
Secretary, Trade Policy Staff Committee, Office of the United States 
Trade Representative at (202) 395-3475. All other questions concerning 
the WTO negotiations should be addressed to the agency's Office of WTO 
and Multilateral Affairs at (202) 395-6843; questions concerning the 
FTAA negotiations should be addressed to the agency's Office of Western 
Hemisphere Affairs at (202) 395-6135.

supplementary information:

1. Background

A. WTO Negotiations

    On May 18-20, 1998, the World Trade Organization (WTO) held its 
second ministerial conference in Geneva, Switzerland, along with a 
commemoration of the 50th anniversary of the post-World War II 
multilateral trading system. President Clinton, and a number of heads 
of state or government addressed the gathering, and WTO Members 
accepted the U.S. invitation to host the third ministerial conference 
in late 1999. That meeting will be held in Seattle on November 30-
December 3, 1999.

[[Page 18470]]

    The general Ministerial Declaration, agreed on May 20, 1998, 
instructs the WTO's General Council to begin preparations for the 
launch of negotiations and consideration of the WTO's forward agenda 
for approval at its 1999 ministerial meeting. A second Declaration, 
also agreed on May 20, 1998, commits Members to not impose customs 
duties on electronic transmissions and calls for the establishment by 
the General Council of a work program in the WTO on the trade-related 
aspects of electronic commerce. To prepare for U.S. participation in 
the General Council meetings, the TPSC requested public comment (63 FR 
160, August 19, 1998).
    The United States has participated actively in the preparations to 
date with the benefit of substantial comments from, and consultations 
with, the statutorily mandated advisory committees established pursuant 
to section 135 of the Trade Act of 1974, as amended. In August 1998, 
the Trade Policy Staff Committee published a solicitation for public 
comment regarding the development of the agenda, scope, content and 
timetables for negotiations or further work in the WTO, including 
additional consultations with non-governmental stakeholders. The 
Administration sought views on the broadest possible range of issues 
for consideration, including possible subject matter and approaches to 
any new negotiations or future work in the WTO. U.S. Submissions 
regarding the work of the WTO can be found on the USTR Web site at 
www.ustr.gov. In preparing for the submissions, the Administration 
requested comments on the following issues, and additional comments on 
these issues is relevant to the hearings that will now be convened by 
the TPSC.
Implementation of Existing Agreements and Work Programs
    Additional views are requested with respect to experience in 
implementation, including where WTO Agreements have been successful in 
addressing U.S. interests, and in areas where changes would facilitate 
better enforcement and adherence to rules and commitments, or otherwise 
advance U.S. policy objectives. Particular attention is drawn to the 
various rules encompassed in the GATT 1994 (all GATT Articles), the 
Marrakesh Protocol to the General Agreement, the Agreements on 
Agriculture, Sanitary and Phytosanitary Measures, Textiles and 
Clothing, Technical Barriers to Trade, Trade-Related Investment 
Measures (TRIMS), Antidumping Practices, Customs Valuation, Preshipment 
Inspection, Import Licensing, Subsidies and Countervailing Measures, 
Safeguards, the General Agreement of Trade in Services (GATS), Trade-
Related Aspects of Intellectual Property Rights (TRIPS), the 
Understanding on the Rules and Procedures Governing the Settlement of 
Disputes, Trade Policy Review Mechanism and Ministerial Decisions and 
Declaration, including those undertaken at Marrakesh. Thus far, 
implementation has been a major issue in the preparatory process.
Mandated Negotiations
    Additional comments are requested regarding U.S. priorities for the 
Agreements concluded as part of the Uruguay Round that contain express 
agreement to conduct further negotiations. The Agreement on Agriculture 
contains provisions for further negotiations and identifies issues for 
consideration, including market access, domestic support and export 
subsidies. The General Agreement on Trade in Services provides for 
further negotiations on specific commitments to liberalize trade in 
services. The Agreement on Trade-Related Intellectual Property Rights 
(TRIPS) provides for negotiations in certain areas. For all of these 
mandated negotiations, particular attention should be given to the 
range of additional issues not mentioned in the Agreements that should 
be considered, and the modalities for conducting further negotiations. 
It is noted that the advice from the U.S. International Trade 
Commission noted above includes all agricultural articles.
Reviews of Existing Agreements and Work Programs
    Comments are requested regarding U.S. priorities pursuant to the 
Agreements from the Uruguay Round that specifically provide for reviews 
and other work as part of their individual work programs: Agriculture, 
Antidumping, Customs Valuation, Dispute Settlement Understanding, 
Import Licensing, Preshipment Inspection, Rules of Origin, Trade and 
the Environment, Sanitary and Phytosanitary Measures, Safeguards, 
Subsidies and Countervailing Measures, Technical Barriers to Trade, 
Textiles and Clothing, Trade Policy Review Mechanism, Trade-Related 
Aspects of Intellectual Property Rights (TRIPS), Trade-Related 
Investment Measures (TRIMS), and the General Agreement on Trade in 
Services (GATS). The Committee on Trade and the Environment has thus 
far been the focal point for consideration of environment-related 
issues in the WTO. The Dispute Settlement Understanding (DSU) and the 
Agreement on Subsidies and Countervailing Measures, for example, 
contain review provisions as a first step in taking further decisions 
with respect to the Agreements. Comments received thus far have drawn 
attention to the improvements necessary to the operation of the various 
Agreements and Work Programs.
Singapore Ministerial Work Program
    Comments are requested on what, if any, next steps should be taken 
with respect to the issues raised in the context of the work of the 
working groups established on trade and investment, trade and 
competition policy, transparency in government procurement and the 
exploratory work undertaken by the WTO regarding trade facilitation. 
Particularly relevant are next steps in the above-mentioned areas, 
including the nature and scope of any future work. In the case of 
procurement, Ministers at Singapore directed the General Council to 
identify the elements for a multilateral transparency agreement, which 
the United States believes could be realized this year. The Working 
Groups on competition and investment were extended into 1999 and have 
not yet completed their work.
Integration of Least-Developed Countries
    Comments are requested on ways to facilitate the participation of 
least developed countries in the WTO, taking into account work that has 
been conducted to integrate the technical assistance provided by 
various international organizations, including the WTO. The 
Administration sought views with respect to additional initiatives 
related to capacity building in least developed countries, market 
access opportunities, and the possible graduation of countries from 
preferences.
Electronic Commerce
    Consistent with the Declaration issued at the May 1998 WTO 
Ministerial Conference, additional comments are solicited with respect 
to the commitment by WTO Members not to impose customs duties on 
electronic commerce and the agreement to establish a work program for 
further consideration of the relationship between trade and electronic 
commerce.
Other Trade Matters of Interest
    Consistent with the Ministerial Declaration, comments are also 
solicited with respect to the range of issues where the United States 
might choose to seek,

[[Page 18471]]

or be asked to join a consensus, to add additional items to the WTO's 
post-1999 agenda for negotiations or further work. The Administration 
indicated our strong interest in considering the broadest range of 
issues as the agenda for the next century is developed. The issues 
identified thus far include:
    (1) Industrial market access: comments are requested with respect 
to conducting further tariff negotiations and possible modalities for 
such negotiations (e.g., pursuit of additional sectoral initiatives to 
reduce or harmonize duties, the application of formula or request/offer 
approaches and related issues). (Further negotiations on market access 
are already envisioned for products covered by the Agricultural 
Agreement.) This is relevant to the request made of the ITC.
    (2) Consultations with Non-Governmental Stakeholders: Additional 
comments are requested as to possible approaches that the WTO could 
undertake with respect to non-governmental stakeholders. In his speech 
to the WTO, President Clinton challenged the WTO to consider improving 
the opportunities for the public to participate in the development of 
the WTO's forward agenda, and to develop a more regular mechanism for 
consultation. The WTO has begun to take steps to broaden the 
interaction with non-governmental organizations in the regard, 
including the dissemination of information received from such 
organizations to the WTO's membership. Similarly, a number of steps 
have been taken by the United States to promote greater transparency in 
the operation of the WTO that would be of benefit to stakeholders 
(e.g., with respect to making WTO documents more available to the 
public).
    (3) Relationship Between Trade and Labor: Additional comments are 
requested regrading various approaches to be considered in developing a 
consensus for further consideration of this issue on the WTO's forward 
agenda. WTO Ministers at Singapore renewed their commitment to the 
observance of internationally recognized core labor standards, noting 
that economic growth and development fostered by increased trade and 
further trade liberalization contribute to the promotion of core labor 
standards. At the same time, they recognized the important role of the 
International Labor Organization (ILO) in this area and rejected the 
use of labor standards for protectionist purposes, and agreed that the 
comparative advantages of countries, particularly low-wage developing 
countries, must not be put into question. Section 131 of the Uruguay 
Round Agreements Act, addresses U.S. activity in the WTO in this area.
    (4) Institutional Issues: Additional comments are requested on the 
general institutional improvements that the United States should be 
contemplating for the WTO, particularly as its membership expands to 
nearly 160 early in the next century. Achieving greater transparency in 
the WTO's operation has already been identified as a priority issue for 
the Administration. The United States has consistently sought to expand 
the range of WTO documents available to the public, and is continuing 
to promote broader derestriction of documents in a more timely fashion, 
including in the areas of access to dispute settlement panel reports. 
Similarly, as the membership expands to include Members with less 
experience operating as market economies, new challenges arise to the 
WTO's system of operations and its decision-making process. As a result 
of the Uruguay Round, the WTO entered into cooperation agreements with 
the International Monetary Fund (IMF) and the World Bank to ensure 
greater coherence in international economic policy; further cooperation 
may be desirable.

B. FTAA Negotiations

    On December 11, 1994, President Clinton and the 33 other 
democratically-elected leaders in the Western Hemisphere met in Miami, 
Florida for the first Summit of the Americas. They agreed to conclude 
negotiations on a Free Trade Area of the Americas by the year 2005, and 
to achieve concrete progress toward that objective by the end of this 
century. Since that time, the 34 Western Hemisphere ministers 
responsible for trade have met on several occasions, most recently in 
March 1998 in San Jose, Costa Rica.
    At the San Jose meeting, the trade ministers recommended that the 
Western Hemisphere leaders initiate the negotiations and provided them 
recommendations on the structure, objectives, principles, and venues of 
the negotiations. On April 18-19, 1998, President Clinton and his 33 
counterparts initiated the Free Trade Area of the Americas negotiations 
at the Summit of the Americas meeting in Santiago, Chile. The leaders 
agreed to the general framework proposed by the 34 trade ministers, 
which include the establishment initially of nine negotiating groups to 
be guided by general principles and objectives and specified objectives 
as agreed by the ministers in March 1998.
    The work of the negotiating groups began in September 1998. In 
anticipation of that activity, the TPSC requested public comment (63 FR 
128, July 6, 1998) on what should be the U.S. positions and objectives 
with respect to each of the negotiating groups. The Federal Register 
notice also stated that USTR would seek additional public comment 
separately on other issues related to the FTAA, including the economic 
effects of the removal of duties and nontariff barriers to trade among 
FTAA participating countries. As noted above, this request for public 
comment will be issued separately at a later date.

2. Advice From the U.S. International Trade Commission Regarding 
Market Access

    On March 15, 1999 the U.S. Trade Representative, pursuant to 
Section 332(g) of the Tariff Act of 1930, requested that the U.S. 
International Trade Commission (``Commission'') provide advice to the 
President, with respect to each item listed in the HTSUS where tariffs 
remain in effect after full implementation of the results of the 
Uruguay Round or subsequent WTO agreements, as to the probable economic 
effect of modification of tariffs on industries producing like or 
directly competitive articles and on consumers, based on the following 
parameters and scenarios: (1) the effect resulting from changes in 
dutiable imports from all U.S. trading partners if all tariffs were 
reduced by at least 50 percent, with tariffs of 5 percent reduced to 
zero; (2) the effects resulting from changes in dutiable imports from 
all U.S. trading partners if tariffs were eliminated; and (3) the 
effects resulting from tariff elimination on dutiable imports from FTAA 
trading partners alone.
    These scenarios either replicate the tariff proclamation authority 
provided under the Omnibus Trade and Tariff Act of 1988 and the 1974 
Trade Act, or provide information for possible WTO sectoral duty 
elimination initiatives and FTAA tariff negotiations. At the same time, 
it should be noted that this request by no means implies that we intend 
to take action on all of these tariff measures. It merely indicates our 
interest in obtaining factual advice from the Commission on the 
probably economic effects of their reduction or elimination.
    The USTR requested that the Commission provide its advice no later 
than November 17, 1999.

3. Public Comments and Testimony

    In conformity with section 133 of the 1974 Trade Act, the 
regulations promulgated under the 1974 Act and the regulations of the 
Trade Policy Staff

[[Page 18472]]

Committee (15 CFR part 2003), the Chairman of the TPSC invites the 
written comments and/or oral testimony of interested parties in public 
hearings on the possible market access commitments along with other 
issues for negotiation or further work in the WTO, as described above. 
Parties should not resubmit submissions presented in response to the 
August 1998 FR notice.

4. Requests To Participate in Public Hearings

    Hearings will be held on Wednesday, Thursday and Friday, May 19-21, 
in Washington, D.C.; Monday and Tuesday, June 7 and 8 in Chicago, IL; 
Thursday and Friday, June 10 and 11 in Atlanta, GA; Monday and Tuesday, 
June 21 and 22 in Los Angeles, CA; and Thursday and Friday, June 24 and 
25 in Dallas, TX. The number of days for each hearing may change 
depending on the volume of requests to testify. The time and location 
of the hearings will be announced at a later date.
    Parties wishing to testify orally at the hearings must provide 
written notification or their intention by Wednesday, May 5, 1999 to 
Gloria Blue, Executive Secretary, Trade Policy Staff Committee, Office 
of the U.S. Trade Representative, Room 122, 600 Seventeenth Street, NW, 
Washington, DC 20508. The notification should include: (1) The specific 
hearing to be attended; (2) name of the person presenting the 
testimony, their address and telephone number; and (3) a brief summary 
of their presentation, including the product(s), with HTSUS numbers, 
and/or other subjects to be discussed.
    Those parties presenting oral testimony must also submit a written 
brief, in 20 copies, by noon, Wednesday, May 12, 1999. Remarks at the 
hearing should be limited to no more than five minutes to allow for 
possible questions from the Chairman and the interagency panel. 
Participants should provide thirty typed copies of their oral statement 
at the time of the hearings. Any business confidential material must be 
clearly marked as such on the cover page (or letter) and succeeding 
pages. Such submissions must be accompanied by a nonconfidential 
summary thereof.

5. Written Comments

    Those persons not wishing to participate in the hearings may submit 
written comments, in twenty typed copies, no later than noon, 
Wednesday, May 26, 1999 to Gloria Blue, Executive Secretary, Trade 
Policy Staff Committee, Office of the U.S. Trade Representatives, Room 
122, 600 Seventeenth Street, NW, Washington, DC 20508. Comments should 
state clearly the position taken and should describe with particularity 
the evidence supporting that position. Any business confidential 
material must be clearly marked as such on the cover page (or letter) 
and succeeding pages. Such submissions must be accompanied by a 
nonconfidential summary thereof.
    Nonconfidential submissions will be available for public inspection 
at the USTR Reading Room, Room 101, Office of the U.S. Trade 
Representative, 600 Seventeenth Street, NW, Washington, DC. An 
appointment to review the file may be made by calling Brenda Webb at 
(202) 395-6186. The Reading room is open to the public from 10 a.m. to 
12 noon and from 1 p.m. to 4 p.m., Monday through Friday.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.
[FR Doc. 99-9288 Filed 4-13-99; 8:45 am]
BILLING CODE 3901-01-M