[Federal Register Volume 64, Number 118 (Monday, June 21, 1999)]
[Notices]
[Pages 33130-33131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15583]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-166]


WTO Dispute Settlement Proceeding Regarding USA--Definitive 
Safeguard Measures on Imports of Wheat Gluten

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 European Communities' (``EC'') 
request for the establishment of a dispute settlement panel under the 
Marrakesh Agreement Establishing the World Trade Organization 
(``WTO''). The EC challenges the United States' action in imposing 
temporary quantitative limitations on imports of wheat gluten in an 
effort to aid the domestic industry to make a positive adjustment to 
import competition. In this dispute the EC alleges that the United 
States' safeguard measure is inconsistent with certain obligations 
under the WTO Agreement on Safeguards (``Safeguards Agreement''), 
Article XIX of the General Agreement on Tariffs and Trade 1994 (``GATT 
1994''), and the WTO Agreement on Agriculture (``Agriculture 
Agreement''). 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 July 19, 1999, to be assured of timely consideration by 
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: Wheat 
Gluten, Office of the United States Trade Representative, 600 17th 
Street, NW, Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT: Marjorie Florestal, Assistant General 
Counsel at (202) 395-3581 or Robert Cummings, Senior Economist at (202) 
395-6127.


[[Page 33131]]


SUPPLEMENTARY INFORMATION: Pursuant to section 127(b) of the Uruguay 
Round Agreements Act (URAA) (19 U.S.C. 3537(b)(1)), USTR is providing 
notice that on June 3, 1999, the EC submitted a request for the 
establishment of a WTO dispute settlement panel to examine the U.S. 
safeguard measure on imports of wheat gluten. The WTO Dispute 
Settlement Body (``DSB'') is expected to establish a panel for this 
purpose in July, 1999.

Major Issues Raised and Legal Basis of the Complaint

    The EC challenges the safeguard measure on imports of wheat gluten 
that the President established in Proclamation 7103 of May 30, 1998, 
and described in the President's Memorandum of May 30, 1998, entitled 
``Action Under section 203 of the Trade Act of 1974 Concerning Wheat 
Gluten.'' The President's Proclamation and Memorandum were published in 
the Federal Register in Vol. 63, No. 106, pp. 30359 and 30363 on June 
3, 1998.
    In the EC's view the U.S. measure violates the Safeguards 
Agreement, Article XIX of the GATT 1994, and the Agriculture Agreement. 
Specifically, the EC asserts violations of:
     Articles 2.1 and 4 of the Safeguards Agreements because 
the U.S. International Trade Commission allegedly failed to examine 
``fundamental requirements'' under these provisions when it conducted 
its investigation of the domestic industry.
     Article 5 of the Safeguards Agreement because, in adopting 
and applying the measure, the United States allegedly violated Article 
5's rules on proportionality and allocation of quotas among supplying 
countries.
     Article 8 of the Safeguards Agreement because the United 
States allegedly failed to maintain a substantially equivalent level of 
concessions to affected WTO Members.
     Article 12 of the Safeguards Agreement because the United 
States allegedly failed to ``fully respect'' the notification 
requirements therein.
     Article 4.2 of the Agriculture Agreement because the 
measure in effect allegedly constitutes a substantial breach of the 
United States' obligations thereunder.
     Article XIX of GATT 1994 because the United States 
allegedly failed to fulfill ``relevant conditions'' under that Article, 
and because the measure allegedly was designed and applied in order to 
breach the most-favored-nation principle under Article I of GATT 1994, 
particularly since the measure allegedly favored Australia in terms of 
impact on trade.
    On March 17, 1999, the EC requested consultations with the United 
States, and these consultations were held in Geneva on May 3, 1999, but 
did not lead to a satisfactory resolution of the matter.

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'' 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 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)), 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, NW, Washington, DC 20508. 
The public file will include a listing of any comments received by 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/DS-166, ``Wheat Gluten'') 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. 99-15583 Filed 6-18-99; 8:45 am]
BILLING CODE 3190-01-P