[Federal Register Volume 65, Number 233 (Monday, December 4, 2000)]
[Notices]
[Pages 75763-75765]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-30783]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Trade Policy Staff Committee; Public Comments on Environmental 
Review of Proposed Free Trade Area of the Americas

ACTION: Notice of Initiation of Environmental Review and Request for 
Comments on Scope of Review, and Notice of Availability of the Report 
of the Quantitative Analysis Working Group and Request for Comments.

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SUMMARY: This publication gives notice that pursuant to Executive Order 
13141 signed by President Clinton on November 16, 1999 (64 FR 63169) 
the Office of the U.S. Trade Representative (USTR), through the Trade 
Policy Staff Committee (TPSC), is formally initiating an environmental 
review of the proposed Free Trade Area of the Americas (FTAA). USTR has 
established an FTAA interagency group, chaired at the TPSC level, to 
oversee the development and implementation of the environmental review, 
and an interagency working group composed of economic and environmental 
experts, to provide guidance on the quantitative and methodological 
parameters of the review. Thus far, the working group has developed a 
draft report which provides advice on the quantitative aspects of the 
environmental review. This document, entitled: Report of the 
Quantitative Analysis Working Group to the FTAA Interagency Environment 
Group, is available for review on the USTR website www.ustr.gov.
    In this notice, the TPSC is requesting written comments from the 
public regarding what should be included in the scope of the 
environmental review, including the identification of potentially 
significant environmental impacts, both positive and negative, that may 
arise in the context of trade liberalization. Respondents should 
provide as much detail as possible on the degree to which the subject 
matter they propose may raise significant environmental issues in the 
context of the negotiation. In addition, the TPSC is seeking comments 
on advice provided by the interagency working group regarding the 
methodology for performing quantitative aspects of the environmental 
review.

DATES: Although USTR will accept any comments received during the 
course of the negotiations, comments should be submitted on or before 
January 19, 2001 to be assured of timely consideration in determining 
the scope of the environmental review.

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FOR FURTHER INFORMATION CONTACT: Background information on the 
Executive Order 13141, the Environmental Review Guidelines and the FTAA 
can be found on the USTR website (www.ustr.gov). FTAA information can 
also be found on the official FTAA website (www.ftaa-alca.org). For 
procedural questions concerning public comments, contact Gloria Blue, 
Executive Secretary, TPSC, Office of the USTR, 600 17th Street, NW, 
Washington, DC 20508 (202) 395-3475. All other questions regarding the 
review should be addressed to Joseph Ferrante, Director for Land Use 
Policy and Environmental Reviews, Office of Environment and Natural 
Resources, USTR (202-395-7320) or Chris Wilson, Director for Central 
America and the Caribbean, Office of Western Hemisphere, USTR (202-395-
5190).

SUPPLEMENTARY INFORMATION:

Previous Notices

    USTR welcomes and is taking into account the public comments on 
FTAA environmental issues submitted in response to two previous 
notices, the Federal Register notice dated Tuesday, December 28, 1999 
(64 FR 72715) requesting written comments from the public to assist 
USTR in formulating positions and proposals with respect to all aspects 
of the negotiations, including environmental issues, and the Federal 
Register notice dated Thursday, June 22, 2000 (65 FR 38872) providing 
notice that the FTAA Committee of Government Representatives on the 
Participation of Civil Society had issued a request for public comments 
on trade matters related to the FTAA process.

Background Information

    The effort to unite the economies of the Western Hemisphere into a 
single free trade agreement was initiated at the Summit of the 
Americas, which was held on December 11, 1994 in Miami. President 
Clinton and the leaders of 33 other Western Hemisphere countries agreed 
to construct a ``Free Trade Area of the Americas'', or FTAA, and to 
complete negotiations for the agreement no later than 2005. The Miami 
Declaration of Principles and Plan of Action spells out the objectives 
of the FTAA as agreed by the leaders at the Summit. The full text can 
be found on the FTAA website. (www.ftaa-alca.org/ministerials/
plan__e.asp)
    The FTAA represents the largest regional integration effort ever 
undertaken involving both developed and developing countries in a 
common objective to realize free trade and investment in goods and 
services, on a basis of strengthened rules and disciplines. In 1999 
two-way merchandise trade between the United States and the 33 other 
FTAA countries amounted to $675 billion, with more than eighty percent 
taking place between the United States and NAFTA partners Canada ($365 
billion) and Mexico ($197 billion). Two-way services trade amounted to 
roughly $93 billion in 1998 (the most recent year for which data is 
available), $36 billion with South/Central America and the Caribbean, 
$35 billion with Canada, and $22 billion with Mexico.

FTAA Objectives

    Nine negotiating groups responsible for the following areas of the 
negotiations have been established by the FTAA countries: (1) Market 
access; (2) investment; (3) services; (4) government procurement; (5) 
dispute settlement; (6) agriculture; (7) intellectual property rights; 
(8) subsidies, antidumping and countervailing duties; and (9) 
competition policy. In addition to the nine negotiating groups, three 
non-negotiating committees and groups were established. They are: (1) 
The Consultative Group on Smaller Economies; (2) the Committee of 
Government Representatives on the Participation of Civil Society; and 
(3) the Joint Government-Private Sector Committee of Experts on 
Electronic Commerce. Within the nine negotiating groups, and throughout 
the discussions in the three non-negotiating groups, the United States 
seeks to maximize market openness through high levels of discipline by 
creating a state-of-the-art, comprehensive agreement which, inter alia, 
will eliminate tariffs, reduce or eliminate non-tariff barriers and 
trade-distorting subsidies, provide non-discrimination in services and 
treatment of investment, provide transparency and market access in 
government procurement, strengthen the protection of intellectual 
property, and provide transparent and effective dispute settlement. The 
U.S. also seeks to further secure the observance and promotion of 
worker rights. In addition, the U.S. is striving to make our trade 
liberalization and environmental policies mutually supportive. These 
negotiation objectives are shaped in part by the information obtained 
through an environmental review, which is described in more detail 
below.

Environmental Review

    Executive Order 13141 commits the United States to a policy of 
careful assessment and consideration of the environmental impacts of 
trade agreements and calls for environmental reviews of certain 
proposed trade agreements during the negotiating process. These 
environmental reviews will help identify potential environmental 
effects (both positive and negative) resulting from the proposed 
agreement, and facilitate the development of appropriate policy 
responses. As lead for this activity, USTR initiated an interagency 
process to analyze the environmental effects of the FTAA. This review 
will be the first application of Executive Order 13141 to a major 
pluri-lateral trade negotiation, and the results of this analysis are 
intended to inform our negotiating positions throughout the FTAA 
negotiations. Ultimately, the review will include an analysis of 
environmental effects resulting from projected changes in economic 
activity as a result of negotiations, and potential impacts on U.S. 
environmental laws and regulations. Comments are sought on the full 
range of possible impacts that could be associated with the agreement, 
taking into account a realistic range of approaches for achieving its 
broad objectives, as well as the relative importance and priority of 
these impacts. Statements regarding potential impacts will be most 
useful if they are elaborated with some specificity and supported by 
factual references and analysis. As stated in the Executive Order, the 
emphasis of the review shall be on domestic impacts, but transboundry 
and global impacts may also be considered as appropriate and prudent.
    Given the FTAA environmental review's potential complexity and 
significance, the FTAA Environmental Group, chaired at the TPSC level, 
created an interagency Quantitative Analysis Working Group composed of 
experts from relevant agencies. The Working Group was charged with 
providing advice on an analytical methodology for quantifying the 
environmental effects of hemispheric trade liberalization. The Working 
Group recently presented its recommendations regarding the completion 
of a quantitative analysis in a report to the FTAA Environmental Group.
    This document, entitled Report of the Quantitative Analysis Working 
Group to the FTAA Interagency Environment Group, is available on the 
USTR website (www.ustr.gov).
    In summary, the Working Group has recommended a two pronged 
approach consisting of a core (quantitative) analysis of the FTAA, 
accompanied by a supplemental analysis of specific economic sectors, 
geographic areas, and other relevant issues not covered in the core 
analysis. The Working Group has

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presented: (1) Existing methods to quantify the potential economic and 
environmental effects to complete the core analysis, (2) identification 
of and recommendations to address some of the challenges presented by 
the core analysis, (3) recommendations for a process to help identify 
priority issues and appropriate methodologies for a supplemental 
analysis of issues not treated in the core analysis, and (4) estimates 
of the resources necessary to perform the core analysis.
    By itself, the proposed quantitative methodology will not 
constitute a comprehensive analysis of the FTAA's environmental 
effects; rather, the outcome of this effort is intended to feed into 
the larger environmental review process. In addition, the core 
quantitative analysis would help inform the selection of key economic 
sectors and geographic areas within the United States that may warrant 
further examination in the supplemental analysis. These issues may be 
analyzed in a qualitative or quantitative fashion, depending upon such 
factors as: the nature of potential environmental effects, data 
availability and the availability of methods to estimate environmental 
endpoints (positive or negative). As envisaged by the Working Group, 
once the additional issues have been identified in the core and 
supplemental analyses, specific recommendations can be developed 
regarding analytical methods. In addition, specific global and trans-
boundary environmental effects that may emerge as potentially 
significant issues will be examined in the core and/or supplemental 
analyses and incorporated, as appropriate, into the environmental 
review. At a minimum, other components of the review will include a 
concurrent analysis of potential impacts on domestic environmental laws 
and regulations resulting from potential rules changes and changes in 
non-tariff barriers to trade which may result from the negotiations. In 
addition, specific global and trans-boundary environmental effects that 
may emerge as potentially significant issues will be examined and 
incorporated, as appropriate, in the environmental review.
    The FTAA Environmental Group is favorably considering the advice 
and recommendations of the Working Group as presented in the proposed 
methodology. Following input from USTR's advisors, Congress, and the 
public, the Environmental Group will further refine its analytical 
strategy. Initiation of the entire analytical effort should take place 
as soon as possible to ensure the timely consideration of the results 
in the negotiating process.
    WRITTEN COMMENTS: Persons submitting written comments should 
provide twenty (20) copies no later than 5:00 PM January 19, 2001, to 
Gloria Blue at the address listed above. Written comments submitted in 
connection with this request, except for information granted ``business 
confidential'' status pursuant to 15 CFR 2003.6, will be available for 
public inspection in the USTR Reading Room (Room 101) at the address 
noted above. 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 10:00 a.m. to 12 noon, and from 1 p.m. to 4 p.m. Monday through 
Friday.
    Business confidential information will be subject to the 
requirements of 15 CFR 2003.6. Any business confidential material must 
be clearly marked as such on the cover letter or page and each 
succeeding page, and must be accompanied by a non-confidential summary 
thereof. If the submission contains business confidential information, 
twenty (20) copies of a public version that does not contain 
confidential information, must be submitted. A justification as to why 
the information contained in the submission should be treated 
confidentially must be included in the submission. In addition, any 
submissions containing business confidential information must be 
clearly marked ``confidential'' at the top and bottom of the cover page 
(or letter) and each succeeding page of the submission. The version 
that does not contain confidential information should also be clearly 
marked, at the top and bottom of each page, ``public version'' or 
``non-confidential.''

Carmen Suro-Bredie,
Chair, Trade Policy Staff Committee.
[FR Doc. 00-30783 Filed 12-1-00; 8:45 am]
BILLING CODE 3901-1-P