[Federal Register Volume 65, Number 235 (Wednesday, December 6, 2000)]
[Notices]
[Pages 76336-76337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31068]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/D-212]


WTO Consultations Regarding Countervailing Duty Measures 
Concerning Certain Products From the European Communities

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 that on November 13, 2000, the United States received 
from the European Communities (EC) a request for consultations under 
the Marrakesh Agreement Establishing the World Trade Organization (WTO 
Agreement). The request relates to the continued application by the 
United States of countervailing duties based upon the ``change in 
ownership'' methodology used by the U.S. Department of Commerce 
(Commerce). The measures identified by the EC (including the relevant 
Commerce case number) are as follows:

     Original Imposition of Countervailing Duties
     Stainless Steel Sheet and Strip in Coils from France (C-
427-815)
     Certain Cut-to-Length Carbon Quality Steel from France (C-
427-817)
     Certain Pasta from Italy (C-475-819)
     Stainless Steel Sheet and Strip in Coils from Italy (C-
475-825)*
     Certain Stainless Steel Wire Rod form Italy (C-475-821)*
     Stainless Steel Plate in Coils from Italy (C-475-823)*
     Certain Cut-to-Length Carbon-Quality Steel Plate from 
Italy (C-475-827)

(With respect to those cases marked with an asterisk, the correct case 
numbers are provided, as opposed to the incorrect case numbers included 
in the EC's request for consultations.)

     Administrative Reviews
     Cold-Rolled Carbon Steel Flat Products from Sweden (C-401-
401)
     Cut-to-Length Carbon Steel Plate from Sweden (C-401-804)
     Grain-Oriented Electrical Steel from Italy (C-475-812)

(With respect to case C-475-812, the EC consultation request identifies 
the ``Preliminary determination, plus final sunset results''.)

     Sunset Reviews
     Cut-to-Length Carbon Steel Plate from the United Kingdom 
(C-412-815)
     Certain Corrosion-Resistant Carbon Steel Flat Products 
from France (C-427-810)
     Cut-to-Length Carbon Steel Plate from Germany (C-428-817)
     Cut-to-Length Carbon Steel Plate from Spain (C-469-804)

    The EC alleges that the continued application of Commerce's change 
in ownership methodology in these countervailing duty proceedings 
violate Articles 10, 19 and 21 of the WTO Agreement on Subsidies and 
Countervailing Measures (SCM Agreement), because, according to the EC, 
there is no proper determination of a benefit to the producer of the 
goods under investigation, as required by Article 1.1(b) of the SCM 
Agreement. Under Article 4.3 of the WTO Dispute Settlement 
Understanding (DSU), consultations are to take place within a period of 
30 days from the date of receipt of the request, or within a period 
otherwise mutually agreed between the United States and the EC. 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 on or before January 15, 2001, to be assured of timely 
consideration by USTR.

ADDRESSES: Submit comments to Sandy McKinzy, Monitoring and Enforcement 
Unit, Office of the General Counsel, Room 122, Office of the United 
States Trade Representative, 600 17th Street, NW., Washington, DC, 
20508, Attn: Change in Ownership Methodology Dispute. Telephone: (202) 
395-3582.

FOR FURTHER INFORMATION CONTACT: William D. Hunter, Associate General

[[Page 76337]]

Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC, 20508. Telephone: (202) 395-3582.

SUPPLEMENTARY INFORMATION: Section 127(b) of the Uruguay Round 
Agreements Act (URAA) (19 U.S.C. 3537(b)(1)) requires that notice and 
opportunity for comment be provided after the United States receives a 
request for the establishment of a WTO dispute settlement panel. 
Consistent with this obligation, but in an effort to provide additional 
opportunity for comment, USTR is providing notice that consultations 
have been requested pursuant to the WTO Dispute Settlement 
Understanding. If such consultations should fail to resolve the matter 
and a dispute settlement panel is established pursuant to the DSU, such 
panel, which would hold its meetings in Geneva, Switzerland, would be 
expected to issue a report on its findings and recommendations within 
six to nine months after it is established.

Major Issues Raised by the EC

    In its consultation request, the EC alleges that in United States--
Imposition of Countervailing Duties on Certain Hot-Rolled Lead and 
Bismuth Carbon Steel Products, WT/DS138/AB/R, the WTO Appellate Body 
found Commerce's change in ownership methodology to be inconsistent 
with the SCM Agreement. The EC also alleges that the Appellate Body 
found that a change of ownership at fair market value eliminated the 
benefit of any prior subsidies to the privatized company. Therefore, 
the EC alleges that the continued application of Commerce's change in 
ownership methodology, and the continued imposition of countervailing 
duties based upon that methodology, violate Articles 10, 19 and 21 of 
the SCM Agreement. According to the EC, if the United States had 
properly examined the nature of the change in ownership in each of the 
countervailing duty proceedings identified in the EC's request for 
consultations, the amount of countervailing duty would have been 
greatly reduced or, in some cases, found to be zero.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the dispute. Comments must be in 
English and provided in fifteen copies. 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 commenter. 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 submitter believes that information 
or advice may qualify as such, the submitter--
    (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, N.W., Washington, D.C. 
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 
participants 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-212, Change in 
Ownership Methodology Dispute) 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 United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 00-31068 Filed 12-5-00; 8:45 am]
BILLING CODE 3190-01-M