[Federal Register Volume 66, Number 153 (Wednesday, August 8, 2001)]
[Notices]
[Pages 41649-41650]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19870]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-221]


WTO Dispute Settlement Proceeding Regarding Section 129(c)(1) of 
the Uruguay Round Agreements Act

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 July 12, 2001, Canada requested the 
establishment of a WTO dispute settlement panel to examine Section 
129(c)(1) of the Uruguay Round Agreements Act. 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 September 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: Section 129(c)(1) dispute. Telephone: (202) 395-3592.

FOR FURTHER INFORMATION CONTACT: David J. Ross, Associate General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC (202) 395-3581.

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 submits or 
receives a request for the establishment of a WTO dispute settlement 
panel. If a dispute settlement panel is established pursuant to the WTO 
Dispute Settlement Understanding (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 Canada

    Section 129(c)(1) of the URAA (19 U.S.C. 3538(c)(1)) is provision 
of U.S. law that addresses the treatment of unliquidated entries of 
subject merchandise in situations where the United States responds to a 
WTO panel decision by revoking a U.S. antidumping or countervailing 
duty order. In its panel request, Canada describes its claims against 
Section 129(c)(1) in the following manner:

    The measure at issue is Section 129(c)(1) of the URAA (19 U.S.C. 
3538(c)(1)). In situations in which the DSB has ruled that an 
antidumping or countervailing duty determination is inconsistent 
with the obligations of the United States under the AD Agreement or 
the SCM Agreement and the United States Trade Representative directs 
the U.S. Department of Commerce to implement a new determination, 
section 129(c)(1) of the URAA requires that the new determination 
shall apply only to entries of imports that are entered or withdrawn 
from warehouse for consumption on or after the date on which the 
United States Trade Representative directs the Department of 
Commerce to implement the new determination. Pursuant to section 
129(c)(1), and as confirmed by the Statement of Administrative 
Action accompanying the URAA (H.R. Doc. No. 103-316. at page 1026 
(1994)), unliquidated entries of imports that entered or were 
withdrawn from warehouse for consumption prior to that date (``prior 
unliquidated entries'') remain subject to assessment of duties 
pursuant to the original antidumping or countervailing duty 
determination, notwithstanding the adverse DSB ruling and 
notwithstanding that a final determination assessing those duties 
will be made after the date fixed for compliance in accordance with 
the DSU.
    Accordingly, section 129(c)(1) of the URAA requires that the 
Department of Commerce make determinations in future administrative 
reviews to assess duties on prior unliquidated entries pursuant to 
the original antidumping or countervailing duty determination 
notwithstanding that such determination has been found to be not in 
conformity with the AD Agreement or the SCM Agreement. Section 
129(c)(1) requires that the United States make duty assessments in a 
manner that the DSB has ruled to be inconsistent with the 
requirements of Article VI of the GATT 1994 or the AD Agreement and 
the SCM Agreement.


[[Page 41650]]


    Canada asserts on these grounds that Section 129(c)(1) is 
inconsistent with Articles VI:2, VI:3 and VI:6(a) of the GATT 1994; 
Articles 10, 19.4, 21.1, 32.1 and 32.5 of the SCM Agreement; and 
Articles 1, 9.3, 11.1, 18.1 and 18.4 of the AD Agreement. Canada 
further claims that:

    Article 18.4 of the AD Agreement, Article 32.5 of the SCM 
Agreement and Article XVI:4 of the Marrakesh Agreement Establishing 
the World Trade Organization (``WTO Agreement'') require a Member to 
bring its laws, regulations and administrative procedures into 
conformity with its WTO obligations. The DSU . . . provides that a 
Member found in breach of its WTO obligations is to comply 
immediately or, where that is not practicable, within the reasonable 
period of time as determined under Article 21.3. With respect to 
determinations made after the date fixed for compliance and insofar 
as such determinations affect entries prior to that date, section 
129(c)(1) precludes the United States from complying with a DSB 
ruling. This prevents rather than ensures compliance by the United 
States with its WTO obligations.

    On these grounds, Canada asserts that Section 129(c)(1) is 
consistent with Article 18.4 of the AD Agreement; Article 32.5 of the 
SCM Agreement, Article XVI:4 of the WTO Agreement; and DSU Articles 
3.2, 3.7, 19.1, 21.1, and 213.

Public Comment: Requirement 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, which is located at 1724 ``F'' 
St., N.W., Washington, DC 20508. The public file will include a listing 
of any comments received by USTR from the public with respect to the 
dispute; if a dispute settlement panel is convened, the U.S. 
submissions to that panel, 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 panel; and, if applicable, 
the report of the Appellate Body. An appointment to review the public 
file (Docket WTO/DS-221, Section 129(c)(1) 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. 01-19870 Filed 8-7-01; 8:45 am]
BILLING CODE 3190-01-M