[Federal Register Volume 66, Number 195 (Tuesday, October 9, 2001)]
[Notices]
[Pages 51490-51491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-25277]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-239]


WTO Dispute Settlement Proceeding Brought by Brazil Pertaining to 
Certain Measures Regarding Antidumping Methodology

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 September 21, 2001, the United States received 
from Brazil a request for consultations under the Marrakesh Agreement 
Establishing the World Trade Organization (WTO Agreement) pertaining to 
certain measures regarding antidumping methodology as applied by the 
U.S. Department of Commerce (DOC). Brazil alleges that:
     Current U.S. methodology pursuant to which the DOC applies 
a de minimis standard of 0.5 percent in ``sunset'' reviews is 
inconsistent with Articles 5, 11 and 18 of the Agreement on 
Implementation of Article VI of the General Agreement on Tariffs and 
Trade 1994 (Antidumping Agreement, or ADA), insofar as these provisions 
allegedly require a 2 percent de minimis standard to be applied to both 
investigations and reviews; and
     The DOC's practice of ``zeroing'', when calculating the 
dumping margin, is disallowed under Articles 2 and 9 of the ADA, as 
interpreted in a prior case by a panel and the Appellate Body, in 
reviews as well as in investigations.
    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 October 20, 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: Brazil Antidumping Dispute. Telephone (202) 395-3582.

FOR FURTHER INFORMATION CONTACT: Katharine J. Mueller, Assistant 
General Counsel, Office of the United States Trade Representative, 600 
17th Street, NW., Washington, DC (202) 395-0317.

SUPPLEMENTARY INFORMATION: Section 127(b) of the Uruguay Round 
Agreements Act (URAA) (19 U.S.C.

[[Page 51491]]

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. 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 (DSU). 
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 Brazil

    Section 213 of the URAA (amending section 733(b)(3) of the Tariff 
Act of 1930) provides, in accordance with Article 5.8 of the ADA, that, 
for purposes of antidumping investigations, a dumping margin less than 
or equal to 2 percent is de minimis. However, Sec. 351.106(c) of the 
DOC's regulation, 19 CFR 351.106(c), applies a 0.5 percent de minimis 
standard in the case of ``sunset'' reviews, which are conducted for 
purposes of determining whether an antidumping duty order should be 
revoked. Brazil claims that the DOC de minimis standard for reviews is 
inconsistent with the ADA because, according to Brazil, a 2 percent 
standard must be used in both investigations and reviews.
    Brazil also argues that the United States practice of ``zeroing,'' 
according to which negative dumping margins are counted as ``zero'' in 
both investigations and reviews, is inconsistent with the principle of 
fair comparison set out in Article 2 of the ADA. Brazil points out that 
the panel in European Communities--Anti-Dumping on Imports of Cotton-
Type Bed Linen from India, WT/DS141/R, concluded that ``zeroing'' is 
inconsistent with the ADA, and that this finding was affirmed by the 
Appellate Body, WT/DS141/AB/R.

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, which is located at 1724 F 
Street, NW., Washington, DC 20508. The public file will include non-
confidential 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 pane; and, if applicable, 
the report of the Appellate Body. An appointment to review the public 
file (Docket WTO/DS-239, Brazil Antidumping 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. 01-25277 Filed 10-5-01; 8:45 am]
BILLING CODE 3190-01-M