[Federal Register Volume 67, Number 114 (Thursday, June 13, 2002)]
[Notices]
[Pages 40766-40767]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-14896]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-260]


WTO Consultations Regarding EC Provisional Safeguard Measures 
Against Imports of Certain Steel Products

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 May 30, 2002, the United States requested 
consultations with the European Communities (EC) under the Marrakesh 
Agreement Establishing the World Trade Organization (WTO), regarding 
the imposition of provisional safeguard measures against imports of 
certain steel products. These measures appear to be inconsistent with 
the EC's obligations under the provisions of the GATT 1994 and of the 
WTO Agreement on Safeguards, and, in particular, Article XIX of the 
GATT 1994 and Articles 2, 3, 4, 6, and 12 of the Agreement on 
Safeguards. Pursuant to Article 4.3 of the WTO Dispute Settlement 
Understanding (DSU), such consultations are to take place within a 
period of 30 days from the date of the request, or within a period 
otherwise mutually agreed between the United States and the EC. USTR 
invites written

[[Page 40767]]

comments from the public concerning the issues raised in this dispute.

DATES: Although the USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted on or before June 21, 2002, 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: Dispute on EC Safeguard Measures on Steel, Telephone: 
(202) 395-3581.

FOR FURTHER INFORMATION CONTACT: L. Daniel Mullaney, 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. 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 United States

    On March 28, 2002, the EC published Commission Regulation No. 560/
2002 of 27 March 2002, imposing provisional safeguard measures on 
certain steel products, effective March 29, 2002. These products are 
non alloy hot rolled coils, non alloy hot rolled sheets and plates, non 
alloy hot rolled narrow strip, alloy hot rolled flat products, cold 
rolled sheets, electrical sheets (other than GOES), tin mill products, 
quarto plates, wide flats, non alloy merchant bars and light sections, 
alloy merchant bars and light sections, rebars, stainless steel wire, 
fittings (<609,6mm) and flanges (other than of stainless steel). These 
measures appear to be inconsistent with at least the following 
provisions of the GATT 1994 and the WTO Agreement on 
Safeguards:
     Article 6 of the Agreement on Safeguards, in conjunction 
with Articles 2.1, 4.1 and 4.2 of the Agreement on Safeguards and 
Article XIX of the GATT 1994, which permits the taking of a provisional 
safeguard measure only pursuant to a preliminary determination that 
there is clear evidence that increased imports have caused or are 
threatening to cause serious injury to the domestic industry that 
produces like or directly competitive products.
     Article 6 of the Agreement on Safeguards and Article XIX 
of the GATT 1994, which provide that Members may take provisional 
safeguard measures only in critical circumstances, where delay would 
cause damage which it would be difficult to repair.
     Articles 3 and 6 of the Agreement on Safeguards, which, 
inter alia, (1) require that any provisional safeguard measure be taken 
only pursuant to a preliminary determination based on clear evidence; 
(2) require that any safeguard measure be taken only following an 
investigation by the competent authorities of the Member pursuant to 
procedures previously established and made public in consonance with 
Article X of the GATT 1994; (3) require notice and opportunity for all 
interested parties to be heard; and (4) require the publication of a 
report setting forth findings and reasoned conclusions reached on all 
pertinent issues of fact and law.
     Article 12.1 of the Agreement on Safeguards, which 
requires Members immediately to notify the Committee on Safeguards upon 
(a) initiating an investigation relating to serious injury or threat 
thereof and the reasons for it, (b) upon making a finding of serious 
injury or threat thereof caused by increased imports, and (c) taking a 
decision to apply or extend a safeguard measure.
     Article 2.2 of the Agreement on Safeguards, and Article I 
of the GATT 1994, by applying its safeguard measures to the goods of 
some WTO Members, while excluding the goods of other countries whose 
territories are not part of a free trade area or a customs union and 
who are not developing country WTO Members.
     Article XIX:1(a) of the GATT 1994, which allows a WTO 
Member to impose a safeguard measure only if, as a result of unforeseen 
developments, a product is being imported in such increased quantities 
and under such conditions as to cause or threaten serious injury to 
domestic producers of the like or directly competitive products.

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 panel; and, if applicable, 
the report of the Appellate Body. An appointment to review the public 
file (Docket WTO/DS-260, Dispute on EC Safeguard Measures on Steel) 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.

Bruce R. Hirsh,
Acting Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 02-14896 Filed 6-12-02; 8:45 am]
BILLING CODE 3190-01-P