[Federal Register Volume 67, Number 202 (Friday, October 18, 2002)]
[Notices]
[Pages 64442-64443]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-26520]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Generalized System of Preferences (GSP); Initiation of a Review 
To Consider the Designation of Afghanistan as a Least-Developed 
Beneficiary Developing Country Under the GSP; Solicitation of Public 
Comments Relating to the Designation Criteria

AGENCY: Office of the United States Trade Representative.

ACTION: Notice and solicitation of public comment with respect to the 
eligibility of Afghanistan for the GSP program.

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SUMMARY: This notice announces the initiation of a review to consider 
the designation of Afghanistan as a least-developed beneficiary 
developing country under the GSP program and solicits public comment 
relating to the designation criteria. Comments are due by November 22, 
2002, in accordance with the requirements for submission explained 
below.

FOR FURTHER INFORMATION: Contact the GSP Subcommittee, Office of the 
United States Trade Representative (USTR), 1724 F Street, NW., Room F-
220, Washington, DC 20508. The telephone number is (202) 395-6791 and 
the facsimile number is (202) 395-9481.

SUPPLEMENTARY INFORMATION: The GSP Subcommittee of the Trade Policy 
Staff Committee (TPSC) has initiated a review to determine if 
Afghanistan meets the designation criteria of the GSP law and should be 
designated as a least-developed beneficiary developing country for 
purposes of the GSP, which is provided for in the Trade Act of 1974, as 
amended (19 U.S.C. 2461, et seq.) (the Act). Interested parties are 
invited to submit comments regarding the eligibility of Afghanistan for 
designation as a GSP least-developed beneficiary developing country. 
Submissions should comply with 15 CFR Part 2007 and the specific 
instructions that follow.

Eligibility Criteria

    The trade benefits under the GSP are available to any country that 
the President designates as a GSP ``beneficiary developing country.'' 
Additional trade benefits under the GSP are available to any country 
that the President designates as a GSP ``least-developed beneficiary 
developing country.'' The criteria that the President must consider in 
designating countries as GSP beneficiary developing countries include 
the criteria in sections 502(b)(2) (19 U.S.C. 2462(b)(2)) and 502(c) 
(19 U.S.C. 2462(c)) of the Act, as amended by the Trade Act of 2002 
(Pub. L. 107-210). To designate a country as a least-developed 
beneficiary developing country, the President must consider the 
criteria in section 502(c), as well as the criteria in section 501 of 
the Act.
    Section 501 provides that, in extending preferences under the GSP, 
the President shall have due regard for:
    1. The effect such action will have on furthering the economic 
development of developing countries through the expansion of their 
exports.
    2. The extent to which other major developed countries are 
undertaking a comparable effort to assist developing countries by 
granting generalized preferences with respect to imports of products of 
such countries.
    3. The anticipated impact of such action on United States producers 
of like or directly competitive products.
    4. The extent of the beneficiary developing country's 
competitiveness with respect to eligible articles.
    Section 502(b)(2) provides that a country is ineligible for 
designation if:
    1. Such country is a Communist country, unless--
    a. The products of such country receive nondiscriminatory 
treatment,
    b. Such country is a WTO Member (as such term is defined in section 
2(10) of the Uruguay Round Agreements Act) (19 U.S.C. 3501(10)) and a 
member of the International Monetary Fund, and
    c. Such country is not dominated or controlled by international 
communism.
    2. Such country is a party to an arrangement of countries and 
participates in any action pursuant to such arrangement, the effect of 
which is--
    a. To withhold supplies of vital commodity resources from 
international trade or to raise the price of such commodities to an 
unreasonable level, and
    b. To cause serious disruption of the world economy.
    3. Such country affords preferential treatment to the products of a 
developed country, other than the United States, which has, or is 
likely to have, a significant adverse effect on United States commerce.
    4. Such country--
    a. Has nationalized, expropriated, or otherwise seized ownership or 
control of property, including patents, trademarks, or copyrights, 
owned by a United States citizen or by a corporation, partnership, or 
association which is 50 percent or more beneficially owned by United 
States citizens,
    b. Has taken steps to repudiate or nullify an existing contract or 
agreement with a United States citizen or a corporation, partnership, 
or association which is 50 percent or more beneficially owned by United 
States citizens, the effect of which is to nationalize, expropriate, or 
otherwise seize ownership or control of property, including patents, 
trademarks, or copyrights, so owned, or
    c. Has imposed or enforced taxes or other exactions, restrictive 
maintenance or operational conditions, or other measures with respect 
to property, including patents, trademarks, or copy rights, so owned, 
the effect of which is to nationalize, expropriate, or otherwise seize 
ownership or control of such property, unless the President determines 
that--
    i. Prompt, adequate, and effective compensation has been or is 
being made to the citizen, corporation, partnership, or association 
referred to above,
    ii. Good faith negotiations to provide prompt, adequate, and 
effective compensation under the applicable provisions of international 
law are in progress, or the country is otherwise taking steps to 
discharge its obligations under international law with respect to such 
citizen, corporation, partnership, or association, or
    iii. A dispute involving such citizen, corporation, partnership, or 
association over compensation for such a seizure has been submitted to 
arbitration under the provisions of the Convention for the Settlement 
of Investment Disputes, or in other mutually agreed upon forum, and the 
President promptly furnishes a copy of such determination to the Senate 
and House of Representatives.
    5. Such country fails to act in good faith in recognizing as 
binding or in enforcing arbitral awards in favor of United States 
citizens or a corporation, partnership, or association which is 50 
percent or more beneficially owned by United States citizens, which 
have been made by arbitrators appointed for each case or by permanent 
arbitral bodies to which the parties involved have submitted their 
dispute.
    6. Such country aids or abets, by granting sanctuary from 
prosecution to,

[[Page 64443]]

any individual or group which has committed an act of international 
terrorism or the Secretary of State makes a determination with respect 
to such country under section 6(j)(1)(A) of the Export Administration 
Act of 1979 [50 U.S.C.S. Appx. 2405(j)(1)(A)] or such country has not 
taken steps to support the efforts of the United States to combat 
terrorism.
    7. Such country has not taken or is not taking steps to afford 
internationally recognized worker rights to workers in the country 
(including any designated zone in that country).
    8. Such country has not implemented its commitments to eliminate 
the worst forms of child labor.
    Section 502(c) provides that, in determining whether to designate 
any country as a GSP beneficiary developing country, the President 
shall take into account:
    1. An expression by such country of its desire to be so designated;
    2. The level of economic development of such country, including its 
per capita gross national product, the living standards of its 
inhabitants, and any other economic factors which the President deems 
appropriate;
    3. Whether or not other major developed countries are extending 
generalized preferential tariff treatment to such country;
    4. The extent to which such country has assured the United States 
that it will provide equitable and reasonable access to the markets and 
basic commodity resources of such country and the extent to which such 
country has assured the United States that it will refrain from 
engaging in unreasonable export practices;
    5. The extent to which such country is providing adequate and 
effective protection of intellectual property rights;
    6. The extent to which such country has taken action to--
    a. Reduce trade distorting investment practices and policies 
(including export performance requirements); and
    b. Reduce or eliminate barriers to trade in services; and
    7. Whether or not such country has taken or it taking steps is 
afford to workers in that country (including any designated zone in 
that country) internationally recognized worker rights.
    Note that the Trade Act of 2002 amended paragraph (D) of the 
definition of the term ``internationally recognized worker rights,'' 
which now includes: (A) The right of association; (B) the right to 
organize and bargain collectively; (C) a prohibition on the use of any 
form of forced or compulsory labor; (D) a minimum age for the 
employment of children and a prohibition on the worst forms of child 
labor as defined in paragraph (6) of section 507(4) of the Act; and (E) 
acceptable conditions of work with respect to minimum wages, hours or 
work, and occupational safety and health.

Requirements for Submissions

    Comments must be submitted, in English, to the Chairman of the GSP 
Subcommittee, Trade Policy Staff Committee. Comments must be received 
no later than 5 p.m. on Monday, November 22, 2202. Information and 
comments submitted regarding Afghanistan will be subject to public 
inspection by appointment with the staff of the USTR Public Reading 
Room, except for information granted ``business confidential'' staff 
pursuant to 15 CFR 2003.6. If the submission contains business 
confidential information, a non-confidential version of the submission 
must also be submitted that indicated where confidential information 
was redacted by inserting asterisks where material was deleted. In 
addition, the confidential submission must be clearly marked ``BUSINESS 
CONFIDENTIAL'' at the top and bottom of each and every page of the 
document. The public version which does not contain business 
confidential information must also be clearly marked at the top and 
bottom of each and every page (either ``PUBLIC VERSION'' of ``NON-
CONFIDENTIAL'').
    In order to facilitate prompt consideration of submissions, USTR 
strongly urges and prefers electronic e-mail submissions in response to 
this notice. In the event that an e-mail submission is impossible, 
submission should be made by facsimile. These submissions should be 
single copy transmission in English with the total submission not to 
exceed 50 single-spaced pages and 3 megabytes as a digital file 
attached to an e-mail transmission. Persons making submissions by e-
mail should use the following subject line: ``Afghanistan GSP 
Eligibility Review''. Documents must be submitted, in English, as 
either WordPerfect (``.WPD''), MSWord (``.DOC''), or text (``.TDXT'') 
files. Documents should not be submitted as electronic image files or 
contain imbedded images (for example, ``.JPG'', ``PDG'', ``.BMP'', or 
``.GIF'') as these types files are generally excessive large. 
Supporting documentation submitted as spreadsheets are acceptable as 
Quattro Pro or Excel, pre- formatted for printing on 8\1/2\ x 11 inch 
paper. To the extent possible, any data attachments to the submission 
should be included in the same file as the submission itself, and not 
as separate files. Facsimile submissions should include, among other 
identifying information specified in the regulations, the following 
information at the top of the first page: ``Afghanistan GSP Eligibility 
Review''.
    For any document containing business confidential information 
submitted as an electronic attached file to an e-mail transmission, the 
file name of the business confidential version should begin with the 
character in ``BC-'', and the file name of the public version should 
begin with the characters ``P-''. The ``P-'' or ``BC-'' should be 
followed by the name of the submitter. Persons who make submissions by 
e-mail should not provide separate cover letters or messages in the 
message area of the e-mail; information that might appear in any cover 
letter should be included directly in the attached file containing the 
submission itself. The e-mail address for these submission is 
[email protected]. Documents not submitted in accordance with these 
instructions might not be considered in this review.
    Public versions of all documents relating to this review will be 
available for review shortly after the due date by appointment in the 
USTR public reading room, 1724 F Street NW., Washington, DC. 
Appointments may be made from 9:30 a.m. to noon and 1 p.m. to 4 p.m., 
Monday through Friday by calling (202) 395-6186.

Steven Falken,
Executive Director for GSP, Chairman, GSP Subcommittee.
[FR Doc. 02-26520 Filed 10-17-02; 8:45 am]
BILLING CODE 3190-01-M