[Federal Register Volume 68, Number 148 (Friday, August 1, 2003)]
[Notices]
[Pages 45304-45306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-19554]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-276]


WTO Dispute Settlement Proceeding Regarding Canadian Measures 
Relating to Exports of Wheat and the Treatment of Imported Grain

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 of the establishment of dispute settlement panels 
under the Marrakesh Agreement Establishing the World Trade Organization 
(``WTO

[[Page 45305]]

Agreement'') concerning measures of the Government of Canada relating 
to the export of wheat and to the treatment of imported grain. USTR 
invites written comments from the public concerning the issues raised 
in this dispute.

DATES: Although USTR will accept comments received throughout the 
course of the dispute settlement proceedings, comments should be 
received on or before August 22, 2003, to be assured of timely 
consideration by USTR.

ADDRESSES: Comments should be submitted either (i) electronically, to 
[email protected], with ``Canada-Wheat Dispute'' in the subject line, or 
(ii) by fax, to Sandy McKinzy at 202-395-3640 with a confirmation copy 
sent electronically to the e-mail address above.

FOR FURTHER INFORMATION CONTACT: William Busis, Associate General 
Counsel, (202) 395-3150; or Sharon Bomer Lauritsen, Deputy Assistant 
USTR for Agricultural Affairs, (202) 395-6127.

SUPPLEMENTARY INFORMATION: Pursuant to section 127(b) of the Uruguay 
Round Agreements Act (URAA) (19 U.S.C. 3537(b)), USTR is providing 
notice that, at the request of the United States, the WTO Dispute 
Settlement Body (DSB) has established panels to examine Canadian 
measures relating to exports of wheat and treatment of imported grain. 
The three persons that compose the panels have been selected pursuant 
to the procedures established in the WTO Understanding on Rules and 
Procedures Governing the Settlement of Disputes.
    The United States panel requests explained that the United States 
considers that certain measures of the Government of Canada are 
inconsistent with Canada's obligations under the General Agreement on 
Tariffs and Trade 1994 (``GATT 1994'') and the Agreement on Trade-
Related Investment Measures (``TRIMs Agreement''):
    (1) Canadian Wheat Exports: The Government of Canada has 
established the Canadian Wheat Board (``CWB''), and has granted to this 
enterprise exclusive and special privileges. These exclusive and 
special privileges include the exclusive right to purchase western 
Canada wheat for export and domestic human consumption at a price 
determined by the Government of Canada and the CWB; the exclusive right 
to sell western Canadian wheat for export and domestic human 
consumption; and government guarantees of the CWB's financial 
operations, including the CWB's borrowing, the CWB's credit sales to 
foreign buyers, and the CWB's initial payments to farmers.
    The laws, regulations and actions of the Government of Canada and 
the CWB appear to be inconsistent with the obligations of the 
Government of Canada under Article XVII of the GATT 1994. In 
particular, the laws, regulations and actions of the Government of 
Canada and the CWB related to exports of wheat appear to be:
    [sbull] Inconsistent with paragraph 1(a) of Article XVII of the 
GATT 1994, pursuant to which the Government of Canada has undertaken 
that the CWB, in its purchases or sales involving wheat exports, shall 
act in a manner consistent with the general principles of non-
discriminatory treatment prescribed in the GATT 1994; and
    [sbull] Inconsistent with paragraph 1(b) of Article XVII of the 
GATT 1994, pursuant to which the Government of Canada has undertaken 
that the CWB shall make such purchases or sales solely in accordance 
with commercial considerations and shall afford the enterprises of 
other WTO Members adequate opportunity, in accordance with customary 
business practice, to compete for such purchases or sales.
    The apparent inconsistency with Canada's obligations under Article 
XVII of the GATT 1994 includes the failure of the Government of Canada 
to ensure that the CWB makes such purchases or sales in accordance with 
the requirements set forth in paragraphs 1(a) and 1(b) of Article XVII.
    (2) Treatment of Imported Grain: With regard to the treatment of 
grain that is imported into Canada, Canadian measures discriminate 
against imported grain, including grain that is the product of the 
United States.
    [sbull] Under the Canada Grain Act and Canadian grain regulations, 
imported grain must be segregated from Canadian domestic grain 
throughout the Canadian grain handling system; imported grain may not 
be received into grain elevators; and imported grain may not be mixed 
with Canadian domestic grain being received into, or being discharged 
out of, grain elevators. These measures accord to imported grain less 
favorable treatment than that accorded to like Canadian grain, and thus 
appear to be inconsistent with the obligations of Canada under Article 
III:4 of the GATT 1994 and Article 2 of the TRIMs Agreement.
    [sbull] Canadian law caps the maximum revenues that railroads may 
receive on the shipment of Canadian domestic grain, but not revenues 
that railroads may receive on the shipment of Canadian domestic grain, 
but not revenues that railroads may receive on the shipment of imported 
grain. In addition, in allocating railcars used for the transport of 
grain, Canada provides a preference for domestic grain over imported 
grain. These measures concerning rail transportation accord to imported 
grain less favorable treatment than that accorded to like domestic 
grain, and thus appear to be inconsistent with the obligations of 
Canada under Article III:4 of the GATT 1994 and Article 2 of the TRIMs 
Agreement.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised by the United States in this dispute. 
Persons submitting comments may either send one copy by fax to Sandy 
McKinzy at 202-395-3640, or transmit a copy electronically to 
[email protected], with ``Canada-Wheat Dispute'' in the subject line. For 
documents sent by fax, USTR requests that the submitter provide a 
confirmation copy electronically. USTR encourages the submission of 
documents in Adobe PDF format, as attachments to an electronic mail. 
Interested persons who make submissions by electronic mail should not 
provide separate cover letters; information that might appear in a 
cover letter should be included in the submission itself. Similarly, to 
the extent possible, any attachments to the submission should be 
included in the same file as the submission itself, and not a separate 
files.
    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 submitter. 
Confidential business information must be clearly marked ``BUSINESS 
CONFIDENTIAL'' at the top and bottom of the cover page and each 
succeeding page of the submission.
    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 submitting person believes that 
information or advice may qualify as such, the submitting person--
    (1) Must so designate the information or advice;
    (2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE'' 
at the top and bottom of the cover page and each succeeding page of the 
submission; and

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    (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 
nonconfidential comments received by USTR from the public with respect 
to the dispute; the U.S. submissions to the panel in the dispute, 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 may be made by calling the USTR 
Reading Room at (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.

Daniel E. Brinza,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 03-19554 Filed 7-31-03; 8:45 am]
BILLING CODE 3190-01-M