[Federal Register Volume 69, Number 43 (Thursday, March 4, 2004)]
[Notices]
[Pages 10286-10287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4804]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-305]


WTO Dispute Settlement Proceeding Regarding Egypt--Measures 
Affecting Imports of Textile and Apparel 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 December 23, 2003, in accordance with the 
Marrakesh Agreement Establishing the World Trade Organization (WTO 
Agreement), the United States requested consultations with Egypt 
regarding the import duties that Egypt applies to textile and apparel 
products. USTR believes the duties Egypt actually applies (on a ``per 
article'' basis) greatly exceed the ad valorem bound rates that Egypt 
agreed to apply in the Uruguay Round of WTO negotiations.
    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 March 26, 2004, 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: Egypt Textile and Apparel Dispute. Telephone: (202) 395-
3582.

FOR FURTHER INFORMATION CONTACT: Jason Kearns, Assistant General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC (202) 395-3582.

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 (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 meeting 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 December 23, 2003, the United States requested consultations 
with the Government of Egypt pursuant to Articles 1 and 4 of the DSU, 
Article XXII:1 of the General Agreement on Tariffs and Trade 1994 (GATT 
1994), and Article 7 of the Agreement on Textiles and Clothing (ATC) 
regarding the tariffs applied to textile and apparel products and the 
Decree of the President of the Arab Republic of Egypt No. 469 of the 
year 2001 (``Decree No. 469'') and any amendments, related regulations 
or other implementing measures.
    In the Uruguay Round, Egypt agreed to remove a general prohibition 
on the importation of apparel and made-up textile products by January 
1, 2002. It also agreed to bind its duties under HS Chapters 61 
(articles of apparel and clothing, knitted and crocheted) and 62 
(articles of apparel and clothing, not knitted or crocheted) at an ad 
valorem rate of 46 percent in 2003, 43 percent in 2004 and 40 percent 
thereafter. Moreover, it agreed to bind its duties under HS Chapter 63 
(other made up

[[Page 10287]]

textile articles; sets; worn clothing) at an ad valorem rate of 41 
percent in 2003, 38 percent in 2004, and 35 percent thereafter.
    USTR understands that, on December 31, 2001, just before the import 
prohibition was set to expire, President Mubarak issued Decree No. 469 
amending the customs duties applicable to a number of imported 
articles, including articles that enter under HS Chapters 61, 62 and 
63. The amended duties were specific (i.e., in Egyptian pounds (L.E.) 
per piece of clothing), rather than ad valorem. It appears that the 
specific duties applied by Egypt greatly exceed Egypt's bound rates of 
duty. Specifically, it appears that the ad valorem equivalent of these 
duties range from a low of 141 percent to a high of 51,296 percent--all 
well above the bound rates. USTR therefore believes that these tariffs, 
Decree No. 469 and any related measures are inconsistent with the 
obligations of Egypt under several WTO provisions, including Article II 
of the GATT 1994 and Article 7 of the ATC.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the 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 
``Egypt Textile Tariffs (DS305)'' in the subject line. For documents 
sent by fax, USTR requests that the submitter provide a confirmation 
copy to the electronic mail address listed above.
    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 as separate files.
    Comments must be in English. 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 designated as such and ``BUSINESS CONFIDENTIAL'' must be marked 
at the top and bottom of the cover page and each succeeding page.
    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 clearly 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; 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-305, Egypt Textile and Apparel Dispute) 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 noon 
and 1 p.m. to 4 p.m., Monday through Friday.

Daniel Brinza,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 04-4804 Filed 3-3-04; 8:45 am]
BILLING CODE 3190-01-M