[Federal Register Volume 69, Number 250 (Thursday, December 30, 2004)]
[Notices]
[Pages 78516-78517]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-28625]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Petitions Under Section 302 on the Valuation of Chinese Currency; 
Decisions Not to Initiate Investigations

AGENCY: Office of the United States Trade Representative.

ACTION: Decisions not to initiate investigations.

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SUMMARY: The United States Trade Representative (USTR) has determined 
not to initiate investigations under section 302 of the Trade Act of 
1974 with respect to petitions addressed to the valuation of Chinese 
currency because initiation of investigations would not be effective in 
addressing the issues raised in the petitions.

EFFECTIVE DATES: With respect to the petition filed by the China 
Currency Coalition: September 9, 2004. With respect to the petition 
filed by the Congressional China Currency Action Coalition: November 
12, 2004.

FOR FURTHER INFORMATION CONTACT: Terrence McCartin, Senior Director of 
Monitoring and Enforcement for China, (202) 395-3900; or William Busis, 
Associate General Counsel, (202) 395-3150.

SUPPLEMENTARY INFORMATION: On September 9, 2004, the China Currency 
Coalition filed a petition pursuant to section 302(a)(1) of the Trade 
Act of 1974, as amended (the Trade Act), alleging that certain acts, 
policies and practices of the Government of China with respect to the 
valuation of Chinese currency deny and violate international legal 
rights of the United States, are unjustifiable, and burden or restrict 
U.S. commerce. In particular, the petition alleged that China's acts, 
policies and practices that maintain a fixed exchange rate vis a vis 
the U.S. dollar have resulted in a significant undervaluation of 
Chinese currency. The petition alleged that these acts, policies and 
practices: amount to a prohibited export subsidy under the Agreement on 
Subsidies and Countervailing Measures and articles VI and XVI of the 
General Agreement on Tariffs and Trade 1994 (GATT 1994); amount--under 
article XV of the GATT 1994--to exchange action that frustrates the 
intent of articles I, II, III, and XI of the GATT 1994; and amount to 
subsidies that are inconsistent with China's obligations under articles 
3, 9, and 10 of the Agreement on Agriculture. The petition also alleged 
that these acts, policies and practices of China violate international 
legal rights of the United States under articles IV and VIII of the 
Articles of Agreement of the International Monetary Fund, and that they 
burden or restrict U.S. commerce by, among other things, suppressing 
U.S. manufacturing for domestic consumption and the growth in U.S. 
exports.
    Upon receipt of the petition, the USTR determined not to initiate 
an investigation under section 302 of the Trade Act because an 
investigation would not be effective in addressing the acts, policies, 
and practices covered in the petition. The Administration is currently 
involved in efforts to address with the Government of China the 
currency valuation issues raised in the petition. The USTR believes 
that initiation of an investigation under section 302 would hamper, 
rather than advance, Administration efforts to address Chinese currency 
valuation policies.
    Subsequent to the USTR's decision not to initiate an investigation 
in response to the petition filed by the China Currency Coalition, a 
different petitioner--the Congressional China Currency Action 
Coalition--filed a petition on September 30, 2004 with respect to 
Chinese currency valuation. As compared to the earlier petition, the 
second petition addressed the same acts, policies and practices of 
China, and contained substantially the same allegations that those 
acts, policies, and practices deny and violate international legal 
rights of the United States, are

[[Page 78517]]

unjustifiable, and burden or restrict U.S. commerce. The USTR's 
determination with respect to the second petition was the same as his 
determination with respect to the earlier petition: namely, the USTR 
decided not to initiate an investigation in response to the second 
petition because an investigation would not be effective in addressing 
the acts, policies, and practices covered in the petition.

William Busis,
Chairman, Section 301 Committee.
[FR Doc. 04-28625 Filed 12-29-04; 8:45 am]
BILLING CODE 3190-W5-P