[Federal Register Volume 69, Number 250 (Thursday, December 30, 2004)]
[Notices]
[Pages 78517-78518]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-28626]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


WTO Dispute Settlement Proceeding Regarding Countervailing Duty 
Measures Concerning Certain Products from the European Communities

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 the European Communities (``EC'') 
has requested the establishment of a dispute settlement panel under the 
Marrakesh Agreement Establishing the World Trade Organization (``WTO 
Agreement''). That request may be found at http://www.wto.org contained 
in a document designated as WT/DS212/15. As a result of that request, a 
dispute settlement panel has been established to examine certain sunset 
review determinations by the United States Department of Commerce 
(``Commerce''). 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 January 31, 2005, to be assured of timely 
consideration by USTR.

ADDRESSES: Comments should be submitted (i) electronically, to 
[email protected], Attn: ``Change in Ownership Methodology 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: Elizabeth V. Baltzan, Associate 
General Counsel, Office of the United States Trade Representative, 600 
17th Street, NW., Washington, DC 20508, (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. The dispute settlement panel, which will hold its meetings in 
Geneva, Switzerland, is expected to issue a report on its findings and 
recommendations by May, 2005.

Major Issues Raised by the EC

    On January 8, 2003, the WTO Dispute Settlement Body (``DSB'') 
adopted the Appellate Body report and the panel report, as modified by 
the Appellate Body, in the case WT/DS212 (United States--Countervailing 
Measures concerning Certain Products from the European Communities). 
These reports involved the ``change-in-ownership'' methodology applied 
by Commerce in proceedings under the U.S. countervailing duty law. The 
DSB recommended that the United States bring its administrative 
practice and the twelve individual determinations found to be 
inconsistent with the Agreement on Subsidies and Countervailing 
Measures (``SCM Agreement'') into conformity with its WTO obligations.
    On January 27, 2003, the United States informed the DSB that it 
intended to implement the recommendations and rulings of the DSB in a 
manner consistent with its WTO obligations. After publishing a 
modification of its change-in-ownership methodology, Commerce applied 
that new methodology to the twelve individual determinations that had 
been found by the DSB to be inconsistent with U.S. WTO obligations. 
Commerce issued final revised determinations November 7, 2003. Also on 
November 7, 2003, the United States informed the DSB that it had fully 
complied with the DSB's recommendations and rulings.
    On March 17, 2004, the EC initiated proceedings under Article 21.5 
of the DSU by requesting consultations with the United States. In its 
consultation request, the EC alleged that the United States had not 
fully complied with the DSB's recommendations and rulings. Because 
consultations did not resolve the matter, the EC requested the 
establishment of a panel pursuant to Articles 6 and 21.5 of the DSU, 
Article 30 of the SCM Agreement, and Article XXIII of the General 
Agreement on Tariffs and Trade 1994 (``GATT 1994''). The DSB 
established the panel and referred the matter to the original 
panelists.
    In its panel request, the EC identifies the following measures and 
claims:
     With respect to the revised determination in the sunset 
review on Certain Corrosion-Resistant Carbon Steel Flat Products from 
France (C-427-810), the EC claims that Commerce failed to properly 
examine the existence, continuation or likelihood of recurrence of 
subsidization. In particular, with regard to the privatization 
concerned, the EC alleges that Commerce improperly analysed the 
consequences of the price charged to employees and retirees for shares 
in the privatized company. The EC claims that this is inconsistent with 
Articles 10, 14, 19.4, 21.1 and 21.3 of the SCM Agreement and Article 
VI: 3 of GATT 1994.
     With respect to the revised determinations in the sunset 
reviews on Cut-to-Length Carbon Steel Plate from United Kingdom (C-412-
815), and Cut-to-Length Carbon Steel Plate from Spain (C-469-804) (Case 
No. 11), the EC claims that Commerce failed to properly determine 
whether there was continuation or recurrence of subsidization and 
injury, because Commerce did not examine the nature of the 
privatizations in question and their impact on the continuation of the 
alleged subsidization. According to the EC, this is inconsistent with 
Articles 10, 14, 19.4, 21.1 and 21.3 of the SCM Agreement and Article 
VI:3 of GATT 1994.
    Public Comment: Requirements for Submissions.
    Interested persons are invited to submit written comments 
concerning the issues raised 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 
``Change in Ownership Methodology Dispute (DS212)'' 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.

[[Page 78518]]

    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 designated as such 
and the submission must be 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 clearly so designate the information or advice;
    (2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE'at 
the top and bottom of each page 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 No. WT/DS-212, Change in Ownership Methodology 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 E. Brinza,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 04-28626 Filed 12-29-04; 8:45 am]
BILLING CODE 3190-W5-P