[Federal Register Volume 70, Number 1 (Monday, January 3, 2005)]
[Notices]
[Pages 135-136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-28673]



[[Page 135]]

-----------------------------------------------------------------------

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS108]


WTO Dispute Settlement Proceeding Regarding the American JOBS 
Creation Act of 2004

AGENCY: Office of the United States Trade Representative.

ACTION: Notice; request for comments.

-----------------------------------------------------------------------

SUMMARY: The Office of the United States Trade Representative 
(``USTR'') is providing notice that the European Communities has 
requested dispute settlement consultations 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/DS108/27. 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 10, 2005, to be assured of timely 
consideration by USTR.

ADDRESSES: Comments should be submitted (i) electronically, to 
[email protected], Attn: ``JOBS Act (DS108)'' in the subject line, or 
(ii) by fax, to Sandy McKinzy, at 202-395-3640. For documents sent by 
fax, USTR requests that the submitter provide a confirmation copy to 
the electronic mail address listed above.

FOR FURTHER INFORMATION CONTACT: William D. Hunter, 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. 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 Understanding on 
Rules and Procedures Governing the Settlement of Disputes (``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 meetings in Geneva, Switzerland, would be expected to 
issue a report on its findings and recommendations within 90 days after 
referral of the matter to it.

Major Issues Raised by the EC

    On November 5, 2004, the EC requested consultations with the United 
States pursuant to Articles 4 and 21.5 of the DSU, Article 4 of the 
Agreement on Subsidies and Countervailing Measures (``SCM Agreement''), 
Article 19 of the Agreement on Agriculture, and Article XXII:1 of the 
General Agreement on Tariffs and Trade 1994 (``GATT 1994'') with 
respect to the American JOBS Creation Act of 2004 (``the JOBS Act''). 
According to the EC, the JOBS Act, which was enacted on October 22, 
2004, was intended to implement the recommendations and rulings of the 
WTO Dispute Settlement Body in case WT/DS108 (United States--Tax 
Treatment for ``Foreign Sales Corporations'' and United States--Tax 
Treatment for ``Foreign Sales Corporations''--Recourse to Article 21.5 
of the DSU by the European Communities), but fails to do so properly 
and is inconsistent with the same provisions of the WTO Agreement as 
was the predecessor legislation.
    In particular, the EC considers that Section 101 of the JOBS Act 
contains transitional provisions that will allow U.S. exporters to 
continue to benefit from the FSC Replacement and Extraterritorial 
Income Exclusion Act as follows: (a) In the years 2005 and 2006 with 
respect to all export transactions; and (b) for an indefinite period 
with respect to certain binding contracts. According to the EC, this 
results in a failure to withdraw the subsidy and implement the DSB's 
recommendations and rulings. The EC considers that the United States 
has failed to withdraw the subsidies as required by Article 4.7 of the 
SCM Agreement and has failed to implement the DSB's recommendations and 
rulings as required by Articles 19.1 and 21.1 of the DSU. The EC also 
considers that the United States continues to violate Articles 3.1(a) 
and 3.2 of the SCM Agreement, Articles 10.1 and 8 of the Agreement on 
Agriculture and Article III:4 of the GATT 1994.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in this dispute. Persons may submit their 
comments either (i) electronically, to [email protected], Attn: 
``JOBS Act (DS108)'' in the subject line, or (ii) by fax to Sandy 
McKinzy, at 202-395-3640. 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 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.
    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/DS108, JOBS Act 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

[[Page 136]]

a.m. to noon and 1 p.m. to 4 p.m., Monday through Friday.

Bruce R. Hirsh,
Acting Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 04-28673 Filed 12-30-04; 8:45 am]
BILLING CODE 3190-W5-P