[Federal Register Volume 70, Number 34 (Tuesday, February 22, 2005)]
[Notices]
[Pages 8654-8655]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-3236]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-257]


WTO Dispute Settlement Proceeding Regarding Final Countervailing 
Duty Determination With Respect to Certain Softwood Lumber From Canada

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 January 14, 2005, at the request of Canada, 
the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) 
established a dispute settlement panel under the Marrakesh Agreement 
Establishing the WTO. The panel is to examine whether the United States 
has implemented the recommendations and rulings of the DSB in a dispute 
involving a U.S. Department of Commerce (Commerce) countervailing duty 
investigation of certain softwood lumber products from Canada. On 
February 17, 2004, the DSB adopted its findings in that dispute, which 
rejected most of Canada's claims but found that, consistent with the 
WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement) 
and the General Agreement on Tariffs and Trade 1994 (GATT 1994), 
Commerce should have conducted an analysis of whether subsidies ``pass 
through'' from certain producers to others with respect to certain log 
sales. In response to the DSB's recommendations and rulings, Commerce 
conducted a pass-through analysis and issued a new determination 
revising the subsidy rate for the investigation from 18.79% to 18.62%. 
Canada subsequently requested the establishment of a dispute settlement 
panel, alleging that the United States had failed to implement the 
DSB's recommendations and rulings. The panel was established on January 
14, 2005. 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 3, 2005, to be assured of timely 
consideration by USTR.

ADDRESSES: Comments should be submitted (i) electronically, to 
[email protected], Attn: ``Canada Lumber Final CVD (DS257)'' 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: L. Daniel Mullaney, Associate General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC 20508, (202) 395-3150.

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. Pursuant to the WTO Understanding on Rules and Procedures 
Governing the Settlement of Disputes (DSU), the panel, which will hold 
its meetings in Geneva, Switzerland, is expected to issue a report on 
its findings and recommendations within approximately four months of 
the date it is established.

Prior WTO Proceedings

    The dispute settlement panel and Appellate Body reports are 
publicly available in the USTR reading room and on the WTO Web site 
http://www.wto.org.

[[Page 8655]]

Article 21.5 Proceeding

    Pursuant to the rules of the DSU, the United States and Canada 
agreed that the United States would have until December 17, 2004, to 
implement the recommendations and rulings of the DSB. To implement 
these recommendations and rulings, Commerce requested information from 
Canadian producers and from the Government of Canada and conducted a 
pass-through analysis, issuing a determination on December 6, 2004, 
that revised the subsidy rate for the investigation from 18.79% to 
18.62%. On December 30, 2004, Canada alleged that the United States had 
not properly implemented the recommendations and rulings and requested 
the establishment of a dispute settlement panel under Article 21.5 of 
the DSU to review this implementation. The panel was established on 
January 14, 2005.
    In its request under Article 21.5, Canada alleges that Commerce 
failed to implement the recommendations and rulings of the DSB by 
incorrectly (1) Limiting the pass-through analysis to only certain 
categories of sales; (2) determining that certain sales were not at 
arm's length and that a pass-through occurred; (3) applying the results 
of the pass-through analysis to a cash deposit rate ``invalidated as a 
result of judicial review proceedings'' and (4) not conducting a pass-
through analysis in the first administrative review of the 
countervailing duty order that resulted from the countervailing duty 
investigation at issue.
    The specific measures identified by Canada as inconsistent with 
U.S. WTO obligations under the SCM Agreement and the GATT 1994 are: (1) 
Notice of Implementation Under Section 129 of the Uruguay Round 
Agreements Act; Countervailing Measures Concerning Certain Softwood 
Lumber Products from Canada, 69 FR 75,305 (Dep't. Commerce December 16, 
2004) and Section 129 Determination: Final Countervailing Duty 
Determination, Certain Softwood Lumber from Canada (December 6, 2004); 
(2) Notice of Amended Final Affirmative Countervailing Duty 
Determination and Notice of Countervailing Duty Order: Certain Softwood 
Lumber Products From Canada, 67 FR 36,070 (Dep't Commerce May 22, 
2002); and (3) Notice of Final Results of Countervailing Duty 
Administrative Review and Rescission of Certain Company-Specific 
Reviews: Certain Softwood Lumber Products From Canada, 69 FR 75,917 
(Dep't Commerce December 20, 2004) and Issues and Decision Memorandum: 
Final Results of Administrative Review: Certain Softwood Lumber 
Products From Canada, December 13, 2004.
    The European Communities has indicated its interest to participate 
in the dispute as a third party.

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], Attn: 
``Canada Lumber Final CVD (DS257)'' 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.
    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-257, Canada Lumber Final CVD) 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. 05-3236 Filed 2-18-05; 8:45 am]
BILLING CODE 3190-W5-P