[Federal Register Volume 70, Number 68 (Monday, April 11, 2005)]
[Notices]
[Pages 18446-18447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-7143]


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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.

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[[Page 18447]]

SUMMARY: The Office of the United States Trade Representative 
(``USTR'') is providing notice that the Dispute Settlement Body 
(``DSB'') of the World Trade Organization (``WTO'') has established at 
the request of the European Communities (``EC'') 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/DS108/29. 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 May 2, 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: USTR is providing notice that the DSB has 
established, at the request of the EC, a dispute settlement panel 
pursuant to the WTO Understanding on Rules and Procedures Governing the 
Settlement of Disputes (``DSU''). The individual panelists are 
currently being selected. That panel will hold its meetings in Geneva, 
Switzerland, and would be expected to issue a report on its findings 
and recommendations within 90 days after its members have been 
appointed.

Major Issues Raised by the EC

    On February 17, 2005, the DSB established at the EC's request a 
dispute settlement panel pursuant to Articles 6 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 XXIII 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 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, 8 and 3.3 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 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. 05-7143 Filed 4-8-05; 8:45 am]
BILLING CODE 3190-W5-P