[Federal Register Volume 70, Number 121 (Friday, June 24, 2005)]
[Notices]
[Pages 36685-36687]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-12483]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-264]


WTO Dispute Settlement Proceeding Regarding Final Dumping 
Determination on 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 June 1, 2005, at the request of Canada, the 
Dispute Settlement Body (DSB) of the World Trade Organization (WTO) 
established a

[[Page 36686]]

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) determination that certain 
softwood lumber products from Canada are being sold in the United 
States at less than fair value (LTFV). On August 31, 2004, the DSB 
adopted the findings of the panel and the WTO Appellate Body in that 
dispute. Those findings rejected all of Canada's claims, except the 
claim that Commerce's methodology for aggregating dumping levels 
determined by comparing weighted average export price to weighted 
average normal value for groups of comparable transactions was 
inconsistent with Article 2.4.2 of the Agreement on Implementation of 
Article VI of the General Agreement on Tariffs and Trade (Antidumping 
Agreement). In response to the DSB's recommendations and rulings, 
Commerce revised its methodology. Instead of determining dumping levels 
on a weighted average-to-weighted average basis, Commerce determined 
dumping levels on a transaction-to-transaction basis. On April 27, 
2005, Commerce issued a Notice of Determination Under Section 129 of 
the Uruguay Round Agreements Act: Antidumping Measures on Certain 
Softwood Lumber Products From Canada. That Notice, published in the 
Federal Register on May 2, 2005 (70 FR 22636), implements the new 
determination. 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 June 1, 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 July 22, 2005, to be assured of timely 
consideration by USTR.

ADDRESSES: Comments should be submitted (i) electronically, to 
[email protected], Attn: ``DS264 Dispute'' in the subject line, or (ii) 
by fax, to Sandy McKinzy at (202) 395-3640, with a confirmation copy 
sent electronically to the email address above.

FOR FURTHER INFORMATION CONTACT: Theodore R. Posner, Associate General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC 20508, (202) 395-3150.

SUPPLEMENTARY INFORMATION: 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 in September 2005.

Prior WTO Proceedings

    On August 31, 2004, the WTO DSB adopted the reports of a dispute 
settlement panel and the Appellate Body in a dispute brought by Canada 
challenging the initiation, scope, and methodology of Commerce's 
investigation of LTFV sales in the United States of certain softwood 
lumber products from Canada. The panel rejected all of Canada's claims, 
except its claim concerning Commerce's use of the so-called ``zeroing'' 
methodology in aggregating dumping levels determined by making weighted 
average-to-weighted average comparisons between groups of home market 
sales and comparable groups of sales for export to the United States. 
The panel's findings were upheld by the Appellate Body in all respects. 
The panel and Appellate Body reports are publicly available in the USTR 
reading room and on the WTO Web site http://www.wto.org.

Article 21.5 Proceeding

    Pursuant to the rules of the DSU, the United States and Canada 
agreed that the United States would have until May 2, 2005, to 
implement the recommendations and rulings of the DSB. To implement 
these recommendations and rulings, Commerce undertook a revision of the 
calculation of dumping margins in the Softwood Lumber from Canada 
investigation. That process concluded with a new determination, which 
Commerce issued to the United States Trade Representative on April 19, 
2005. In the new determination, Commerce calculated levels of dumping 
on a transaction-to-transaction basis (as opposed to a weighted 
average-to-weighted average basis), and then aggregated the results of 
these comparisons to determine dumping margins for particular producers 
and exporters. Following consultations with Commerce and with 
congressional committees, the Trade Representative directed Commerce to 
implement the new determination on April 27, 2005. Commerce did so 
through a Notice of Determination Under Section 129 of the Uruguay 
Round Agreements Act: Antidumping Measures on Certain Softwood Lumber 
Products From Canada, effective April 27, 2005 and published in the 
Federal Register on May 2, 2005 (70 FR 22636). On May 19, 2005, 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 June 1, 2005.
    In its request under Article 21.5, Canada alleges that Commerce 
failed to implement the recommendations and rulings of the DSB by using 
``zeroing'' in aggregating levels of dumping determined on a 
transaction-to-transaction basis.
    The specific measures identified by Canada as inconsistent with 
U.S. WTO obligations under the AD Agreement and SCM Agreement are: (1) 
Notice of Determination Under Section 129 of the Uruguay Round 
Agreements Act: Antidumping Measures on Certain Softwood Lumber 
Products From Canada, 70 FR 22636 (May 2, 2005); and (2) Notice of 
Amended Final Determination of Sales at Less Than Fair Value and 
Antidumping Duty Order: Certain Softwood Lumber Products from Canada, 
67 FR 36068 (May 22, 2002).
    The People's Republic of China, the European Communities, India, 
Japan, and New Zealand have indicated their interest to participate in 
the dispute as third parties.

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: 
``DS264 Dispute'' 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.
    Comments must be in English. 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

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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-264, Lumber Antidumping 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. 05-12483 Filed 6-23-05; 8:45 am]
BILLING CODE 3190-W5-P