[Federal Register Volume 71, Number 195 (Tuesday, October 10, 2006)]
[Notices]
[Pages 59541-59542]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-16682]



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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-267]


WTO Dispute Settlement Proceeding Regarding United States 
Subsidies to Upland Cotton

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 Brazil 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/DS267/
30. USTR invites written comments from the public concerning the issues 
raised in this dispute.

DATES: Although the USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted on or before November 1, 2006, to be assured of timely 
consideration by USTR.

ADDRESSES: Comments should be submitted (i) Wlectronically, to 
[email protected], Attn: ``United States--Subsidies on Upland Cotton'' in 
the subject line, or (ii) by fax, to Sandy McKinzy (Attn: United 
States--Subsidies on Upland Cotton) at 202-395-3640, with a 
confirmation copy sent electronically to the e-mail address above.

FOR FURTHER INFORMATION CONTACT: Behnaz L. Kibria, Assistant General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC, (202) 395-9589.

SUPPLEMENTARY INFORMATION: If a dispute settlement panel is 
established, such panel, which would hold its meetings in Geneva, 
Switzerland, may issue a report on its findings and recommendations 
within 90 days after referral of the matter to it.

Major Issues Raised by Brazil

    In its panel request, Brazil alleges that the United States has not 
fully complied with the recommendations and rulings of the Dispute 
Settlement Body from the original dispute. The recommendations and 
rulings stem from the panel and Appellate Body reports which may be 
found at http://www.wto.org designated as WT/DS267/R and WT/DS267/AB/R, 
respectively.
    Specifically, Brazil alleges that ``the United States has failed to 
take appropriate steps to remove the adverse effects or withdraw the 
subsidies found to cause adverse effects.'' According to Brazil, 
``[t]he United States'' failure to take these steps results in U.S. 
subsidies for upland cotton causing serious prejudice to the interests 
of Brazil, within the meaning of Articles 5(c) and 6.3 of the 
[Agreement on Subsidies and Countervailing Measures (`SCM 
Agreeement').'' Brazil contends that the U.S. subsidies at issue are 
``the U.S. marketing loan, counter-cyclical and Step 2 payment programs 
under the [Farm Security and Rural Investment Act (`FSRI Act')] of 
2002, as amended, taken alone and/or considered together, as well as 
payments made under these programs. * * *'' Noting the repeal of the 
Step 2 program effective August 1, 2006, Brazil contends, in the 
alternative, that the U.S. subsidies at issue are ``the U.S. marketing 
loan and counter-cyclical payment programs under the FSRI Act of 2002, 
as amended, as well as payments made under these programs. * * *''
    Brazil also claims that ``the United States threatens to cause 
serious prejudice to the interests of Brazil, within the meaning of 
Articles 5(c) and 6.3 of the SCM Agreement, and footnote 13 thereto,'' 
in the sense of threat of significant price suppression ``in the world 
market for upland cotton in marketing years 2006 and until the expiry 
of [the marketing loan and counter-cyclical payment] programs.''
    In addition, Brazil presents claims relating to the ``prohibited 
[export credit guarantee program (``ECG'')] related export subsidies.'' 
Brazil alleges that the United States has taken ``no action'' with 
respect to guarantees provided prior to July 1, 2005, the deadline for 
implementation, under the three programs at issue in the original 
dispute--GSM-102, GSM-103, and the Supplier Credit Guarantee Program 
(``SCGP''). Brazil also alleges that, with respect to GSM-102, the 
SCGP, and guarantees provided thereunder after the date for 
implementation, the U.S. measures taken to comply are inconsistent with 
Articles 10.1 and 8 of the Agreement on Agriculture, Articles 1, 
3.1(a), and 3.2 of the SCM Agreement, and item (j) to the Illustrative 
List of Export subsidies in Annex I to the SCM Agreement.

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].eop, with 
``United States--Subsidies on Upland Cotton'' 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 or in the event 
of an appeal from such a panel, the U.S. submissions, the submissions, 
or non-confidential summaries of submissions, received from other 
participants in the dispute; the report of the panel and; if 
applicable, the report

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of the Appellate Body. An appointment to review the public file 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. E6-16682 Filed 10-6-06; 8:45 am]
BILLING CODE 3190-W7-P