[Federal Register Volume 72, Number 20 (Wednesday, January 31, 2007)]
[Notices]
[Pages 4537-4538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-1563]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-357]


WTO Dispute Settlement Proceeding Regarding United States--
Subsidies and Other Domestic Support for Corn and Other Agricultural 
Products

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 8, 2007, Canada 
requested consultations with the United States under the Marrakesh 
Agreement Establishing the World Trade Organization (``WTO Agreement'') 
regarding U.S. domestic support measures for corn and other 
agricultural products. That request may be found at http://www.wto.org 
contained in a document designated as WT/DS357/1. 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 consultations, comments should be submitted on or before 
February 28, 2007 to be assured of timely consideration by USTR.

ADDRESSES: Comments should be submitted (i) electronically, to 
[email protected], with ``Corn Subsidy (Canada) (DS357)'' in the 
subject line, or (ii) by fax, to Sandy McKinzy at (202) 395-3640. For

[[Page 4538]]

documents sent by fax, USTR requests that the submitter provide a 
confirmation copy to the electronic mail address listed above.

FOR FURTHER INFORMATION CONTACT: David Yocis, Assistant General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC, (202) 395-6150.

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. 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 six to nine months after it is established.

Major Issues Raised by Canada

    In its consultation request, Canada raises three major groups of 
issues. First, Canada asserts that domestic support provided by the 
United States to producers of corn has caused and threatens to cause 
serious prejudice to the interests of Canada by causing and threatening 
to cause price suppression in the Canadian market for corn, in breach 
of Article 5(c) and 6.3(c) of the WTO Agreement on Subsidies and 
Countervailing Measures (``SCM Agreement''). The domestic support 
programs identified by Canada include direct payments, counter-cyclical 
payments, and marketing loans under the Farm Security and Rural 
Investment Act of 2002 (``FSRI Act''), production flexibility contracts 
and marketing loans under the Federal Agriculture Improvement and 
Reform Act of 1996 (``FAIR Act''), market loss assistance (``MLA'') 
payments under a number of legislative enactments from 1998 to 2001, 
and export credit guarantees provided under the Agricultural Trade Act 
of 1978, the General Sales Manager (``GSM-102'') program, and the 
Supplier Credit Guarantee Program (``SCGP'').
    Second, Canada claims that support for corn and other agricultural 
products not included in the U.S. WTO schedule of agricultural export 
subsidy commitments provided under the Agricultural Trade Act of 1978, 
the GSM-102 program, and the SCGP, are export subsidies prohibited 
under Articles 3.1(a) and 3.2 of the SCM Agreement and provided in 
violation of Articles 3.3, 8, 9.1, and 10.1 of the WTO Agreement on 
Agriculture.
    Third, Canada alleges that the United States has provided support 
to domestic agricultural producers in excess of U.S. commitments with 
respect to the Aggregate Measurement of Support (``AMS'') as described 
in Article 6.2 of the WTO Agreement on Agriculture and the U.S. WTO 
schedule of commitments. According to Canada, the calculation of the 
U.S. AMS should include direct payments and counter-cyclical payments 
under the FSRI Act for each of wheat, corn, grain sorghum, barley, 
oats, upland cotton, rice, soybeans, and other oilseeds, as well as 
production flexibility contracts under the FAIR Act and MLAs for each 
of wheat, corn, grain sorghum, barley, oats, upland cotton, and rice. 
Canada considers that, if such payments are included in the calculation 
of the U.S. AMS, the United States would be in breach of Article 3.2 of 
the Agreement on Agriculture for domestic support provided in each of 
the years 1999, 2000, 2001, 2004, and 2005.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the dispute. Comments should be 
submitted (i) electronically, to [email protected], with ``Corn 
Subsidy (Canada) (DS357)'' 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/DS-357, Canada Corn-AMS 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 Brinza,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
 [FR Doc. E7-1563 Filed 1-30-07; 8:45 am]
BILLING CODE 3190-W7-P