[Federal Register Volume 73, Number 16 (Thursday, January 24, 2008)]
[Notices]
[Pages 4288-4290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1143]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-291]


WTO Dispute Settlement Proceedings Regarding Measures of the 
European Communities Affecting the Approval and Marketing of Biotech 
Products

AGENCY: Office of the United States Trade Representative.

[[Page 4289]]


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 17, 2008, the United 
States submitted to the World Trade Organization (``WTO'') a request 
for authorization to suspend WTO concessions and other obligations with 
respect to the European Communities (``EC'') in an amount equal to the 
level of nullification and impairment resulting from EC non-compliance 
with the WTO recommendations and rulings. Under a sequencing agreement 
with the EC, that request will be referred to arbitration and the 
arbitration will be suspended while the United States and EC continue 
to try to resolve this dispute and related matters. To prepare for the 
possibility that the arbitration is resumed and the WTO Dispute 
Settlement Body (``DSB'') authorizes the United States to suspend WTO 
concessions with respect to the EC, USTR is inviting written comments 
on action that USTR should take to exercise such an authorization. In 
particular, USTR seeks written comments with respect to the specific 
products of the EC or EC member States, and/or with respect to the 
specific member States of the EC, that should be subject to a 
suspension of WTO concessions, such as through increases of rates of 
duty above current rates.

DATES: Comments are requested to be submitted on or before March 21, 
2008.

ADDRESSES: Comments should be submitted either (i) electronically, to 
[email protected], with ``EC-Biotech Dispute'' 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: Melissa Clarkson, Director, 
Agricultural Affairs, (202) 395-6127, or William Busis, Associate 
General Counsel and Chair, Section 301 Committee, (202) 395-3150.

SUPPLEMENTARY INFORMATION:

EC-Biotech Dispute

    USTR has previously provided notice and requested public comment 
regarding the establishment on August 29, 2003, of a WTO panel at the 
request of the United States to examine EC measures affecting the 
approval and marketing of biotech products. See 69 FR 11,927.
    The WTO Panel issued its report on September 29, 2006. The Panel 
agreed with the United States that the disputed measures of the EC, 
Austria, France, Germany, Greece, Italy, and Luxembourg are 
inconsistent with the obligations set out in the WTO Agreement on the 
Application of Sanitary and Phytosanitary Measures (``SPS Agreement''). 
In particular:

--The Panel found that the EC adopted a de facto, across-the-board 
moratorium on the final approval of biotech products, starting in 1999 
up through the time the panel was established in August 2003.
--The Panel found that the EC had presented no scientific or regulatory 
justification for the moratorium, and thus that the moratorium resulted 
in ``undue delays'' in violation of the EC's obligations under the SPS 
Agreement.
--The Panel also identified specific, WTO-inconsistent ``undue delays'' 
with regard to 24 of the 27 pending product applications that were 
listed in the U.S. panel request.
--The Panel found that the bans adopted by six EC member States on 
biotech products approved in the EC prior to the moratorium were not 
supported by scientific evidence and were thus inconsistent with 
obligations under the SPS Agreement.

    The DSB adopted the panel report on November 21, 2006. At the 
meeting of the DSB held on December 19, 2006, the EC notified the DSB 
that the EC intended to implement the recommendations and rulings of 
the DSB in the dispute, and stated that it would need a reasonable 
period of time for implementation. On June 21, 2007, the United States 
notified the DSB that it had agreed with the EC on a one-year period of 
time for implementation, to end on November 21, 2007. The United States 
subsequently notified the DSB that it had agreed with the EC to extend 
the implementation period to January 11, 2008.
    On January 17, 2008, the United States submitted to the DSB a 
request for authorization to suspend WTO concessions and other 
obligations with respect to the EC on an annual basis in an amount 
equal to the annual level of nullification and impairment resulting 
from EC non-compliance with DSB recommendations and rulings. Under a 
sequencing agreement with the EC, that request will be referred to 
arbitration and the arbitration will be suspended while the United 
States and EC continue to try to resolve this dispute and related 
matters. The United States will periodically evaluate EC progress 
toward normalizing biotech trade against a set of benchmarks and 
timelines. If the United States decides to pursue WTO proceedings on 
the EC's compliance, then pursuant to that agreement the United States 
will file a formal consultation request with the EC, followed by a 
request for the establishment of a WTO compliance panel. Should the 
compliance panel find that the EC has not complied with DSB 
recommendations and rulings, upon request of the United States the 
arbitration will proceed. Once the arbitrator has issued its award, the 
United States will be entitled to receive from the DSB the 
authorization to suspend concessions in accordance with the award.

Procedures for Exercising WTO Authorization To Suspend Trade 
Concessions

    The practice of USTR, in pursuing WTO authorization to suspend 
trade concessions on particular products, is to publish a broad 
preliminary product list and ask for public comments on the products to 
be included on a final retaliation list. This current notice is not 
intended to replace a notice publishing and seeking comments on a 
preliminary product list. Rather, the public comments received in 
response to this current notice will be used as input in the 
development of a preliminary list of specific products and of specific 
EC member States. The preliminary list will not necessarily include all 
products or EC member States suggested in response to this notice, nor 
will the preliminary list be limited to such products or EC member 
States.

Public Comment: Requirements for Submissions

    To prepare for the possibility that the WTO arbitration is resumed 
and the DSB authorizes the United States to suspend WTO concessions 
with respect to the EC, USTR is seeking written comments on action that 
USTR should take to exercise such an authorization. In particular, USTR 
seeks written comments with respect to the specific products of the EC 
or of one or more EC member States, and/or with respect to specific 
member States of the EC, that should be subject to a suspension of WTO 
concessions and related obligations, such as through increases of rates 
of duty above current rates. If commenters suggest suspension of WTO 
concessions or related obligations with respect to specific products, 
the comments should identify the specific headings or subheadings of 
the Harmonized Tariff Schedule of the United States in which such 
products are classified. Commenters are requested to explain why the 
suspension with respect to particular products or with respect to 
particular EC member States would be effective in

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terms of encouraging a favorable resolution of the EC-Biotech 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], with ``EC-Biotech Dispute'' in the subject line. 
For documents sent by fax, USTR requests that the submitter provide a 
confirmation copy electronically. 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.
    USTR will maintain a file of non-confidential comments received in 
response to this notice, accessible to the public, in the USTR Reading 
Room, which is located at 1724 F Street, NW., Washington, DC 20508. An 
appointment to review the public file (Docket No. WTO/DS-291) 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 12 noon and 1 p.m. 
to 4 p.m., Monday through Friday.

William Busis,
Chair, Section 301 Committee.
 [FR Doc. E8-1143 Filed 1-23-08; 8:45 am]
BILLING CODE 3190-W8-P