[Federal Register Volume 74, Number 30 (Tuesday, February 17, 2009)]
[Notices]
[Pages 7494-7497]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-3293]
[[Page 7494]]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. WTO/DS387]
WTO Dispute Settlement Proceeding Regarding China--Grants, Loans
and Other Incentives
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 December 19, 2008, in accordance
with the Marrakesh Agreement Establishing the World Trade Organization
(``WTO Agreement''), the United States requested consultations
regarding certain measures offering grants, loans, and other incentives
to enterprises in China. That request may be found at http://www.wto.org contained in a document designated as WT/DS387/1. 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 dispute settlement proceedings, comments should be
submitted on or before March 16, 2009 to be assured of timely
consideration by USTR.
ADDRESSES: Comments should be submitted electronically to http://www.regulations.gov, docket number USTR-2009-0003. If you are unable to
provide submissions by http://www.regulations.gov, please contact Sandy
McKinzy at (202) 395-9483 to arrange for an alternative method of
transmission. If (as explained below), the comment contains
confidential information, then the comment should be submitted by fax
only to Sandy McKinzy at (202) 395-3640.
FOR FURTHER INFORMATION CONTACT: Joseph A. Laroski Jr., Assistant
General Counsel, Office of the United States Trade Representative, 600
17th Street, NW., Washington, DC 20508, (202) 395-7310.
SUPPLEMENTARY INFORMATION: On December 19, 2008, the United States
requested consultations regarding certain measures offering grants,
loans, and other incentives to enterprises in China, apparently in part
to implement an industrial policy of promoting the development of
global Chinese brand names, and to increase sales of Chinese-branded
and other Chinese merchandise around the world. The U.S. consultation
request addresses two central government famous Chinese brand programs,
and numerous sub-central government measures implementing these
programs. At the central government level, China established the
``Famous Export Brand'' program and the ``China World Top Brand''
program. These measures set out criteria for an enterprise to receive a
designation by the Ministry of Commerce (MOFCOM) as a ``Famous Export
Brand'' or a designation by the Administration of Quality Supervision,
Inspection and Quarantine (AQSIQ) as a ``China World Top Brand.''
Enterprises with these designations are entitled to various government
preferences, including, it appears, financial support tied to exports.
The U.S. consultation request also addresses several independent sub-
central government subsidy programs that appear to benefit Chinese
exports.
A. These grants, loans, and other incentives are reflected in the
following measures, as well as any amendments and any related or
implementing measures:
The instruments below, which relate to the China World Top Brand
Program:
1. Circular on Carrying Out Evaluation of Products to Be Recognized
as China World Top Brand;
2. Circular on Application of China World Top Brands in 2006;
3. Circular on Application of China World Top Brands in 2008;
4. Measures for the Administration of Chinese Name-Brand Products;
5. Notice Concerning the Issuing of Opinions on Promoting the
Brand-Driven Strategy & Its Incentive Measures;
6. Notices Concerning Printing and Distributing the Implementation
Regulation on Economic Development Fund Supporting Industrial
Technology Progress in Futian District Shenzhen;
7. Notices of Gansu Provincial People's Government Concerning
Printing and Distributing Incentive Methods for Enterprises Entitled
with Famous Brand Products in Gansu Province;
8. Notice on Methods of Implementing Brand Praise and Incentive for
Industrial Enterprises in Guangxi Zhuang Autonomous Region;
9. Several Related Policies on Implementation of Guiyang's Science
and Technology Development Planning During the ``Eleventh Five-Year
Plan'' (2006-2010);
10. Opinions of the Party Committee and People's Government of
Jinhua City on Promoting the Building of ``Jinhua Brand;''
11. Circular of Jiujiang Municipal People's Government on Adjusting
and Enriching the Incentive Policy for Creating a City of Brand;
12. Circular on Printing and Distributing the Method of Nanhai
District, Foshan City for Supporting and Awarding Independent
Innovation, Brand Drive and Enterprise IPO;
13. Opinions of Nanping Municipal People's Government on Supporting
Development of Key Industrial Enterprise;
14. Opinions on Promoting Fast and Healthy Development of
Characteristic Manufacturing Industry through Implementing Industrial
Upgrading Projects;
15. Circular of Sichuan Provincial People's Government on Printing
and Distributing the ``Opinions on Forcefully Pressing Ahead Industrial
Brands Strategy in Sichuan;''
16. Circular on Forwarding the Detailed Reward Rules for the
Strategy of Drive with Top Brands in Suzhou City;
17. Circular on Forwarding the Policy Measures for Pushing on the
Strategy of Drive with Top Brands;
18. Notice Issued by the Office of Wenzhou Municipal Government for
the Distribution of Quality & Branding Award Management Measures in
Wenzhou;
19. Opinions of Wuyi County Party Committee and People's Government
on Further Encouraging and Promoting the Development of SMEs;
20. Notices Concerning Printing and Distributing the Implementing
Regulations Issued by the Bureau of Finance and the Economic
Development Administration of Xiamen to Support the Development of High
Quality Well-Known Products in Xiamen;
21. Suggestions on Supporting Key Industrial Enterprises Issued by
the People's Government of Yandu District, Yancheng City;
22. Suggestions on Accelerating the Implementation of Brand
Strategy;
23. Circular on Ensuring Proper Use and Management of Guangdong
Brand Development Fund; and
24. Notice of Issuing the Directive on Supporting the Development
of Name Brands for Export.
The instruments below, which relate to the Chinese Famous Export
Brand Program:
1. Circular of the General Office of the State Bureau of Quality
Supervision, Inspection and Quarantine for Issuing the ``Measures for
the Control of Evaluation of Chinese Famous-Brand Products (for Trial
Implementation);''
2. Notice of General Office of Ministry of Commerce Concerning
Recommending Candidates of ``Chinese Export Famous Brands;''
3. Notice of Issuing the Directive on Supporting the Development of
Name Brands for Export;
[[Page 7495]]
4. Circular of Changxing County People's Government on Further
Promoting Foreign Trade Development;
5. Opinions of Deqing County People's Government on Strengthening
the Building of Advanced Manufacturing Bases;
6. Circular on Printing and Distributing the Policy Opinions for
Accelerating Innovative Development of Industrial Economy;
7. Notice Concerning the Issuing of Opinions on Promoting the
Brand-Driven Strategy & Its Incentive Measures;
8. Circular on Printing and Distributing the ``Provisional
Regulation on the Use of Fujian Export Brand Development Fund;''
9. Circular of the Foreign Trade and Economic Cooperation
Department of Fujian Province on Recommending Candidate Enterprise for
the 2008-2009 ``Famous Export Brands the Foreign Trade and Economic
Cooperation Department of Fujian Province Mainly Cultivates and
Develops [Foreign Trade and Economic Cooperation Department of Fujian
Province];
10. Circular on Printing and Distributing the Opinions on
Recognizing ``Famous Export Brands the Foreign Trade and Economic
Cooperation Department of Guangdong Province Mainly Cultivates and
Develops;''
11. Suggestions on the ``Export Brands Particularly Cultivated and
Developed by the Department of Foreign Trade and Economic Cooperation
Department of Guangdong Province'' (Revised Edition);
12. Notices Concerning Alternative Name List Supplementary to the
Export Brands Particularly Cultivated and Developed by the Department
of Foreign Trade and Economic Cooperation of Guangdong Province;
13. Circular on Ensuring Proper Use and Management of Guangdong
Brand Development Fund;
14. Notice Regarding Support Policies to Promote the Development of
Our City's Foreign Trade and Economic Cooperation for 2005;
15. Notice of the Administrative Office of the Hangzhou Municipal
People's Government on Revision of the Evaluation and Selection
Requirements and Award Measures for the ``Golden Dragon Awards'' in
Hangzhou's Foreign Trade Export;
16. Directives of the Administrative Office of the Hangzhou
Municipal People's Government on Promoting the Development of
Independent Export Brands;
17. Circular of the Provincial Department of Commerce, Development
and Reform Commission, Economic Commission, Department of Finance,
Department of Science and Technology, Bureau of State Tax,
Administration for Industry and Commerce, Bureau of Quality and
Technical Supervision, and Entry-Exit Inspection and Quarantine Bureau
of Heilongjiang Province and Harbin Customs on Printing and
Distributing the ``Guiding Opinions of Heilongjiang Province on
Supporting the Development of Famous Export Brands;
18. Circular on Printing and Distributing the Newly Revised
``Method for Selection of Henan Famous Export Brands;''
19. Guiding Opinions on Supporting the Development of Henan
(Famous) Export Brands in the ``11th Five-Year Plan'' Period;
20. Notice Regarding Selection of 2007-2008 ``Jiangsu Province
Export Brands for Focused Cultivation and Development;''
21. Opinion on Promoting Better and Quicker Development of Private
Economy;
22. Opinion of the Party Committee and People's Government of
Jinhua City on Promoting the Building of ``Jinhua Brand''
23. Opinions of Jindong District Party Committee and People's
Government of Jinhua City on Accelerating Industrial and Export-
Oriented Economic Development;
24. Circular of Jiujiang Municipal People's Government on Adjusting
and Enriching the Incentive Policy for Creating a City of Brand;
25. Circular on Printing and Distributing the Method of Nanhai
District, Foshan City for Supporting and Awarding Independent
Innovation, Brand Drive and Enterprise IPO;
26. Notice of the Department of Commerce and Department of Finance
of Ningxia Hui Autonomous Region on Printing and Issuing the
Administrative Measures of Ningxia Hui Autonomous Region for the
Awarding and Promoting of Brand Export Commodities;
27. Notice of the People's Government of Quanzhou Fengze District
on Issuing Regulations Concerning the Support to Key Enterprises;
28. Opinion on Promoting Fast and Healthy Development of
Characteristic Manufacturing Industry through Implementing Industrial
Upgrading Projects;
29. Notice on Printing and Distribution of 2006 Policies for
Encouraging the Development of Foreign Trade & Economic Cooperation in
Shandong;
30. Opinions of Shaoxing Municipal People's Government on Further
Encouraging the Development of Open Economy in Urban Areas;
31. Circular of Sichuan Provincial People's Government on Printing
and Distributing the ``Opinions on Forcefully Pressing Ahead Industrial
Brands Strategy in Sichuan;''
32. Circular on Forwarding the Detailed Reward Rules for the
Strategy of Drive with Top Brands in Suzhou City;
33. Circular on Forwarding the Policy Measures for Pushing on the
Strategy of Drive with Top Brands;
34. Circular on Forwarding the Opinions of Foreign Trade Office of
Tianjin Municipal Government on Accelerating Development of Proprietary
Export Brands of Tianjin City;
35. Circular of Wuxing District People's Government of Huzhou City
on Further Encouraging Foreign Trade Development;
36. Opinion of Wuyi County Party Committee and People's Government
on Further Encouraging and Promoting the Development of SMEs;
37. Measures for Managing Xiamen's Key Export Enterprise Assistance
Fund;
38. Notice from the Xiamen Trade Development Bureau and the Xiamen
Finance Bureau on the publishing of Measures for Managing Xiamen's Key
Export Enterprise Assistance Fund Implementation Plan;
39. CPC Committee of Yinzhou District, Ningbo City People's
Government of Yinzhou District, Ningbo City Opinions on Promoting
Economic Development of Yinzhou District;
40. Notices on Publication of Interim Procedures on Management of
Zhejiang Province Export Brands Fund;
41. Notice Concerning Relevant Policies on Promotion of Foreign
Trade & Economic Development in 2005;
42. Suggestions on Accelerating the Implementation of Brand
Strategy;
43. Notice Issued by the Office of Wenzhou Municipal Government for
the Distribution of Quality & Branding Award Management Measures in
Wenzhou;
44. Opinions on Accelerating Open Economy of Organizations Directly
Under Municipal Government;
45. Opinion of Nanping Municipal People's Government on Supporting
Development of Key Industrial Enterprises;
46. Circular on Printing and Distributing the Interim Measures of
Yangzhou City for Administration of the Incentive Fund for Famous-brand
Export Products;
47. Implementing Rules of Support Policies for Patented Brands of
Service Outsourcing Companies by Zhabei District;
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48. Notices for Evaluation and Rewards of 2008-2009 Export Brand
Particularly Cultivated and Developed in Heilongjiang;
49. Measures for the Administration of Famous-brand (Industrial)
Products of Guangdong Province;
50. Measures for the Administration of Famous-Brand (Agricultural)
Products of Guangdong Province; and
51. Circular of Ministry of Commerce, China Export & Credit
Insurance Corporation Concerning Utilizing Export Credit Insurance to
Support the Development of Name Brand Export.
The instruments below, which appear to contain independent sub-
central government subsidy programs:
1. Notice Regarding Support Policies to Promote the Development of
Our City's Foreign Trade and Economic Cooperation for 2005;
2. Opinions of Jindong District Party Committee and People's
Government of Jinhua City on Accelerating Industrial and Export-
Oriented Economic Development;
3. Opinions of Shaoxing Municipal People's Government on Further
Encouraging the Development of Open Economy in Urban Areas;
4. Notice Concerning Relevant Policies on Promotion of Foreign
Trade & Economic Development in 2005;
5. Circular of the Provincial Department of Commerce, Development
and Reform Commission, Economic Commission, Department of Finance,
Department of Science and Technology, Bureau of State Tax,
Administration for Industry and Commerce, Bureau of Quality and
Technical Supervision, and Entry-Exit Inspection and Quarantine Bureau
of Heilongjiang Province and Harbin Customs on Printing and
Distributing the ``Guiding Opinions of Heilongjiang Province on
Supporting the Development of Famous Export Brands;
6. Opinions on Accelerating Open Economy of Organizations Directly
Under Municipal Government;
7. Circular of Nanchang Municipal People's Government on Printing
and Distributing the Interim Measures for Administration of Nanchang
Foreign Trade Development Fund;
8. Trial Opinions of Jiangdong District, Ningbo City on Promoting
Steady Foreign Trade Development;
9. Opinions of Jiangdong District, Ningbo City on Promoting Steady
Foreign Trade Development;
10. 2005 Policies for Encouraging the Development of Foreign Trade
& Economic Cooperation in Shandong;
11. Notice on Printing and Distribution of 2006 Policies for
Encouraging the Development of Foreign Trade & Economic Cooperation in
Shandong;
12. Notice on Printing and Distribution of 2003 Policies for
Encouraging and Expanding Foreign Trade Export to Shandong;
13. 2004 Policies for Encouraging the Development of Foreign Trade
& Economic Cooperation in Shandong;
14. Circular of Wuxing District People's Government on Further
Encouraging the Development of Open Economy in Urban Areas;
15. Measures for Managing Xiamen's Key Export Enterprise Assistance
Fund;
16. Notice from the Xiamen Trade Development Bureau and the Xiamen
Finance Bureau on the publishing of Measures for Managing Xiamen's Key
Export Enterprise Assistance Fund Implementation Plan;
17. Opinions on Further Accelerating the Development of Open
Economy;
18. CPC Committee of Yinzhou District, Ningbo City People's
Government of Yinzhou District, Ningbo City Opinions on Promoting
Economic Development of Yinzhou District;
19. Notices on Publication of Interim Procedures on Management of
Zhejiang Province Export Brands Fund;
20. Circular on Changxing County People's Government on Further
Promoting Foreign Trade Development;
21. Notices Concerning Printing and Distributing the Implementation
Regulation on Economic Development Fund Supporting Industrial
Technology Progress in Futian District Shenzhen;
22. Notice Issued by the Office of Wenzhou Municipal Government for
the Distribution of Quality & Branding Award Management Measures in
Wenzhou;
23. Notice of the Administrative Office of the Hangzhou Municipal
People's Government on Revision of the Evaluation and Selection
Requirements and Award Measures for the ``Golden Dragon Awards'' in
Hangzhou's Foreign Trade Export;
24. Directives of the Administrative Office of the Hangzhou
Municipal People's Government on Promoting the Development of
Independent Export Brands;
25. Notice of the People's Government of Quanzhou Fengze District
on Issuing Regulations Concerning the Support to Key Enterprises;
26. Notice on Recommending of Alternative Name List for 2005-2006
``Export Brand Merchandise in Shanghai;''
27. Implementing Rules of Support Policies for Patented Brands of
Service Outsourcing Companies by Zhabei District;
28. Notice of Shanghai Municipal Commission of Foreign Trade and
Economic Cooperation for Carrying out Confirmation of 2007-2008
``Export Brands in Shanghai;''
29. Measures on Promoting the Development of the City OpenEconomy
in 2006;
30. Notices for Evaluation and Rewards of 2008-2009 Export Brand
Particularly Cultivated and Developed in Heilongjiang;
31. Notice Regarding Support Policies to Promote the Development of
Our City's Foreign Trade and Economic Cooperation for 2005; and
32. Notice Regarding Selection of 2007-2008 ``Jiangsu Province
Export Brands for Focused Cultivation and Development.''
B. The measures referred to in Section A above appear to constitute
prohibited subsidies under WTO rules. Specifically, they provide
grants, loans, and other incentives to enterprises in China on the
condition that those enterprises meet certain export performance
criteria .
USTR believes that these measures are inconsistent with China's
obligations under Article 3 of the Agreement on Subsidies and
Countervailing Measures, Articles 3, 9, and 10 of the Agreement on
Agriculture, paragraph 12.1 of Part I of the Protocol on the Accession
of the peoples' Republic of China (``Acession Protocol''), as well as
paragraph 1.2 of Part I of its Accession Protocol (to the extent that
it incorporates paragraph 234 of the Report of the Working Party on the
Accession of China), which forms part of the terms of accession agreed
between China and the WTO and is an integral part of the WTO Agreement.
Finally, USTR believes that the grants, loans, and other incentives are
inconsistent with Article III:4 of the GATT 1994 to the extent that the
measures benefit Chinese-origin products but not imported products.
Public Comment: Requirements for Submissions
Interested persons are invited to submit written comments
concerning the issues raised in this dispute. Persons may submit public
comments electronically to http://www.regulations.gov docket number
USTR-2009-0003. If you are unable to provide submissions by http://www.regulations.gov, please contact Sandy McKinzy at (202) 395-9483 to
arrange for an alternative method of transmission.
To submit comments via http://www.regulations.gov, enter docket
number USTR-2009-0003 on the home page and click ``go''. The site will
provide a search-results page listing all documents associated with
this docket.
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Find a reference to this notice by selecting ``Notice'' under
``Document Type'' on the left side of the search-results page, and
click on the link entitled ``Send a Comment or Submission.'' (For
further information on using the http://www.regulations.gov Web site,
please consult the resources provided on the website by clicking on
``How to Use This Site'' on the left side of the home page.)
The http://www.regulations.gov site provides the option of
providing comments by filling in a ``General Comments'' field, or by
attaching a document. It is expected that most comments will be
provided in an attached document. If a document is attached, it is
sufficient to type ``See attached'' in the ``General Comments'' field.
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. Any comment
containing business confidential information must be submitted by fax
to Sandy McKinzy at (202) 395-3640. A non-confidential summary of the
confidential information must be submitted to http://www.regulations.gov. The non-confidential summary will be placed in the
docket and open to public inspection.
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) Must provide a non-confidential summary of the information or
advice.
Any comment containing confidential information must be submitted
by fax to Sandy McKinzy at (202) 395-3640. A non-confidential summary
of the confidential information must be submitted to http://www.regulations.gov or by fax. The non-confidential summary will be
placed in the docket and open to public inspection.
USTR will maintain a docket on this dispute settlement proceeding,
accessible to the public. 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, any non-confidential
submissions, or non-confidential summaries of submissions, received
from other participants in the dispute; the report of the panel; and,
if applicable, the report of the Appellate Body.
Comments will be placed in the docket and open to public inspection
pursuant to 15 CFR 2006.13, except confidential business information
exempt from public inspection in accordance with 15 CFR 2006.15 or
information determined by USTR to be confidential in accordance with 19
U.S.C. 2155(g)(2). Comments open to public inspection may be viewed on
the http://www.regulations.gov Web site.
Daniel Brinza,
Assistant United States Trade Representative for Monitoring and
Enforcement.
[FR Doc. E9-3293 Filed 2-13-09; 8:45 am]
BILLING CODE 3190-W9-P