[Federal Register Volume 75, Number 103 (Friday, May 28, 2010)]
[Notices]
[Pages 30097-30098]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-12951]


=======================================================================
-----------------------------------------------------------------------

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. USTR-2010-0015]


Notice and Request for Comments: Canada--Compliance With Softwood 
Lumber Agreement

AGENCY: Office of the United States Trade Representative.

ACTION: Notice and request for public comment.

-----------------------------------------------------------------------

SUMMARY: Under the 2006 Softwood Lumber Agreement (SLA), Canada agreed 
to impose export measures on Canadian exports of softwood lumber 
products to the United States. At the request of the United States, an 
arbitral tribunal established under the SLA determined in March 2008 
that Canada had breached certain SLA obligations. In February 2009, the 
tribunal issued a remedy award requiring Canada to collect an 
additional 10 percent ad valorem export charge on softwood lumber 
shipments from Ontario, Quebec, Manitoba, and Saskatchewan, until an 
entire amount of CDN $ 68 million has been collected. Canada did not 
begin collecting the additional export charge. In April 2009, the 
United States Trade Representative (``Trade Representative'') initiated 
an investigation under Section 302 of the Trade Act of 1974, as amended 
(``Trade Act''). In that investigation, the Trade Representative 
determined that Canada's failure to implement the tribunal's remedy 
award had the effect of denying U.S. rights under the SLA; and, 
pursuant to Section 301 of the Trade Act, the Trade Representative 
imposed 10 percent ad valorem duties on imports of softwood lumber 
products subject to the SLA from the provinces of Ontario, Quebec, 
Manitoba, and Saskatchewan (the April 2009 action). Under the April 
2009 action, the duties are to remain in place until such time as the 
United States collects $54.8 million, the U.S. dollar equivalent of CDN 
$ 68 million at the time. The Government of Canada, however, is now 
taking steps toward adopting its own measure to address Canada's breach 
of the SLA, in the form of legislation requiring the collection of an 
additional 10 percent charge on exports from the provinces of Ontario, 
Quebec, Manitoba, and Saskatchewan. In the event that the proposed bill 
becomes law by receiving royal assent, and if the Trade Representative 
finds that the law satisfactorily grants the rights of the United 
States under the SLA, the Trade Representative may modify or terminate 
the April 2009 action. Interested persons are invited to submit 
comments on the possible modification or termination of the April 2009 
action.

DATES: To be assured of consideration, comments should be submitted by 
no later than 5 p.m. on June 14, 2010, although USTR will continue to 
accept comments after that date.

ADDRESSES: Non-confidential comments (as explained below) should be 
submitted electronically via the Internet at http://www.regulations.gov, docket number USTR-2010-0015. 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 comments contain confidential 
information, the person wishing to submit such comments should contact 
Sandy McKinzy at (202) 395-9483.

FOR FURTHER INFORMATION CONTACT: John Melle, Deputy Assistant USTR for 
the Americas, (202) 395-3412, or Suzanne Garner, Assistant General 
Counsel, (202) 395-3581, for questions concerning the enforcement of 
U.S. rights under the SLA; William Busis, Associate General Counsel and 
Chair of the Section 301 Committee, (202) 395-3150, for questions 
concerning procedures under Section 301; or Gwendolyn Diggs, Staff 
Assistant to the Section 301 Committee, (202) 395-5830, for questions 
concerning procedures for filing submissions in response to this 
notice.

SUPPLEMENTARY INFORMATION: 

A. Enforcement of U.S. Rights Under the SLA

    For further information concerning U.S. rights under the SLA and 
the April 2009 action, see Initiation of Section 302 Investigation, 
Determination of Action Under Section 301, and Request for Comments: 
Canada--Compliance With Softwood Lumber Agreement, 74 FR 16,436 (April 
10, 2009) (notice); 74 FR 17,276 (April 14, 2009) (annex).

B. Canada's Steps Toward Addressing the Breach of the SLA

    On March 4, 2010, the Canadian Parliament introduced as part of the 
Federal budget an amendment to the Softwood Lumber Products Export 
Charge Act, 2006. The amendment provides for the collection of an 
additional export charge of 10 percent on softwood lumber products from 
the provinces of Ontario, Quebec, Manitoba, and Saskatchewan. The 
amendment might become law as soon as mid-June 2010.

C. Possible Modification or Termination of April 2009 Action

    The Trade Act authorizes the Trade Representative to modify or 
terminate an action taken under Section 301 if, among other things, 
``the foreign country is taking satisfactory measures to grant the 
rights of the United States under a trade agreement.'' Sections 
301(a)(2)(B)(i) and 307(1)(A). If the proposed amendment becomes law, 
the Trade Representative may consider whether Canada is taking 
satisfactory measures to grant the rights of the United States under 
the SLA, and if so, may decide on an appropriate modification or 
termination of the April 2009 action.
    Pursuant to Section 306(a) of the Trade Act, if the Trade 
Representative finds that the additional 10 percent export charge is a 
satisfactory measure, the Trade Representative will continue to monitor 
the implementation of such measure. Pursuant to Section 306(b), if the 
Trade Representative considers that Canada is not satisfactorily 
implementing the measure, the Trade Representative will determine what 
further action to take under Section 301.

D. Request for Public Comment

    The Section 301 Committee invites comments from interested persons 
with respect to the possible modification or termination of the April 
2009 action in the event the Government of Canada adopts a law imposing 
an additional 10

[[Page 30098]]

percent export charge on softwood lumber from the provinces of Ontario, 
Quebec, Manitoba, and Saskatchewan. This request includes comments on 
the appropriate methodology for transitioning from the current U.S.-
collected 10 percent duties to the 10 percent export charge to be 
collected by the Government of Canada.
    To submit comments via http://www.regulations.gov, enter docket 
number USTR-2010-0015 on the home page and click ``Search''. The site 
will provide a search-results page listing all documents associated 
with this docket. If this notice is not listed on the search-results 
page, find a reference to this notice by selecting ``Notice'' under 
``Document Type.'' Upon locating a reference to this notice, click on 
the link entitled ``Submit Comment.''
    The www.regulations.gov site provides the option of providing 
comments by filling in a comments field, or by attaching a document. 
Given the detailed nature of the comments sought by the Section 301 
Committee, all comments should be provided in an attached document. 
Submissions must state clearly the position taken and describe with 
specificity the supporting rationale and must be written in English. 
After attaching the document, it is sufficient to type ``See attached'' 
in the comments field.
    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 may be viewed on the http://www.regulations.gov Web site by entering docket number USTR-2010-0015 
in the search field on the home page.
    Persons wishing to submit business confidential information must 
certify in writing that such information is confidential in accordance 
with 15 CFR 2006.15(b), and such information must be clearly marked 
``BUSINESS CONFIDENTIAL'' at the top and bottom of the cover page and 
each succeeding page. Any comment containing business confidential 
information must be accompanied by a non-confidential summary of the 
confidential information. The non-confidential summary will be placed 
in the docket and open to public inspection. Comments containing 
business confidential information should not be submitted via the 
www.regulations.gov Web site. Instead, persons wishing to submit 
comments containing business confidential information should contact 
Sandy McKinzy at (202) 395-9483.
    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.
    The non-confidential summary will be placed in the docket and open 
to public inspection. Comments submitted in confidence should not be 
submitted via the www.regulations.gov Web site. Instead, persons 
wishing to submit such comments should contact Sandy McKinzy at (202) 
395-9483.

William L. Busis,
Chair, Section 301 Committee.
[FR Doc. 2010-12951 Filed 5-27-10; 8:45 am]
BILLING CODE 3190-W0-P