[Federal Register Volume 77, Number 201 (Wednesday, October 17, 2012)]
[Notices]
[Pages 63917-63920]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-25462]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Dispute No. WTO/DS450]
WTO Dispute Settlement Proceeding Regarding China--Certain
Measures Affecting the Automobile and Automobile-Parts Industries
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 (AUSTR@)
is providing notice that on September 17, 2012, the United States
requested consultations with the People's Republic of China (``China'')
under the Marrakesh Agreement Establishing the World Trade Organization
(``WTO Agreement'') concerning certain measures that appear to provide
subsidies such as grants, loans, forgone government revenue, the
provision of goods and services, and other incentives contingent upon
export performance to
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automobile and automobile-parts enterprises in China. These measures
appear to be prohibited subsidies that are inconsistent with China's
obligations under Article 3 of the Agreement on Subsidies and
Countervailing Measures (``SCM Agreement''). In addition, it appears
that China has failed to comply with its transparency obligations under
the WTO Agreement. The consultation request may be found at www.wto.org
contained in a document designated as WT/DS450/1. 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 November 12, 2012, to be assured of timely
consideration by USTR.
ADDRESSES: Public comments should be submitted electronically to
www.regulations.gov, docket number USTR-2012-0030. If you are unable to
provide submissions by 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: Robert Anderson, Assistant General
Counsel, or Shannon Nestor, Assistant General Counsel, (202) 395-3150,
Office of the United States Trade Representative, 600 17th Street NW.,
Washington, DC 20508.
SUPPLEMENTARY INFORMATION: 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 nine months
after it is established.
Major Issues Raised by the United States
On September 17, 2012, the United States requested consultations
with China concerning certain subsidies that appear to be contingent
upon export performance provided to automobile and automobile-parts
enterprises in China. Specifically, the United States is challenging
various forms of export-contingent subsidies that China appears to
provide through a program establishing ``export bases'' for the
automobile and automobile-parts industries within China. China appears
to provide export-contingent subsidies to the automobile and
automobile-parts enterprises that are located in these ``export bases''
or that are designated as ``export base'' enterprises. To date, it
appears that China has created automobile and automobile-parts ``export
bases'' in the following twelve municipalities: Wuhan, Tianjin,
Chongqing, Shanghai, Guangzhou, Hefei, Wuhu, Xiamen, Taizhou,
Changchun, Baoding, Liuzhou, as well as in other localities in the
provinces of Jiangsu, Shandong, Shanxi, Henan, Inner Mongolia,
Heilongjiang, Liaoning, Hunan, Zhejiang, Yunnan, Guangdong, Fujian,
Anhui, and Beijing city.
In its request for consultations, the United States identified
measures that appear to provide the subsidies through China's
automobile and automobile-parts ``export bases'' that include, but are
not limited to, the following legal instruments, operating separately
or collectively, as well as any amendments, or related, successor,
replacement, or implementing measures: Policy on Development of
Automotive Industry; Policies for Automobile Trade; Notice Regarding
Application for National Automobile and Automobile Parts Export Base
Enterprises; Circular of the State Council on Printing, Distributing
and Implementing Several Supporting Policies for the Outline of
National Medium- and Long-Term Science and Technology Development Plan
(2006-2020); Circular of the General Office of the State Council on
Forwarding the Several Opinions of MOFCOM and other Departments on the
11th FYP for Electromechanical Exports Growth Model; Decision To
Designate 8 National Automobile and Automobile Parts Export Bases,
MOFCOM; MOFCOM, NDRC Names 160 Companies as National Export Base
Enterprises; Interim Measures on the Management of Fund for Optimizing
Import and Export Structure of Electromechanical and High-Tech
Products, Ministry of Commerce and Ministry of Finance; MOFCOM, NDRC
Conference Notice on National Automobile Exports; Notice of MOFCOM and
NDRC on Issuing the Measures for the Administration of National Export
Bases of Automobiles and Parts and Components (for Trial
Implementation); Opinions on Maintaining the Steady Growth of Foreign
Trade; 2009 State Council General Office Notice on Automobile Industry
Restructuring and Revitalization Planning (for planning period 2009-
2011); Notice on Implementation of Online Application for the Central
Foreign Trade Development Fund; Opinions of MOFCOM, NDRC, MIIT, MOF,
Customs and AQSIQ on Enhancing the Sustainable and Healthy Development
of the Export of Automobile Products of China; Notice of Examination
Results of the National Automobile and Automobile Parts Export Bases;
Opinions on Promoting the Continued Healthy Development of
Electromechanical Exports During the 12th Five-Year Plan; Notice of
MOFCOM and NDRC on Issuing the Measures for the Administration of
National Export Bases of Automobiles and Parts and Components (Revised
Draft); MOFCOM, NDRC Accreditation and Assessment of Automobiles and
Automobile Parts Export Bases (Draft for Comment); MOF and MOFCOM
Notice Regarding Sound Management of the 2011 Foreign Trade Common
Services Platform Establishment Fund; MOF and MOFCOM Notice Regarding
the Sound Management of the 2010 Common Services Platform Establishment
Fund; MOF Notice Regarding Arranging the 2011 Foreign Trade Common
Services Platform Establishment Fund; MOFCOM and MOF Notice on
Management of Funds To Maintain the Steady Growth of Foreign Trade;
Wuhan Automobile and Automobile Parts Status Report and Development
Plan (2006-2010); Wuhan Municipal Opinion on Automobile and Automobile
Parts Exports; Tianjin Outline of Eleventh Five-Year Plan of Economic
and Social Development; Circular of Tianjin Commerce Commission on
Printing and Distributing the Measures for the Recognition and
Management of Tianjin Automobile and Automobile Parts Export Base
Enterprises; Tianjin Notice on the Adjustment of Members of Tianjin
National Automobile and Automobile Parts Export Bases; Forwarding the
Opinions on Accelerating the Construction of Tianjin National
Automobile and Automobile Parts Export Base; Chongqing City Management
of Automobile and Automobile Parts Export Base Enterprises; Opinions of
the Chongqing Municipal People's Government on the Construction of
Automobile and Automobile Parts Export Base; Chongqing Circular on
Establishment of a Leading Group for the Construction of Chongqing
Automobile and Automobile Parts Export Bases; Chongqing 2011
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Notice Regarding the Application Work for the 2011 Chongqing Foreign
Trade Common Services Platform Establishment Special Fund Program;
Shanghai Foreign Economic and Trade Development ``Eleventh Five-Year
Plan''; Shanghai Municipal Commission of Commerce and the Municipal
Finance Bureau 2012 Notice for the Application of the 2011 Shanghai
Foreign Trade Common Services Platform Establishment Special Fund
Program; Printing and Issuing the Work Plan for the Application of
Guangzhou for National Automobile and Automobile Parts Export Base and
Export Base Enterprises; Opinions on Accelerating the Construction of
National Automobile and Automobile Parts Export Base in Guangzhou;
Interim Measures for the Management of National Automobile and
Automobile Parts Export Base Guangzhou Sub-Base (Valid for 5 years or
until 2013); Circular of Guangzhou Foreign Trade and Economic
Cooperation Bureau on Verifying Conghua City as the Guangzhou Conghua
National Automobile and Automobile Parts Export Base; 2011 Circular of
Application for Special Fund of Guangzhou Automobile and Automobile
Parts Export Base; 2011 Circular of Application for Special Fund of
Guangzhou Automobile and Automobile Parts Export Base Attachment One:
Application Form for the Guangzhou Municipal Automobile and Automobile
Parts Export Base Dedicated Funding Project; 2011 Circular of
Application for Special Fund of Guangzhou Automobile and Automobile
Parts Export Base Attachment Two: Feasibility Analysis Report for the
Guangzhou Municipal Automobile and Automobile Parts Export Base
Dedicated Funding Project (Reference Sample); Guangdong Province 2011
Notice Regarding the Work To Manage Well the Foreign Trade Common
Services Platform Establishment Fund; Notice on Hefei City Automobile
and Automobile Parts Export Base Support Fund Management Method
(Interim Measures); Anhui Notice Regarding Investigation of Received
Applications for National Automobile and Automobile Parts Export Base
and Enterprises; Anhui Regarding Applications for Electro-mechanical
Product Imports and Exports Structure Fund Program; Anhui Province
Opinions Regarding Expediting Equipment Manufacturing; Xiamen Municipal
Notice on Automobile Industry Development Action Plan; Notice of Xiamen
on the Management of Special Funds To Maintain Steady Growth of Foreign
Trade (Trial Implementation); Notice of Xiamen on the Management of
Electromechanical and High-Tech Products Export Adjustment Programs;
Xiamen City 2001 Notice on the Issuance of the Interim Measures on
Management of Outsourcing Services Common Services Platform Special
Construction Fund; Taizhou Municipal Opinions on the Promotion of
Stable and Healthily Developing Foreign Trade; Opinions From the
Peoples Government of Zhejiang Province on Promoting the Stable and
Healthy Development of Province-Wide Foreign Trade; Zhejiang Notice on
the Management of the 2011 Foreign Trade Common Services Platform
Construction Special Fund; Liuzhou Municipal Opinion on Encouraging
Exports of Automobile and Automobile Parts; Guangxi Zhuang Autonomous
Region Policy Opinion To Support the Development of the Automobile
Industry; Reply of the Economic Commission of Guangxi Zhang Autonomous
Region on Approving the Registration of Automotive Chassis Core Parts
Technological Upgrading and Export Base Construction Project of Liuzhou
Wuling Automobile United Development Co., Ltd.; Notice on Management of
Special Funds To Maintain the Steady Growth of Foreign Trade (Jilin);
Changchun Xinglong Comprehensive Bonded Zone Automobile Import/Export
Base Project; Jilin Province Opinion on Automobiles and Automobile
Parts Exports; Jilin Province Opinion on Accelerating the Development
of Automobile Parts; Jilin Province Management and Implementation
Measures on Funds To Maintain Steady Growth of Foreign Trade; Jilin
Province Notification for Organizations To Apply for the 2011 Foreign
Common Services Platform Establishment Fund; Hebei Province Opinion on
Broadening Opening to the Outside World To Accelerate the Development
of Open Economy; Hebei Province 2011 Notice Regarding Sound Management
of the Foreign Trade Common Services Platform Establishment Fund;
Notice on Jiangsu Province Export Base Support Methods; Jiangsu
Province Interim Measures on Management of Funds To Maintain a Steady
Growth of Foreign Trade; Circular on the Pilot Accreditation and
Management of Shandong Province Electro-Mechanical Products Export
Bases and Notice To Begin the Accreditation of the First Batch of
Export Bases; Shanxi Province Management Measures on Special Funds To
Maintain Steady Growth of Foreign Trade; 2012 Inner Mongolia Autonomous
Region Work Plan for the Establishment of Electro-Mechanical and High-
Tech Industry Export Base; Henan Province Opinion To Promote the
Sustained and Healthy Development of Foreign Trade; 2009 Heilongjiang
Province Opinion To Further Sustain the Stable Growth of Foreign Trade;
Measures Administering, Operating, Funding or Specifying the Forms of
Support Provided to Automobile or Automobile Parts Enterprises Within
Any Automobile and Automobile Parts Export Base; and Measures
Administering, Operating, Funding or Specifying the Forms of Support
Pprovided to Automobile or Automobile Parts Enterprises in Jiangsu,
Shandong, Anhui, Jiangxi. Liaoning, Heilongjiang, Hunan, Inner
Mongolia, Shanxi, Zhejiang, Yunnan, Guangdong, Hebei, Fujian, Henan
provinces, and Beijing City.
In addition, it appears that China has failed to comply with its
transparency obligations in regards to these export-contingent
subsidies. In particular, the United States has explained that the
measures appear to be inconsistent with Articles 3, 25.1, 25.2, 25.3,
and 25.4 of the SCM Agreement; Article XVI:1 of the General Agreement
on Tariffs and Trade 1994; and Paragraphs 1.2, 2(C)(1), and 2(C)(2) of
Part I of the Protocol on the Accession of the People's Republic of
China.
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 www.regulations.gov docket number USTR-2012-
0030. If you are unable to provide submissions by www.regulations.gov,
please contact Sandy McKinzy at (202) 395-9483 to arrange for an
alternative method of transmission.
To submit comments via www.regulations.gov, enter docket number
USTR-2012-0030 on the home page and click ``search.'' The site will
provide a search-results page listing all documents associated with
this docket. 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 ``Comment Now!.'' (For further
information on using the www.regulations.gov Web site, please consult
the resources provided on the Web site by clicking on ``How to Use
Regulations.gov'' on the bottom of the page.)
The www.regulations.gov site provides the option of providing
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comments by filling in a ``Type Comments'' field or by attaching a
document using an ``upload file'' field. 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 ``Type
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 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. Sec. 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. A non-confidential summary of the confidential information must
be submitted to www.regulations.gov. The non-confidential summary will
be placed in the docket and open to public inspection.
Pursuant to section 127(e) of the Uruguay Round Agreements Act (19
U.S.C. 3537(e)), USTR will maintain a docket on this dispute settlement
proceeding accessible to the public at www.regulations.gov, docket
number USTR-2012-0030.
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, will be made available to the public on USTR's Web site
at www.ustr.gov, and the report of the panel, and, if applicable, the
report of the Appellate Body, will be available on the Web site of the
World Trade Organization, www.wto.org. Comments open to public
inspection may be viewed on the www.regulations.gov Web site.
Juan Millan,
Acting Assistant United States Trade Representative for Monitoring and
Enforcement.
[FR Doc. 2012-25462 Filed 10-16-12; 8:45 am]
BILLING CODE 3290-F3-P