[Federal Register Volume 65, Number 105 (Wednesday, May 31, 2000)]
[Notices]
[Pages 34786-34796]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13548]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Dockets No. 301-62a and 301-100a]


Proceedings Concerning the European Communities' Regime for the 
Importation, Sale and Distribution of Bananas and the European 
Communities' Measures Concerning Meat and Meat Products

AGENCY: Office of the United States Trade Representative.

ACTION: Request for comments

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SUMMARY: The interagency Section 301 Committee is soliciting written 
comments on possible modifications to actions taken by the United 
States as a result of the European Communities' (EC) failure to 
implement the recommendations and rulings of the World Trade 
Organization (WTO) Dispute Settlement Body in proceedings regarding (i) 
the EC's regime for the importation, sale, and distribution of bananas 
(the EC-Bananas case) and (ii) the EC's ban on the import of U.S. meat 
and meat products produced from animals treated with certain hormones 
(the EC-Beef Hormones case). Comments are requested with respect to the 
products listed in the annexes to this notice. The Section 301 
Committee will consider the comments received in response to this 
notice, as well as comments previously received with respect to 
particular products. Accordingly, persons who have previously submitted 
comments with respect to particular products are requested not to 
resubmit such comments, although persons may wish to submit updates to 
previously submitted comments. The relevant statutory provision 
provides that the actions taken by the United States in the Beef and 
Bananas cases should be modified, unless (1) the USTR and the affected 
U.S. industries agree that such changes are unnecessary, or (2) 
resolution of the case is imminent.

DATES: To be assured of consideration, written comments should be 
submitted by 5 p.m. on June 14, 2000.

ADDRESSES: Comments should be addressed to: Chairman, Section 301 
Committee, Attn: Implementation of WTO Recommendations, Room 100, 600 
17th Street, NW, Washington, D.C. 20508.

FOR FURTHER INFORMATION CONTACT: Sybia Harrison, Staff Assistant to the 
Section 301 Committee, (202) 395-3419, for questions concerning 
procedures for filing submissions in response to this notice; Ralph 
Ives, Deputy Assistant U.S. Trade Representative, (202) 395-6127, for 
questions concerning the EC-Bananas case or the EC-Beef Hormones case; 
or William Busis, Associate General Counsel (202) 395-3150, for 
questions concerning procedures under Section 301 or the WTO Agreement.

SUPPLEMENTARY INFORMATION:

A. The EC-Bananas Case

    The EC's regime governing the importation, sale, and distribution 
of bananas is discriminatory and has harmed the economic interests of 
the United States by denying to U.S. companies a major portion of their 
banana distribution business. WTO dispute settlement panels have 
confirmed that the EC's banana regime is inconsistent with the EC's 
obligations under the WTO Agreement. Furthermore, WTO arbitrators have 
determined that the EC's banana regime has nullified or impaired U.S. 
benefits under the WTO Agreement in the amount of $191.4 million per 
year. The procedural and substantive background of the U.S. 
investigation under Sections 301 to 309 of the Trade Act of 1974, as 
amended (``Section 301'') and the associated WTO proceedings concerning 
the EC's banana regime is set forth in prior notices (64 FR 19,209, 63 
FR 71,665, 63 FR 63,099, 63 FR 56,687, and 63 FR 8248)
    As a result of the EC's failure to comply with recommendations and 
rulings of the WTO Dispute Settlement Body (DSB) to bring its 
discriminatory banana regime into compliance with WTO obligations, on 
April 19, 1999 the DSB authorized the United States to suspend the 
application to the EC, and member States thereof, of WTO tariff 
concessions and related obligations covering trade in an amount of 
$191.4 million per year. Pursuant to that authorization, the USTR 
announced a list of EC products, reprinted in Annex I to this notice, 
that would be subject to a 100 percent rate of duty (64 FR 19209).
    Since that time, the United States and the EC have continued to 
consult in an effort to resolve this dispute. However, the EC has still 
failed to bring its banana regime into compliance with the EC's 
obligations under the WTO Agreement.

B. The EC-Beef Hormones Case

    The EC bans the import of beef and beef products produced from 
animals to which certain hormones have been administered, despite the 
facts that such products have been consumed safely for decades and that 
no scientific basis exists for imposing such a ban. The effect of the 
EC ban is to prohibit the import of substantially all U.S.-produced 
beef and beef products. WTO panels have confirmed that the EC has no 
scientific basis for banning imports of U.S. beef, and that the EC ban 
is inconsistent with the EC's WTO obligations. Furthermore, WTO 
arbitrators have determined that the EC's import ban on U.S. beef and 
beef products has nullified or impaired U.S. benefits under the WTO 
Agreement in the amount of $116.8 million each year. The procedural and 
substantive background of the U.S. investigation under Section 301 and 
the associated WTO proceedings concerning the EC's beef import ban is 
set forth in prior notices (64 FR 40,638 and 64 FR 14,486).
    As a result of the EC's failure to comply with DSB recommendations 
and rulings concerning its beef import ban, on July 26, 1999 the DSB 
authorized the United States to suspend the application to the EC, and 
member States thereof, of WTO tariff concessions and related 
obligations covering trade in an amount of $116.8 million per year. 
Pursuant to that authorization, the USTR announced a list of EC 
products, reprinted in Annex III to this notice, that would be subject

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to a 100 percent rate of duty (64 FR 40638).
    Since that time, the United States and the EC have continued to 
consult in an effort to resolve this dispute. However, the EC has still 
failed to bring its measures governing the import of U.S. beef and beef 
products into compliance with the EC's obligations under the WTO 
Agreement.

C. Section 407 of the Trade and Development Act of 2000

    Section 407 of the Trade and Development Act of 2000, Pub. L. 106-
200, amends Section 301 by requiring the USTR to review retaliation 
lists or other actions under Section 301 and to revise them, in whole 
or in part, 120 days after their initial effective date, and every 180 
days thereafter. The provision applies to actions taken under Section 
301--such as the above-described actions in the EC-Bananas and the EC-
Beef Hormones cases--as the result of a WTO Member's failure to 
implement DSB recommendations in a dispute settlement proceeding.
    Section 407 provides exceptions in the event that (1) the USTR and 
the Section 301 petitioner (or, if USTR self-initiated the Section 301 
investigation, the affected U.S. industry) agree that changing the 
retaliation list or other action under Section 301 is unnecessary, or 
(2) resolution of the case is imminent.
    Section 407 provides that the standard for making changes is to 
select changes that are most likely to result in implementation of the 
DSB recommendations, or in achieving some other satisfactory resolution 
of the dispute. The conference report accompanying the legislation 
confirms that Congress intends for the USTR, in accordance with WTO 
dispute settlement rules, to ensure that the level of retaliation 
remains within the level authorized by the WTO DSB.
    The provision also requires that retaliation lists--both initially 
and after each of the periodic changes--include reciprocal goods of the 
U.S. industries affected by a WTO Member's noncompliance. This 
reciprocity requirement applies to the retaliatory action in the EC-
Beef Hormones case. However, Section 407 includes an exception that 
makes the reciprocity requirement inapplicable to the retaliatory 
action in the EC-Bananas case.
    The Trade and Development Act of 2000 was enacted on May 18, 2000, 
and Section 407 of the Act entered into force on that date. Section 407 
does not include a transition clause specifying the schedule for 
changes in existing retaliation lists (that is, the lists in the EC-
Bananas and EC-Beef Hormones cases). The conference report accompanying 
the legislation states that the conferees expect initial action within 
30 days after entry into force. The Section 301 Committee will work to 
develop recommendations consistent with this time frame and with the 
need to obtain and to examine public comments.

D. Request for Public Comments

    The Section 301 Committee closely monitors actions taken under 
Section 301 to ensure that such actions remain practicable and 
effective in terms of obtaining the elimination of the acts, policies, 
or practices of foreign governments that are the subject of the 301 
investigation. To assist in this monitoring and in the implementation 
of Section 407 of the Trade and Development Act of 2000, the USTR seeks 
public comments with respect to the products on the lists in the 
Annexes to this notice.
    All products listed in the Annexes were included on preliminary 
lists with respect to which USTR had previously sought public comment. 
The Section 301 Committee will consider the comments received in 
response to this notice, as well as comments previously received with 
respect to particular products. Accordingly, persons who have 
previously submitted comments with respect to particular products are 
requested not to resubmit such comments, although persons may wish to 
submit updates to previously submitted comments. The Section 301 
Committee will consider all public comments in developing its 
recommendations to the interagency Trade Policy Staff Committee, which 
in turn will provide recommendations to the United States Trade 
Representative (USTR).
    Annex I consists of products, drawn from the list in Annex II, 
currently subject to 100 percent duties as a result of the EC's 
noncompliance in the EC-Bananas case. Annex II consists of a product 
list which the United States included in a request to the WTO DSB for 
authorization to suspend WTO concessions in connection with the EC-
Bananas case. Annex III consists of products, drawn from the list in 
Annex IV, currently subject to 100 percent duties as a result of the 
EC's noncompliance in the EC-Beef Hormones case. Annex IV consists of a 
product list which the United States included in a request to the WTO 
DSB for authorization to suspend WTO concessions in connection with the 
EC-Beef Hormones case.
    Concerning products currently subject to 100 percent duties (listed 
in Annex I for the EC-Bananas case and Annex III for the EC-Beef 
Hormones case), the Section 301 Committee invites comments with respect 
to whether the products should continue to be subject to such duties, 
and with respect to whether the current 100 percent rate of duty is 
high enough to have the intended effect of being prohibitive. 
Concerning products on the attached lists not currently subject to 100 
percent duties (included in Annex II for the EC-Bananas case and Annex 
IV for the EC-Beef Hormones case), the Section 301 Committee invites 
comments with respect to whether the products should be subject to 100 
percent duties, and with respect to whether a 100 percent rate of duty 
would be high enough to have the intended effect of being prohibitive.
    The comments sought by the Section 301 Committee with respect to 
particular products include (i) whether maintaining or imposing 
prohibitive duties on a particular product would be practicable or 
effective in terms of encouraging a favorable resolution of the 
dispute, and (ii) whether maintaining or imposing prohibitive duties on 
a particular product would cause disproportionate economic harm to U.S. 
interests, including small- or medium-size businesses.
    In the annexed products lists, the items with respect to which 
comments are requested are (1) classified in the indicated headings and 
the subheadings of the Harmonized Tariff Schedule of the United States 
(HTS); and (2) the product of the indicated member States of the 
European Communities. The product descriptions in the annexes are for 
information purposes only; the product descriptions are not intended to 
delimit in any way the scope of products that are the subject of this 
notice. Rather, the numerical headings and subheadings of the HTS 
listed in the annexes govern the scope of this notice. In the instances 
where a 4-digit HTS heading appears in the left column of the lists, 
comments are requested with respect to any of the products classified 
in any of the 8-digit subheadings appearing in the HTS indented under 
those 4-digit headings.
    To be assured of consideration, written comments should be 
submitted by 5:00 p.m. on June 14, 2000.
    Submissions must include on the first page a clear reference in 
bold and/or underlining to: (1) to actions taken in the EC-Bananas 
case, the EC-Beef Hormones case, or both, and (2) the HTS number(s) and 
product(s) which are the subject of the submission. Submissions

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must state clearly the position taken and describe with particularity 
the supporting rationale, be in English, and be provided in twenty 
copies to: Chairman, Section 301 Committee, Attn: Implementation of WTO 
Recommendations, Room 100.
    Written comments will be placed in files (Docket No. 301-62a for 
the EC-Beef Hormones case and No. 301-100a for the EC-Bananas case) 
open to public inspection pursuant to 15 CFR Sec. 2006.13, except 
confidential business information exempt from public inspection in 
accordance with 15 CFR Sec. 2006.15. Persons wishing to submit business 
confidential information must certify in writing that such information 
is confidential in accordance with 15 CFR Sec. 2006.15(b), and such 
information must be clearly marked ``BUSINESS CONFIDENTIAL'' in a 
contrasting color ink at the top of each page on each of twenty copies 
and must be accompanied by a non-confidential summary of the 
confidential information. The non-confidential summary will be placed 
in the docket that is open to public inspection.
    An appointment to review Docket Nos. 301-62a and 301-100a may be 
made by calling Brenda Webb at (202) 395-6186. The USTR Reading Room is 
open to the public from 9:30 a.m. to 12 noon and 1:00 p.m. to 4:00 
p.m., Monday through Friday, and is located in Room 101 of the Office 
of the United States Trade Representative.

    Dated: May 25, 2000.
William L. Busis,
Chairman, Section 301 Committee.
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[FR Doc. 00-13548 Filed 5-26-00; 8:45 am]
BILLING CODE 3190-01-C