[Federal Register Volume 65, Number 104 (Tuesday, May 30, 2000)]
[Notices]
[Pages 34526-34527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13427]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-192]


WTO Dispute Settlement Proceeding Regarding United States--
Transitional Safeguard Measure on Combed Cotton Yarn from Pakistan

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 of Pakistan's request for the 
establishment of a dispute settlement panel under the Marrakesh 
Agreement Establishing the World Trade Organization (``WTO''). Pakistan 
challenges the United States' action of imposing a transitional 
safeguard on imports of combed cotton yarn from Pakistan. In this 
dispute, Pakistan alleges that ths safeguard measure is inconsistent 
with certain ogligations under the WTO Agreement on Textiles and 
Clothing. 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 by July 7, 2000, to be assured of timely consideration by 
USTR in preparing its first written submission to the panel.

ADDRESSES: Comments may be submitted to Sandy McKinzy, Litigation 
Assistant, Office of Monitoring and Enforcement, Room 122, Attn: Combed 
Cotton Yarn, Office of the United States Trade Representative, 600 17th 
Street, NW, Washington, DC, 20508.

FOR FURTHER INFORMATION CONTACT: Demetrios Marantis, Associate General 
Counsel at (202) 395-3581 or Caroyl Miller, Deputy Chief Textile 
Negotiator at 395-3026.

SUPPLEMENTARY INFORMATION: Pursuant to section 127(b) of the Uruguay 
Round Agreements Act (URAA) (19 U.S.C. 3537(b)(1)), USTR is providing 
notice that Pakistan has submitted a request for the establishment of a 
WTO dispute settlement panel to examine the U.S. transitional safeguard 
measure on imports of combed cotton yard from Pakistan. The WTO Dispute 
Settlement Body (``DSB'') is expected to establish a panel for this 
purpose in June 2000.

Major Issues Raised and Legal Basis of the Complaint

    Pakistan challenges the transitional safeguard measure the United 
States imposed on March 17, 1999, on imports of combed cotton yarn from 
Pakistan. In its request for a panel to examine the measure, Pakistan 
alleges that the U.S. transitional safeguard measure is inconsistent 
with Article 2.4 of the WTO Agreement on Textiles and Clothing 
(``ATC'') and is not justified by Article 6 of the ATC. Pakistan 
further maintains that the U.S. measure does not meet the requirements 
for transitional safeguards set out in paragraphs 2, 3, 4, and 7 of 
Article 6 of the ATC because the United States allegedly:
    <bullet> Made its determination of serious damage, or actual threat 
thereof, to its domestic industry producing like and/or directly 
competitive products, by (a) excluding from its determination a 
significant proportion of the production of like products by its 
domestic industry and (b) without taking into account all factors 
relevant to the state of its domestic industry;
    <bullet> Failed to demonstrate that the alleged serious damage, or 
actual threat thereof to the domestic industry was being caused by 
increased imports;
    <bullet> Attributed the alleged damage, or actual threat thereof, 
to its domestic industry solely to imports from Pakistan to the 
exclusion of imports from other sources, including unrestrained 
sources;
    <bullet> Based its determination of serious damage, or actual 
threat thereof, on a comparison of data for an eight-month period in 
1997 and 1998, which is in the view of Pakistan a period too short to 
determine whether the alleged damage, or actual threat thereof, was 
serious; and
    <bullet> Relied on partial and unverified information.
    The United States and Pakistan consulted on this issue on February 
10 and 11, 1999, but were unable to reach a mutually satisfactory 
solution to the matter. The WTO Textile Monitoring Body (``TMB'') 
reviewed the U.S. measure on April 29, 1999, but determined in its 
report that ``it was not in a position to assess without doubt whether 
or not serious damage had been caused to the US' industry producing 
products like and/or directly competitive with combed cotton yarn * * 
*'' (G/TMB/18). The TMB therefore recommended that the United States 
rescind the measure. On May 27, 1999, the United States informed the 
TMB that it was unable to conform to this recommendation. The TMB 
subsequently reviewed and reaffirmed its recommendation, and in an 
August 6, 1999, letter to the TMB the United States renewed its 
determination to retain the temporary safeguard measure. Pakistan 
considers this matter to be unresolved and that the parties have--
through the TMB--satisfied the consultation requirement of Article 4 of 
the Understanding on Rules and Procedures Governing the Settlement of 
Disputers (``DSU''). Accordingly, on April 3, 2000, Pakistan requested 
the establishment of a dispute settlement panel pursuant to Article 
8:10 of the ATC, Article XXIII:2 of the General Agreement on Tariffs 
and Trade 1994 (``GATT 1994''), and Article 6 of the DSU.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in this dispute. Comments must be in 
English and provided in fifteen copies to Sandy McKinzy at the address 
provided above. 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 submitting 
person. Confidential business information must be clearly marked 
``BUSINESS CONFIDENTIAL'' in a contrasting color ink at the top of each 
page of each copy. 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 
submitting person believes that information or advice may qualify as 
such, the submitting person--
    (1) Must so designate the information or advice;
    (2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE'' 
in a contrasting color ink at the top of each page of each copy; and
    (3) Is encouraged to provide a non-confidential summary of the 
information or advice.
    Pursuant to section 127(e) of the URAA (19 U.S.C. 3537(e)), USTR 
will maintain a file on this dispute settlement proceeding, accessible 
to the public, in the USTR Reading Room: Room 101, Office of the United 
States Trade Representative, 600 17th Street, NW, Washington, DC 20508. 
The public

[[Page 34527]]

file will include a listing of any comments received by USTR from the 
public with respect to the proceeding; the U.S. submissions to the 
panel in the proceeding, the submissions, or non-confidential summaries 
of submissions, to the panel received from other parties in the 
dispute, as well as the report of the dispute settlement panel, and, if 
applicable, the report of the Appellate Body. An appointment to review 
the public file (Docket WTO/DS-192, ``Combed Cotton Yarn--Pakistan'') 
may be made by calling Brenda Webb, (202) 395-6186. The 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.

A. Jane Bradley,
Assistant U.S. Trade Representative for Monitoring and Enforcement.
[FR Doc. 00-13427 Filed 5-26-00; 8:45 am]
BILLING CODE 3190-01-P