[Federal Register Volume 65, Number 104 (Tuesday, May 30, 2000)]
[Notices]
[Pages 34525-34526]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13419]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/D-186]


WTO Consultations Regarding Section 337 of the Tariff Act of 1930

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 the European Communities (``EC'') has requested 
consultations with the United States under the Marrakesh Agreement 
Establishing the World Trade Organization (WTO), regarding section 337 
of the Tariff Act of 1930 (19 U.S.C. 1337) and the related rules of 
practice and procedure of the International Trade Commission contained 
in chapter II of Title 19 of the U.S. Code of Federal Regulations. The 
EC alleges that section 337 is inconsistent with Article III of the 
General Agreement on Tariffs and Trade 1994 (``GATT 1994'') and 
Articles 2 (in conjunction with Article 2 of the Paris Convention), 3, 
9 (in conjunction with Article 5 of the Berne Convention), 27, 41, 42, 
49, 50, and 51 of the WTO Agreement on Trade-Related Aspects of 
Intellectual Property Rights (``TRIPS Agreement''). A first round of 
consultations with the EC was held on February 28, 2000, in Geneva, 
Switzerland. The Government of Canada and the Government of Japan 
participated as third parties. USTR invites written comments from the 
public concerning the issues raised in this dispute.

DATES: Although the USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted on or before June 30 to be assured of timely consideration by 
USTR.

ADDRESSES: Comments may be submitted to the Monitoring and Enforcement 
Unit, Office of the General Counsel, Attn: Section 337 Dispute, Office 
of the United States Trade Representative, 600 17th Street, NW, 
Washington, DC 20508, (202) 395-3582.

FOR FURTHER INFORMATION CONTACT: Rhonda K. Schnare, Associate General 
Counsel, Office of the General Counsel, Office of the United States 
Trade Representative, 600 17th Street, NW, Washington, DC, (202) 395-
3150.

SUPPLEMENTARY INFORMATION: Section 127(b) of the Uruguay Round 
Agreements Act (URAA) (19 U.S.C. 3537(b)(1)) requires that notice and 
opportunity for comment be provided after the United States receives a 
request for the establishment of a WTO dispute settlement panel. 
Consistent with this obligation, but in an effort to provide additional 
opportunity for comment, USTR is providing notice that consultations 
have been requested by the EC concerning whether section 337 of the 
Tariff Act of 1930 is inconsistent with the United States' obligations 
under GATT 1994 and the TRIPS Agreement. The EC has not requested the 
establishment of a dispute settlement panel. If the EC decides to 
proceed to a dispute settlement panel, under normal circumatances, the 
panel, which will hold its meetings in Geneva, Switzerland, would be 
expected to issue a report detailing its findings and recommendations 
within six to nine months after it is established.

Major Issues Raised by the European Communities

    Section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) addresses 
unfair methods of competition and unfair acts in the importation and 
sale of products in the United States, the threat or effect of which is 
to destroy or substantially injure a domestic industry, prevent the 
establishment of such an industry, or restrain or monopolize trade and 
commerce in the United States. However, in cases of alleged 
infringement of a valid and enforcable U.S. patent, registered 
trademark, copyright, or mask work, there is no injury requirement.
    In 1989, a GATT panel established at the request of the EC 
concluded that section 337 was inconsistent with GATT Article III. 
Subsequently, section 337 was amended by the URAA to bring it into 
conformity with the findings of the GATT panel report.
    In January 2000, the EC requested consultations with the United 
States under certain WTO agreements regarding section 337. The EC's 
consultation request alleged that the amendments to section 337 failed 
to bring it into compliance with the GATT and that section 337 
continues to provide less favorable treatment to imported goods than to 
domestic goods in violation of GATT Article III. The EC's consultation 
request also alleged that section 337 is inconsistent with Articles 2 
(in conjunction with Article 2 of the Paris Convention), 3, 9 (in 
conjunction with Article 5 of the Berne Convention), 27, 41, 42, 49, 
50, and 51 of the TRIPS Agreement. A first round of consultations with 
the EC was held in February 2000 in Geneva, Switzerland. The EC has not 
requested the establishment of a dispute settlement panel, but 
maintains the right to do so.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the dispute. Comments must be in 
English and provided in fifteen copies. 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 commenter. 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 submitter believes that information 
or advice may qualify as such, the submitter--
    (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 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 
participants 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/D-186, Section 337 
Dispute) may be made by calling Brenda Webb, (202) 395-

[[Page 34526]]

6186. The USTR 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 United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 00-13419 Filed 5-26-00; 8:45 am]
BILLING CODE 3190-01-M