[Federal Register Volume 65, Number 116 (Thursday, June 15, 2000)]
[Notices]
[Pages 37595-37596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-15138]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/D-175]


WTO Dispute Settlement Proceeding Regarding Indian Measures 
Affecting Trade and Investment in the Motor Vehicle Sector

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 the request for the establishment of a dispute 
settlement panel under the Marrakesh Agreement Establishing the World 
Trade Organization (``WTO''), by the United States, to examine Public 
Notice No. 60 ((PN)/97-02) of the Indian Ministry of Commerce, 
published in the Gazette of India Extraordinary, effective 12 December 
1997 (``Public Notice 60''); the Foreign Trade (Development and 
Regulation) Act 1992; the Export and Import Policy, 1997-2002; 
memoranda of understanding signed by the Government of India with 
manufacturing firms in the motor vehicle sector pursuant to Public 
Notice No. 60; and certain related Indian legislative and 
administrative measures. In this dispute, the United States alleges 
that these measures are inconsistent with the obligations of India 
under Articles III:4 and XI:1 of the General Agreement on Tariffs and 
Trade 1994 (GATT 1994) and Articles 2.1 and 2.2 of the Agreement on 
Trade-Related Investment Measures. The 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 by July 28, 2000, to be assured of timely consideration by 
the USTR in preparing its first written submission to the panel.

ADDRESSES: Submit comments to Sandy McKinzy, Monitoring and Enforcement 
Unit, Office of the General Counsel, Room 122, Office of the United 
States Trade Representative, 600 17th Street, NW, Washington, DC, 
20508, Attn: India Motor Vehicle Dispute. Telephone: (202) 395-3582.

FOR FURTHER INFORMATION CONTACT: Steven F. Fabry, Associate General 
Counsel, telephone: (202) 395-3582; Christopher Rosettie, Director for 
Multilateral Services and Investment Affairs, telephone: (202) 395-
7271; or Joseph Damond, telephone: (202) 395-6813.

SUPPLEMENTARY INFORMATION: Pursuant to section 127(b) of the Uruguay 
Round Agreements Act (URAA) (19 U.S.C. 3537(b)(1)), the USTR is 
providing notice that on May 15, 2000, the United States submitted a 
request for the establishment of a WTO dispute settlement panel to 
examine the United States' claim that certain Indian measures affecting 
trade and investment in the motor vehicle sector are inconsistent with 
India's obligations under the GATT 1994 and the Agreement on Trade-
Related Investment Measures. The WTO Dispute Settlement Body is likely 
to establish a dispute settlement panel no later than the end of July, 
2000. Under normal circumstances, the panel, which will

[[Page 37596]]

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 and Legal Basis of the Complaint

    The United States claims that Public Notice 60; the Foreign Trade 
(Development and Regulation) Act 1992; the Export and Import Policy, 
1997-2002; memoranda of understanding signed by the Government of India 
with manufacturing firms in the motor vehicle sector pursuant to Public 
Notice No. 60; and certain related Indian legislative and 
administrative measures are inconsistent with India's obligations under 
the WTO Agreement. The foregoing measures require manufacturing firms 
in the motor vehicle sector to achieve specified levels of purchase or 
use of domestic content; to achieve a neutralization of foreign 
exchange and to balance the value of certain imports with the value of 
exports of cars and components over a stated period; and to limit 
imports to a value based on previous exports. These requirements are 
enforceable under Indian law and rulings, and manufacturing firms in 
the motor vehicle sector must comply with these requirements in order 
to obtain certain Indian import licenses. The United States claims that 
the Indian measures in question are therefore inconsistent with India's 
obligations under Article III:4 and XI:1 of the GATT 1994 and Articles 
2.1 and 2.2 of the Agreement on Trade-Related Investment Measures.

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 the 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)), the 
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 the 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/D-
175, India Motor Vehicle Dispute) may be made by calling Brenda Webb, 
(202) 395-6186. 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.
[FR Doc. 00-15138 Filed 6-14-00; 8:45 am]
BILLING CODE 3190-01-M