[Federal Register Volume 72, Number 172 (Thursday, September 6, 2007)]
[Notices]
[Pages 51267-51268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-4341]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS-27]


WTO Dispute Settlement Proceeding Regarding European 
Communities--Regime for the Importation, Sale and Distribution of 
Bananas: Recourse by the United States to Article 21.5 of the DSU

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 at the request of the United 
States, the Dispute Settlement Body (``DSB'') of the World Trade 
Organization (``WTO''), has established a dispute settlement panel 
under the Marrakesh Agreement establishing the WTO to examine whether 
the European Communities (``EC'') has implemented the recommendations 
and rulings of the DSB in a dispute regarding the EC's import regime 
for bananas. The request may be found at http://www.wto.org contained 
in a document designated at WT/DS27/83 (see also the similar request by 
Ecuador in the document WT/DS27/80). The DSB adopted the findings of 
the panel and Appellate Body in this proceeding on September 25, 1997. 
The DSB ruled that the EC's import regime for bananas was inconsistent 
with the EC's obligations under the General Agreement on Tariffs and 
Trade 1994 (GATT 1994) and the General Agreement on Trade in Services 
(``GATS''). An arbitrator appointed under Article 21.3 of the WTO 
Understanding on Rules and Procedures Governing the Settlement of 
Disputes (``DSU'') awarded the EC a ``reasonable period of time'' in 
which to come into compliance until January 1, 1999. Nearly a decade 
after the DSB made its original recommendations and rulings, the United 
States considers that the EC has failed to bring its import regime for 
bananas into compliance with its WTO obligation. 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, comments should be submitted on or before 
September 21, 2007 to be assured of timely consideration by USTR.

ADDRESSES: Comments should be submitted (i) electronically, to 
<a href="/cdn-cgi/l/email-protection#e2a4b0d2d5d3daa297919690cc878d92cc858d94"><span class="__cf_email__" data-cfemail="6f293d5f585e572f1a1c1b1d410a001f41080019">[email protected]</span></a>, with ``EC Bananas (DS27)'' in the subject line, or 
(ii) by fax, to Sandy McKinzy at (202) 395-3640, with a confirmation 
copy sent electronically to the electronic mail address above, in 
accordance with the requirements for submissions set out below.

FOR FURTHER INFORMATION CONTACT: Mar[iacute]a L. Pag[aacute]n, 
Associate General Counsel, Office of the United States Trade 
Representative, 600 17th Street, NW., Washington, DC 20508, (202) 395-
7305.

SUPPLEMENTARY INFORMATION: USTR is providing notice that the United 
States has requested the establishment of a WTO dispute settlement 
compliance panel pursuant to the DSU. The Article 21.5 panel, which 
will hold its meetings in Geneva, Switzerland, is expected to issue a 
report on its findings and recommendations by February 29, 2008.

Prior WTO Proceedings

    On September 25, 1997, the DSB adopted its recommendations and 
rulings in a dispute brought by the United States, Ecuador, Guatemala, 
Honduras, and Mexico challenging the EC's then existing import regime 
for bananas. The DSB ruled that the EC's import regime for bananas was 
inconsistent with the EC's obligations under the General Agreement on 
Tariffs and Trade 1994 (GATT 1994) and the General Agreement on Trade 
in Services (GATS). An arbitrator appointed under Article 21.3 of the 
WTO Understanding on Rules and Procedures Governing the Settlement of 
Disputes (DSU) awarded the EC a ``reasonable period of time'' in which 
to come into compliance until January 1, 1999. At the end of the 
reasonable period of time, the EC implemented a first set of changes to 
the import regime for bananas that were found to perpetuate a 
discriminatory tariff-rate quota (``TRQ'') system and license-based 
system in breach of the GATT 1994 and the GATS. In November

[[Page 51268]]

1999, the EC announced a second attempt to reform its banana regime, 
which would comprise a two-stage process involving a transition period 
during which a TRQ system would be applied with preferential access for 
African, Caribbean and Pacific (ACP) countries, after which a tariff-
only regime would be introduced. The transition period was to end no 
later than January 1, 2006. This two-stage proposal was memorialized in 
separate understandings reached with the United States and Ecuador in 
April 2001. Documents related to this longstanding dispute are 
available in the USTR reading room and on the WTO Web site, http://www.wto.org.

Article 21.5 Proceeding

    On January 1, 2006, the EC implemented a new import regime for 
bananas which consists of: (1) A zero-duty, 775,000 ton TRQ available 
only to bananas originating in ACP countries; and (2) an MFN duty of 
176 euros per ton for all other bananas.
    The United States considers that the EC has failed to implement the 
DSB's recommendations and rulings and that the EC's regime remains 
inconsistent with its WTO obligations. The United States considers that 
the EC's current import regime for bananas is:
    (1) Inconsistent with Article I of the GATT 1994 because it applies 
a zero-duty TRQ to imports of bananas originating in ACP countries in a 
quantity up to 775,000 tons but does not accord the same duty-free 
treatment to imports of bananas originating in all other WTO Members; 
and
    (2) Inconsistent with Article XIII of the GATT 1994--including 
Article XIII:1 and XIII:2--because it reserves the 775,000 ton zero-
duty TRQ for imports of bananas originating in ACP countries but does 
not provide access to this preferential TRQ to imports of bananas 
originating in non-ACP substantial or non-substantial supplying 
countries.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the dispute. Comments should be 
submitted (i) electronically, to <a href="/cdn-cgi/l/email-protection#682e3a585f5950281d1b1c1a460d0718460f071e"><span class="__cf_email__" data-cfemail="a0e6f290979198e0d5d3d4d28ec5cfd08ec7cfd6">[email protected]</span></a>, with ``EC Bananas 
(DS27)'' in the subject line, or (i) by fax, to Sandy McKinzy at (202) 
395-3640, with a confirmation copy sent electronically to the 
electronic mail address above.
    USTR encourages the submission of documents in Adobe PDF format as 
attachments to an electronic mail. Interested persons who make 
submissions by electronic mail should not provide separate cover 
letters; information that might appear in a cover letter should be 
included in the submission itself. Similarly, to the extent possible, 
any attachments to the submission should be included in the same file 
as the submission itself, and not as separate files.
    Comments must be in English. 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 designated as such and ``BUSINESS CONFIDENTIAL'' must be marked 
at the top and bottom of the cover page and each succeeding page. 
Persons who submit confidential business information are encouraged to 
also provide a non-confidential summary of the information.
    Information or advice contained in a comment submitted, other than 
business confidential information, may be determine 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 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) 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, which is located at 1724 F 
Street, NW., Washington, DC 20508. 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, the submissions, 
or non-confidential summaries of submissions, received from other 
participants in the dispute; the report of the panel and, if 
applicable, the report of the Appellate Body. The USTR Reading Room is 
open to the public, by appointment only, from 10 a.m. to noon and 1 
p.m. to 4 p.m., Monday through Friday. An appointment to review the 
public file (Docket WTO/DS-27, EC Bananas Dispute) may be made by 
calling the USTR Reading Room at (202) 395-6186.

Daniel E. Brinza,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 07-4341 Filed 9-5-07; 8:45 am]
BILLING CODE 3190-W7-M


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