Federal Register / Vol. 62, No. 200 / Thursday, October 16, 1997 / Notices 53853

Under section 304 of the Trade Act,

the USTR must determine within 18

months after the date on which this

investigation was initiated, or within 30

days after the conclusion of World

Trade Organization dispute settlement

procedures, whichever is earlier,

whether any act, policy, or practice or

denial of trade agreement rights

described in section 301 of the Trade

Act exists and, if that determination is

affirmative, the USTR must determine

what action, if any, to take under

section 301 of the Trade Act.

Public Comment: Requirements for

Submissions

Interested persons are invited to

submit written comments concerning

the EU acts, policies and practices

which are the subject of this

investigation, the amount of burden or

restriction on U.S. commerce caused by

these acts, policies and practices, and

the determinations required under

section 304 of the Trade Act. Comments

must be filed in accordance with the

requirements set forth in 15 CFR

2006.8(b) (55 FR 20593) and must be

filed on or before noon on Wednesday,

November 6, 1996. Comments must be

in English and provided in twenty

copies to: Sybia Harrison, Staff Assistant

to the Section 301 Committee, Room

223, Office of the U.S. Trade

Representative, 600 17th Street, NW,

Washington, DC 20508.

Comments will be placed in a file

(Docket 301–114) open to public

inspection pursuant to 15 CFR 2006.13,

except confidential business

information exempt from public

inspection in accordance with 15 CFR

2006.15. Confidential business

information submitted in accordance

with 15 CFR 2006.15 must be clearly

marked ‘‘BUSINESS CONFIDENTIAL’’

in a contrasting color ink at the top of

each page on each of 20 copies, and

must be accompanied by a

nonconfidential summary of the

confidential information. The

nonconfidential summary shall be

placed in the file that is open to public

inspection. An appointment to review

the docket (Docket No. 301–112) 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 1:00 p.m. to 4:00 p.m.,

Monday through Friday, and is located

in Room 101.

Irving A. Williamson,

Chairman, Section 301 Committee.

[FR Doc. 97–27305 Filed 10–15–97; 8:45 am]

BILLING CODE 3190–01–M

OFFICE OF THE UNITED STATES

TRADE REPRESENTATIVE

[Docket No. 301–112]

Initiation of Section 302 Investigation

and Request for Public Comment:

Japan Market Access Barriers to

Agricultural Products

AGENCY: Office of the United States

Trade Representative.

ACTION: Notice of initiation of

investigation; request for written

comments.

SUMMARY: The United States Trade

Representative (USTR) has initiated an

investigation under section 302(b)(1) of

the Trade Act of 1974, (the Trade Act),

with respect to certain acts, policies and

practices of the Government of Japan

concerning Japan’s prohibition on

imports of certain agricultural products.

Specifically, for each agricultural

product for which Japan requires

quarantine treatment, Japan prohibits

the importation of each variety of that

product until the quarantine treatment

has been tested for that variety, even

though the treatment has proven

effective with respect to other varieties

of the same product. This redundant

testing requirement has no apparent

scientific basis but serves as a

significant barrier to market access. The

United States alleges that these acts,

policies and practices are inconsistent

with certain provisions of the

Agreement on the Application of

Sanitary and Phytosanitary measures,

the General Agreement on Tariffs and

Trade 1994 (‘‘GATT 1994’’), and the

Agreement on Agriculture. USTR invites

written comments from the public on

the matters being investigated.

DATES: This investigation was initiated

on October 7, 1997. Written comments

from the public are due on or before

noon on Tuesday, November 11, 1997.

ADDRESSES: Office of the United States

Trade Representative, 600 17th Street,

NW, Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT:

Audrae Erickson, Office of Agricultural

Affairs (202) 395–6127, Elizabeth

Hyman, Office of the General Counsel,

(202) 395–3150, or Daniel Brinza, Senior

Advisor and Special Counsel for Natural

Resources, (202) 395–7305.

SUPPLEMENTARY INFORMATION: Section

302(b)(1) of the Trade Act, 19 U.S.C.

2412(b)(1), authorizes the USTR to

initiate an investigation under chapter 1

of Title III of the Trade Act (commonly

referred to as ‘‘section 301’’) with

respect to any matter in order to

determine whether the matter is

actionable under section 301. Matters

actionable under section 301 include,

inter alia, the denial of rights of the

United States under a trade agreement,

or acts, policies, and practices of a

foreign country that violate or are

inconsistent with the provisions of, or

otherwise deny benefits to the United

States under, any trade agreement.

Investigation and Consultations

On October 7, 1997, having consulted

with the appropriate private sector

advisory committees, the USTR

determined that an investigation should

be initiated to assess whether certain

acts, policies and practices of Japan

regarding a prohibition on imports of

certain agricultural products are

actionable under section 301(a) and has

requested the consultations required

under section 303(a) of the Trade Act.

For each agricultural product for which

Japan requires quarantine treatment,

Japan prohibits the importation of each

variety of that product until the

quarantine treatment has been tested for

that variety, even though the treatment

has proven effective with respect to

other varieties of the same product. The

relevant provisions of Japanese laws

include the Plant Protection Law (Law

No. 151) enacted May 4, 1950, as

amended, and the Plant Protection Law

Enforcement Regulation (Ministry of

Agriculture, Forestry and Fisheries

Ordnance No. 73) of June 30, 1950, as

amended.

For example, after years of effort by

the United States, in January 1995 Japan

agreed to permit imports of U.S. Red

Delicious and Golden Delicious apples

based on Japan’s determination that

treatment of fruit from inspected

orchards both with methyl bromide

fumigation and a cold storage treatment

would be effective against codling moth,

a plant pest. However, Japan has refused

to allow other varieties of apples, such

as Gala, Fuji, Braeburn, Jonagold and

Granny Smith, to be imported into Japan

unless lengthy and expensive tests are

performed on each variety to prove the

efficacy of the same methyl bromide/

cold storage treatment at killing codling

moths. There is no scientific basis for

distinguishing between different

varieties of fruit in this respect. This

practice of Japan affects not just apple

imports, but imports of other fruit as

well.

The USTR believes that these

measures are inconsistent with the

obligations of Japan under several

provisions of the WTO Agreements,

including Articles 2, 3, 4, 5, 7 and 8 of

the Agreement on the Application of

Sanitary and Phytosanitary Measures;

Article XI of the General Agreement on
53854 Federal Register / Vol. 62, No. 200 / Thursday, October 16, 1997 / Notices

Tariffs and Trade 1994; and Article 4 of

the Agreement on Agriculture.

On April 7, 1997, the Government of

the United States requested

consultations with Japan regarding these

measures pursuant to Article 4 of the

Understanding on Rules and Procedures

Governing the Settlement of Disputes

(‘‘DSU’’), Article 11 of the Agreement on

the Application of Sanitary and

Phytosanitary Measures, Article XXIII of

the General Agreement on Tariffs and

Trade 1994, and Article 19 of the

Agreement on Agriculture.

Under section 304 of the Trade Act,

the USTR must determine within 18

months after the date on which this

investigation was initiated, or within 30

days after the conclusion of World

Trade Organization dispute settlement

procedures, whichever is earlier,

whether any act, policy, or practice or

denial of trade agreement rights

described in section 301 of the Trade

Act exists and, if that determination is

affirmative, the USTR must determine

what action, if any, to take under

section 301 of the Trade Act.

Public Comment: Requirements for

Submissions

Interested persons are invited to

submit written comments concerning

the acts, policies and practices of Japan

which are the subject of this

investigation, the amount of burden or

restriction on U.S. commerce caused by

these acts, policies and practices, and

the determinations required under

section 304 of the Trade Act. Comments

must be filed in accordance with the

requirements set forth in 15 CFR

2006.8(b) (55 FR 20593) and must be

filed on or before noon on Tuesday,

November 11, 1996. Comments must be

in English and provided in twenty

copies to: Sybia Harrison, Staff Assistant

to the Section 301 Committee, Room

223, Office of the U.S. Trade

Representative, 600 17th Street, NW,

Washington, DC 20508.

Comments will be placed in a file

(Docket 301–112) open to public

inspection pursuant to 15 CFR 2006.13,

except confidential business

information exempt from public

inspection in accordance with 15 CFR

2006.15. Confidential business

information submitted in accordance

with 15 CFR 2006.15 must be clearly

marked ‘‘BUSINESS CONFIDENTIAL’’

in a contrasting color ink at the top of

each page on each of 20 copies, and

must be accompanied by a

nonconfidential summary of the

confidential information. The

nonconfidential summary shall be

placed in the file that is open to public

inspection. An appointment to review

the docket (Docket No. 301–112) 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 1:00 p.m. to 4:00 p.m.,

Monday through Friday, and is located

in Room 101.

Irving A. Williamson,

Chairman, Section 301 Committee.

[FR Doc. 97–27304 Filed 10–15–97; 8:45 am]

BILLING CODE 3190–01–M

OFFICE OF THE UNITED STATES

TRADE REPRESENTATIVE

[Docket No. WTO/D–19]

WTO Dispute Settlement Proceeding

Regarding Korean Taxes on Alcoholic

Beverages

AGENCY: Office of the United States

Trade Representative.

ACTION: Notice; request for comments.

SUMMARY: Pursuant to section 127(b)(1)

of the Uruguay Round Agreements Act

(URAA) (19 U.S.C. 3537(b)(1)), the

Office of the United States Trade

Representative (USTR) is providing

notice that the United States has

requested establishment of a dispute

settlement panel under the Agreement

Establishing the World Trade

Organization (WTO), to examine excise

taxes imposed by Korea on distilled

spirits. In this dispute the United States

alleges that Korea’s excise taxes are

inconsistent with Article III:2 of the

General Agreement on Tariffs and Trade

1994 (GATT 1994). USTR also invites

written comments from the public

concerning the issues raised in the

dispute.

DATES: Although USTR will accept any

comments received during the course of

the dispute settlement proceedings,

comments should be submitted on or

before November 1, 1997 to be assured

of timely consideration by USTR in

preparing its first written submission to

the panel.

ADDRESSES: Comments may be

submitted to Ileana Falticeni, Office of

Monitoring and Enforcement, Room

501, Attn: Korea Spirits Dispute, Office

of the U.S. Trade Representative, 600

17th Street, NW., Washington, DC

20508.

FOR FURTHER INFORMATION CONTACT:

Rick Ruzicka, Office of Asia & the

Pacific, (202) 395–4755; Francis James,

Office of Monitoring and Enforcement,

(202) 395–3582; or Rachel Shub,

Associate General Counsel, (202) 395–

7305.

SUPPLEMENTARY INFORMATION: On

September 10, 1997, the United States

requested the establishment of a WTO

dispute settlement panel to examine

whether taxes on distilled spirits

imposed by Korea are inconsistent with

Korea’s obligations under the GATT

1994. The WTO Dispute Settlement

Body is likely to establish the panel no

later than October 16, 1997. Under

normal circumstances, the panel, which

will hold its meetings in Geneva,

Switzerland, would be expected to issue

a report detailing its findings and

recommendations within nine months

after it is established.

Major Issues Raised by the United

States and Legal Basis of Complaint

Korea assesses excise taxes at

different rates on different types of

distilled spirits. Under its general liquor

tax law, Korea imposes a lower tax on

soju, a traditional Korean distilled

spirit, than the high taxes it applies to

other distilled spirits such as whiskey,

brandy, vodka, rum, gin and ‘‘admixtures.’’ This tax differential is made

even more dramatic by the application

of an Education Tax, which is higher

when the liquor tax rates are higher.

Soju is very similar to the distilled

products produced by the United States

and also is in direct competition in the

market with them. The result of this tax

rate differential is a tax burden on some

U.S. distilled spirits that is over four

times greater than the burden on soju

(assuming the actual prices where the

same). The United States claims that

these taxes contravene the obligations of

Korea under Article III:2 of the GATT

1994.

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—