[Federal Register Volume 77, Number 76 (Thursday, April 19, 2012)]
[Notices]
[Pages 23539-23540]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-9426]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Dispute No. WTO/DS316]


WTO Dispute Settlement Proceeding Regarding European Communities 
and Certain Member States--Measures Affecting Trade in Large Civil 
Aircraft--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 on March 30, 2012, the United 
States requested establishment of a dispute settlement panel under the 
Marrakesh Agreement Establishing the World Trade Organization (``WTO 
Agreement''). That request may be found at www.wto.org contained in a 
document designated as WT/DS316/23. 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 on or before May 21, 2012 to be assured of timely 
consideration by USTR.

ADDRESSES: Public comments should be submitted electronically to 
www.regulations.gov, docket number USTR-2012-007. If you are unable to 
provide submissions to www.regulations.gov, please contact Sandy 
McKinzy at (202) 395-9483 to arrange for an alternative method of 
transmission. If (as explained below) the comment contains confidential 
information, then the comment should be submitted by fax only to Sandy 
McKinzy at (202) 395-3640.

FOR FURTHER INFORMATION CONTACT: Willis S. Martyn, Associate General 
Counsel, or Frank J. Schweitzer, Associate General Counsel, Office of 
the United States Trade Representative, 600 17th Street NW., 
Washington, DC 20508, (202) 395-3150.

SUPPLEMENTARY INFORMATION: Section 127(b)(1) 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 submits or 
receives a request for establishment of a WTO dispute settlement panel. 
Consistent with this obligation, USTR is providing notice that it has 
requested a panel pursuant to the WTO Understanding on Rules and 
Procedures Governing the Settlement of Disputes (``DSU'). Once it is 
established, the panel will hold its meetings in Geneva, Switzerland, 
and could issue a report on its findings and recommendations as soon as 
three months after its establishment.

Major Issues Raised by the United States

    On June 1, 2011, the Dispute Settlement Body (``DSB'') adopted its 
recommendations and rulings in the dispute European Communities and 
Certain Member States--Measures Affecting Trade in Large Civil Aircraft 
(DS316) (``EC--Large Civil Aircraft''). The DSB ruled that the 
following are specific subsidies within the meaning of Articles 1 and 2 
of the Agreement on Subsidies and Countervailing Measures (``SCM 
Agreement'') that caused adverse effects to U.S. interests within the 
meaning of Articles 5(c) and 6.3(a), (b), and (c) of that Agreement:
    <bullet> Grants of launch aid/member State financing (``LA/MSF'') 
by the European Union (``EU'') member state governments of France, 
Germany, Spain, and the United Kingdom to Airbus for the A300, A310, 
A320, A330, A340, A330-200, A340-500/600, and A380;
    <bullet> The provision of the M[uuml]hlenberger Loch site and the 
lengthened Bremen Airport Runway;
    <bullet> Grants by authorities in Germany and Spain for the 
construction of manufacturing and assembly facilities in Nordenham, 
Germany, and Sevilla, La Rinconada, Toledo, Puerto de Santa Maria, and 
Puerto Real, Spain, and by the government of Andalusia and Castilla-La 
Mancha to Airbus in Puerto Real, Sevilla, and Illescas (Toledo);
    <bullet> The 1989 acquisition by Kreditanstalt f[uuml]r 
Wiederaufbau (``KfW'') of a 20 percent equity interest in Deutsche 
Airbus and the 1992 transfer by KfW of its 100 percent equity interest 
in Deutsche Airbus to Messerschmitt-B[ouml]lkow-Blohm GmbH (``MBB''); 
and
    <bullet> The 1987, 1988, 1992, and 1994 equity infusions to 
A[eacute]rospatiale.
    The DSB recommended that the EU and certain member States bring 
their WTO-inconsistent measures into compliance with their obligations 
under the SCM Agreement.
    On December 1, 2011, the EU transmitted a document (``EU 
Notification'') to the United States and the DSB claiming that the EU 
had brought its measures fully into conformity with the DSB 
recommendations and rulings. The EU notification included a list of 36 
``appropriate steps'' taken by the EU to bring its measures into 
conformity with the EU's WTO obligations. Upon review of the 
notification, the United States did not agree with the EU's position 
that the EU had fully complied with the DSB recommendations and 
rulings. Accordingly, the United States requested consultations on 
December 9, 2011. The United States and the EU held consultations on 
January 13, 2012. The consultations failed to resolve the dispute.
    Article 7.8 of the SCM Agreement provides that a Member found to 
maintain measures inconsistent with Article 5(c) and 6.3 of the SCM 
Agreement ``shall take appropriate steps to remove the adverse effects 
or shall withdraw the subsidy.'' The United States considers that the 
EU has done neither of these with regard to the measures identified 
above. As there is ``disagreement as to the existence or consistency 
with a covered agreement of measures taken to comply with the 
recommendations and rulings'' of the DSB, the United States is seeking 
recourse to Article 21.5 of the DSU.
    The United States has requested that the Article 21.5 panel 
consider the following matters. With respect to the measures the EU has 
identified in the

[[Page 23540]]

EU Notification as the measures taken to comply with the 
recommendations and rulings of the DSB for purposes of Article 21.5 of 
the DSU, the United States considers that (i) these measures are 
insufficient to remove the adverse effects or withdraw the subsidies, 
and (ii) certain of these measures taken to comply introduce new 
inconsistencies with the SCM Agreement. In addition, French, German, 
Spanish, and UK LA/MSF for the A350XWB (i) are measures closely related 
to the measures the EU has identified as taken to comply and to the EU 
measures the DSB found to be inconsistent with the SCM Agreement and 
(ii) replace or continue the LA/MSF for twin-aisle aircraft covered by 
the recommendations and rulings of the DSB. The United States considers 
these LA/MSF measures for the A350XWB to be inconsistent with the SCM 
Agreement.
    Additional details are provided in the panel request, which may be 
found at www.wto.org contained in a document designated as WT/DS316/23.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in this dispute. Persons may submit public 
comments electronically to www.regulations.gov docket number USTR-2012-
0007. If you are unable to provide submissions by www.regulations.gov, 
please contact Sandy McKinzy at (202) 395-9483 to arrange for an 
alternative method of transmission.
    To submit comments via www.regulations.gov, enter docket number 
USTR-2012-0007 on the home page and click ``search''. The site will 
provide a search-results page listing all documents associated with 
this docket. Find a reference to this notice by selecting ``Notice'' 
under ``Document Type'' on the left side of the search-results page, 
and click on the link entitled ``Submit a Comment.'' (For further 
information on using the www.regulations.gov Web site, please consult 
the resources provided on the Web site by clicking on ``How to Use This 
Site'' on the left side of the home page.)
    The www.regulations.gov site provides the option of providing 
comments by filling in a ``Type Comments'' field, or by attaching a 
document using an ``upload file'' field. It is expected that most 
comments will be provided in an attached document. If a document is 
attached, it is sufficient to type ``See attached'' in the ``Type 
Comments'' field.
    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 submitter. 
Confidential business information must be clearly designated as such 
and the submission must be marked ``BUSINESS CONFIDENTIAL'' at the top 
and bottom of the cover page and each succeeding page. Any comment 
containing business confidential information must be submitted by fax 
to Sandy McKinzy at (202) 395-3640. A non-confidential summary of the 
confidential information must be submitted to www.regulations.gov. The 
non-confidential summary will be placed in the docket and open to 
public inspection.
    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 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) Must provide a non-confidential summary of the information or 
advice.
    Any comment containing confidential information must be submitted 
by fax. A non-confidential summary of the confidential information must 
be submitted to www.regulations.gov. The non-confidential summary will 
be placed in the docket and open to public inspection.
    Pursuant to section 127(e) of the Uruguay Round Agreements Act (19 
U.S.C. 3537(e)), USTR will maintain a docket on this dispute settlement 
proceeding accessible to the public at www.regulations.gov, docket 
number USTR 2012-0007. 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, any non-confidential 
submissions, or non-confidential summaries of submissions, received 
from other participants in the dispute, will be made available to the 
public on USTR's Web site at www.ustr.gov, and the report of the panel, 
and, if applicable, the report of the Appellate Body, will be available 
on the Web site of the World Trade Organization, www.wto.org. Comments 
open to public inspection may be viewed on the www.regulations.gov Web 
site.

Bradford Ward,
Acting Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 2012-9426 Filed 4-18-12; 8:45 am]
BILLING CODE 3190-W2-P