[Federal Register Volume 65, Number 222 (Thursday, November 16, 2000)]
[Notices]
[Pages 69362-69363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29399]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. 301-120]


Initiation of Section 302 Investigation and Request for Public 
Comment: Wheat Trading Practices of the Canadian Wheat Board

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of initiation of investigation and request for comments.

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SUMMARY: The United States Trade Representative (USTR) has initiated an 
investigation under Chapter 1 of Title III of the Trade Act of 1974 
with respect to the wheat trading practices of the Canadian Wheat 
Board. The USTR invites written comments from the public on the matters 
being investigated, the methods to be used to conduct the 
investigation, and the determinations to be made pursuant to the 
investigation.

DATES: This investigation was initiated on October 23, 2000. Written 
comments from the public are due on or before noon on Wednesday, 
December 20, 2000.

ADDRESSES: Office of the United States Trade Representative, 600 17th 
Street NW., Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT: Sharon Bomer Lauritsen, Director of 
Agricultural Affairs, (202) 395-6127, or William Busis, Associate 
General Counsel, (202) 395-3150. For information concerning procedures 
for submitting public comments, please contact Sybia Harrison, Staff 
Assistant to the Section 301 Committee, (202) 395-3419.

SUPPLEMENTARY INFORMATION:

The Allegations in the Petition

    On September 8, 2000, the North Dakota Wheat Commission filed a 
petition pursuant to section 302(a) of the Trade Act of 1974, as 
amended (the Trade Act) (19 U.S.C. 2412(a)), alleging that certain 
wheat trading practices of the Government of Canada and the Canadian 
Wheat Board (CWB) are unreasonable, and that such practices burden or 
restrict U.S. commerce. The

[[Page 69363]]

petitioner filed additional explanatory materials on September 21, 
2000, September 27, 2000, October 5, 2000, and October 10, 2000.
    The petition alleges that the CWB is a state-trading enterprise 
with sole control over the purchase and export of western Canadian 
wheat for human consumption. Certain elements of the wheat trading 
system established by the Government of Canada allegedly provide the 
CWB with pricing flexibility not available to private wheat traders. 
According to the petition, those elements include: (1) CWB monopoly 
authority under Canadian federal law to purchase western Canadian wheat 
and to control the international marketing of western Canadian wheat; 
(ii) a purchasing system under which Canadian farmers are required to 
accept initial CWB payments based on only a portion of the price that 
the CWB anticipates it can obtain for the grain, with any subsequent 
payments to be received later in the marketing year; (iii) the 
provision by the Government of Canada of a full financial guarantee of 
the CWB's initial payments to Canadian farmers; (iv) special, 
preferential rail transportation arrangements which are made available 
to the CWB; and (v) a varietal control system which limits any foreign 
competition in the domestic Canadian wheat market. The petition claims 
that although the CWB operates in secrecy and information on the CWB's 
trading practices is difficult to obtain, available information 
indicates that the CWB exploits its pricing flexibility by engaging in 
certain allegedly unreasonable wheat trading practices. According to 
the petition, such practices include standing offers by the CWB to 
undersell U.S. wheat in certain third-country markets, and the 
targeting by the CWB of particular markets by consistently offering to 
sell wheat at less than the market value. The petition asserts that 
such practices have harmed U.S. wheat farmers by causing lost U.S. 
market share in the United States and particular third-country markets, 
by reducing the sales prices obtained by U.S. wheat farmers, and by 
causing a rise in unsold wheat stocks in the United States.
    The petitioner does not allege that acts, policies, and practices 
of the Government of Canada or the Canadian Wheat Board are in 
violation of, or inconsistent with, the international legal rights of 
the United States.

Section 301

    Section 302(a) of the Trade Act authorizes the USTR to initiate an 
investigation under chapter 1 of Title III of the Trade Act (commonly 
referred to as ``section 301'') in response to the filing of a petition 
pursuant to section 302(a)(1). Matters actionable under section 301 
include, inter alia, acts, policies, and practices of a foreign country 
that are unjustifiable, unreasonable, or discriminatory and burden or 
restrict U.S. commerce. An act, policy or practice is unjustifiable if 
it is in violation of, or inconsistent with the international legal 
rights of the United States. An act, policy or practice is unreasonable 
if the act, policy or practice, while not necessarily in violation of, 
or inconsistent with, the international legal rights of the United 
States, is otherwise unfair or inequitable.

Initiation of Investigation and Consultations

    On October 23, 2000, the USTR determined to initiate an 
investigation to determine whether certain acts, policies or practices 
of the Government of Canada and the Canadian Wheat Board with respect 
to wheat trading are unreasonable and burden or restrict U.S. commerce 
and are, therefore, actionable under section 301.
    Pursuant to section 303(a) of the Trade Act, on October 23, 2000 
USTR requested consultations with the Government of Canada concerning 
the issues under investigation. USTR will seek information and advice 
from the petitioner and appropriate representatives provided for under 
section 135 of the Trade Act in preparing the U.S. presentations for 
such consultations.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the petition and any other submissions 
to USTR in this investigation. In particular, comments are invited 
regarding (i) the acts, policies and practices of the Government of 
Canada and the Canadian Wheat Board that are the subject of this 
investigation; (ii) the amount of burden or restriction on U.S. 
commerce caused by these acts, policies and practices; (iii) the 
methods to be used to conduct the investigation; (iv) the 
determinations required under section 304 of the Trade Act; and (v) 
appropriate action under section 301 which could be taken in response.
    Comments must be filed in accordance with the requirements set 
forth in 15 CFR 2006.8(b) and must be filed on or before noon on 
Wednesday, December 20, 2000. 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 301-120) 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. Copies of the public version of the 
petition and other relevant documents are available for public 
inspection in the USTR Reading Room. An appointment to review the 
docket (Docket No. 301-120) 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.

William L. Busis,
Chairman, Section 301 Committee.
[FR Doc. 00-29399 Filed 11-15-00; 8:45 am]
BILLING CODE 3190-01-P