[Federal Register Volume 80, Number 59 (Friday, March 27, 2015)]
[Notices]
[Pages 16493-16494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-07011]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Dispute No. WT/DS489]


WTO Dispute Settlement Proceeding Regarding Certain Measures 
Providing Export-Contingent Subsidies to Enterprises in Several 
Industrial Sectors in China

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 February 11, 2015, the United 
States requested consultations with the Government of the People's 
Republic of China (``China'') under the Marrakesh Agreement 
Establishing the World Trade Organization (``WTO Agreement'') 
concerning certain measures providing export-contingent subsidies to 
enterprises in several industrial sectors in China. That request may be 
found at www.wto.org, contained in a document designated as WT/DS489/1. 
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 April 15, 2015 to assure timely consideration by 
USTR.

ADDRESSES: Public comments should be submitted electronically at 
www.regulations.gov, docket number USTR-2015-0004. If you are unable to 
provide submissions at 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: Arthur Tsao, Assistant General 
Counsel, Office of the United States Trade Representative, (202) 395-
3150.

SUPPLEMENTARY INFORMATION: USTR is providing notice that consultations 
have been requested pursuant to the WTO Understanding on Rules and 
Procedures Governing the Settlement of Disputes (``DSU''). If such 
consultations should fail to resolve the matter and a dispute 
settlement panel is established pursuant to the DSU, such a panel, 
which would hold its meetings in Geneva, Switzerland, would be expected 
to issue a report on its findings and recommendations pursuant to 
Article 12 of the DSU.

Major Issues Raised by the United States

    On February 11, 2015, the United States requested consultations 
with China concerning certain measures providing export-contingent 
subsidies to enterprises in several industrial sectors in China. It 
appears that China provides export-contingent subsidies through a 
program establishing ``Foreign Trade Transformation and Upgrading 
Demonstration Bases'' (``Demonstration Bases'') and ``Common Service 
Platforms''. Demonstration Bases are industrial clusters of enterprises 
in several Chinese industries, including the textiles, agriculture, 
medical products, light industry, special chemical engineering, new 
materials, and hardware and building materials industries. Common 
Service Platforms are service suppliers designated by China to provide 
services to enterprises in Demonstration Bases. China designates an 
industrial cluster of enterprises in a particular industry as a 
Demonstration Base and then provides export-contingent subsidies to the 
enterprises located in the Demonstration Base. These subsidies include 
the provision of discounted or free services through Common Service 
Platforms or the provision of cash grants. In addition, it appears that 
China provides certain other export-contingent subsidies to Chinese 
manufacturers, producers, and farmers.
    The Demonstration Base/Common Service Platform program and the 
export subsidies at issue are reflected in legal instruments that 
include, but are not limited to, the instruments set out in the 
consultations request.
    Because the Demonstration Base/Common Service Platform program and 
the export subsidies at issue provide subsidies contingent upon export 
performance to enterprises located in China, the measures appear to be 
inconsistent with Article 3.1(a) of the SCM Agreement, and China 
appears to have acted inconsistently with Article 3.2 of the SCM 
Agreement.

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-
2015-0004. 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-2015-0004 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).

[[Page 16494]]

    The www.regulations.gov Web site allows users to provide 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 that 
he submitted, 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 at www.regulations.gov. The 
non-confidential summary will be placed in the docket and will be open 
to public inspection.
    USTR may determine that information or advice contained in a 
comment submitted, other than business confidential information, is 
confidential in accordance with section 135(g)(2) of the Trade Act of 
1974 (19 U.S.C. Sec.  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 at www.regulations.gov. The non-confidential summary will 
be placed in the docket and will be 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, docket number USTR-2015-0004, accessible to the public at 
www.regulations.gov. The public file will include non-confidential 
comments received by USTR from the public regarding the dispute. If a 
dispute settlement panel is convened, or in the event of an appeal from 
such a panel, the following documents will be made available to the 
public at www.ustr.gov: The United States' submissions, any non-
confidential submissions received from other participants in the 
dispute, and any non-confidential summaries of submissions received 
from other participants in the dispute. In the event that a dispute 
settlement panel is convened, or in the event of an appeal from such a 
panel, the report of the panel, and, if applicable, the report of the 
Appellate Body, will also be available on the Web site of the World 
Trade Organization at www.wto.org. Comments open to public inspection 
may be viewed at www.regulations.gov.

Annelies Winborne,
Deputy Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 2015-07011 Filed 3-26-15; 8:45 am]
 BILLING CODE 3290-F5-P