[Federal Register Volume 75, Number 188 (Wednesday, September 29, 2010)]
[Notices]
[Pages 60161-60163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-24455]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS414]


WTO Dispute Settlement Proceeding Regarding China--Countervailing 
and Antidumping Duties on Grain Oriented Flat-Rolled Electrical Steel

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 September 15, 2010, the United 
States requested consultations with the People's Republic of China 
(``China'') under the Marrakesh Agreement Establishing the World Trade 
Organization (``WTO Agreement'') concerning issues relating to 
countervailing and antidumping duties imposed by China on imports from 
the United States of grain oriented flat-rolled electrical steel. That 
request may be found at http://www.wto.org contained in a document 
designated as WT/DS414/1. 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 October 29, 2010 to be assured of timely 
consideration by USTR.

ADDRESSES: Public comments should be submitted electronically to 
www.regulations.gov, docket number USTR-2010-0027. 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

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comment contains confidential information, then the comment should be 
submitted by fax only to Sandy McKinzy at (202) 395-3640.

FOR FURTHER INFORMATION CONTACT: Randy Miller, Associate General 
Counsel, Office of the United States Trade Representative, 600 17th 
Street, NW., Washington, DC 20508, (202) 395-9655.

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 panel, which 
would hold its meetings in Geneva, Switzerland, would be expected to 
issue a report on its findings and recommendations within nine months 
after it is established.

Major Issues Raised by the United States

    On September 15, 2010, the United States requested consultations 
with China concerning the imposition of countervailing and antidumping 
duties on grain oriented flat-rolled electrical steel (``GOES'') 
exported from the United States. In June of 2009, China initiated 
separate countervailing and antidumping duty investigations on GOES 
exported from the United States. In April of 2010, China issued final 
determinations of subsidization, dumping, and injury, along with a 
notice of the imposition of countervailing and antidumping duties.
    China has obligations under the Agreement on Subsidies and 
Countervailing Measures (the ``SCM Agreement''), the Agreement on 
Implementation of Article VI of the General Agreement on Tariffs and 
Trade 1994 (the ``AD Agreement''), and the General Agreement on Tariffs 
and Trade 1994 (``GATT 1994'') regarding the imposition of 
countervailing and antidumping duties on imports. In the course of its 
countervailing and antidumping investigations regarding GOES, China 
appears to have acted inconsistently with various obligations of the 
SCM Agreement, the AD Agreement, and the GATT 1994. Actions apparently 
inconsistent with China's obligations include initiation of the 
investigations without sufficient evidence, failure to objectively 
examine the evidence, failure to disclose essential facts underlying 
its conclusions, and failure to provide an adequate explanation of its 
calculations and legal conclusions.
    In particular, in the request for consultations, the United States 
states that China's countervailing and anti-dumping duties on GOES from 
the United States appear to be inconsistent with the following 
provisions of the SCM Agreement, the AD Agreement, and the GATT 1994:
    1. Articles 10 and 19 of the SCM Agreement, because China 
improperly determined that government purchases under U.S. Buy American 
Laws conferred a ``benefit.''
    2. Article 12.8 of the SCM Agreement, because China failed to 
disclose the ``essential facts'' underlying its determinations.
    3. Article 12.7 of the SCM Agreement, because China improperly 
based its determinations on the facts available.
    4. Article 22.3 of the SCM Agreement, because China failed to 
provide in sufficient detail the findings and conclusions it reached on 
all issues of fact and law it considered material.
    5. Article 22.5 of the SCM Agreement because China failed to make 
available all relevant information on the matters of fact and law and 
reasons which have led to the imposition of final measures.
    6. Article 11.2 of the SCM Agreement because: (a) The application 
for a countervailing duty investigation failed to contain information 
reasonably available to the applicant regarding the existence of a 
financial contribution, a benefit, specificity, injury and causation; 
and (b) there was not sufficient evidence in the application to justify 
the initiation of an investigation.
    7. Article 11.3 of the SCM Agreement because China failed to review 
appropriately the accuracy and adequacy of the evidence provided in the 
application.
    8. Articles 12.3 and 12.4.1 of the SCM Agreement, because China 
failed to provide, or require the applicant to provide, adequate non-
confidential summaries of allegedly confidential information.
    9. Article 22.2(iii) of the SCM Agreement, because China included 
in its countervailing duty investigation the American Recovery and 
Reinvestment Act of 2009 (``Recovery Act'') and laws of the various 
U.S. states dealing with the government purchase of goods.
    10. Articles 15.1, 15.2, 15.5, 12.8, of the SCM Agreement, and 
Articles 3.1, 3.2, 3.5, 6.9 and 12.2 of the AD Agreement, because: (a) 
China's analysis of the effect of imports under investigation and 
alleged causal link was not based upon an objective examination on the 
basis of positive evidence; (b) China failed to provide in sufficient 
detail the findings and conclusions reached on all issues of fact and 
law it considered material; and (c) China failed to disclose the 
``essential facts'' underlying its determinations.
    11. Article 10 of the SCM Agreement as a consequence of the 
breaches of the SCM Agreement described above.
    12. Article 1 of the AD Agreement as a consequence of the breaches 
of the AD Agreement described above.
    13. Article VI of the GATT 1994.

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-2010-
0027. 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-2010-0027 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 website 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 Comment and Upload File'' field, or by 
attaching a document. 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 Comment and Upload 
File'' 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

[[Page 60163]]

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 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.
    USTR will maintain a docket on this dispute settlement proceeding 
accessible to the public. 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 http://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, http://www.wto.org.
    Comments will be placed in the docket and open to public inspection 
pursuant to 15 CFR 2006.13, except confidential business information 
exempt from public inspection in accordance with 19 U.S.C. 2155(g)(2). 
Comments open to public inspection may be viewed on the 
www.regulations.gov Web site.

Steven F. Fabry,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. 2010-24455 Filed 9-28-10; 8:45 am]
BILLING CODE 3190-W0-P