WTO Dispute Settlement Proceeding Regarding China-Grants, Loans and Other Incentives, 7494-7497 [E9-3293]

Agencies

• Office of the United States Trade Representative
• Trade Representative, Office of United States

[Federal Register Volume 74, Number 30 (Tuesday, February 17, 2009)]
[Notices]
[Pages 7494-7497]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-3293]



[[Page 7494]]

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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS387]


WTO Dispute Settlement Proceeding Regarding China--Grants, Loans 
and Other Incentives

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 December 19, 2008, in accordance 
with the Marrakesh Agreement Establishing the World Trade Organization 
(``WTO Agreement''), the United States requested consultations 
regarding certain measures offering grants, loans, and other incentives 
to enterprises in China. That request may be found at https://
www.wto.org contained in a document designated as WT/DS387/1. 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 March 16, 2009 to be assured of timely 
consideration by USTR.

ADDRESSES: Comments should be submitted electronically to https://
www.regulations.gov, docket number USTR-2009-0003. If you are unable to 
provide submissions by https://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: Joseph A. Laroski Jr., Assistant 
General Counsel, Office of the United States Trade Representative, 600 
17th Street, NW., Washington, DC 20508, (202) 395-7310.

SUPPLEMENTARY INFORMATION: On December 19, 2008, the United States 
requested consultations regarding certain measures offering grants, 
loans, and other incentives to enterprises in China, apparently in part 
to implement an industrial policy of promoting the development of 
global Chinese brand names, and to increase sales of Chinese-branded 
and other Chinese merchandise around the world. The U.S. consultation 
request addresses two central government famous Chinese brand programs, 
and numerous sub-central government measures implementing these 
programs. At the central government level, China established the 
``Famous Export Brand'' program and the ``China World Top Brand'' 
program. These measures set out criteria for an enterprise to receive a 
designation by the Ministry of Commerce (MOFCOM) as a ``Famous Export 
Brand'' or a designation by the Administration of Quality Supervision, 
Inspection and Quarantine (AQSIQ) as a ``China World Top Brand.'' 
Enterprises with these designations are entitled to various government 
preferences, including, it appears, financial support tied to exports. 
The U.S. consultation request also addresses several independent sub-
central government subsidy programs that appear to benefit Chinese 
exports.
    A. These grants, loans, and other incentives are reflected in the 
following measures, as well as any amendments and any related or 
implementing measures:
    The instruments below, which relate to the China World Top Brand 
Program:
    1. Circular on Carrying Out Evaluation of Products to Be Recognized 
as China World Top Brand;
    2. Circular on Application of China World Top Brands in 2006;
    3. Circular on Application of China World Top Brands in 2008;
    4. Measures for the Administration of Chinese Name-Brand Products;
    5. Notice Concerning the Issuing of Opinions on Promoting the 
Brand-Driven Strategy & Its Incentive Measures;
    6. Notices Concerning Printing and Distributing the Implementation 
Regulation on Economic Development Fund Supporting Industrial 
Technology Progress in Futian District Shenzhen;
    7. Notices of Gansu Provincial People's Government Concerning 
Printing and Distributing Incentive Methods for Enterprises Entitled 
with Famous Brand Products in Gansu Province;
    8. Notice on Methods of Implementing Brand Praise and Incentive for 
Industrial Enterprises in Guangxi Zhuang Autonomous Region;
    9. Several Related Policies on Implementation of Guiyang's Science 
and Technology Development Planning During the ``Eleventh Five-Year 
Plan'' (2006-2010);
    10. Opinions of the Party Committee and People's Government of 
Jinhua City on Promoting the Building of ``Jinhua Brand;''
    11. Circular of Jiujiang Municipal People's Government on Adjusting 
and Enriching the Incentive Policy for Creating a City of Brand;
    12. Circular on Printing and Distributing the Method of Nanhai 
District, Foshan City for Supporting and Awarding Independent 
Innovation, Brand Drive and Enterprise IPO;
    13. Opinions of Nanping Municipal People's Government on Supporting 
Development of Key Industrial Enterprise;
    14. Opinions on Promoting Fast and Healthy Development of 
Characteristic Manufacturing Industry through Implementing Industrial 
Upgrading Projects;
    15. Circular of Sichuan Provincial People's Government on Printing 
and Distributing the ``Opinions on Forcefully Pressing Ahead Industrial 
Brands Strategy in Sichuan;''
    16. Circular on Forwarding the Detailed Reward Rules for the 
Strategy of Drive with Top Brands in Suzhou City;
    17. Circular on Forwarding the Policy Measures for Pushing on the 
Strategy of Drive with Top Brands;
    18. Notice Issued by the Office of Wenzhou Municipal Government for 
the Distribution of Quality & Branding Award Management Measures in 
Wenzhou;
    19. Opinions of Wuyi County Party Committee and People's Government 
on Further Encouraging and Promoting the Development of SMEs;
    20. Notices Concerning Printing and Distributing the Implementing 
Regulations Issued by the Bureau of Finance and the Economic 
Development Administration of Xiamen to Support the Development of High 
Quality Well-Known Products in Xiamen;
    21. Suggestions on Supporting Key Industrial Enterprises Issued by 
the People's Government of Yandu District, Yancheng City;
    22. Suggestions on Accelerating the Implementation of Brand 
Strategy;
    23. Circular on Ensuring Proper Use and Management of Guangdong 
Brand Development Fund; and
    24. Notice of Issuing the Directive on Supporting the Development 
of Name Brands for Export.
    The instruments below, which relate to the Chinese Famous Export 
Brand Program:
    1. Circular of the General Office of the State Bureau of Quality 
Supervision, Inspection and Quarantine for Issuing the ``Measures for 
the Control of Evaluation of Chinese Famous-Brand Products (for Trial 
Implementation);''
    2. Notice of General Office of Ministry of Commerce Concerning 
Recommending Candidates of ``Chinese Export Famous Brands;''
    3. Notice of Issuing the Directive on Supporting the Development of 
Name Brands for Export;

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    4. Circular of Changxing County People's Government on Further 
Promoting Foreign Trade Development;
    5. Opinions of Deqing County People's Government on Strengthening 
the Building of Advanced Manufacturing Bases;
    6. Circular on Printing and Distributing the Policy Opinions for 
Accelerating Innovative Development of Industrial Economy;
    7. Notice Concerning the Issuing of Opinions on Promoting the 
Brand-Driven Strategy & Its Incentive Measures;
    8. Circular on Printing and Distributing the ``Provisional 
Regulation on the Use of Fujian Export Brand Development Fund;''
    9. Circular of the Foreign Trade and Economic Cooperation 
Department of Fujian Province on Recommending Candidate Enterprise for 
the 2008-2009 ``Famous Export Brands the Foreign Trade and Economic 
Cooperation Department of Fujian Province Mainly Cultivates and 
Develops [Foreign Trade and Economic Cooperation Department of Fujian 
Province];
    10. Circular on Printing and Distributing the Opinions on 
Recognizing ``Famous Export Brands the Foreign Trade and Economic 
Cooperation Department of Guangdong Province Mainly Cultivates and 
Develops;''
    11. Suggestions on the ``Export Brands Particularly Cultivated and 
Developed by the Department of Foreign Trade and Economic Cooperation 
Department of Guangdong Province'' (Revised Edition);
    12. Notices Concerning Alternative Name List Supplementary to the 
Export Brands Particularly Cultivated and Developed by the Department 
of Foreign Trade and Economic Cooperation of Guangdong Province;
    13. Circular on Ensuring Proper Use and Management of Guangdong 
Brand Development Fund;
    14. Notice Regarding Support Policies to Promote the Development of 
Our City's Foreign Trade and Economic Cooperation for 2005;
    15. Notice of the Administrative Office of the Hangzhou Municipal 
People's Government on Revision of the Evaluation and Selection 
Requirements and Award Measures for the ``Golden Dragon Awards'' in 
Hangzhou's Foreign Trade Export;
    16. Directives of the Administrative Office of the Hangzhou 
Municipal People's Government on Promoting the Development of 
Independent Export Brands;
    17. Circular of the Provincial Department of Commerce, Development 
and Reform Commission, Economic Commission, Department of Finance, 
Department of Science and Technology, Bureau of State Tax, 
Administration for Industry and Commerce, Bureau of Quality and 
Technical Supervision, and Entry-Exit Inspection and Quarantine Bureau 
of Heilongjiang Province and Harbin Customs on Printing and 
Distributing the ``Guiding Opinions of Heilongjiang Province on 
Supporting the Development of Famous Export Brands;
    18. Circular on Printing and Distributing the Newly Revised 
``Method for Selection of Henan Famous Export Brands;''
    19. Guiding Opinions on Supporting the Development of Henan 
(Famous) Export Brands in the ``11th Five-Year Plan'' Period;
    20. Notice Regarding Selection of 2007-2008 ``Jiangsu Province 
Export Brands for Focused Cultivation and Development;''
    21. Opinion on Promoting Better and Quicker Development of Private 
Economy;
    22. Opinion of the Party Committee and People's Government of 
Jinhua City on Promoting the Building of ``Jinhua Brand''
    23. Opinions of Jindong District Party Committee and People's 
Government of Jinhua City on Accelerating Industrial and Export-
Oriented Economic Development;
    24. Circular of Jiujiang Municipal People's Government on Adjusting 
and Enriching the Incentive Policy for Creating a City of Brand;
    25. Circular on Printing and Distributing the Method of Nanhai 
District, Foshan City for Supporting and Awarding Independent 
Innovation, Brand Drive and Enterprise IPO;
    26. Notice of the Department of Commerce and Department of Finance 
of Ningxia Hui Autonomous Region on Printing and Issuing the 
Administrative Measures of Ningxia Hui Autonomous Region for the 
Awarding and Promoting of Brand Export Commodities;
    27. Notice of the People's Government of Quanzhou Fengze District 
on Issuing Regulations Concerning the Support to Key Enterprises;
    28. Opinion on Promoting Fast and Healthy Development of 
Characteristic Manufacturing Industry through Implementing Industrial 
Upgrading Projects;
    29. Notice on Printing and Distribution of 2006 Policies for 
Encouraging the Development of Foreign Trade & Economic Cooperation in 
Shandong;
    30. Opinions of Shaoxing Municipal People's Government on Further 
Encouraging the Development of Open Economy in Urban Areas;
    31. Circular of Sichuan Provincial People's Government on Printing 
and Distributing the ``Opinions on Forcefully Pressing Ahead Industrial 
Brands Strategy in Sichuan;''
    32. Circular on Forwarding the Detailed Reward Rules for the 
Strategy of Drive with Top Brands in Suzhou City;
    33. Circular on Forwarding the Policy Measures for Pushing on the 
Strategy of Drive with Top Brands;
    34. Circular on Forwarding the Opinions of Foreign Trade Office of 
Tianjin Municipal Government on Accelerating Development of Proprietary 
Export Brands of Tianjin City;
    35. Circular of Wuxing District People's Government of Huzhou City 
on Further Encouraging Foreign Trade Development;
    36. Opinion of Wuyi County Party Committee and People's Government 
on Further Encouraging and Promoting the Development of SMEs;
    37. Measures for Managing Xiamen's Key Export Enterprise Assistance 
Fund;
    38. Notice from the Xiamen Trade Development Bureau and the Xiamen 
Finance Bureau on the publishing of Measures for Managing Xiamen's Key 
Export Enterprise Assistance Fund Implementation Plan;
    39. CPC Committee of Yinzhou District, Ningbo City People's 
Government of Yinzhou District, Ningbo City Opinions on Promoting 
Economic Development of Yinzhou District;
    40. Notices on Publication of Interim Procedures on Management of 
Zhejiang Province Export Brands Fund;
    41. Notice Concerning Relevant Policies on Promotion of Foreign 
Trade & Economic Development in 2005;
    42. Suggestions on Accelerating the Implementation of Brand 
Strategy;
    43. Notice Issued by the Office of Wenzhou Municipal Government for 
the Distribution of Quality & Branding Award Management Measures in 
Wenzhou;
    44. Opinions on Accelerating Open Economy of Organizations Directly 
Under Municipal Government;
    45. Opinion of Nanping Municipal People's Government on Supporting 
Development of Key Industrial Enterprises;
    46. Circular on Printing and Distributing the Interim Measures of 
Yangzhou City for Administration of the Incentive Fund for Famous-brand 
Export Products;
    47. Implementing Rules of Support Policies for Patented Brands of 
Service Outsourcing Companies by Zhabei District;

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    48. Notices for Evaluation and Rewards of 2008-2009 Export Brand 
Particularly Cultivated and Developed in Heilongjiang;
    49. Measures for the Administration of Famous-brand (Industrial) 
Products of Guangdong Province;
    50. Measures for the Administration of Famous-Brand (Agricultural) 
Products of Guangdong Province; and
    51. Circular of Ministry of Commerce, China Export & Credit 
Insurance Corporation Concerning Utilizing Export Credit Insurance to 
Support the Development of Name Brand Export.
    The instruments below, which appear to contain independent sub-
central government subsidy programs:
    1. Notice Regarding Support Policies to Promote the Development of 
Our City's Foreign Trade and Economic Cooperation for 2005;
    2. Opinions of Jindong District Party Committee and People's 
Government of Jinhua City on Accelerating Industrial and Export-
Oriented Economic Development;
    3. Opinions of Shaoxing Municipal People's Government on Further 
Encouraging the Development of Open Economy in Urban Areas;
    4. Notice Concerning Relevant Policies on Promotion of Foreign 
Trade & Economic Development in 2005;
    5. Circular of the Provincial Department of Commerce, Development 
and Reform Commission, Economic Commission, Department of Finance, 
Department of Science and Technology, Bureau of State Tax, 
Administration for Industry and Commerce, Bureau of Quality and 
Technical Supervision, and Entry-Exit Inspection and Quarantine Bureau 
of Heilongjiang Province and Harbin Customs on Printing and 
Distributing the ``Guiding Opinions of Heilongjiang Province on 
Supporting the Development of Famous Export Brands;
    6. Opinions on Accelerating Open Economy of Organizations Directly 
Under Municipal Government;
    7. Circular of Nanchang Municipal People's Government on Printing 
and Distributing the Interim Measures for Administration of Nanchang 
Foreign Trade Development Fund;
    8. Trial Opinions of Jiangdong District, Ningbo City on Promoting 
Steady Foreign Trade Development;
    9. Opinions of Jiangdong District, Ningbo City on Promoting Steady 
Foreign Trade Development;
    10. 2005 Policies for Encouraging the Development of Foreign Trade 
& Economic Cooperation in Shandong;
    11. Notice on Printing and Distribution of 2006 Policies for 
Encouraging the Development of Foreign Trade & Economic Cooperation in 
Shandong;
    12. Notice on Printing and Distribution of 2003 Policies for 
Encouraging and Expanding Foreign Trade Export to Shandong;
    13. 2004 Policies for Encouraging the Development of Foreign Trade 
& Economic Cooperation in Shandong;
    14. Circular of Wuxing District People's Government on Further 
Encouraging the Development of Open Economy in Urban Areas;
    15. Measures for Managing Xiamen's Key Export Enterprise Assistance 
Fund;
    16. Notice from the Xiamen Trade Development Bureau and the Xiamen 
Finance Bureau on the publishing of Measures for Managing Xiamen's Key 
Export Enterprise Assistance Fund Implementation Plan;
    17. Opinions on Further Accelerating the Development of Open 
Economy;
    18. CPC Committee of Yinzhou District, Ningbo City People's 
Government of Yinzhou District, Ningbo City Opinions on Promoting 
Economic Development of Yinzhou District;
    19. Notices on Publication of Interim Procedures on Management of 
Zhejiang Province Export Brands Fund;
    20. Circular on Changxing County People's Government on Further 
Promoting Foreign Trade Development;
    21. Notices Concerning Printing and Distributing the Implementation 
Regulation on Economic Development Fund Supporting Industrial 
Technology Progress in Futian District Shenzhen;
    22. Notice Issued by the Office of Wenzhou Municipal Government for 
the Distribution of Quality & Branding Award Management Measures in 
Wenzhou;
    23. Notice of the Administrative Office of the Hangzhou Municipal 
People's Government on Revision of the Evaluation and Selection 
Requirements and Award Measures for the ``Golden Dragon Awards'' in 
Hangzhou's Foreign Trade Export;
    24. Directives of the Administrative Office of the Hangzhou 
Municipal People's Government on Promoting the Development of 
Independent Export Brands;
    25. Notice of the People's Government of Quanzhou Fengze District 
on Issuing Regulations Concerning the Support to Key Enterprises;
    26. Notice on Recommending of Alternative Name List for 2005-2006 
``Export Brand Merchandise in Shanghai;''
    27. Implementing Rules of Support Policies for Patented Brands of 
Service Outsourcing Companies by Zhabei District;
    28. Notice of Shanghai Municipal Commission of Foreign Trade and 
Economic Cooperation for Carrying out Confirmation of 2007-2008 
``Export Brands in Shanghai;''
    29. Measures on Promoting the Development of the City OpenEconomy 
in 2006;
    30. Notices for Evaluation and Rewards of 2008-2009 Export Brand 
Particularly Cultivated and Developed in Heilongjiang;
    31. Notice Regarding Support Policies to Promote the Development of 
Our City's Foreign Trade and Economic Cooperation for 2005; and
    32. Notice Regarding Selection of 2007-2008 ``Jiangsu Province 
Export Brands for Focused Cultivation and Development.''
    B. The measures referred to in Section A above appear to constitute 
prohibited subsidies under WTO rules. Specifically, they provide 
grants, loans, and other incentives to enterprises in China on the 
condition that those enterprises meet certain export performance 
criteria .
    USTR believes that these measures are inconsistent with China's 
obligations under Article 3 of the Agreement on Subsidies and 
Countervailing Measures, Articles 3, 9, and 10 of the Agreement on 
Agriculture, paragraph 12.1 of Part I of the Protocol on the Accession 
of the peoples' Republic of China (``Acession Protocol''), as well as 
paragraph 1.2 of Part I of its Accession Protocol (to the extent that 
it incorporates paragraph 234 of the Report of the Working Party on the 
Accession of China), which forms part of the terms of accession agreed 
between China and the WTO and is an integral part of the WTO Agreement. 
Finally, USTR believes that the grants, loans, and other incentives are 
inconsistent with Article III:4 of the GATT 1994 to the extent that the 
measures benefit Chinese-origin products but not imported products.

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 https://www.regulations.gov docket number 
USTR-2009-0003. If you are unable to provide submissions by https://
www.regulations.gov, please contact Sandy McKinzy at (202) 395-9483 to 
arrange for an alternative method of transmission.
    To submit comments via https://www.regulations.gov, enter docket 
number USTR-2009-0003 on the home page and click ``go''. The site will 
provide a search-results page listing all documents associated with 
this docket.

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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 ``Send a Comment or Submission.'' (For 
further information on using the https://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 https://www.regulations.gov site provides the option of 
providing comments by filling in a ``General Comments'' 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 ``General 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 https://
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 https://
www.regulations.gov or by fax. 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; the report of the panel; and, 
if applicable, the report of the Appellate Body.
    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 15 CFR 2006.15 or 
information determined by USTR to be confidential in accordance with 19 
U.S.C. 2155(g)(2). Comments open to public inspection may be viewed on 
the https://www.regulations.gov Web site.

Daniel Brinza,
Assistant United States Trade Representative for Monitoring and 
Enforcement.
[FR Doc. E9-3293 Filed 2-13-09; 8:45 am]
BILLING CODE 3190-W9-P