Office of the United States Trade Representative February 2005 – Federal Register Recent Federal Regulation Documents

The Office of the United States Trade Representative (USTR) received petitions in 2004 to modify the list of products that are eligible for duty-free treatment under the GSP program and to modify the GSP status of certain GSP beneficiary developing countries because of country practices. The list of country practice petitions accepted for review will be announced in the Federal Register at a later date. This notice announces the product petitions that are accepted for further review in the 2004 GSP Annual Review, and sets forth the schedule for comment and public hearing on these petitions, for requesting participation in the hearing, and for submitting pre-hearing and post-hearing briefs.

The Office of the United States Trade Representative (``USTR'') is providing notice that on January 13, 2005, the United States received from the European Communities (``EC'') a request for the establishment of a panel under the Marrakesh Agreement Establishing the World Trade Organization (``WTO Agreement'') regarding the U.S. suspension of obligations to the EC in the WTO dispute European CommunitiesMeasures Concerning Meat and Meat Products (Hormones). The EC asserts that it has put into force new legislation that brings it into conformity with the recommendations and rulings of the Dispute Settlement Body (``DSB'') and its obligations under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (``SPS Agreement''). The EC therefore challenges the continued U.S. suspension of obligations and imposition of import duties in excess of bound rates on imports from the EC, the alleged U.S. ``unilateral determination'' that the new EC legislation is in violation of the EC's WTO obligations, and the alleged U.S. failure to have recourse to WTO dispute settlement proceedings. In particular, the EC asserts that by failing to discontinue suspension of obligations to the EC, the United States has breached its obligations under Articles I and II of the General Agreement on Tariffs and Trade 1994 (``GATT 1994'') and Articles 3.7, 21.5, 22.8 and 23.2(a) and (c) of the Understanding on Rules and Procedures Governing the Settlement of Disputes (``DSU''). USTR invites written comments from the public concerning the issues raised in this dispute.

The Office of the United States Trade Representative (USTR) is providing notice that on January 14, 2005, at the request of Canada, the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) established a dispute settlement panel under the Marrakesh Agreement Establishing the WTO. The panel is to examine whether the United States has implemented the recommendations and rulings of the DSB in a dispute involving a U.S. Department of Commerce (Commerce) countervailing duty investigation of certain softwood lumber products from Canada. On February 17, 2004, the DSB adopted its findings in that dispute, which rejected most of Canada's claims but found that, consistent with the WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement) and the General Agreement on Tariffs and Trade 1994 (GATT 1994), Commerce should have conducted an analysis of whether subsidies ``pass through'' from certain producers to others with respect to certain log sales. In response to the DSB's recommendations and rulings, Commerce conducted a pass-through analysis and issued a new determination revising the subsidy rate for the investigation from 18.79% to 18.62%. Canada subsequently requested the establishment of a dispute settlement panel, alleging that the United States had failed to implement the DSB's recommendations and rulings. The panel was established on January 14, 2005. USTR invites written comments from the public concerning the issues raised in this dispute.

In response to the European Union's changes to its rice import regime, the United States has notified the World Trade Organization of its intent to withdraw concessions by March 1, 2005, with respect to the goods in the attached list. Background: In Federal Register notices 04-20543, dated September 10, 2004, 04-21762 and dated September 28, 2004, the Office of the U.S. Trade Representative sought comments concerning a list of goods for which tariff concessions may be withdrawn and duties may be increased in the event the United States cannot reach agreement with the European Union (EU) for adequate compensation owed under World Trade Organization (WTO) rules as a result of EU changes to its rice import regime. While the United States Government has actively sought a negotiated resolution of this issue, which would have alleviated the need to withdraw concessions, an agreement has not been reached. Therefore, in accordance with WTO rules, the United States has notified the WTO that it will withdraw substantially equivalent tariff concessions if an agreement is not reached before March 1. This notice provides the list of goods notified to the WTO on Friday, January 28, 2005. Whenever a foreign country withdraws, suspends, or modifies the application of trade agreement obligations of benefit to the United States without granting adequate compensation, the President is authorized under section 125(c) of the Trade Act of 1974 (19 U.S.C. 2135) to proclaim such increased duties or other import restrictions as are appropriate to effect adequate compensation. In the event that the United States withdraws substantially equivalent tariff concessions on March 1, increases in the duties applied to the goods included in the list notified to the WTO would be effected pursuant to this authority.

This notice extends by two weeks the deadline for the submission of comments in the Out-of-Cycle Review (OCR) of the People's Republic of China (China) under section 182 of the Trade Act of 1974 (Trade Act) (19 U.S.C. 2242), commonly referred to as the ``Special 301'' provision of the Trade Act.