WTO Dispute Settlement Proceeding Regarding KoreaMeasures Affecting Government Procurement

[Federal Register Volume 64, Number 95 (Tuesday, May 18, 1999)]
[Notices]
[Page 27022]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-12433]



[[Page 27022]]

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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/D-163]


WTO Dispute Settlement Proceeding Regarding Korea--Measures 
Affecting Government Procurement

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 of the request for the establishment of 
a dispute settlement panel under the Marrakesh Agreement Establishing 
the World Trade Organization (``WTO''), by the United States, to 
examine the Republic of Korea's government procurement practices in the 
construction of the Inchon International Airport. In this dispute, the 
United States alleges that these practices are inconsistent with 
Korea's obligations under the Government Procurement Agreement 
(``GPA''). 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 by June 15, 1999, to be assured of timely consideration by 
USTR in preparing its first written submission to the panel.

ADDRESSES: Comments may be submitted to Sandy McKinzy, Litigation 
Assistant, Office of Monitoring and Enforcement, Room 122, Attn: Korea 
Airport Procurement Dispute, Office of the United States Trade 
Representative, 600 17th Street, NW, Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT: John G. Ellis, Director for Government 
Procurement Issues, (202) 395-3063; Mary Latimer, Director for Korean 
Affairs, (202) 395-6813; or Stephen Kho, Assistant General Counsel, 
(202) 395-3581.

SUPPLEMENTARY INFORMATION: Pursuant to section 127(b) of the Uruguay 
Round Agreements Act (``URAA'') (19 U.S.C. 3537(b)(1)), USTR is 
providing notice that on May 11, 1999, the United States submitted a 
request for the establishment of a WTO dispute settlement panel to 
examine whether certain government procurement measures, employed by 
Korea in the construction of the Inchon International Airport, are 
inconsistent with Korea's obligations under the GPA. The WTO Dispute 
Settlement Body (``DSB'') will consider the United States' first 
request for the establishment of a panel on May 26, 1999.

Major Issues Raised and Legal Basis of the Complaint

    The United States asserts that the following Korean government 
procurement practices are inconsistent with the GPA: (1) Requirements 
that suppliers have manufacturing facilities in Korea before 
participating in tender procedures; (2) requirements that foreign firms 
partner with or act as subcontractors to Korean firms in order to 
participate in tendering procedures; (3) absence of access to bid 
challenge procedures for Inchon International Airport and other airport 
procurements; and (4) impositions of deadlines for the receipt of 
tenders that are shorter than the GPA-required 40 days.
    As its defense, Korea is claiming that the entities responsible for 
Inchon International Airport procurements are not within its GPA 
obligations, and therefore not subject to the requirements of the GPA. 
However, these entities are within the scope of Korea's GPA 
obligations, pursuant to Article I(1) of the GPA. The United States 
bargained in good faith for the coverage of all airport construction in 
Korea during negotiations for Korea's accession to the GPA. 
Consequently, the United States believes that the above measures are 
inconsistent with Articles III, VIII, XI, XVI, and XX of the GPA. In 
addition, whether or not these measures conflict with the provisions of 
the GPA, they nullify or impair benefits accruing to the United States 
under the GPA.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in this dispute. Comments must be in 
English and provided in fifteen copies to Sandy McKinzy at the address 
provided above. 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 submitting 
person. Confidential business information must be clearly marked 
``BUSINESS CONFIDENTIAL'' in a contrasting color ink at the top of each 
page of each copy.
    Information or advice contained in a comment submitted, other than 
business confidential information, may be determined by the 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 submitting person believes that 
information or advice may qualify as such, the submitting person--
    (1) Must so designate the information or advice;
    (2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE'' 
in a contrasting color ink at the top of each page of each copy; and
    (3) Is encouraged to provide a non-confidential summary of the 
information or advice.
    Pursuant to section 127(e) of the URAA (19 U.S.C. 3537(e)), the 
USTR will maintain a file on this dispute settlement proceeding, 
accessible to the public, in the USTR Reading Room: Room 101, Office of 
the United States Trade Representative, 600 17th Street, NW, 
Washington, DC 20508. The public file will include a listing of any 
comments received by the USTR from the public with respect to the 
proceeding; the U.S. submissions to the panel in the proceeding, the 
submissions, or non-confidential summaries of submissions, to the panel 
received from other parties in the dispute, as well as the report of 
the dispute settlement panel, and, if applicable, the report of the 
Appellate Body. An appointment to review the public file (Docket WTO/D-
163, Korea Airport Procurement Dispute) 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 p.m. to 4 p.m., Monday through Friday.

A. Jane Bradley,
Assistant U.S. Trade Representative for Monitoring and Enforcement.
[FR Doc. 99-12433 Filed 5-17-99; 8:45 am]
BILLING CODE 3190-01-M