WTO Dispute Settlement Proceeding Regarding Sections 301-310 of the Trade Act of 1974, as Amended

Pursuant to section 127(b) of the Uruguay Round Agreements Act (URAA) (19 U.S.C. 3537(b)(1), the USTR is providing notice that on February 2, 1999, the EC submitted a request for the establishment of a WTO dispute settlement panel to examine whether sections 301-310 of the Trade Act are inconsistent with the WTO obligations of the United States. The WTO Dispute Settlement Body (``DSB'') considered the EC's first request for the establishment of a panel on February 17, 1999, and its second request on March 2, 1999; a panel was established at this meeting.

Major Issues Raised by the EC and Legal Basis of the Complaint

The EC claims that sections 301-310 of the Trade Act impose ``specific, strict time limits'' that require the United States to make ``unilateral determinations'' regarding WTO violations by other WTO members, as well as trade sanctions that are prescribed as a result of such violations. By making these determinations, the EC contends that the United States is acting inconsistently with the DSU and the

GATT 1994 in situations when, at the end of the time limits imposed by sections 301-310, the DSB has not yet made a determination that a WTO member has not complied with its WTO obligations, and has not yet authorized the suspension of concessions with regard to such non- compliance. Specifically, the EC alleges that the U.S. legislation is inconsistent with the obligations of the United States under Articles 3, 21, 22, and 23 of the DSU; Article XVI:4 of the Marrakesh Agreement establishing the WTO; and Articles I, II, III, VIII, and XI of the GATT 1994.

Public Comment: Requirements for Submissions

Interested persons are invited to submit written comments concerning the issues raised in the 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 commentator. 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- 152, Sections 301-310 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. Amelia Porges, Senior Counsel for Dispute Settlement. [FR Doc. 99-7080 Filed 3-22-99; 8:45 am] BILLING CODE 3190-01-M