USTR request for comments on American JOBS Creation Act of 2004 [The FSC case...........]

[Eubulides <paraconsistent@xxxxxxxxxxx>]

[Federal Register: January 3, 2005 (Volume 70, Number 1)]
[Notices]
[Page 135-136]
>From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03ja05-101]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/DS108]


WTO Dispute Settlement Proceeding Regarding the American JOBS
Creation Act of 2004

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 the European Communities has
requested dispute settlement consultations under the Marrakesh
Agreement Establishing the World Trade Organization (``WTO
Agreement''). That request may be found at http://www.wto.org contained

in a document designated as WT/DS108/27. 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 January 10, 2005, to be assured of timely
consideration by USTR.

ADDRESSES: Comments should be submitted (i) electronically, to
FR0503@xxxxxxxxxxxx, Attn: ``JOBS Act (DS108)'' in the subject line, or

(ii) by fax, to Sandy McKinzy, at 202-395-3640. For documents sent by
fax, USTR requests that the submitter provide a confirmation copy to
the electronic mail address listed above.

FOR FURTHER INFORMATION CONTACT: William D. Hunter, Associate General
Counsel, Office of the United States Trade Representative, 600 17th
Street, NW., Washington, DC 20508, (202) 395-3582.

SUPPLEMENTARY INFORMATION: Section 127(b) of the Uruguay Round
Agreements Act (``URAA'') (19 U.S.C. 3537(b)(1)) requires that notice
and opportunity for comment be provided after the United States submits
or receives a request for the establishment of a WTO dispute settlement
panel. Consistent with this obligation, but in an effort to provide
additional opportunity for comment, 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 90 days after
referral of the matter to it.

Major Issues Raised by the EC

    On November 5, 2004, the EC requested consultations with the United
States pursuant to Articles 4 and 21.5 of the DSU, Article 4 of the
Agreement on Subsidies and Countervailing Measures (``SCM Agreement''),
Article 19 of the Agreement on Agriculture, and Article XXII:1 of the
General Agreement on Tariffs and Trade 1994 (``GATT 1994'') with
respect to the American JOBS Creation Act of 2004 (``the JOBS Act'').
According to the EC, the JOBS Act, which was enacted on October 22,
2004, was intended to implement the recommendations and rulings of the
WTO Dispute Settlement Body in case WT/DS108 (United States--Tax
Treatment for ``Foreign Sales Corporations'' and United States--Tax
Treatment for ``Foreign Sales Corporations''--Recourse to Article 21.5
of the DSU by the European Communities), but fails to do so properly
and is inconsistent with the same provisions of the WTO Agreement as
was the predecessor legislation.
    In particular, the EC considers that Section 101 of the JOBS Act
contains transitional provisions that will allow U.S. exporters to
continue to benefit from the FSC Replacement and Extraterritorial
Income Exclusion Act as follows: (a) In the years 2005 and 2006 with
respect to all export transactions; and (b) for an indefinite period
with respect to certain binding contracts. According to the EC, this
results in a failure to withdraw the subsidy and implement the DSB's
recommendations and rulings. The EC considers that the United States
has failed to withdraw the subsidies as required by Article 4.7 of the
SCM Agreement and has failed to implement the DSB's recommendations and
rulings as required by Articles 19.1 and 21.1 of the DSU. The EC also
considers that the United States continues to violate Articles 3.1(a)
and 3.2 of the SCM Agreement, Articles 10.1 and 8 of the Agreement on
Agriculture and Article III:4 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 their
comments either (i) electronically, to FR0503@xxxxxxxxxxxx, Attn:
``JOBS Act (DS108)'' in the subject line, or (ii) by fax to Sandy
McKinzy, at 202-395-3640. For documents sent by fax, USTR requests that
the submitter provide a confirmation copy to the electronic mail
address listed above.
    USTR encourages the submission of documents in Adobe PDF format, as
attachments to an electronic mail. Interested persons who make
submissions by electronic mail should not provide separate cover
letters; information that might appear in a cover letter should be
included in the submission itself. Similarly, to the extent possible,
any attachments to the submission should be included in the same file
as the submission itself, and not as separate files.
    Comments must be in English. 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.
    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) 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)), USTR
will maintain a file on this dispute settlement proceeding, accessible
to the public, in the USTR Reading Room, which is located at 1724 F
Street, NW., Washington, DC 20508. 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, the U.S.
submissions to that panel, the submissions, or non-confidential
summaries of submissions, to the panel received from other participants
in the dispute, as well as the report of the panel; and, if applicable,
the report of the Appellate Body. An appointment to review the public
file (Docket WTO/DS108, JOBS Act dispute) may be made by calling the
USTR Reading Room at (202) 395-6186. The USTR Reading Room is open to
the public from 9:30

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a.m. to noon and 1 p.m. to 4 p.m., Monday through Friday.

Bruce R. Hirsh,
Acting Assistant United States Trade Representative for Monitoring and
Enforcement.
[FR Doc. 04-28673 Filed 12-30-04; 8:45 am]