WTO Dispute Settlement Proceedings Concerning U.S. Restrictions on Woven Wool Shirts and Blouses From India

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

WTO Dispute Settlement Proceedings Concerning U.S. Restrictions

on Woven Wool Shirts and Blouses From India

AGENCY: Office of the United States Trade Representative.

ACTION: Notice; request for comments.

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SUMMARY: Pursuant to section 127(b)(1) of the Uruguay Round Agreements

Act (URAA) (19 U.S.C. 3537(b)(1)), the Office of the United States

Trade Representative (USTR) is providing notice that a dispute

settlement panel convened under the Agreement Establishing the World

Trade Organization (WTO) at the request of India will examine a U.S.

transitional safeguard restriction on woven wool shirt and blouse

imports from India (category 440) applied pursuant to the Uruguay Round

Agreement on Textiles and Clothing (ATC). USTR also invites written

comments from the public concerning the issues raised in the dispute.

DATES: Although USTR will accept any comments received during the

course of the dispute settlement proceedings, comments should be

submitted on or before June 12, 1996 in order to be assured of timely

consideration by USTR in preparing its first written submission to the

panel.

ADDRESSES: Comments may be submitted to the Office of the General

Counsel, Attn: Wool Shirts and Blouses Dispute, Room 223, Office of the

U.S. Trade Representative, 600 17th Street, N.W., Washington, D.C.

20506.

FOR FURTHER INFORMATION CONTACT:

Alicia Greenidge, Special Counsel, at (202) 395-3026 or Demetri

Boutris, Associate General Counsel, at (202) 395-3150, Office of the

U.S. Trade

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Representative, 600 17th Street, N.W., Washington, DC 20508.

SUPPLEMENTARY INFORMATION: At the request of India, a WTO dispute

settlement panel will examine whether the United States application of

a transitional safeguard on U.S. imports of woven wool shirts and

blouses from India is consistent with U.S. obligations under the ATC.

Effective July 17, 1995, the United States applied a restriction on

imports of woven wool shirts and blouses from India (category 440) at a

level of 76,698 dozen (60 FR 35899). The U.S. took this action because

it determined that such imports were contributing to serious damage, or

actual threat thereof, to the U.S. industry. The U.S. held

consultations with India in April 1995 in accordance with Article 6.7

of the Uruguay Round Agreement on Textiles and Clothing (ATC). Because

no mutually satisfactory solution was reached, the U.S. applied a

safeguard restriction in accordance with Article 6.10 of the ATC.

Article 6.10 provides that members taking unilateral action must do so

within 30 days after a 60 day consultation period, which did not result

in agreement. Also pursuant to Article 6.10 of the ATC, the WTO

Textiles Monitoring Body (TMB) automatically reviewed the case. The TMB

examined the matter on August 28-September 1, 1995. After its

examination of the case, the TMB determined that there was no serious

damage to U.S. industry. However, the TMB reached consensus that there

was actual threat of serious damage to the U.S. industry and such

threat was properly attributed to imports from India. On October 16,

1995, India informed the TMB that it could not conform with the TMB's

recommendation. The TMB subsequently issued a report on December 8,

1995, affirming its original finding and noted that it could not make

any additional recommendations concerning the conclusions it reached

earlier. On March 14, 1996, pursuant to Article 8.10 of the ATC, India

sent a letter to the Chairman of the WTO Dispute Settlement Body

requesting that a panel review the matter.

Members of the panel are currently being selected. The panel will

meet with the parties to the dispute twice at WTO headquarters in

Geneva, Switzerland to examine the case. The panel is expected to issue

a report detailing its findings and recommendations in six to nine

months from the date the panel is established.

Major Issues Raised by India and Alleged Legal Basis of the

Complaint

India has alleged that the U.S. safeguard restriction on woven

shirts and blouses imported from India is inconsistent with Articles 6,

8 and 2 of the ATC; that the U.S. restriction nullifies or impairs

benefits accruing to India under the Agreement Establishing the WTO,

GATT 1994 and under the ATC in particular; and that the U.S. must

withdraw the restraint. India also requested supplementary findings

from the panel that the U.S. has to choose at the beginning of the

process whether it will claim existence of serious damage or actual

threat because they are not interchangeable (asserting that if serious

damage is not found there can be no threat); and that the U.S. cannot

impose a restraint with retrospective effective because there is no

provision in the ATC addressing the matter.

Public Comment: Requirements for Submissions

Interested person are invited to submit written comments concerning

the issues raised in the dispute. The provisions of 15 CFR Sec. 2006.13

(a) and (c) (providing that comments received will be open to public

inspection) and 2006.15 will apply to comments received. Comments must

be in English and provided in fifteen copies. Pursuant to 15 CFR

Sec. 2006.15, confidential business information must be clearly marked

``BUSINESS CONFIDENTIAL'' in a contrasting color ink at the top of each

page.

Pursuant to Sec. 127(e) of the URAA, USTR will maintain a public

file on this dispute settlement proceeding, which will include a list

of comments received, in the USTR Reading Room: Room 101, Office of the

United States Trade Representative, 600 17th Street, N.W., Washington,

DC 20508. An appointment to review the docket (Docket WTO/D-5 ``India-

United States: U.S. Safeguard Restrictions on Woven Wool Shirts and

Blouses'') may be made by calling Brenda Webb, (202) 395-6186. The USTR

Reading Room is open to the public from 10 a.m. to 12 noon and 1 p.m.

to 4 p.m., Monday through Friday.

Irving Williamson,

Deputy General Counsel.

[FR Doc. 96-12121 Filed 5-14-96; 8:45 am]

BILLING CODE 3190-01-M