WTO Dispute Settlement Proceeding Concerning Certain Canadian Measures Affecting Periodicals

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

WTO Dispute Settlement Proceeding Concerning Certain Canadian

Measures Affecting Periodicals

AGENCY: Office of the United States Trade Representative.

[[Page 38239]]

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 the United States will

examine Canadian measures affecting periodicals, including an import

ban on certain periodicals and discriminatory treatment of certain

imported periodicals with respect to excise taxes and postal rates.

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 August 15, 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 Carolyn Frank, Executive

Secretary, Trade Policy Staff Committee, Room 501, Attn: Periodicals

Dispute, Office of the U.S. Trade Representative, 600 17th Street,

N.W., Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT: William Kane, Associate General

Counsel, Office of the General Counsel, Office of the U.S. Trade

Representative, 600 17th Street, N.W., Washington, DC 20508, (202) 395-

6800.

SUPPLEMENTARY INFORMATION: At the United States' request, a WTO dispute

settlement panel will examine whether certain Canadian measures

concerning periodicals are consistent with Canada's obligations under

the General Agreement on Tariffs and Trade (GATT) 1994.

Members of the panel are currently being selected, and the panel is

expected to meet as necessary at the WTO headquarters in Geneva,

Switzerland to examine the dispute. Under normal circumstances, the

panel would be expected to issue a report detailing its findings and

recommendations in six to nine months.

Major Issues Raised by the United States and Legal Basis of

Complaint

The Government of Canada maintains several measures concerning

periodicals, including, but not limited to: (1) Tariff Code 9958, which

prohibits the importation into Canada of certain periodicals; (2) Part

V.1 of the Excise Tax Act, as enacted by Bill C-103 of December

15,1995, which imposed an excise tax on certain so-called ``split-run''

periodicals; and (3) application of favorable postal rates to certain

Canadian periodicals, including through actions of the Canada Post

Corporation and the Department of Canadian Heritage (formerly the

Department of Communications).

These measures appear to prohibit or restrict imports of

periodicals from the United States and other Members of the World Trade

Organization in contravention of the Government of Canada's obligations

under Article XI of the General Agreement on Tariffs and Trade 1994,

and also appear to be inconsistent with the national treatment

obligations of the Government of Canada under Article III of the

General Agreement on Tariffs and Trade 1994.

These measures also appear to nullify or impair the benefits

accruing to the United States directly or indirectly under the General

Agreement on Tariffs and Trade 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. 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 commenter. Confidential business information must be

clearly marked ``BUSINESS CONFIDENTIAL'' in a contrasting color ink at

the top of each page of each copy.

A person requesting that information or advice contained in a

comment submitted by that person, other than business confidential

information, be treated as confidential in accordance with section

135(g)(2) of the Trade Act of 1974 (19 U.S.C. 2155)--

(1) must so designate that information or advice;

(2) must clearly mark the material as ``CONFIDENTIAL'' 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, 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, N.W., Washington DC 20508. The public

file will include a listing of any comments made to 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 participants 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-7, ``U.S.-Canada: Periodicals''), 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.

Jennifer Hillman,

General Counsel.

[FR Doc. 96-18618 Filed 7-22-96; 8:45 am]

BILLING CODE 3910-01-M