WTO Dispute Settlement Proceedings Concerning U.S. Restrictions on Cotton and Manmade Fiber Underwear from Costa Rica

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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

WTO Dispute Settlement Proceedings Concerning U.S. Restrictions

on Cotton and Manmade Fiber Underwear from Costa Rica

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. Sec. 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 Costa Rica will examine a

U.S. transitional safeguard restriction on cotton and man-made fiber

underwear imports from Costa Rica (category 352/652) 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 April 22, 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: Costa Rica Underwear 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 Representative, 600 17th Street, N.W. Washington, DC 20506.

SUPPLEMENTARY INFORMATION: At the request of Costa Rica, a WTO dispute

settlement panel will examine whether the United States application of

a transitional safeguard on Costa Rican imports of cotton and man-made

fiber underwear is consistent with U.S. obligations under the ATC.

Effective June 23, 1995, the United States applied a restriction on

imports of cotton and man-made fiber underwear from Costa Rica

(category 352/652) (60 FR 32653, June 23, 1995). 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.

applied the restriction in accordance with Article 6.10 of the ATC,

which provides that members taking unilateral action must do so within

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

agreement. Pursuant to Article 6.10 of the ATC, the WTO Textiles

Monitoring Body (TMB) automatically reviewed the case. After its

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

damage to U.S. industry. However, the TMB reached a deadlock on the

issue of threat of serious damage, it recommended further consultations

between the U.S. and Costa Rica. No mutual solution was reached in

those consultations and upon examination of the reports of the two

countries, the TMB confirmed its earlier findings. Costa Rica requested

consultations under Articles 4 of the WTO Dispute Settlement

Understanding (DSU) and Article XXIII of GATT 1994. Consultations were

held on January 18, 1996 and February 1, 1996. No mutual solution was

reached during those consultations and Costa Rica requested panel

review under the DSU on February 22, 1996.

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 dispute. The panel is expected to

issue a report detailing its findings and recommendations in six to

nine months.

Major Issues Raised by Costa Rica and Alleged Legal Basis of the

Complaint

Costa Rica has asserted that U.S. safeguard action is incompatible

with the ATC, particularly Articles 2, 6, and 8; that the action

directly or indirectly nullifies or impairs Costa Rica's WTO benefits,

particularly under the ATC; and therefore, the U.S. must rescind the

measure.

Public Comment: Requirements for Submissions

Interested persons are invited to submit written comments

concerning the issues raised in the dispute. The provisions of 15 CFR

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 2006.15, confidential business information must be clearly

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

of each page.

Pursuant to section 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 20506. An appointment to review the docket (Docket WTO/D/96-1,

``Costa Rica-United States: U.S. Safeguard Restrictions on Underwear'')

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,

Acting General Counsel.

[FR Doc. 96-7093 Filed 3-22-96; 8:45 am]

BILLING CODE 3190-01-M