[Federal Register Volume 75, Number 202 (Wednesday, October 20, 2010)]
[Notices]
[Pages 64776-64778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-26401]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. USTR-2010-0028]


Initiation of Section 302 Investigation and Request for Public 
Comment: China--Acts, Policies and Practices Affecting Trade and 
Investment in Green Technology

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of initiation of investigation and request for public 
comment.

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SUMMARY: The United States Trade Representative (``Trade 
Representative'') has initiated an investigation under section 302(a) 
of the Trade Act of 1974, as amended (``Trade Act''), with respect to 
acts, policies, and practices of the People's Republic of China (China) 
affecting trade and investment in green technology. The Trade 
Representative has initiated the investigation in response to a 
petition filed on September 9, 2010, and the investigation will cover 
the acts, policies, and practices identified in the petition. The 
investigation will consider whether these acts, policies, and practices 
deny U.S. rights or benefits under the GATT 1994, under the Agreement 
on Subsidies and Countervailing Measures (``SCM Agreement''), and under 
China's Protocol of Accession to the WTO. USTR invites written comments 
from the public on the matters covered in the investigation.

DATES: The Trade Representative initiated this investigation on October 
15, 2010. Written comments are due on or before 5 p.m. on November 15, 
2010. Any request for a public hearing must be made no later than 5 
p.m. on November 1, 2010.

ADDRESSES: Non-confidential comments (as explained below) should be 
submitted electronically via the Internet at www.regulations.gov, 
docket number USTR-2010-0028. If you are unable to provide submissions 
by www.regulations.gov, please contact Sandy McKinzy at (202) 395-9483 
to arrange for an alternative method of transmission. If (as explained 
below) the comments contain confidential information, the person 
wishing to submit such comments should contact Sandy McKinzy at (202) 
395-9483.

FOR FURTHER INFORMATION CONTACT: Eric Garfinkel, Chief Counsel for 
China Trade, (202) 395-3150, Terry McCartin, (202) 395-3900, Deputy 
Assistant USTR for China Affairs, (202) 395-3900, or Jean Kemp, 
Director, Steel Trade Policy, (202) 395-5656 for questions concerning 
the issues in the investigation; William Busis, Deputy Assistant USTR 
for Monitoring and Enforcement and Chair of the Section 301 Committee, 
(202) 395-3150, for questions concerning procedures under Section 301; 
or Gwendolyn Diggs, Staff Assistant to the Section 301 Committee, (202) 
395-5830, for questions concerning procedures for filing submissions in 
response to this notice.

SUPPLEMENTARY INFORMATION: 

A. USW Petition

    On September 9, 2010, the United Steel, Paper and Forestry, Rubber, 
Manufacturing, Energy, Allied Industrial and Service Workers 
International Union, AFL-CIO CLC filed a petition under Section 302 of 
the Trade Act addressed to China's acts, policies, and practices 
affecting trade and investment in green technologies. The text of the 
petition has been posted on http://www.ustr.gov, under ``Enforcement.''
    The petition defines products of green technology ``as products 
used to produce renewable energy or reduce the emissions associated 
with the production and use of energy. These are the products necessary 
to produce energy from wind, solar, biomass, geothermal, hydro, and 
nuclear resources, products to enable the production of energy from 
coal with fewer greenhouse gas emissions, and products that consume 
less energy or alternative sources of energy, such as energy-efficient 
vehicles and energy-efficient lighting.'' The petition also covers ``a 
wide range of upstream inputs to green technology products.''
    The petition alleges that China ``employs a wide range of policies 
to stimulate and protect its domestic producers of green technology, 
from wind and solar energy products to advanced batteries and energy-
efficient vehicles,'' enabling China to become the dominant global 
supplier of a number of green technologies. The petition alleges that 
China's acts, policies, and practices in the area of green technology 
violate China's WTO commitments under the GATT 1994, under the 
Subsidies and Countervailing Measures Agreement (``SCM Agreement''), 
and under China's Protocol of Accession to the WTO.

[[Page 64777]]

These acts, policies, and practices are export restraints such as 
export duties and export quotas on rare earth minerals, tungsten, and 
antimony; allegedly prohibited subsidies that are contingent on export 
performance, or on the use of domestic over imported goods, affecting a 
variety of products, including wind turbines; discrimination against 
foreign companies and goods, including with respect to wind and solar 
power projects; technology transfer as a requirement for approval of 
foreign investments in China; and domestic subsidy programs that are 
allegedly causing serious prejudice to U.S. interests, including 
subsidies supporting renewable energy industries.
    The petition alleges that the acts, policies, and, practices 
covered in the petition, in aggregate, have caused the annual U.S. 
trade deficit with China in green technology goods to increase by more 
than two billion dollars since China joined the WTO. The petition 
alleges that U.S. exports to China in the sector have grown only 
modestly, while U.S. imports from China in the sector are nearly five 
times higher than they were in 2001. As a result, the petition alleges, 
China is now the top contributor to the U.S. global trade deficit in 
the sector.

B. Initiation of Investigation

    The Trade Representative has determined to initiate an 
investigation under section 302(a) of the Trade Act with respect to the 
acts, policies, and practices of China identified in the petition. The 
investigation will consider whether these acts, policies, and practices 
deny U.S. rights or benefits under the GATT 1994, under the SCM 
Agreement, and under China's Protocol of Accession to the WTO.

C. Delay of Request for Consultations

    Section 303(a) of the Trade Act provides that on the date on which 
an investigation is initiated under section 302, the Trade 
Representative shall request consultations with the foreign country 
concerned regarding the issues involved in such investigation. Section 
303(b) provides that the Trade Representative, after consulting with 
the petitioner, may delay for up to 90 days any request for 
consultations under section 303(a) for the purpose of verifying or 
improving the petition to ensure an adequate basis for consultation. 
Because the issues covered in the investigation involve U.S. rights 
under the WTO Agreement, any consultation request will be made under 
the WTO Understanding on Rules and Procedures Governing the Settlement 
of Disputes (DSU), and unless consultations result in a mutually 
acceptable resolution, the Trade Representative will request the 
establishment of a WTO panel under the DSU.
    In light of the number and diversity of the acts, policies, and 
practices covered by the petition, and after consulting with the 
petitioner, the Trade Representative has decided to delay for up to 90 
days the request for consultations with the Government of China for the 
purpose of verifying and improving the petition. During the period of 
delay provided for under section 303(b), the Trade Representative will 
seek information and advice from the petitioner and the appropriate 
committees established pursuant to section 135 of the Trade Act. The 
Trade Representative will take account of this information and advice, 
as well as the public comments submitted in response to this notice, in 
improving and verifying the petition during the delay period.

D. Public Comments

    Interested persons are invited to submit written comments 
concerning the issues covered in this investigation, including with 
respect to: (i) The acts, policies, and practices of China that are the 
subject of this investigation; (ii) whether these acts, policies, and 
practices deny U.S. rights or benefits under the WTO Agreement; and 
(iii) the amount of burden or restriction on U.S. commerce caused by 
these acts, policies, and practices.
    Interested persons may submit public comments electronically to 
http://www.regulations.gov, docket number USTR-2010-0028. If you are 
unable to provide submissions by http://www.regulations.gov, please 
contact Sandy McKinzy at (202) 395-9483 to arrange for an alternative 
method of transmission.
    Interested persons may request a public hearing on these matters. 
Any request for a public hearing should be made by no later than 5 p.m. 
on November 1, 2010. In the event a hearing is to be held, USTR will 
issue a notice specifying the date of the hearing and the procedures 
for submitting written testimony.
    To submit comments via http://www.regulations.gov, enter docket 
number USTR-2010-0028 on the home page and click ``Search.'' The site 
will provide a search-results page listing all documents associated 
with this docket. Find a reference to this notice by selecting 
``Notice'' under ``Document Type.'' Click on the reference to this 
notice, and then click ``Submit Comment.'' The http://www.regulations.gov site provides the option of submitting comments by 
filling in a ``Type Comment & Upload File'' field, or by attaching a 
document. Given the detailed nature of the comments sought by USTR, 
interested persons are requested to provide their comments in an 
attached document. If a document is attached, it is sufficient to type 
``See attached'' in the ``Type Comment & Upload File'' field.
    A submitter requesting that information contained in a comment 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. Any comment containing business 
confidential information must be submitted by fax to Sandy McKinzy at 
(202) 395-3640. A non-confidential summary of the business confidential 
information must be submitted to http://www.regulations.gov. The non-
confidential summary will be placed in the docket and open to public 
inspection.
    USTR may determine that information or advice contained in a 
comment submitted, other than business confidential information, is 
nonetheless confidential. 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. Must provide a non-confidential summary of the information or 
advice.
    Any comment containing confidential information must be submitted 
by fax to Sandy McKinzy at (202) 395-3640. A non-confidential summary 
of the confidential information must be submitted to http://www.regulations.gov or by fax. The non-confidential summary will be 
placed in the docket and open to public inspection.
    Comments will be placed in the docket and open to public inspection 
pursuant to 15 CFR 2006.13, except confidential business information 
exempt from public inspection in accordance with 15 CFR 2006.15 or 
information determined by USTR to be confidential. Comments open to 
public inspection may be viewed on http://

[[Page 64778]]

www.regulations.gov, under Docket No. USTR-2010-0028.

William Busis,
Chair, Section 301 Committee.
[FR Doc. 2010-26401 Filed 10-19-10; 8:45 am]
BILLING CODE 3190-W1-P