[Federal Register Volume 75, Number 249 (Wednesday, December 29, 2010)]
[Notices]
[Pages 82130-82132]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-32868]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


WTO Dispute Settlement Proceeding Regarding China--Subsidies on 
Wind Power Equipment

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 on December 22, 2010, in accordance 
with the Marrakesh Agreement Establishing the World Trade Organization 
(``WTO Agreement''), the United States requested consultations 
regarding certain subsidies provided by the People's Republic of China 
(China) on wind power equipment. The consultation request addresses a 
measure of China entitled the ``Provisional Measures on Administration 
of Special Fund for Industrialization of Wind Power Equipment'' (``Wind 
Power Equipment Fund''). The Wind Power Equipment Fund provides grants 
that appear to be contingent on the use of domestic over imported wind 
power equipment, and thus appears to be a prohibited subsidy that is 
inconsistent with China's obligations under Article 3 of the Agreement 
on Subsidies and Countervailing Measures (``SCM Agreement''). In 
addition, as it appears that China has neither made available a 
translation of the measure into a WTO official language nor notified it 
to the WTO, China appears to have failed to comply with its 
transparency obligations under the WTO Agreement. 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 31, 2011, to be assured of timely 
consideration by USTR.

ADDRESSES: Non-confidential comments (as explained below) should be 
submitted electronically via the Internet at http://www.regulations.gov, docket number USTR-2010-0036. If you are unable to 
provide submissions by www.regulations.gov, please contact

[[Page 82131]]

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, Joseph Rieras, Assistant General Counsel, 
(202) 395-3150, Terry McCartin, 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 dispute; or 
Sandy McKinzy, Legal Technician, (202) 395-9483, for questions 
concerning procedures for filing submissions in response to this 
notice.

SUPPLEMENTARY INFORMATION: USTR is providing notice that the United 
States has requested consultations with the Government of China 
pursuant to the WTO Understanding on Rules and Procedures Governing the 
Settlement of Disputes (``DSU''). If the 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 nine months after it is 
established.
    The request for consultations follows from the decision of the 
United States Trade Representative (``Trade Representative'') to 
initiate an investigation under Section 302 of the Trade Act of 1974, 
as amended (``Trade Act'') in response to a petition filed by the 
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied 
Industrial and Service Workers International Union, AFL-CIO CLC 
(``USW''). See Initiation of Section 302 Investigation and Request for 
Public Comment: China--Acts, Policies and Practices Affecting Trade and 
Investment in Green Technology, 75 FR 64776 (Oct. 20, 2010). 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 decided, pursuant to Section 303(b) of the Trade 
Act, 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. Id. at 64777.
    Since the initiation of the investigation on October 15, 2010, USTR 
has sought information and advice from the petitioner and the 
appropriate committees established pursuant to section 135 of the Trade 
Act, has taken account of the public comments submitted in response to 
the October 20, 2010 notice, and has conducted its own research and 
worked with other agencies in order to verify and improve the various 
claims set out in the USW petition. As a result of those efforts, USTR 
has verified and improved claims involving subsidies provided by China 
on wind power equipment under its Wind Power Equipment Fund. In 
particular, USTR has verified that China's Wind Power Equipment Fund 
provides grants that appear to be contingent on the use of domestic 
over imported wind power equipment, and thus appears to be a prohibited 
subsidy that is inconsistent with China's obligations under Article 3 
of the SCM Agreement. In addition, as it appears that China has neither 
made available a translation of the measure into a WTO official 
language nor notified it to the WTO, China appears to have failed to 
comply with its transparency obligations under the WTO Agreement. In 
particular, China appears to have failed to comply with its obligations 
under Article XVI:1 of the GATT 1994, Article 25 of the SCM Agreement, 
and Part I, Paragraph 1.2, of the Protocol on the Accession of the 
People's Republic of China (to the extent that it incorporates 
paragraph 334 of the Report of the Working Party on the Accession of 
China).
    Accordingly, on December 22, 2010, the United States requested 
consultations under the DSU regarding China's Wind Power Equipment 
Fund, on the bases described above. The consultation request will be 
published on the WTO Web site, http://www.wto.org, under ``Disputes.''
    Since the initiation of the investigation on October 15, 2010, USTR 
has not been able to verify and improve claims with respect to the 
remaining acts, policies, and practices covered in the USW petition. 
Those matters are not included in the request for consultations and are 
not being continued in the investigation under Section 302(b). However, 
the Trade Representative continues to have serious concerns with these 
acts, policies and practices and their effects on U.S. workers and 
businesses, and will continue to work with the petitioner and other 
stakeholders to develop additional information and effective means for 
addressing these matters.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the consultation request. Interested 
persons may submit public comments electronically to http://www.regulations.gov, docket number USTR-2010-0036. 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.
    To submit comments via http://www.regulations.gov, enter docket 
number USTR-2010-0036 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.
    USTR may determine that information or advice, 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 information that is business confidential or 
submitted in confidence must be submitted by fax to Sandy McKinzy at 
(202) 395-3640. A non-confidential summary must be submitted to http://www.regulations.gov. The non-confidential summary will be placed in the 
docket and open to public inspection.

[[Page 82132]]

    USTR will maintain a docket on this dispute settlement proceeding 
accessible to the public. Comments submitted in response to this notice 
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 that 
USTR determines to be confidential. Comments open to public inspection 
may be viewed on http://www.regulations.gov, under Docket No. USTR-
2010-0036.
    If a dispute settlement panel is convened and in the event of an 
appeal from such a panel, the U.S. submissions, as well as any non-
confidential submissions (or non-confidential summaries of submissions) 
received from other participants in the dispute, will be made available 
to the public on USTR's Web site at http://www.ustr.gov. The report of 
the panel, and, if applicable, the report of the Appellate Body, will 
be available on the Web site of the World Trade Organization, http://www.wto.org.

 Bradford Ward,
Deputy General Counsel.
[FR Doc. 2010-32868 Filed 12-28-10; 8:45 am]
BILLING CODE 3190-W1-P