USTR Update on Potential Increase in General Duty Rates for Certain Goods from All "Column 1" Countries - in Response to EU Actions on Enlargement, Rice
The Office of the U.S. Trade Representative (USTR) has issued an update on the potential increase in general duty rates for certain goods from all "Column 1" countries in the event that the U.S. cannot reach agreement with the European Union (EU) for adequate compensation owed under World Trade Organization (WTO) rules as a result of the May 2004 EU enlargement and EU changes to its rice import regime.
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Products that Could Be Subject to Increased Duties Not Yet Selected
According to the USTR, the Trade Policy Staff Committee (TPSC) continues to review the public comments that it has received in response to its list, and additional list, of goods from which products would be drawn for increased general duty rates, in the event that the U.S. cannot reach agreement with the EU for adequate compensation under WTO rules.
(See ITT's Online Archives or 09/13/04 and 09/29/04 news, 04091310 and 04092910, for BP summaries of the USTR's September 10, 2004 list and the additional list published on September 28, 2004.)
U.S. Still Seeking Negotiated Resolution (Instead of Tariff Increases)
According to the USTR, the U.S. Government is seeking an immediate negotiated resolution of both the enlargement and rice issues, which would alleviate the need for increases in U.S. tariffs. However, the USTR states that it retains the right to put into force tariff increases if negotiations do not result in successful provision of adequate compensation.
30 Days Notice Required Before Tariffs Increases Could Be Imposed
The USTR states that the U.S. must notify the WTO at least 30 days before tariff increases could go into effect. The U.S. would also provide notification to the public of the list of goods affected at least thirty days before such increases could go into effect.
Notification required by April 30 for enlargement issue; by March 1 for rice issue. As announced at the September 24, 2004 public hearing, the U.S. had been subject to a deadline of October 1, 2004 to notify the WTO of increased tariffs in relation to the issue of EU enlargement. The U.S.' rights to provide such notification have been subsequently extended for an additional six months until April 30, 2005.
In the case of the rice import regime change, the U.S. has the right to provide notice of increased duty rates until March 1, 2005.
USTR contact - Laurie Molnar (202) 395-3320
USTR notice (FR Pub 10/25/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-23821.pdf