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USTR Requests Comments on Increasing General Duty Rates for Certain Goods from All "Column 1" Countries - in Response to Recent EU Actions

The Office of the U.S. Trade Representative (USTR) has issued a notice requesting comments on a list of goods whose duties may be increased in the event 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 EU enlargement and EU changes to its rice import regime.

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(On May 1, 2004, as part of its enlargement process, the EU raised tariffs above WTO bound rates on certain imports into the countries of Estonia, Latvia, Lithuania, Poland, Slovakia, the Czech Republic, Slovenia, Hungary, Cyprus and Malta. In addition, on September 1, 2004, the EU modified its rice import regime, raising tariffs on some rice imports above the maximum permissible WTO rate of duty.)

U.S. May Raise General Duty Rates for All "Column 1" Countries on Select Goods

If either or both of the above issues are not resolved, the USTR states that the U.S. may seek to exercise its rights under Article XXVIII of the General Agreement on Tariffs and Trade 1994 (GATT 1994) to raise tariffs on select goods primarily supplied by the EU.

The USTR states that any increased duties would apply to imports from all countries that are subject to the rates of duty set forth in the Column 1 General rate of duty column of the Harmonized Tariff Schedule (HTS).

Affected Products to be Drawn from USTR's List

According to the USTR, the products affected would be drawn from the list of products set forth in the annex to its notice. The annex lists approximately 141 HTS subheadings in Chapters 2, 4-7, 9-13, 15, 16, 18-24, 29, 33, 35, 38, 40, 43-45, 51-53, 70, 71, and 84. Included are such goods as various milk products (including numerous cheeses), bulbs (e.g., tulip, hyacinth, etc.), olives, spices, rye, oats, sausages, chocolate, wine, tobacco, glassware, etc.

- public hearing on September 24, 2004

- written comments are due by noon on September 28, 2004

USTR contact - Anita Thomas (202) 395-3320

USTR notice (FR Pub 09/10/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-20543.pdf

BP Note

According to USTR sources, data is currently being gathered to determine what the total value of these possible sanctions should be.