Notice2021-14550
Suspension of Action: Enforcement of U.S. WTO Rights in the Large Civil Aircraft Dispute
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Published
July 9, 2021
Issuing agencies
Trade Representative, Office of United States
Abstract
On June 15 and June 17, 2021, the United States reached understandings on cooperative frameworks with, respectively, the European Union (EU) and the United Kingdom (UK) regarding the World Trade Organization (WTO) disputes involving large civil aircraft (LCA). In accordance with the understandings reached with the EU and the UK, the U.S. Trade Representative has determined to suspend for a period of five years the action being taken in the Section 301 investigation involving the enforcement of U.S. WTO rights in the LCA dispute.
Full Text
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<title>Federal Register, Volume 86 Issue 129 (Friday, July 9, 2021)</title>
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[Federal Register Volume 86, Number 129 (Friday, July 9, 2021)]
[Notices]
[Pages 36313-36315]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-14550]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Suspension of Action: Enforcement of U.S. WTO Rights in the Large
Civil Aircraft Dispute
AGENCY: Office of the United States Trade Representative (USTR).
ACTION: Notice.
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SUMMARY: On June 15 and June 17, 2021, the United States reached
understandings on cooperative frameworks with, respectively, the
European Union (EU) and the United Kingdom (UK) regarding the World
Trade Organization (WTO) disputes involving large civil aircraft (LCA).
In accordance with the understandings reached with the EU and the UK,
the U.S. Trade Representative has determined to suspend for a period of
five years the action being taken in the Section 301 investigation
involving the enforcement of U.S. WTO rights in the LCA dispute.
DATES: The beginning of the five-year suspension period is July 4,
2021, with respect to tariffs on goods of the UK, and July 11, 2021,
with respect to tariffs on goods of EU member States.
FOR FURTHER INFORMATION CONTACT: For questions about the investigation
or this notice, contact Senior Associate General Counsel Brian
Janovitz, at (202) 395-5725, or Director for Europe Michael Rogers, at
(202) 395-3320.
SUPPLEMENTARY INFORMATION:
A. Proceedings in the Investigation
For background on the proceedings in this investigation, please see
prior notices including: Notice of initiation, 84 FR 15028 (April 12,
2019); notice of determination and action, 84 FR 54245 (October 9,
2019); and notices concerning revisions or modifications of action, 85
FR 10204 (February 21, 2020), 85 FR 50866 (August 18, 2020), 86 FR 674
(January 6, 2021), 86 FR 9420 (February 12, 2021), 86 FR 13961 (March
11, 2021), and 86 FR 14513 (March 16, 2021).
B. Suspension of Action
On June 15 and June 17, 2021, the United States reached similar
understandings on cooperative frameworks with the EU and the UK,
respectively, regarding trade in large civil aircraft and the parties'
WTO disputes. The understandings provide, inter alia, that each party
intends to:
<bullet> Provide any financing to its LCA producer for the
production or development of large civil aircraft on market terms.
[[Page 36314]]
<bullet> provide any funding for research and development (R&D) for
large civil aircraft to its LCA producer through an open and
transparent process and intends to make the results of fully government
funded R&D widely available, to the extent permitted by law, and
intends not to provide R&D funding or other support that is specific,
to its LCA producer in a way that would cause negative effects to the
other side.
<bullet> collaborate on jointly analyzing and addressing non-market
practices of third parties that may harm their respective large civil
aircraft industries. The two sides will implement the annexed
understanding on cooperation on non-market economies through the
Working Group.
<bullet> suspend application of countermeasures for a period of
five years.
To effectuate the suspension of the U.S. countermeasures for the
five-year period, the U.S. Trade Representative has determined to
terminate the current tariff action and to undertake procedures in
advance of the end of the five-year period for the possible re-
imposition of tariffs under Section 301.
In particular, pursuant to sections 307(a)(1) and 301(a)(2)(B) of
the Trade Act, the U.S. Trade Representative has determined to
terminate the current action, which was first imposed in the notice of
October 9, 2019 (84 FR 54245) and modified in subsequent notices,
effective July 4, 2021, with respect to goods of the UK, and effective
July 11, 2021, with respect to goods of EU member States. Pursuant to
Section 306 of the Trade Act, and in advance of the end of the five-
year suspension period, the U.S. Trade Representative will review
implementation by the EU and UK of the framework understandings and
their respective measures related to the matters covered in the LCA
dispute, and consider a re-imposition of a tariff action under Section
301.
The decision of the U.S Trade Representative to effectuate the
five-year suspension in accordance with the framework understandings
considers the advice of the interagency Section 301 Committee, advisory
committees, and public comments received in response to prior notices
issued in the investigation, and consultations with the domestic
industry concerned regarding the suspension.
The Annex to this notice modifies the Harmonized Tariff Schedule of
the United States to reflect the suspension of the tariff action. The
additional duties imposed by subheadings 9903.89.05, 9903.89.07,
9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 9903.89.25,
9903.89.28, 9903.89.31, 9903.89.34, 9903.89.40, 9903.89.43, 9903.89.46,
9903.89.49, 9903.89.50 and 9903.89.55, and as provided by their
associated subchapter notes, will not apply to products of the UK that
are entered for consumption, or withdrawn from warehouse for
consumption, on or after 12:01 a.m. eastern daylight time on July 4,
2021. The additional duties imposed by subheadings 9903.89.05,
9903.89.07, 9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22,
9903.89.25, 9903.89.28, 9903.89.31, 9903.89.34, 9903.89.37, 9903.89.40,
9903.89.43, 9903.89.46, 9903.89.52, 9903.89.55, 9903.89.57, 9903.89.59,
9903.89.61, and 9903.89.63, and as provided by their associated
subchapter notes, will not apply to products of Austria, Belgium,
Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark,
Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy,
Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal,
Romania, Slovakia, Slovenia, Spain, or Sweden that are entered for
consumption, or withdrawn from warehouse for consumption, on or after
12:01 a.m. eastern daylight time on July 11, 2021.
Any product of the UK that was admitted into a U.S. foreign trade
zone in `privileged foreign status' as defined in 19 CFR 146.41, before
12:01 a.m. eastern standard time on March 4, 2011, will remain subject
to the applicable duties in subheadings 9903.89.05, 9903.89.07,
9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 9903.89.25,
9903.89.28, 9903.89.31, 9903.89.34, 9903.89.40, 9903.89.43, 9903.89.46,
9903.89.49, 9903.89.50 and 9903.89.55 upon entry for consumption. Any
product of Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus,
Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta,
Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, or
Sweden, that was admitted into a U.S. foreign trade zone in `privileged
foreign status' as defined in 19 CFR 146.41, before 12:01 a.m. eastern
standard time on March 11, 2021, will remain subject to the applicable
duties in subheadings 9903.89.05, 9903.89.07, 9903.89.10, 9903.89.13,
9903.89.16, 9903.89.19, 9903.89.22, 9903.89.25, 9903.89.28, 9903.89.31,
9903.89.34, 9903.89.37, 9903.89.40, 9903.89.43, 9903.89.46, 9903.89.52,
9903.89.55, 9903.89.57, 9903.89.59, 9903.89.61, and 9903.89.63 upon
entry for consumption.
Any product of the UK covered by paragraph 3 of the Annex to this
notice, that is admitted into a U.S. foreign trade zone on or after
12:01 a.m. eastern daylight time on July 4, 2021, and any product of
Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,
Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands,
Poland, Portugal, Romania, Slovakia, Slovenia, Spain, or Sweden,
covered by paragraph 3 of the Annex to this notice, that is admitted
into a U.S. foreign trade zone on or after 12:01 a.m. eastern daylight
time on July 11, 2021, may be admitted in any status, as applicable, as
defined in 19 CFR 146, Subpart D.
In accordance with section 306 of the Trade Act, in addition to the
five-year review, the U.S. Trade Representative will monitor
implementation by the EU and UK of the framework understandings and
their respective measures related to the matters covered in the LCA
dispute, including whether the EU or UK provides new financing to an
LCA producer for the production or development of LCA that is not on
market terms. If USTR considers that the implementation of the
framework understandings or measures related to the WTO dispute are not
satisfactory, then USTR will take the most effective action under
Section 301 to enforce U.S. WTO rights, which could include the re-
imposition of duties.
Annex
1. The additional duties imposed by subheadings 9903.89.05
through 9903.89.63 of the Harmonized Tariff Schedule of the United
States (HTSUS), and as provided by their associated subchapter
notes, on products of Austria, Belgium, Bulgaria, Croatia, Republic
of Cyprus, Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia,
Slovenia, Spain, Sweden or the United Kingdom are terminated as
follows. For entries from the United Kingdom, the termination is
effective for entries on or after July 4, 2021. For entries from
Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta,
Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain,
or Sweden the termination is effective for entries on or after July
11, 2021.
2. Note 21(a) to subchapter III of chapter 99 of the HTSUS is
modified by deleting ``notes 21(u) and 21(v) of this subdivision,''
and by inserting ``notes 21(u), 21(v), 21(w) and 21(x) of this
subdivision,'' in lieu thereof.
3. Note 21 to subchapter III of chapter 99 of the HTSUS is
modified by inserting the following new subchapter notes in
alphabetical order:
[[Page 36315]]
``(w) The U.S. Trade Representative has determined that the
additional duties imposed by subheadings 9903.89.05, 9903.89.07,
9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22,
9903.89.25, 9903.89.28, 9903.89.31, 9903.89.34, 9903.89.40,
9903.89.43, 9903.89.46, 9903.89.49, 9903.89.50 and 9903.89.55, and
as provided by their associated subchapter notes, shall not apply to
articles the product of the United Kingdom that are entered on or
after 12:01 a.m. eastern daylight time on or after July 4, 2021.''
``(x) The U.S. Trade Representative has determined that
additional duties imposed by subheadings 9903.89.05, 9903.89.07,
9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22,
9903.89.25, 9903.89.28, 9903.89.31, 9903.89.34, 9903.89.37,
9903.89.40, 9903.89.43, 9903.89.46, 9903.89.52, 9903.89.55,
9903.89.57, 9903.89.59, 9903.89.61, and 9903.89.63, and as provided
by their associated subchapter notes, shall not apply to articles
the product of Austria, Belgium, Bulgaria, Croatia, Republic of
Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg,
Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia,
Spain, or Sweden that are entered on or after 12:01 a.m. eastern
daylight time on or after July 11, 2021.''
Greta Peisch,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2021-14550 Filed 7-8-21; 8:45 am]
BILLING CODE 3290-F1-P
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