[Federal Register Volume 62, Number 102 (Wednesday, May 28, 1997)]
[Notices]
[Pages 28915-28916]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13855]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Generalized System of Preferences and Caribbean Basin Initiative; 
Intellectual Property Rights; Notice of Partial Withdrawal of Honduras' 
Benefits

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of intention to recommend withdrawal of certain benefits 
with respect to Honduras.

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SUMMARY: This notice informs the public that in light of a 
determination that Honduras fails to provide adequate and effective 
means under its laws for foreign nationals to secure, exercise, and 
enforce exclusive rights in intellectual property, the Trade Policy 
Staff Committee (TPSC) will recommend to the President that he 
partially withdraw duty-free treatment accorded Honduras under the 
Generalized System of Preferences (GSP) program and the Caribbean Basin 
Initiative (CBI)
    Specifically, the TPSC will recommend that $5 million in combined 
GSP and CBI trade benefits be withdrawn. These benefits will be 
suspended in four months if the intellectual property rights problems 
discussed below are not remedied. The public will be given an 
opportunity to comment on the specific products to be affected.

FOR FURTHER INFORMATION CONTACT: GSP Subcommittee, Office of the United 
States Trade Representative, 600 17th Street, N.W., Room 518, 
Washington, D.C. 20508. The telephone number is (202) 395-6971.

SUPPLEMENTARY INFORMATION: 

I. The GSP Program

    The GSP program grants duty-free treatment to designated eligible 
articles that are imported from designated beneficiary developing 
countries. The GSP program was authorized by Title V of the Trade Act 
of 1974, as amended (``The Trade Act'') (19 U.S.C. 2461 et seq.) and 
was implemented by Executive Order 11888 of November 24, 1975, as 
modified by subsequent Executive Orders and Presidential Proclamations. 
Once granted, GSP benefits may be withdrawn, suspended or limited by 
the President with respect to any article or with respect to any 
country. In making this determination, the President must consider 
several factors, one of which is the extent to which a beneficiary 
country is providing adequate and effective means under its laws for 
foreign nationals to secure, exercise and enforce exclusive rights in 
intellectual property, including patents, trademarks and copyrights. 19 
U.S.C. 2462(c)(5). The Caribbean Basin Economic Recovery Act contains 
similar requirements. 19 U.S.C. 2702(c)(9). Honduras is a beneficiary 
of both the GSP and CBI programs. In 1996, over $5 million of Honduran 
imports benefitted from GSP. In 1996 imports under CBI from Honduras 
were valued at approximately $160 million.

II. IRP Protection in Honduras

    In June 1992 the Motion Picture Export Association of America (now 
renamed the Motion Picture Association) filed a petition under the GSP 
program alleging that Honduras had failed to provide adequate and 
effective copyright protection and enforcement to U.S. copyright 
owners. This petition dealt primarily with the unauthorized 
broadcasting of pirated

[[Page 28916]]

videos and rebroadcasting of U.S. satellite-carried programming. During 
the Caribbean Basin Initiative designation process in the mid-1980's 
the Government of Honduras was officially informed of this problem and 
gave assurances that it would be resolved. This has not happened. Three 
major television stations, one in Tegucigalpa and two in San Pedro 
Sula, are the major offenders at present. Other piracy in Honduras 
affects our sound recording and book publishing industries.
    As a result, the Trade Policy Staff Committee (TPSC) will recommend 
to the President that he partially withdraw duty-free treatment 
accorded Honduras under the Generalized System of Preferences (GSP) 
program and the Caribbean Basin Initiative (CBI). Specifically, the 
TPSC will recommend that $5 million in combined GSP and CBI trade 
benefits be withdrawn. These benefits will be suspended in four months 
if the intellectual property rights problems are not remedied. The 
public will be given an opportunity to comment on the specific products 
to be affected.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.
[FR Doc. 97-13855 Filed 5-27-97; 8:45 am]
BILLING CODE 3190-01-M