-CITE-

19 USC CHAPTER 17 - NEGOTIATION AND IMPLEMENTATION OF

TRADE AGREEMENTS 01/06/03

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TITLE 19 - CUSTOMS DUTIES

CHAPTER 17 - NEGOTIATION AND IMPLEMENTATION OF TRADE AGREEMENTS

.

-HEAD-

CHAPTER 17 - NEGOTIATION AND IMPLEMENTATION OF TRADE AGREEMENTS

-MISC1-

Sec.

2901. Overall and principal trade negotiating objectives of the

United States.

(a) Overall trade negotiating objectives.

(b) Principal trade negotiating objectives.

2902. Trade agreement negotiating authority.

(a) Agreements regarding tariff barriers.

(b) Agreements regarding nontariff barriers.

(c) Bilateral agreements regarding tariff and

nontariff barriers.

(d) Consultation with Congress before agreements

entered into.

(e) Special provisions regarding Uruguay Round trade

negotiations.

2903. Implementation of trade agreements.

(a) In general.

(b) Application of Congressional ''fast track''

procedures to implementing bills.

(c) Limitations on use of ''fast track'' procedures.

(d) Rules of House of Representatives and Senate.

(e) Computation of certain periods of time.

2904. Termination and reservation authority; reciprocal

nondiscriminatory treatment.

(a) In general.

(b) Reciprocal nondiscriminatory treatment.

2905. Accession of state trading regimes to General Agreement on

Tariffs and Trade or WTO.

(a) In general.

(b) Effects of affirmative determination.

(c) Expedited consideration of bill to approve

extension.

(d) Publication.

(e) Definitions.

2906. Definitions.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 3104, 3109 of this title.

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19 USC Sec. 2901 01/06/03

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TITLE 19 - CUSTOMS DUTIES

CHAPTER 17 - NEGOTIATION AND IMPLEMENTATION OF TRADE AGREEMENTS

-HEAD-

Sec. 2901. Overall and principal trade negotiating objectives of

the United States

-STATUTE-

(a) Overall trade negotiating objectives

The overall trade negotiating objectives of the United States are

to obtain -

(1) more open, equitable, and reciprocal market access;

(2) the reduction or elimination of barriers and other

trade-distorting policies and practices; and

(3) a more effective system of international trading

disciplines and procedures.

(b) Principal trade negotiating objectives

(1) Dispute settlement

The principal negotiating objectives of the United States with

respect to dispute settlement are -

(A) to provide for more effective and expeditious dispute

settlement mechanisms and procedures; and

(B) to ensure that such mechanisms within the GATT and GATT

agreements provide for more effective and expeditious

resolution of disputes and enable better enforcement of United

States rights.

(2) Improvement of the GATT and multilateral trade negotiation

agreements

The principal negotiating objectives of the United States

regarding the improvement of GATT and multilateral trade

negotiation agreements are -

(A) to enhance the status of the GATT;

(B) to improve the operation and extend the coverage of the

GATT and such agreements and arrangements to products, sectors,

and conditions of trade not adequately covered; and

(C) to expand country participation in particular agreements

or arrangements, where appropriate.

(3) Transparency

The principal negotiating objective of the United States

regarding transparency is to obtain broader application of the

principle of transparency and clarification of the costs and

benefits of trade policy actions through the observance of open

and equitable procedures in trade matters by Contracting Parties

to the GATT.

(4) Developing countries

The principal negotiating objectives of the United States

regarding developing countries are -

(A) to ensure that developing countries promote economic

development by assuming the fullest possible measure of

responsibility for achieving and maintaining an open

international trading system by providing reciprocal benefits

and assuming equivalent obligations with respect to their

import and export practices; and

(B) to establish procedures for reducing nonreciprocal trade

benefits for the more advanced developing countries.

(5) Current account surpluses

The principal negotiating objective of the United States

regarding current account surpluses is to develop rules to

address large and persistent global current account imbalances of

countries, including imbalances which threaten the stability of

the international trading system, by imposing greater

responsibility on such countries to undertake policy changes

aimed at restoring current account equilibrium, including

expedited implementation of trade agreements where feasible and

appropriate.

(6) Trade and monetary coordination

The principal negotiating objective of the United States

regarding trade and monetary coordination is to develop

mechanisms to assure greater coordination, consistency, and

cooperation between international trade and monetary systems and

institutions.

(7) Agriculture

The principal negotiating objectives of the United States with

respect to agriculture are to achieve, on an expedited basis to

the maximum extent feasible, more open and fair conditions of

trade in agricultural commodities by -

(A) developing, strengthening, and clarifying rules for

agricultural trade, including disciplines on restrictive or

trade-distorting import and export practices;

(B) increasing United States agricultural exports by

eliminating barriers to trade (including transparent and

nontransparent barriers) and reducing or eliminating the

subsidization of agricultural production consistent with the

United States policy of agricultural stabilization in cyclical

and unpredictable markets;

(C) creating a free and more open world agricultural trading

system by resolving questions pertaining to export and other

trade-distorting subsidies, market pricing and market access

and eliminating and reducing substantially other specific

constraints to fair trade and more open market access, such as

tariffs, quotas, and other nontariff practices, including

unjustified phytosanitary and sanitary restrictions; and

(D) seeking agreements by which the major agricultural

exporting nations agree to pursue policies to reduce excessive

production of agricultural commodities during periods of

oversupply, with due regard for the fact that the United States

already undertakes such policies, and without recourse to

arbitrary schemes to divide market shares among major exporting

countries.

(8) Unfair trade practices

The principal negotiating objectives of the United States with

respect to unfair trade practices are -

(A) to improve the provisions of the GATT and nontariff

measure agreements in order to define, deter, discourage the

persistent use of, and otherwise discipline unfair trade

practices having adverse trade effects, including forms of

subsidy and dumping and other practices not adequately covered

such as resource input subsidies, diversionary dumping, dumped

or subsidized inputs, and export targeting practices;

(B) to obtain the application of similar rules to the

treatment of primary and nonprimary products in the Agreement

on Interpretation and Application of Articles VI, XVI, and

XXIII of the GATT (relating to subsidies and countervailing

measures); and

(C) to obtain the enforcement of GATT rules against -

(i) state trading enterprises, and

(ii) the acts, practices, or policies of any foreign

government which, as a practical matter, unreasonably require

that -

(I) substantial direct investment in the foreign country

be made,

(II) intellectual property be licensed to the foreign

country or to any firm of the foreign country, or

(III) other collateral concessions be made,

as a condition for the importation of any product or service

of the United States into the foreign country or as a

condition for carrying on business in the foreign country.

(9) Trade in services

(A) The principal negotiating objectives of the United States

regarding trade in services are -

(i) to reduce or to eliminate barriers to, or other

distortions of, international trade in services, including

barriers that deny national treatment and restrictions on

establishment and operation in such markets; and

(ii) to develop internationally agreed rules, including

dispute settlement procedures, which -

(I) are consistent with the commercial policies of the

United States, and

(II) will reduce or eliminate such barriers or distortions,

and help ensure fair, equitable opportunities for foreign

markets.

(B) In pursuing the negotiating objectives described in

subparagraph (A), United States negotiators shall take into

account legitimate United States domestic objectives including,

but not limited to, the protection of legitimate health or

safety, essential security, environmental, consumer or employment

opportunity interests and the law and regulations related

thereto.

(10) Intellectual property

The principal negotiating objectives of the United States

regarding intellectual property are -

(A) to seek the enactment and effective enforcement by

foreign countries of laws which -

(i) recognize and adequately protect intellectual property,

including copyrights, patents, trademarks, semiconductor chip

layout designs, and trade secrets, and

(ii) provide protection against unfair competition,

(B) to establish in the GATT obligations -

(i) to implement adequate substantive standards based on -

(I) the standards in existing international agreements

that provide adequate protection, and

(II) the standards in national laws if international

agreement standards are inadequate or do not exist,

(ii) to establish effective procedures to enforce, both

internally and at the border, the standards implemented under

clause (i), and

(iii) to implement effective dispute settlement procedures

that improve on existing GATT procedures;

(C) to recognize that the inclusion in the GATT of -

(i) adequate and effective substantive norms and standards

for the protection and enforcement of intellectual property

rights, and

(ii) dispute settlement provisions and enforcement

procedures,

is without prejudice to other complementary initiatives

undertaken in other international organizations; and

(D) to supplement and strengthen standards for protection and

enforcement in existing international intellectual property

conventions administered by other international organizations,

including their expansion to cover new and emerging

technologies and elimination of discrimination or unreasonable

exceptions or preconditions to protection.

(11) Foreign direct investment

(A) The principal negotiating objectives of the United States

regarding foreign direct investment are -

(i) to reduce or to eliminate artificial or trade-distorting

barriers to foreign direct investment, to expand the principle

of national treatment, and to reduce unreasonable barriers to

establishment; and

(ii) to develop internationally agreed rules, including

dispute settlement procedures, which -

(I) will help ensure a free flow of foreign direct

investment, and

(II) will reduce or eliminate the trade distortive effects

of certain trade-related investment measures.

(B) In pursuing the negotiating objectives described in

subparagraph (A), United States negotiators shall take into

account legitimate United States domestic objectives including,

but not limited to, the protection of legitimate health or

safety, essential security, environmental, consumer or employment

opportunity interests and the law and regulations related

thereto.

(12) Safeguards

The principal negotiating objectives of the United States

regarding safeguards are -

(A) to improve and expand rules and procedures covering

safeguard measures;

(B) to ensure that safeguard measures are -

(i) transparent,

(ii) temporary,

(iii) degressive, and

(iv) subject to review and termination when no longer

necessary to remedy injury and to facilitate adjustment; and

(C) to require notification of, and to monitor the use by,

GATT Contracting Parties of import relief actions for their

domestic industries.

(13) Specific barriers

The principal negotiating objective of the United States

regarding specific barriers is to obtain competitive

opportunities for United States exports in foreign markets

substantially equivalent to the competitive opportunities

afforded foreign exports to United States markets, including the

reduction or elimination of specific tariff and nontariff trade

barriers, particularly -

(A) measures identified in the annual report prepared under

section 2241 of this title; and

(B) foreign tariffs and nontariff barriers on competitive

United States exports when like or similar products enter the

United States at low rates of duty or are duty-free, and other

tariff disparities that impede access to particular export

markets.

(14) Worker rights

The principal negotiating objectives of the United States

regarding worker rights are -

(A) to promote respect for worker rights;

(B) to secure a review of the relationship of worker rights

to GATT articles, objectives, and related instruments with a

view to ensuring that the benefits of the trading system are

available to all workers; and

(C) to adopt, as a principle of the GATT, that the denial of

worker rights should not be a means for a country or its

industries to gain competitive advantage in international

trade.

(15) Access to high technology

(A) The principal negotiating objective of the United States

regarding access to high technology is to obtain the elimination

or reduction of foreign barriers to, and acts, policies, or

practices by foreign governments which limit, equitable access by

United States persons to foreign-developed technology, including

barriers, acts, policies, or practices which have the effect of -

(i) restricting the participation of United States persons in

government-supported research and development projects;

(ii) denying equitable access by United States persons to

government-held patents;

(iii) requiring the approval or agreement of government

entities, or imposing other forms of government interventions,

as a condition for the granting of licenses to United States

persons by foreign persons (except for approval or agreement

which may be necessary for national security purposes to

control the export of critical military technology); and

(iv) otherwise denying equitable access by United States

persons to foreign-developed technology or contributing to the

inequitable flow of technology between the United States and

its trading partners.

(B) In pursuing the negotiating objective described in

subparagraph (A), the United States negotiators shall take into

account United States Government policies in licensing or

otherwise making available to foreign persons technology and

other information developed by United States laboratories.

(16) Border taxes

The principal negotiating objective of the United States

regarding border taxes is to obtain a revision of the GATT with

respect to the treatment of border adjustments for internal taxes

to redress the disadvantage to countries relying primarily for

revenue on direct taxes rather than indirect taxes.

-SOURCE-

(Pub. L. 100-418, title I, Sec. 1101, Aug. 23, 1988, 102 Stat.

1121.)

-MISC1-

SHORT TITLE

Section 1(a) of Pub. L. 100-418 provided that: ''This Act (see

Tables for classification) may be cited as the 'Omnibus Trade and

Competitiveness Act of 1988'.''

FINDINGS AND PURPOSES OF TRADE, CUSTOMS, AND TARIFF LAWS

Section 1001 of title I of Pub. L. 100-418 provided that:

''(a) Findings. - The Congress finds that -

''(1) in the last 10 years there has arisen a new global

economy in which trade, technological development, investment,

and services form an integrated system; and in this system these

activities affect each other and the health of the United States

economy;

''(2) the United States is confronted with a fundamental

disequilibrium in its trade and current account balances and a

rapid increase in its net external debt;

''(3) such disequilibrium and increase are a result of numerous

factors, including -

''(A) disparities between the macroeconomic policies of the

major trading nations,

''(B) the large United States budget deficit,

''(C) instabilities and structural defects in the world

monetary system,

''(D) the growth of debt throughout the developing world,

''(E) structural defects in the world trading system and

inadequate enforcement of trade agreement obligations,

''(F) governmental distortions and barriers,

''(G) serious shortcomings in United States trade policy, and

''(H) inadequate growth in the productivity and

competitiveness of United States firms and industries relative

to their overseas competition;

''(4) it is essential, and should be the highest priority of

the United States Government, to pursue a broad array of domestic

and international policies -

''(A) to prevent future declines in the United States economy

and standards of living,

''(B) to ensure future stability in external trade of the

United States, and

''(C) to guarantee the continued vitality of the

technological, industrial, and agricultural base of the United

States;

''(5) the President should be authorized and encouraged to

negotiate trade agreements and related investment, financial,

intellectual property, and services agreements that meet the

standards set forth in this title (see Tables for

classification); and

''(6) while the United States is not in a position to dictate

economic policy to the rest of the world, the United States is in

a position to lead the world and it is in the national interest

for the United States to do so.

''(b) Purposes. - The purposes of this title (see Tables for

classification) are to -

''(1) authorize the negotiation of reciprocal trade agreements;

''(2) strengthen United States trade laws;

''(3) improve the development and management of United States

trade strategy; and

''(4) through these actions, improve standards of living in the

world.''

-EXEC-

EX. ORD. NO. 12661. IMPLEMENTING OMNIBUS TRADE AND COMPETITIVENESS

ACT OF 1988 AND RELATED INTERNATIONAL TRADE MATTERS

Ex. Ord. No. 12661, Dec. 27, 1988, 54 F.R. 779, as amended by Ex.

Ord. No. 12697, Dec. 22, 1989, 54 F.R. 53037; Ex. Ord. No. 12716,

May 24, 1990, 55 F.R. 21831; Ex. Ord. No. 12774, Sept. 27, 1991, 56

F.R. 49835, provided:

By virtue of the authority vested in me as President by the

Constitution and laws of the United States of America, including

the Omnibus Trade and Competitiveness Act of 1988 (P.L. 100-418,

102 Stat. 1107) (''Omnibus Trade Act'') (see Short Title note

above), the Tariff Act of 1930 (Chapter 497, 46 Stat. 590, June 17,

1930), as amended (''Tariff Act'') (19 U.S.C. 1202 et seq.), the

National Defense Authorization Act, Fiscal Year 1989 (P.L. 100-456,

102 Stat. 1918) (''Defense Authorization Act'') (see Tables for

classification), section 301 of Title 3 of the United States Code,

and, in general, to ensure that the international trade policy of

the United States shall be conducted and administered in a way that

achieves the economic, foreign policy, and national security

objectives of the United States and in a coordinated manner under

the direction of the President, it is hereby ordered as follows:

PART I - TRADE, CUSTOMS, AND TARIFF LAWS

Section 1-101. Accession of State Trading Regimes to the General

Agreement on Tariffs and Trade. The functions vested in the

President by sections 1106(a), (b) and (d) of the Omnibus Trade Act

(19 U.S.C. 2905(a), (b), (d)), regarding the accession of state

trading regimes to the General Agreement on Tariffs and Trade, are

delegated to the United States Trade Representative.

Sec. 1-201. Wine Barriers. The functions vested in the President

by section 1125 of the Omnibus Trade Act (19 U.S.C. 2804 note),

regarding the updated report on barriers to wine trade, are

delegated to the United States Trade Representative.

Sec. 1-301. Steel Imports. The functions vested in the President

by section 805(d)(1) and (2) of the Trade and Tariff Act of 1984

(19 U.S.C. 2253, note), as amended by section 1322 of the Omnibus

Trade Act, are delegated to the United States Trade Representative.

Sec. 1-401. Telecommunications Trade. The functions vested in the

President by sections 1375 and 1376(e) of the Omnibus Trade Act (19

U.S.C. 3104, 3105(e)), regarding certain telecommunications

negotiations as may be ordered by the President and reports thereon

to Congressional Committees, are delegated to the United States

Trade Representative.

Sec. 1-501. Uniform Fee on Imports. The functions vested in the

President by section 1428 of the Omnibus Trade Act (19 U.S.C. 2397,

19 U.S.C. 2397 note), regarding negotiations to obtain authority

under the General Agreement on Tariffs and Trade to impose a small

uniform fee on imports, are delegated to the United States Trade

Representative.

PART II - EXPORT ENHANCEMENT

Sec. 2-101. Countertrade and Barter.

(1) Establishment. There is established an Interagency Group on

Countertrade, which shall be composed of the Secretaries of

Commerce, State, Defense, Treasury, Labor, Agriculture, and Energy,

the Attorney General, the Administrator of the Agency for

International Development, the Director of the Federal Emergency

Management Agency, the United States Trade Representative and the

Director of the Office of Management and Budget, or their

respective representatives. The Secretary of Commerce or his

representative shall be the Chairman of the interagency group.

(2) Functions. The interagency group shall carry out the

functions and duties set out in section 2205(a) of the Omnibus

Trade Act (15 U.S.C. 4712(a)).

Sec. 2-201. Sanctions Against Toshiba and Kongsberg.

(1) Procurement Sanctions. Pursuant to section 2443 of the

Omnibus Trade Act (50 U.S.C. App. 2410a note) and subject to the

exceptions referred to in paragraph (3), departments, agencies and

instrumentalities of the United States Government shall not for the

three-year period beginning on the date this Order takes effect,

contract with or procure products and services from Toshiba Machine

Company, Kongsberg Trading Company, Toshiba Corporation or

Kongsberg Vaapenfabrikk. The head of each department, agency or

instrumentality is hereby directed and authorized to implement this

procurement sanction in accordance with paragraph (3).

(2) Import Sanctions. Pursuant to section 2443 of the Omnibus

Trade Act and subject to the exceptions referred to in paragraph

(3), importation into the United States, its territories and

possessions, of products produced by Toshiba Machine Company or

Kongsberg Trading Company is prohibited for three years from the

effective date of this Order. The Secretary of the Treasury is

hereby directed and authorized to implement this import sanction in

accordance with paragraph (3).

(3) Exceptions. Authority to make determinations as to exceptions

to sanctions and to implement exceptions by regulation or otherwise

is delegated (i) to the Secretary of Defense with respect to

determinations under section 2443(c)(1) regarding the procurement

of defense articles or defense services, (ii) to the Secretary of

the Treasury with respect to exceptions under section 2443(c)(2)

regarding importation prohibited by section 2443(a)(2), and (iii)

to the head of each Federal department, agency or instrumentality

with respect to exceptions under section 2443(c)(2) affecting their

respective contracting and procurement. All regulations

implementing these exceptions provisions shall be consistent with

any guidelines provided by the Office of Federal Procurement

Policy, Office of Management and Budget.

(4) Annual Report. The annual report required by section 2445 (50

U.S.C. App. 2413), concerning estimated increases in defense

expenditures arising from illegal technology transfers, shall be

prepared by the Secretary of Defense, in consultation with the

Secretaries of State and Commerce, for submission to the Congress

by the President.

PART III - FOREIGN CORRUPT PRACTICES AMENDMENTS; INVESTMENT; AND

TECHNOLOGY

Sec. 3-101. Foreign Corrupt Practices Act Amendments.

The functions conferred upon the President by section 5003(d)(1)

(''International Agreement'') of the Omnibus Trade Act (15 U.S.C.

78dd-1 note) are delegated to the Secretary of State, who in

performing such functions shall act in consultation with the

Attorney General, the United States Trade Representative, the

Chairman of the Securities and Exchange Commission, the Secretary

of Commerce, the Secretary of the Treasury and the Director of the

Office of Management and Budget.

Sec. 3-201. Authority to Review Certain Mergers, Acquisitions,

and Takeovers.

(1) Executive Order No. 11858, as amended (15 U.S.C. 78b note),

regarding the Committee on Foreign Investment in the United States

(the ''Committee'') is further amended as follows:

(A) By adding new Sections 7 and 8 as follows:

''Sec. 7. (1) Investigations. (a) The Committee is designated to

receive notices and other information, to determine whether

investigations should be undertaken, and to make investigations,

pursuant to Section 721(a) of the Defense Production Act. (b) If

the Committee determines that an investigation should be

undertaken, such investigation shall commence no later than 30 days

after receipt by the Committee of written notification of the

proposed or pending merger, acquisition, or takeover. Such

investigation shall be completed no later than 45 days after such

determination. (c) If one or more Committee members differ with a

Committee decision not to undertake an investigation, the Chairman

shall submit a report of the Committee to the President setting

forth the differing views and presenting the issues for his

decision within 25 days after receipt by the Committee of written

notification of the proposed or pending merger, acquisition, or

takeover. (d) A unanimous decision by the Committee not to

undertake an investigation with regard to a notice shall conclude

action under this section on such notice. The Chairman shall

advise the President of said decision.

''(2) Report to the President. Upon completion or termination of

any investigation, the Committee shall report to the President and

present a recommendation. Any such report shall include

information relevant to subparagraphs (1) and (2) of Section 721(d)

of the Defense Production Act. If the Committee is unable to reach

a unanimous recommendation, the Chairman shall submit a report of

the Committee to the President setting forth the differing views

and presenting the issues for his decision.

''Sec. 8. The Chairman of the Committee, in consultation with

other members of the Committee, is hereby delegated the authority

to issue regulations to implement Section 721 of the Defense

Production Act.''

(B) By deleting, from the second sentence in Section 1(a), the

text beginning with ''a representative'' and ending with ''by each

of''.

(C) By deleting, from the third sentence in Section 1(a), the

phrase ''representative of the''.

(D) By deleting ''and'' at the end of subparagraph (3) of Section

1(b), by substituting ''; and'' for the period at the end of

subparagraph (4) of that Section, and by adding a new subparagraph

(5) as follows: ''(5) coordinate the views of the Executive Branch

and discharge the responsibilities with respect to Section 721(a)

and (e) of the Defense Production Act of 1950, as amended (50

U.S.C. App. 2061 et seq.) (''Defense Production Act'').''

(E) By adding the following sentence at the end of Section 5:

''Information or documentary material filed pursuant to Section

1(b)(5) or Section 7 of this Order shall be treated in accordance

with paragraph (b) of Section 721 of the Defense Production Act.''

(F) By inserting in Section 1(a) the following additional

Committee members: ''(7) The Attorney General.'' and ''(8) The

Director of the Office of Management and Budget.''

(G) The Interim Presidential Directive to the Secretary of the

Treasury of October 26, 1988, is hereby revoked, and any notices

received or investigations pending as of the date this Order takes

effect shall be referred to the Chairman of the Committee for

action consistent with this Order.

Sec. 3-301. Reporting Requirement on Semiconductors, Fiber Optics

and Superconducting Materials.

(1) The Secretary of Commerce, in consultation with the Director

of the Office of Science and Technology Policy, the Secretary of

Defense, and the Director of the Office of Management and Budget,

shall prepare for the President to submit to the Congress with the

Fiscal Year 1990 budget a report describing policies and budget

proposals regarding:

(A) Federal research in semiconductors and semiconductor

manufacturing technology, including a discussion of the respective

roles of the various Federal departments and agencies in such

research;

(B) Federal research and acquisition policies for fiber optics

and optical-electronic technologies generally;

(C) Superconducting materials, including descriptions of research

priorities, the scientific and technical barriers to

commercialization which such research is designed to overcome,

steps taken to ensure coordination among Federal agencies

conducting research on superconducting materials, and steps taken

to consult with private United States industry to ensure that no

unnecessary duplication of research exists and that all important

scientific and technical barriers to the commercialization of

superconducting materials will be addressed; and

(D) Federal research to assist United States industry to develop

and apply advanced manufacturing technologies for the production of

durable and nondurable goods.

(2) The Department of Defense, the Department of Energy, the

National Science Foundation, the National Aeronautics and Space

Administration, the Department of State, the United States Trade

Representative, and other Federal agencies deemed appropriate by

the Secretary of Commerce shall provide the information described

in section 5141 of the Omnibus Trade Act (Pub. L. 100-418, title V,

Aug. 23, 1988, 102 Stat. 1444) concerning their Fiscal Year 1989

program and proposed Fiscal Year 1990 program to the Secretary of

Commerce in sufficient time to permit preparation of the report.

(3) The Office of Management and Budget shall provide to the

Secretary of Commerce, in sufficient time to permit preparation of

the report, a summary of the Federal base program and Fiscal Year

1990 budget initiatives in each of the technical areas of the

report.

(4) The Office of Science and Technology Policy (''OSTP'') shall

provide the Secretary of Commerce with appropriate policy guidance

in the technical areas of the report, including a summary of the

criteria used to select research projects within an agency and

among agencies, and the results of any studies conducted by OSTP,

or by others if OSTP deems them to be relevant, which analyze the

influence of the Federal research programs in the technical areas

of the report.

Sec. 3-401. (Revoked by Ex. Ord. No. 12774, Sec. 3(a), Sept. 27,

1991, 56 F.R. 49835)

PART IV - EDUCATION AND TRAINING FOR AMERICAN COMPETITIVENESS

Sec. 4-101. Buy American Act of 1988.

(1) The functions vested in the President by section 7002 of the

Omnibus Trade Act, regarding section 4(d) of Title III of the Buy

American Act of 1933, as amended (41 U.S.C. 10a-10d) (former 41

U.S.C. 10b-1), are delegated to the Secretary of Defense.

(2) The functions vested in the President by section 7003 of the

Omnibus Trade Act, regarding the annual report required by

subsection (d) of section 305 of the Trade Agreements Act of 1979,

as amended (19 U.S.C. 2515), are delegated to the United States

Trade Representative.

PART V - MISCELLANEOUS

Sec. 5-101. Executive Oversight.

Any actions or determinations taken or made by an officer or

agency under the Omnibus Trade Act or this Order shall be subject

to the Executive oversight and direction of the President, and such

actions or determinations shall be undertaken after appropriate

inter-agency consultation as established by the President.

Sec. 5-102. Regulatory Review. Notwithstanding the provisions of

section 1(a)(2) of Executive Order No. 12291 of February 17, 1981

(formerly 5 U.S.C. 601 note), the Director of the Office of

Management and Budget shall, with regard to regulations, rules, or

agency statements of general applicability and future effect

designed to implement, interpret, or prescribe law or policy or

describing the procedure or practice requirements of an agency

relative to the administration of the Export Administration Act (50

U.S.C. App. 2401 et seq.), determine whether such regulations,

rules, or agency statements are exempted from review under that

Order, pursuant to the provisions of section 8(b) thereof (50

U.S.C. App. 2407(b)).

Sec. 5-201. Offsets. The negotiating functions under section

825(c) of the Defense Authorization Act (10 U.S.C. 2532 note), as

may be ordered by the President, are hereby jointly delegated to

the Secretary of Defense and the United States Trade

Representative. These functions shall be coordinated with the

Secretary of State and conducted in consultation with the

Secretaries of Commerce, Labor and the Treasury.

Sec. 5-202. Reporting Functions. The reporting functions of the

President under section 825(d) of the Defense Authorization Act (10

U.S.C. 2532 note) are delegated to the Director of the Office of

Management and Budget. The Director may further delegate to the

heads of Executive departments and agencies responsibility for

preparing particular sections of such reports. The heads of

Executive departments and agencies shall, to the extent permitted

by law, provide the Director with such information as may be

necessary for the effective performance of these functions.

Sec. 5-301. International Trade Commission Report. The functions

vested in the President by section 332(g) of the Tariff Act (19

U.S.C. 1332(g)), regarding reports by the United States

International Trade Commission to the President, are delegated to

the United States Trade Representative.

Sec. 5-401. Strengthening International Institutions. To the

extent possible, actions undertaken under this Order shall be

conducted in a manner that strengthens international institutions

that further United States objectives, such as opening foreign

markets and preventing the export of strategic goods and

technologies to proscribed destinations.

Sec. 5-501. Effective Date. This Order shall take effect at 12:01

a.m. on Wednesday, December 28, 1988.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2902 of this title; title

7 section 5202.

-CITE-

19 USC Sec. 2902 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 17 - NEGOTIATION AND IMPLEMENTATION OF TRADE AGREEMENTS

-HEAD-

Sec. 2902. Trade agreement negotiating authority

-STATUTE-

(a) Agreements regarding tariff barriers

(1) Whenever the President determines that one or more existing

duties or other import restrictions of any foreign country or the

United States are unduly burdening and restricting the foreign

trade of the United States and that the purposes, policies, and

objectives of this title will be promoted thereby, the President -

(A) before June 1, 1993, may enter into trade agreements with

foreign countries; and

(B) may, subject to paragraphs (2) through (5), proclaim -

(i) such modification or continuance of any existing duty,

(ii) such continuance of existing duty-free or excise

treatment, or

(iii) such additional duties;

as he determines to be required or appropriate to carry out any

such trade agreement.

(2) No proclamation may be made under subsection (a) of this

section that -

(A) reduces any rate of duty (other than a rate of duty that

does not exceed 5 percent ad valorem on August 23, 1988) to a

rate which is less than 50 percent of the rate of such duty that

applies on August 23, 1988; or

(B) increases any rate of duty above the rate that applies on

August 23, 1988.

(3)(A) Except as provided in subparagraph (B), the aggregate

reduction in the rate of duty on any article which is in effect on

any day pursuant to a trade agreement entered into under paragraph

(1) shall not exceed the aggregate reduction which would have been

in effect on such day if a reduction of 3 percent ad valorem or a

reduction of one-tenth of the total reduction, whichever is

greater, had taken effect on the effective date of the first

reduction proclaimed in paragraph (1) to carry out such agreement

with respect to such article.

(B) No staging under subparagraph (A) is required with respect to

a rate reduction that is proclaimed under paragraph (1) for an

article of a kind that is not produced in the United States. The

United States International Trade Commission shall advise the

President of the identity of articles that may be exempted from

staging under this subparagraph.

(4) If the President determines that such action will simplify

the computation of reductions under paragraph (3), the President

may round an annual reduction by the lesser of -

(A) the difference between the reduction without regard to this

paragraph and the next lower whole number; or

(B) one-half of 1 percent ad valorem.

(5) No reduction in a rate of duty under a trade agreement

entered into under subsection (a) of this section on any article

may take effect more than 10 years after the effective date of the

first reduction under paragraph (1) that is proclaimed to carry out

the trade agreement with respect to such article.

(6) A rate of duty reduction or increase that may not be

proclaimed by reason of paragraph (2) may take effect only if a

provision authorizing such reduction or increase is included within

an implementing bill provided for under section 2903 of this title

and that bill is enacted into law.

(b) Agreements regarding nontariff barriers

(1) Whenever the President determines that any barrier to, or

other distortion of, international trade -

(A) unduly burdens or restricts the foreign trade of the United

States or adversely affects the United States economy; or

(B) the imposition of any such barrier or distortion is likely

to result in such a burden, restriction, or effect;

and that the purposes, policies, and objectives of this title will

be promoted thereby, the President may, before June 1, 1993, enter

into a trade agreement with foreign countries providing for -

(i) the reduction or elimination of such barrier or other

distortion; or

(ii) the prohibition of, or limitations on the imposition of,

such barrier or other distortion.

(2) A trade agreement may be entered into under this subsection

only if such agreement makes progress in meeting the applicable

objectives described in section 2901 of this title.

(c) Bilateral agreements regarding tariff and nontariff barriers

(1) Before June 1, 1993, the President may enter into bilateral

trade agreements with foreign countries that provide for the

elimination or reduction of any duty imposed by the United States.

A trade agreement entered into under this paragraph may also

provide for the reduction or elimination of barriers to, or other

distortions of, the international trade of the foreign country or

the United States.

(2) Notwithstanding any other provision of law, no trade benefit

shall be extended to any country by reason of the extension of any

trade benefit to another country under a trade agreement entered

into under paragraph (1) with such other country.

(3) A trade agreement may be entered into under paragraph (1)

with any foreign country only if -

(A) the agreement makes progress in meeting the applicable

objectives described in section 2901 of this title;

(B) such foreign country requests the negotiation of such an

agreement; and

(C) the President, at least 60 days before the date notice is

provided under section 2903(a)(1)(A) of this title -

(i) provides written notice of such negotiations to the

Committee on Finance of the Senate and the Committee on Ways

and Means of the House of Representatives, and

(ii) consults with such committees regarding the negotiation

of such agreement.

(4) The 60-day period of time described in paragraph (3)(C) shall

be computed in accordance with section 2903(e) of this title.

(5) In any case in which there is an inconsistency between any

provision of this Act and any bilateral free trade area agreement

that entered into force and effect with respect to the United

States before January 1, 1987, the provision shall not apply with

respect to the foreign country that is party to that agreement.

(d) Consultation with Congress before agreements entered into

(1) Before the President enters into any trade agreement under

subsection (b) or (c) of this section, the President shall consult

with -

(A) the Committee on Ways and Means of the House of

Representatives and the Committee on Finance of the Senate; and

(B) each other committee of the House and the Senate, and each

joint committee of the Congress, which has jurisdiction over

legislation involving subject matters which would be affected by

the trade agreement.

(2) The consultation under paragraph (1) shall include -

(A) the nature of the agreement;

(B) how and to what extent the agreement will achieve the

applicable purposes, policies, and objectives of this title; and

(C) all matters relating to the implementation of the agreement

under section 2903 of this title.

(3) If it is proposed to implement two or more trade agreements

in a single implementing bill under section 2903 of this title, the

consultation under paragraph (1) shall include the desirability and

feasibility of such proposed implementation.

(e) Special provisions regarding Uruguay Round trade negotiations

(1) In general

Notwithstanding the time limitations in subsections (a) and (b)

of this section, if the Uruguay Round of multilateral trade

negotiations under the auspices of the General Agreement on

Tariffs and Trade has not resulted in trade agreements by May 31,

1993, the President may, during the period after May 31, 1993,

and before April 16, 1994, enter into, under subsections (a) and

(b) of this section, trade agreements resulting from such

negotiations.

(2) Application of tariff proclamation authority

No proclamation under subsection (a) of this section to carry

out the provisions regarding tariff barriers of a trade agreement

that is entered into pursuant to paragraph (1) may take effect

before the effective date of a bill that implements the

provisions regarding nontariff barriers of a trade agreement that

is entered into under such paragraph.

(3) Application of implementing and ''fast track'' procedures

Section 2903 of this title applies to any trade agreement

negotiated under subsection (b) of this section pursuant to

paragraph (1), except that -

(A) in applying subsection (a)(1)(A) of section 2903 of this

title to any such agreement, the phrase ''at least 120 calendar

days before the day on which he enters into the trade agreement

(but not later than December 15, 1993),'' shall be substituted

for the phrase ''at least 90 calendar days before the day on

which he enters into the trade agreement,''; and

(B) no provision of subsection (b) of section 2903 of this

title other than paragraph (1)(A) applies to any such agreement

and in applying such paragraph, ''April 16, 1994;'' shall be

substituted for ''June 1, 1991;''.

(4) Advisory committee reports

The report required under section 2155(e)(1) of this title

regarding any trade agreement provided for under paragraph (1)

shall be provided to the President, the Congress, and the United

States Trade Representative not later than 30 days after the date

on which the President notifies the Congress under section

2903(a)(1)(A) of this title of his intention to enter into the

agreement (but before January 15, 1994).

-SOURCE-

(Pub. L. 100-418, title I, Sec. 1102, Aug. 23, 1988, 102 Stat.

1126; Pub. L. 101-382, title I, Sec. 139(b), Aug. 20, 1990, 104

Stat. 653; Pub. L. 103-49, Sec. 1, July 2, 1993, 107 Stat. 239.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in subsecs. (a)(1), (b)(1), and

(d)(2)(B), is title I (Sec. 1001 et seq.) of Pub. L. 100-418, see

note below. For complete classification of this title to the Code,

see Tables.

This Act, referred to in subsec. (c)(5), is Pub. L. 100-418, Aug.

23, 1988, 102 Stat. 1107, known as the Omnibus Trade and

Competitiveness Act of 1988. For complete classification of this

Act to the Code, see Tables.

-MISC2-

AMENDMENTS

1993 - Subsec. (e). Pub. L. 103-49 added subsec. (e).

1990 - Subsec. (c)(4). Pub. L. 101-382 substituted ''paragraph

(3)(C)'' for ''paragraph (3)(B)'' and ''2903(e)'' for ''2903(f)''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2133, 2903, 2904, 3311,

3521 of this title; title 18 section 207.

-CITE-

19 USC Sec. 2903 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 17 - NEGOTIATION AND IMPLEMENTATION OF TRADE AGREEMENTS

-HEAD-

Sec. 2903. Implementation of trade agreements

-STATUTE-

(a) In general

(1) Any agreement entered into under section 2902(b) or (c) of

this title shall enter into force with respect to the United States

if (and only if) -

(A) the President, at least 90 calendar days before the day on

which he enters into the trade agreement, notifies the House of

Representatives and the Senate of his intention to enter into the

agreement, and promptly thereafter publishes notice of such

intention in the Federal Register;

(B) after entering into the agreement, the President submits a

document to the House of Representatives and to the Senate

containing a copy of the final legal text of the agreement,

together with -

(i) a draft of an implementing bill,

(ii) a statement of any administrative action proposed to

implement the trade agreement, and

(iii) the supporting information described in paragraph (2);

and

(C) the implementing bill is enacted into law.

(2) The supporting information required under paragraph

(1)(B)(iii) consists of -

(A) an explanation as to how the implementing bill and proposed

administrative action will change or affect existing law; and

(B) a statement -

(i) asserting that the agreement makes progress in achieving

the applicable purposes, policies, and objectives of this

title,

(ii) setting forth the reasons of the President regarding -

(I) how and to what extent the agreement makes progress in

achieving the applicable purposes, policies, and objectives

referred to in clause (i), and why and to what extent the

agreement does not achieve other applicable purposes,

policies, and objectives,

(II) how the agreement serves the interests of United

States commerce, and

(III) why the implementing bill and proposed administrative

action is required or appropriate to carry out the agreement;

(iii) describing the efforts made by the President to obtain

international exchange rate equilibrium and any effect the

agreement may have regarding increased international monetary

stability; and

(iv) describing the extent, if any, to which -

(I) each foreign country that is a party to the agreement

maintains non-commercial state trading enterprises that may

adversely affect, nullify, or impair the benefits to the

United States under the agreement, and

(II) the agreement applies to or affects purchases and

sales by such enterprises.

(3) To ensure that a foreign country which receives benefits

under a trade agreement entered into under section 2902(b) or (c)

of this title is subject to the obligations imposed by such

agreement, the President shall recommend to Congress in the

implementing bill and statement of administrative action submitted

with respect to such agreement that the benefits and obligations of

such agreement apply solely to the parties to such agreement, if

such application is consistent with the terms of such agreement.

The President may also recommend with respect to any such agreement

that the benefits and obligations of such agreement not apply

uniformly to all parties to such agreement, if such application is

consistent with the terms of such agreement.

(b) Application of Congressional ''fast track'' procedures to

implementing bills

(1) Except as provided in subsection (c) of this section -

(A) the provisions of section 2191 of this title (hereinafter

in this section referred to as ''fast track procedures'') apply

to implementing bills submitted with respect to trade agreements

entered into under section 2902(b) or (c) of this title before

June 1, 1991; and

(B) such fast track procedures shall be extended to

implementing bills submitted with respect to trade agreements

entered into under section 2902(b) or (c) of this title after May

31, 1991, and before June 1, 1993, if (and only if) -

(i) the President requests such extension under paragraph

(2); and

(ii) neither House of the Congress adopts an extension

disapproval resolution under paragraph (5) before June 1, 1991.

(2) If the President is of the opinion that the fast track

procedures should be extended to implementing bills described in

paragraph (1)(B), the President must submit to the Congress, no

later than March 1, 1991, a written report that contains a request

for such extension, together with -

(A) a description of all trade agreements that have been

negotiated under section 2902(b) or (c) of this title and the

anticipated schedule for submitting such agreements to the

Congress for approval;

(B) a description of the progress that has been made in

multilateral and bilateral negotiations to achieve the purposes,

policies, and objectives of this title, and a statement that such

progress justifies the continuation of negotiations; and

(C) a statement of the reasons why the extension is needed to

complete the negotiations.

(3) The President shall promptly inform the Advisory Committee

for Trade Policy and Negotiations established under section 2155 of

this title of his decision to submit a report to Congress under

paragraph (2). The Advisory Committee shall submit to the Congress

as soon as practicable, but no later than March 1, 1991, a written

report that contains -

(A) its views regarding the progress that has been made in

multilateral and bilateral negotiations to achieve the purposes,

policies, and objectives of this title; and

(B) a statement of its views, and the reasons therefor,

regarding whether the extension requested under paragraph (2)

should be approved or disapproved.

(4) The reports submitted to the Congress under paragraphs (2)

and (3), or any portion of the reports, may be classified to the

extent the President determines appropriate.

(5)(A) For purposes of this subsection, the term ''extension

disapproval resolution'' means a resolution of either House of the

Congress, the sole matter after the resolving clause of which is as

follows: ''That the disapproves the request of the President for

the extension, under section 1103(b)(1)(B)(i) of the Omnibus Trade

and Competitiveness Act of 1988, of the provisions of section 151

of the Trade Act of 1974 to any implementing bill submitted with

respect to any trade agreement entered into under section 1102(b)

or (c) of such Act after May 31, 1991, because sufficient tangible

progress has not been made in trade negotiations.'', with the blank

space being filled with the name of the resolving House of the

Congress.

(B) Extension disapproval resolutions -

(i) may be introduced in either House of the Congress by any

member of such House; and

(ii) shall be jointly referred, in the House of

Representatives, to the Committee on Ways and Means and the

Committee on Rules.

(C) The provisions of section 2192(d) and (e) of this title

(relating to the floor consideration of certain resolutions in the

House and Senate) apply to extension disapproval resolutions.

(D) It is not in order for -

(i) the Senate to consider any extension disapproval resolution

not reported by the Committee on Finance;

(ii) the House of Representatives to consider any extension

disapproval resolution not reported by the Committee on Ways and

Means and the Committee on Rules; or

(iii) either House of the Congress to consider an extension

disapproval resolution that is reported to such House after May

15, 1991.

(c) Limitations on use of ''fast track'' procedures

(1)(A) The fast track procedures shall not apply to any

implementing bill submitted with respect to a trade agreement

entered into under section 2902(b) or (c) of this title if both

Houses of the Congress separately agree to procedural disapproval

resolutions within any 60-day period.

(B) Procedural disapproval resolutions -

(i) in the House of Representatives -

(I) shall be introduced by the chairman or ranking minority

member of the Committee on Ways and Means or the chairman or

ranking minority member of the Committee on Rules,

(II) shall be jointly referred to the Committee on Ways and

Means and the Committee on Rules, and

(III) may not be amended by either Committee; and

(ii) in the Senate shall be original resolutions of the

Committee on Finance.

(C) The provisions of section 2192(d) and (e) of this title

(relating to the floor consideration of certain resolutions in the

House and Senate) apply to procedural disapproval resolutions.

(D) It is not in order for the House of Representatives to

consider any procedural disapproval resolution not reported by the

Committee on Ways and Means and the Committee on Rules.

(E) For purposes of this subsection, the term ''procedural

disapproval resolution'' means a resolution of either House of the

Congress, the sole matter after the resolving clause of which is as

follows: ''That the President has failed or refused to consult with

Congress on trade negotiations and trade agreements in accordance

with the provisions of the Omnibus Trade and Competitiveness Act of

1988, and, therefore, the provisions of section 151 of the Trade

Act of 1974 shall not apply to any implementing bill submitted with

respect to any trade agreement entered into under section 1102(b)

or (c) of such Act of 1988, if, during the 60-day period beginning

on the date on which this resolution is agreed to by the , the

agrees to a procedural disapproval resolution (within the meaning

of section 1103(c)(1)(E) of such Act of 1988).'', with the first

blank space being filled with the name of the resolving House of

the Congress and the second blank space being filled with the name

of the other House of the Congress.

(2) The fast track procedures shall not apply to any implementing

bill that contains a provision approving of any trade agreement

which is entered into under section 2902(c) of this title with any

foreign country if either -

(A) the requirements of section 2902(c)(3) of this title are

not met with respect to the negotiation of such agreement; or

(B) the Committee on Finance of the Senate or the Committee on

Ways and Means of the House of Representatives disapproves of the

negotiation of such agreement before the close of the 60-day

period which begins on the date notice is provided under section

2902(c)(3)(C)(i) of this title with respect to the negotiation of

such agreement.

(d) Rules of House of Representatives and Senate

Subsections (b) and (c) of this section are enacted by the

Congress -

(1) as an exercise of the rulemaking power of the House of

Representatives and the Senate, respectively, and as such is

deemed a part of the rules of each House, respectively, and such

procedures supersede other rules only to the extent that they are

inconsistent with such other rules; and

(2) with the full recognition of the constitutional right of

either House to change the rules (so far as relating to the

procedures of that House) at any time, in the same manner, and to

the same extent as any other rule of that House.

(e) Computation of certain periods of time

Each period of time described in subsection (c)(1)(A) and (E) and

(2) of this section shall be computed without regard to -

(1) the days on which either House of Congress is not in

session because of an adjournment of more than 3 days to a day

certain or an adjournment of the Congress sine die; and

(2) any Saturday and Sunday, not excluded under paragraph (1),

when either House of the Congress is not in session.

-SOURCE-

(Pub. L. 100-418, title I, Sec. 1103, Aug. 23, 1988, 102 Stat.

1128.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in subsecs. (a)(2)(B)(i) and (b)(2)(B),

(3)(A), is title I (Sec. 1001 et seq.) of Pub. L. 100-418, see note

below. For complete classification of this title to the Code, see

Tables.

The Omnibus Trade and Competitiveness Act of 1988, referred to in

subsecs. (b)(5)(A) and (c)(1)(E), is Pub. L. 100-418, Aug. 23,

1988, 102 Stat. 1107. Sections 1102(b) and (c) and 1103(b)(1)(B)(i)

and (c)(1)(E) of such Act are classified to sections 2902(b) and

(c) and 2903(b)(1)(B)(i) and (c)(1)(E) of this title,

respectively. For complete classification of this Act to the Code,

see Tables.

Section 151 of the Trade Act of 1974, referred to in subsecs.

(b)(5)(A) and (c)(1)(E), is classified to section 2191 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2902, 3511 of this title.

-CITE-

19 USC Sec. 2904 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 17 - NEGOTIATION AND IMPLEMENTATION OF TRADE AGREEMENTS

-HEAD-

Sec. 2904. Termination and reservation authority; reciprocal

nondiscriminatory treatment

-STATUTE-

(a) In general

For purposes of applying sections 2135, 2136(a), and 2137 of this

title -

(1) any trade agreement entered into under section 2902 of this

title shall be treated as an agreement entered into under section

2111 or 2112, as appropriate, of this title; and

(2) any proclamation or Executive order issued pursuant to a

trade agreement entered into under section 2902 of this title

shall be treated as a proclamation or Executive order issued

pursuant to a trade agreement entered into under section 2112 of

this title.

(b) Reciprocal nondiscriminatory treatment

(1) The President shall determine, before June 1, 1993, whether

any major industrial country has failed to make concessions under

trade agreements entered into under section 2902(a) and (b) of this

title which provide competitive opportunities for the commerce of

the United States in such country substantially equivalent to the

competitive opportunities, provided by concessions made by the

United States under trade agreements entered into under section

2902(a) and (b) of this title, for the commerce of such country in

the United States.

(2) If the President determines under paragraph (1) that a major

industrial country has not made concessions under trade agreements

entered into under section 2902(a) and (b) of this title which

provide substantially equivalent competitive opportunities for the

commerce of the United States, the President shall, either

generally with respect to such country or by article produced by

such country, in order to restore equivalence of competitive

opportunities, recommend to the Congress -

(A) legislation providing for the termination or denial of the

benefits of concessions of trade agreements entered into under

section 2902(a) and (b) of this title that have been made with

respect to rates of duty or other import restrictions imposed by

the United States, and

(B) legislation providing that any law necessary to carry out

any trade agreement under section 2902(a) or (b) of this title

not apply to such country.

(3) For purposes of this subsection, the term ''major industrial

country'' means Canada, the European Communities, the individual

member countries of the European Communities, Japan, and any other

foreign country designated by the President for purposes of this

subsection.

-SOURCE-

(Pub. L. 100-418, title I, Sec. 1105, Aug. 23, 1988, 102 Stat.

1132.)

-CITE-

19 USC Sec. 2905 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 17 - NEGOTIATION AND IMPLEMENTATION OF TRADE AGREEMENTS

-HEAD-

Sec. 2905. Accession of state trading regimes to General Agreement

on Tariffs and Trade or WTO

-STATUTE-

(a) In general

Before any major foreign country accedes, after August 23, 1988,

to the GATT 1947, or to the WTO Agreement, the President shall

determine -

(1) whether state trading enterprises account for a significant

share of -

(A) the exports of such major foreign country, or

(B) the goods of such major foreign country that are subject

to competition from goods imported into such foreign country;

and

(2) whether such state trading enterprises -

(A) unduly burden and restrict, or adversely affect, the

foreign trade of the United States or the United States

economy, or

(B) are likely to result in such a burden, restriction, or

effect.

(b) Effects of affirmative determination

If both of the determinations made under paragraphs (1) and (2)

of subsection (a) of this section with respect to a major foreign

country are affirmative -

(1) the President shall reserve the right of the United States

to withhold extension of the application of the GATT 1947 or the

WTO Agreement, between the United States and such major foreign

country, and

(2) the GATT 1947 or the WTO Agreement shall not apply between

the United States and such major foreign country until -

(A) such foreign country enters into an agreement with the

United States providing that the state trading enterprises of

such foreign country -

(i) will -

(I) make purchases which are not for the use of such

foreign country, and

(II) make sales in international trade,

in accordance with commercial considerations (including price,

quality, availability, marketability, and transportation),

and

(ii) will afford United States business firms adequate

opportunity, in accordance with customary practice, to

compete for participation in such purchases or sales; or

(B) a bill submitted under subsection (c) of this section

which approves of the extension of the application of the GATT

1947 or the WTO Agreement between the United States and such

major foreign country is enacted into law.

(c) Expedited consideration of bill to approve extension

(1) The President may submit to the Congress any draft of a bill

which approves of the extension of the application of the GATT 1947

or the WTO Agreement between the United States and a major foreign

country.

(2) Any draft of a bill described in paragraph (1) that is

submitted by the President to the Congress shall -

(A) be introduced by the majority leader of each House of the

Congress (by request) on the first day on which such House is in

session after the date such draft is submitted to the Congress;

and

(B) shall be treated as an implementing bill for purposes of

subsections (d), (e), (f), and (g) of section 2191 of this title.

(d) Publication

The President shall publish in the Federal Register each

determination made under subsection (a) of this section.

(e) Definitions

For purposes of this section:

(1) The term ''GATT 1947'' has the meaning given that term in

section 3501(1)(A) of this title.

(2) The term ''WTO Agreement'' means the Agreement Establishing

the World Trade Organization entered into on April 15, 1994 and

the multilateral trade agreements (as such term is defined in

section 3501(4) of this title).

-SOURCE-

(Pub. L. 100-418, title I, Sec. 1106, Aug. 23, 1988, 102 Stat.

1133; Pub. L. 103-465, title VI, Sec. 621(a)(4), Dec. 8, 1994, 108

Stat. 4993; Pub. L. 104-295, Sec. 20(f)(3), Oct. 11, 1996, 110

Stat. 3529.)

-MISC1-

AMENDMENTS

1996 - Pub. L. 104-295 substituted ''or WTO'' for ''for WTO'' in

section catchline.

1994 - Pub. L. 103-465, Sec. 621(a)(4)(D), inserted ''for WTO''

after ''Trade'' in section catchline.

Subsec. (a). Pub. L. 103-465, Sec. 621(a)(4)(A), substituted

''the GATT 1947, or to the WTO Agreement,'' for ''the GATT'' in

introductory provisions.

Subsecs. (b), (c). Pub. L. 103-465, Sec. 621(a)(4)(B), inserted

''1947 or the WTO Agreement'' after ''the GATT'' wherever

appearing.

Subsec. (e). Pub. L. 103-465, Sec. 621(a)(4)(C), added subsec.

(e).

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-465 effective on the date on which the

WTO Agreement enters into force with respect to the United States

(Jan. 1, 1995), see section 621(b) of Pub. L. 103-465, set out as a

note under section 1677k of this title.

-TRANS-

DELEGATION OF FUNCTIONS

For delegation of certain functions of President under this

section to United States Trade Representative, see section 1-101 of

Ex. Ord. No. 12661, Dec. 27, 1988, 54 F.R. 779, set out as a note

under section 2901 of this title.

-EXEC-

DETERMINATIONS REGARDING STATE TRADING ENTERPRISES - PEOPLE'S

REPUBLIC OF CHINA

Memorandum of President of the United States, Nov. 9, 2001, 66

F.R. 57357, provided:

Memorandum for the United States Trade Representative

Pursuant to section 1106(a) of the Omnibus Trade and

Competitiveness Act of 1988, (19 U.S.C. 2905(a)), I determine that

state trading enterprises account for a significant share of the

exports of the People's Republic of China (China) and goods that

compete with imports into China. I further determine that such

state trading enterprises unduly burden and restrict, or adversely

affect, the foreign trade of the United States or the United States

economy, or are likely to result in such a burden, restriction, or

effect.

China is seeking to become a member of the World Trade

Organization (WTO). The terms and conditions for China's accession

to the WTO include China's commitments that it will ensure that all

state-owned and state-invested enterprises will make purchases and

sales based solely on commercial considerations, such as price,

quality, marketability, and availability, and that U.S. business

firms will have an adequate opportunity to compete for sales to and

purchases from these enterprises on nondiscriminatory terms and

conditions. In addition, the Government of China will not

influence, directly or indirectly, commercial decisions on the part

of state-owned or state-invested enterprises, including on the

quantity, value, or country of origin of any goods purchased or

sold, except in a manner consistent with the Marrakesh Agreement

Establishing the World Trade Organization (WTO Agreement). China

has also confirmed that state trading enterprises will make

purchases that are not for government use. The obligations that

China will assume under the WTO Agreement, including China's

protocol of accession, meet the requirements of section

1106(b)(2)(A), (19 U.S.C. 2905(b)(2)(A)), and thus my

determinations under section 1106(a) do not require invocation of

the nonapplication provisions of the WTO Agreement.

You are directed to publish this memorandum in the Federal

Register. George W. Bush.

DETERMINATIONS REGARDING STATE TRADING ENTERPRISES - SEPARATE

CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN, AND MATSU

Memorandum of President of the United States, Nov. 9, 2001, 66

F.R. 57359, provided:

Memorandum for the United States Trade Representative

Section 1106(a) of the Omnibus Trade and Competitiveness Act of

1988, (19 U.S.C. 2905(a)) (the ''1988 Act''), requires the

President to determine for any major trading country that is

acceding to the World Trade Organization (WTO) whether state

trading enterprises account for a significant share of the exports

of that major trading country or goods that compete with imports

into that country and whether such state trading enterprises unduly

burden and restrict, or adversely affect, the foreign trade of the

United States or the United States economy, or are likely to result

in such a burden, restriction, or effect.

Taiwan, known in the WTO as ''the Separate Customs Territory of

Taiwan, Penghu, Kinmen and Matsu,'' is in the final stage of its

accession to the WTO. Thus, pursuant to section 1106(a) of the 1988

Act (19 U.S.C. 2905(a)), I determine that state trading enterprises

do not account for a significant share of the exports of the

Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu or

of goods that compete with exports to the Separate Customs

Territory. Further, I determine that such state trading enterprises

do not unduly burden and restrict, or adversely affect, the foreign

trade of the United States or the United States economy, and are

not likely to result in such a burden, restriction, or effect.

You are directed to publish this memorandum in the Federal

Register. George W. Bush.

-CITE-

19 USC Sec. 2906 01/06/03

-EXPCITE-

TITLE 19 - CUSTOMS DUTIES

CHAPTER 17 - NEGOTIATION AND IMPLEMENTATION OF TRADE AGREEMENTS

-HEAD-

Sec. 2906. Definitions

-STATUTE-

For purposes of this chapter:

(1) The term ''distortion'' includes, but is not limited to, a

subsidy.

(2) The term ''foreign country'' includes any foreign

instrumentality. Any territory or possession of a foreign

country that is administered separately for customs purposes,

shall be treated as a separate foreign country.

(3) The term ''GATT'' means the GATT 1947 (as defined in

section 3501(1)(A) of this title).

(4) The term ''implementing bill'' has the meaning given such

term in section 2191(b)(1) of this title.

(5) The term ''international trade'' includes, but is not

limited to -

(A) trade in both goods and services, and

(B) foreign direct investment by United States persons,

especially if such investment has implications for trade in

goods and services.

(6) The term ''state trading enterprise'' means -

(A) any agency, instrumentality, or administrative unit of a

foreign country which -

(i) purchases goods or services in international trade for

any purpose other than the use of such goods or services by

such agency, instrumentality, administrative unit, or foreign

country, or

(ii) sells goods or services in international trade; or

(B) any business firm which -

(i) is substantially owned or controlled by a foreign

country or any agency, instrumentality, or administrative

unit thereof,

(ii) is granted (formally or informally) any special or

exclusive privilege by such foreign country, agency,

instrumentality, or administrative unit, and

(iii) purchases goods or services in international trade

for any purpose other than the use of such goods or services

by such foreign country, agency, instrumentality, or

administrative unit, or which sells goods or services in

international trade.

-SOURCE-

(Pub. L. 100-418, title I, Sec. 1107, Aug. 23, 1988, 102 Stat.

1134; Pub. L. 103-465, title VI, Sec. 621(a)(5), Dec. 8, 1994, 108

Stat. 4993.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''this

part'', meaning part 1 (Sec. 1101 to 1107) of subtitle A of title I

of Pub. L. 100-418, which enacted this chapter and amended sections

2131, 2133, and 2191 of this title. For complete classification of

part 1 to the Code, see Tables.

-COD-

CODIFICATION

Section is comprised of subsec. (a) of section 1107 of Pub. L.

100-418. Subsec. (b) of section 1107 of Pub. L. 100-418 amended

sections 2131 and 2191 of this title.

-MISC3-

AMENDMENTS

1994 - Par. (3). Pub. L. 103-465 substituted ''the GATT 1947 (as

defined in section 3501(1)(A) of this title)'' for ''the General

Agreement on Tariffs and Trade''.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-465 effective on the date on which the

WTO Agreement enters into force with respect to the United States

(Jan. 1, 1995), see section 621(b) of Pub. L. 103-465, set out as a

note under section 1677k of this title.

-CITE-