 
                      CHAPTER 12--TRADE ACT OF 1974
 
              SUBCHAPTER I--NEGOTIATING AND OTHER AUTHORITY
 
             Part 1--Rates of Duty and Other Trade Barriers
 
Sec. 2112. Barriers to and other distortions of trade


(a) Congressional findings; directives; disavowal of prior approval of 
        legislation

    The Congress finds that barriers to (and other distortions of) 
international trade are reducing the growth of foreign markets for the 
products of United States agriculture, industry, mining, and commerce, 
diminishing the intended mutual benefits of reciprocal trade 
concessions, adversely affecting the United States economy, preventing 
fair and equitable access to supplies, and preventing the development of 
open and nondiscriminatory trade among nations. The President is urged 
to take all appropriate and feasible steps within his power (including 
the full exercise of the rights of the United States under international 
agreements) to harmonize, reduce, or eliminate such barriers to (and 
other distortions of) international trade. The President is further 
urged to utilize the authority granted by subsection (b) of this section 
to negotiate trade agreements with other countries and instrumentalities 
providing on a basis of mutuality for the harmonization, reduction, or 
elimination of such barriers to (and other distortions of) international 
trade. Nothing in this subsection shall be construed as prior approval 
of any legislation which may be necessary to implement an agreement 
concerning barriers to (or other distortions of) international trade.

(b) Presidential determinations prerequisite to entry into trade 
        agreements; trade with Israel

    (1) Whenever the President determines that any barriers to (or other 
distortions of) international trade of any foreign country or the United 
States unduly burden and restrict the foreign trade of the United States 
or adversely affect the United States economy, or that the imposition of 
such barriers is likely to result in such a burden, restriction, or 
effect, and that the purposes of this chapter will be promoted thereby, 
the President, during the 13-year period beginning on January 3, 1975, 
may enter into trade agreements with foreign countries or 
instrumentalities providing for the harmonization, reduction, or 
elimination of such barriers (or other distortions) or providing for the 
prohibition of or limitations on the imposition of such barriers (or 
other distortions).
    (2)(A) Trade agreements that provide for the elimination or 
reduction of any duty imposed by the United States may be entered into 
under paragraph (1) only with Israel.
    (B) The negotiation of any trade agreement entered into under 
paragraph (1) with Israel that provides for the elimination or reduction 
of any duty imposed by the United States shall take fully into account 
any product that benefits from a discriminatory preferential tariff 
arrangement between Israel and a third country if the tariff preference 
on such product has been the subject of a challenge by the United States 
Government under the authority of section 2411 of this title and the 
General Agreement on Tariffs and Trade.
    (C) Notwithstanding any other provision of this section, the 
requirements of subsections (c) and (e)(1) of this section shall not 
apply to any trade agreement entered into under paragraph (1) with 
Israel that provides for the elimination or reduction of any duty 
imposed by the United States.
    (3) 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 that provides for the elimination 
or reduction of any duty imposed by the United States.
    (4)(A) Notwithstanding paragraph (2), a trade agreement that 
provides for the elimination or reduction of any duty imposed by the 
United States may be entered into under paragraph (1) with any country 
other than Israel if--
        (i) such country requested the negotiation of such an agreement, 
    and
        (ii) the President, at least 60 days prior to the date notice is 
    provided under subsection (e)(1) of this section--
            (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.

    (B) The provisions of section 2191 of this title shall not apply to 
an implementing bill (within the meaning of section 2191(b) of this 
title if--
        (i) such implementing bill contains a provision approving of any 
    trade agreement which--
            (I) is entered into under this section with any country 
        other than Israel, and
            (II) provides for the elimination or reduction of any duty 
        imposed by the United States, and

        (ii) either--
            (I) the requirements of subparagraph (A) were not met with 
        respect to the negotiation of such agreement, or
            (II) the Committee on Finance of the Senate or the Committee 
        on Ways and Means of the House of Representatives disapproved of 
        the negotiation of such agreement before the close of the 60-day 
        period which begins on the date notice is provided under 
        subparagraph (A)(ii)(I) with respect to the negotiation of such 
        agreement.

    (C) The 60-day period described in subparagraphs (A)(ii) and 
(B)(ii)(II) shall be computed without regard to--
        (i) 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
        (ii) any Saturday and Sunday, not excluded under clause (i), 
    when either House of Congress is not in session.

(c) Presidential consultation with Congress prior to entry into trade 
        agreements

    Before the President enters into any trade agreement under this 
section providing for the harmonization, reduction, or elimination of a 
barrier to (or other distortion of) international trade, he shall 
consult with the Committee on Ways and Means of the House of 
Representatives, the Committee on Finance of the Senate, and with each 
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 such trade agreement. Such 
consultation shall include all matters relating to the implementation of 
such trade agreement as provided in subsections (d) and (e) of this 
section. If it is proposed to implement such trade agreement, together 
with one or more other trade agreements entered into under this section, 
in a single implementing bill, such consultation shall include the 
desirability and feasibility of such proposed implementation.

(d) Submission to Congress of agreements, drafts of implementing bills, 
        and statements of proposed administrative action

    Whenever the President enters into a trade agreement under this 
section providing for the harmonization, reduction, or elimination of a 
barrier to (or other distortion of) international trade, he shall submit 
such agreement, together with a draft of an implementing bill (described 
in section 2191(b) of this title) and a statement of any administrative 
action proposed to implement such agreement, to the Congress as provided 
in subsection (e) of this section, and such agreement shall enter into 
force with respect to the United States only if the provisions of 
subsection (e) of this section are complied with and the implementing 
bill submitted by the President is enacted into law.

(e) Steps prerequisite to entry into force of trade agreements

    Each trade agreement submitted to the Congress under this subsection 
shall enter into force with respect to the United States if (and only 
if)--
        (1) the President, not less than 90 days before the day on which 
    he enters into such trade agreement, notifies the House of 
    Representatives and the Senate of his intention to enter into such 
    an agreement, and promptly thereafter publishes notice of such 
    intention in the Federal Register;
        (2) after entering into the agreement, the President transmits a 
    document to the House of Representatives and to the Senate 
    containing a copy of the final legal text of such agreement together 
    with--
            (A) a draft of an implementing bill and a statement of any 
        administrative action proposed to implement such agreement, and 
        an explanation as to how the implementing bill and proposed 
        administrative action change or affect existing law, and
            (B) a statement of his reasons as to how the agreement 
        serves the interests of United States commerce and as to why the 
        implementing bill and proposed administrative action is required 
        or appropriate to carry out the agreement; and

        (3) the implementing bill is enacted into law.

(f) Obligations imposed upon foreign countries or instrumentalities 
        receiving benefits under trade agreements

    To insure that a foreign country or instrumentality which receives 
benefits under a trade agreement entered into under this section is 
subject to the obligations imposed by such agreement, the President may 
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.

(g) Definitions

    For purposes of this section--
        (1) the term ``barrier'' includes--
            (A) the American selling price basis of customs evaluation 
        as defined in section 1401a or 1402 of this title, as 
        appropriate, and
            (B) any duty or other import restriction;

        (2) the term ``distortion'' includes a subsidy; and
        (3) the term ``international trade'' includes--
            (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.

(Pub. L. 93-618, title I, Sec. 102, Jan. 3, 1975, 88 Stat. 1982; Pub. L. 
96-39, title XI, Secs. 1101, 1106(c)(1), July 26, 1979, 93 Stat. 307, 
311; Pub. L. 98-573, title III, Sec. 307(a), title IV, Sec. 401(a)-
(c)(1), Oct. 30, 1984, 98 Stat. 3012, 3013-3015; Pub. L. 99-47, 
Sec. 8(b)(1), June 11, 1985, 99 Stat. 84; Pub. L. 99-514, title XVIII, 
Sec. 1887(a)(1), Oct. 22, 1986, 100 Stat. 2923.)

                       References in Text

    This chapter, referred to in subsec. (b)(1), was in the original 
``this Act'', meaning Pub. L. 93-618, Jan. 3, 1975, 88 Stat. 1978, as 
amended, which is classified principally to this chapter. For complete 
classification of this Act to the Code, see References in Text note set 
out under section 2101 of this title and Tables.
    Section 1402 of this title, referred to in subsec. (g)(1)(A), was 
repealed by Pub. L. 96-39.


                               Amendments

    1986--Subsec. (b)(4)(B)(ii)(II). Pub. L. 99-514 substituted 
``subparagraph'' for ``subsection''.
    1985--Subsec. (b)(3). Pub. L. 99-47 inserted ``that provides for the 
elimination or reduction of any duty imposed by the United States'' 
after ``such other country''.
    1984--Subsec. (b). Pub. L. 98-573, Sec. 401(a), designated existing 
provisions as par. (1) and added pars. (2) to (4).
    Subsec. (g)(1). Pub. L. 98-573, Sec. 401(b), designated existing 
provisions as subpar. (A) and added subpar. (B).
    Subsec. (g)(3). Pub. L. 98-573, Sec. 307(a), designated existing 
provisions as subpar. (A) and added subpar. (B).
    1979--Subsec. (b). Pub. L. 96-39, Sec. 1101, substituted ``13-year 
period'' for ``5-year period''.
    Subsec. (e)(2). Pub. L. 96-39, Sec. 1106(c)(1), substituted ``copy 
of the final legal text of such agreement'' for ``copy of such 
agreement''.


                    Effective Date of 1979 Amendment

    Amendment of subsec. (b) of this section by section 1101 of Pub. L. 
96-39 effective July 26, 1979, see section 1114 of Pub. L. 96-39, set 
out as an Effective Date note under section 2581 of this title.
    Section 1106(c)(1) of Pub. L. 96-39 provided in part that the 
amendment of subsec. (e)(2) of this section by section 1106(c)(1) of 
Pub. L. 96-39 shall apply with respect to trade agreements submitted to 
the Congress under this section after July 26, 1979.


 Protective Order Provisions Applicable With Respect to Countervailing 
   and Antidumping Duty Investigations Involving Products of Canadian 
                                 Origin

    Pub. L. 101-382, title I, Sec. 135(c), Aug. 20, 1990, 104 Stat. 652, 
provided that: ``For purposes of section 404 of the United States-Canada 
Free-Trade Agreement Implementation Act of 1988 [Pub. L. 100-449, set 
out in a note below], the amendments made by subsection (b) [amending 
section 1677f of this title] also apply with respect to investigations 
under title VII of the Tariff Act of 1930 [19 U.S.C. 1671 et seq.] 
involving products of Canadian origin.''


  United States-Canada Free-Trade Agreement Implementation Act of 1988

    Pub. L. 100-449, Sept. 28, 1988, 102 Stat. 1851, as amended by Pub. 
L. 101-207, Sec. 1(b), Dec. 7, 1989, 103 Stat. 1833; Pub. L. 101-382, 
title I, Secs. 103(b), 134(b), Aug. 20, 1990, 104 Stat. 635, 651; Pub. 
L. 103-182, title I, Sec. 107, title III, Sec. 308(a), title IV, 
Sec. 413, Dec. 8, 1993, 107 Stat. 2065, 2104, 2147; Pub. L. 104-66, 
title I, Sec. 1021(d), Dec. 21, 1995, 109 Stat. 712; Pub. L. 105-206, 
title V, Sec. 5003(b)(3), July 22, 1998, 112 Stat. 789, provided that:
``SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
    ``(a) Short Title.--This Act [enacting section 1584 of Title 28, 
Judiciary and Judicial Procedure, amending sections 58c, 81c, 1305, 
1306, 1311, 1312, 1313, 1502, 1508, 1514, 1516a, 1562, 1677, 1677f, and 
2518 of this title, sections 150bb, 150cc, 154, 156, 624, 1582, and 2803 
of Title 7, Agriculture, section 1184 of Title 8, Aliens and 
Nationality, section 24 of Title 12, Banks and Banking, section 152 of 
Title 21, Food and Drugs, sections 1581, 2201, and 2643 of Title 28, 
section 2201 of Title 42, The Public Health and Welfare, section 2406 of 
the Appendix to Title 50, War and National Defense, enacting provisions 
set out as notes below, and amending provisions set out as a note under 
section 2253 of this title] may be cited as the `United States-Canada 
Free-Trade Agreement Implementation Act of 1988'.
    ``(b) Table of Contents.--[Omitted.]
``SEC. 2. PURPOSES.
    ``The purposes of this Act are--
        ``(1) to approve and implement the Free-Trade Agreement between 
    the United States and Canada negotiated under the authority of 
    section 102 of the Trade Act of 1974 [19 U.S.C. 2112];
        ``(2) to strengthen and develop economic relations between the 
    United States and Canada for their mutual benefit;
        ``(3) to establish a free-trade area between the two nations 
    through the reduction and elimination of barriers to trade in goods 
    and services and to investment; and
        ``(4) to lay the foundation for further cooperation to expand 
    and enhance the benefits of such Agreement.

``TITLE I--APPROVAL OF UNITED STATES-CANADA FREE-TRADE AGREEMENT 
       AND RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW

``SEC. 101. APPROVAL OF UNITED STATES-CANADA FREE-TRADE AGREEMENT.
    ``(a) Approval of Agreement and Statement of Administrative 
Action.--Pursuant to sections 102 and 151 of the Trade Act of 1974 (19 
U.S.C. 2112 and 2191), the Congress approves--
        ``(1) the United States-Canada Free-Trade Agreement (hereinafter 
    in this Act referred to as the `Agreement') entered into on January 
    2, 1988, and submitted to the Congress on July 25, 1988;
        ``(2) the letters exchanged between the Governments of the 
    United States and Canada--
            ``(A) dated January 2, 1988, relating to negotiations 
        regarding articles 301 (Rules of Origin) and 401 (Tariff 
        Elimination) of the Agreement, and
            ``(B) dated January 2, 1988, relating to negotiations 
        regarding article 2008 (Plywood Standards) of the Agreement; and
        ``(3) the statement of administrative action proposed to 
    implement the Agreement that was submitted to the Congress on July 
    25, 1988.
    ``(b) Conditions for Entry Into Force of the Agreement.--At such 
time as the President determines that Canada has taken measures 
necessary to comply with the obligations of the Agreement, the President 
is authorized to exchange notes with the Government of Canada providing 
for the entry into force, on or after January 1, 1989, of the Agreement 
with respect to the United States.
    ``(c) Report on Canadian Practices.--Within 60 days after the date 
of the enactment of this Act [Sept. 28, 1988] (but not later than 
December 15, 1988), the United States Trade Representative shall submit 
to the Congress a report identifying, to the maximum extent practicable, 
major current Canadian practices (and the legal authority for such 
practices) that, in the opinion of the United States Trade 
Representative--
        ``(1) are not in conformity with the Agreement; and
        ``(2) require a change of Canadian law, regulation, policy, or 
    practice to enable Canada to conform with its international 
    obligations under the Agreement.
``SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES LAW.
    ``(a) United States Laws To Prevail in Conflict.--No provision of 
the Agreement, nor the application of any such provision to any person 
or circumstance, which is in conflict with any law of the United States 
shall have effect.
    ``(b) Relationship of Agreement to State and Local Law.--
        ``(1) The provisions of the Agreement prevail over--
            ``(A) any conflicting State law; and
            ``(B) any conflicting application of any State law to any 
        person or circumstance;
    to the extent of the conflict.
        ``(2) Upon the enactment of this Act, the President shall, in 
    accordance with section 306(c)(2)(A) of the Trade and Tariff Act of 
    1984 (19 U.S.C. 2114c), initiate consultations with the State 
    governments on the implementation of the obligations of the United 
    States under the Agreement. Such consultations shall be held--
            ``(A) through the intergovernmental policy advisory 
        committees on trade established under such section for the 
        purpose of achieving conformity of State laws and practices with 
        the Agreement; and
            ``(B) with the individual States as necessary to deal with 
        particular questions that may arise.
        ``(3) The United States may bring an action challenging any 
    provision of State law, or the application thereof to any person or 
    circumstance, on the ground that the provision or application is 
    inconsistent with the Agreement.
        ``(4) For purposes of this subsection, the term `State law' 
    includes--
            ``(A) any law of a political subdivision of a State; and
            ``(B) any State law regulating or taxing the business of 
        insurance.
    ``(c) Effect of Agreement With Respect to Private Remedies.--No 
person other than the United States shall--
        ``(1) have any cause of action or defense under the Agreement or 
    by virtue of congressional approval thereof, or
        ``(2) challenge, in any action brought under any provision of 
    law, any action or inaction by any department, agency, or other 
    instrumentality of the United States, any State, or any political 
    subdivision of a State on the ground that such action or inaction is 
    inconsistent with the Agreement.
    ``(d) Initial Implementing Regulations.--Initial regulations 
necessary or appropriate to carry out the actions proposed in the 
statement of administrative action submitted under section 101(a)(3) to 
implement the Agreement shall, to the maximum extent feasible, be issued 
within 1 year after the date of entry into force of the Agreement [Jan. 
1, 1989]. In the case of any implementing action that takes effect after 
the date of entry into force of the Agreement, initial regulations to 
carry out that action shall, to the maximum extent feasible, be issued 
within 1 year after such effective date.
    ``(e) Changes in Statutes To Implement a Requirement, Amendment, or 
Recommendation.--The provisions of section 3(c) of the Trade Agreements 
Act of 1979 (19 U.S.C. 2504(c)) shall apply as if the Agreement were an 
agreement approved under section 2(a) of that Act [19 U.S.C. 2503(a)] 
whenever the President determines that it is necessary or appropriate to 
amend, repeal, or enact a statute of the United States in order to 
implement any requirement of, amendment to, or recommendation, finding 
or opinion under, the Agreement; but such provisions shall not apply to 
any bill to implement any such requirement, amendment, recommendation, 
finding, or opinion that is submitted to the Congress after the close of 
the 30th month after the month in which the Agreement enters into force 
[January 1989].
``SEC. 103. CONSULTATION AND LAY-OVER REQUIREMENTS FOR, AND EFFECTIVE 
        DATE OF, PROCLAIMED ACTIONS.
    ``(a) Consultation and Lay-Over Requirements.--If a provision of 
this Act provides that the implementation of an action by the President 
by proclamation is subject to the consultation and lay-over requirements 
of this section, such action may be proclaimed only if--
        ``(1) the President has obtained advice regarding the proposed 
    action from--
            ``(A) the appropriate advisory committees established under 
        section 135 of the Trade Act of 1974 [19 U.S.C. 2155], and
            ``(B) the United States International Trade Commission;
        ``(2) the President has submitted a report to the Committee on 
    Ways and Means of the House of Representatives and the Committee on 
    Finance of the Senate that sets forth--
            ``(A) the action proposed to be proclaimed and the reasons 
        therefor, and
            ``(B) the advice obtained under paragraph (1);
        ``(3) a period of at least 60 calendar days that begins on the 
    first day on which the President has met the requirements of 
    paragraphs (1) and (2) with respect to such action has expired; and
        ``(4) the President has consulted with such Committees regarding 
    the proposed action during the period referred to in paragraph (3).
    ``(b) Effective Date of Certain Proclaimed Actions.--No action 
proclaimed by the President under the authority of this Act, if such 
action is not subject to the consultation and lay-over requirements 
under subsection (a), may take effect before the 15th day after the date 
on which the text of the proclamation is published in the Federal 
Register.
``SEC. 104. HARMONIZED SYSTEM.
    ``(a) Definition.--As used in this Act, the term `Harmonized System' 
means the nomenclature system established under the International 
Convention on the Harmonized Commodity Description and Coding System 
(done at Brussels on June 14, 1983, and the protocol thereto, done at 
Brussels on June 24, 1986) as implemented under United States law.
    ``(b) Interim Application of TSUS.--The following apply if the 
International Convention, and the protocol thereto, referred to in 
subsection (a) are not implemented under United States law before the 
Agreement enters into force:
        ``(1) The President, subject to subsection (c), shall proclaim 
    such modifications to the Tariff Schedules of the United States (19 
    U.S.C. 1202) as may be necessary to give effect, until such time as 
    such Convention and protocol are so implemented, to the rules of 
    origin, schedule of rate reductions, and other provisions that 
    would, but for the absence of such implementation, be proclaimed 
    under the authority of this Act to, or in terms of, the Harmonized 
    System to implement the obligations of the United States under the 
    Agreement.
        ``(2) Until such time as such Convention and protocol are so 
    implemented, any reference in this Act to the nomenclature of such 
    Convention and protocol shall be treated as a reference to the 
    corresponding nomenclature of the Tariff Schedules of the United 
    States as modified under paragraph (1).
    ``(c) Restrictions.--
        ``(1) No modification described in subsection (b)(1) that is to 
    take effect concurrently with the entry into force of the Agreement 
    may be proclaimed unless the text of the modification is published 
    in the Federal Register at least 30 days before the date of entry 
    into force [Jan. 1, 1989].
        ``(2) All modifications proclaimed under the authority of 
    subsection (b)(1) after the Agreement enters into force with respect 
    to the United States are subject to the consultation and lay-over 
    requirements of section 103(a).
``SEC. 105. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE.
    ``Subject to section 103 or 104(c), as appropriate, and any other 
applicable restriction or limitation in this Act on the proclaiming of 
actions or the issuing of regulations to carry out this Act or any 
amendment made by this Act, after the date of the enactment of this Act 
[Sept. 28, 1988]--
        ``(1) the President may proclaim such actions; and
        ``(2) other appropriate officers of the United States Government 
    may issue such regulations;
as may be necessary to ensure that any provision of this Act, or 
amendment made by this Act, that takes effect on the date the Agreement 
enters into force [Jan. 1, 1989] is appropriately implemented on such 
date, but no such proclamation or regulation may have an effective date 
earlier than the date of entry into force.

 ``TITLE II--TARIFF MODIFICATIONS, RULES OF ORIGIN, USER FEES, 
       DRAWBACK, ENFORCEMENT, AND OTHER CUSTOMS PROVISIONS

``SEC. 201. TARIFF MODIFICATIONS.
    ``(a) Tariff Modifications Specified in the Agreement.--The 
President may proclaim--
        ``(1) such modifications or continuance of any existing duty;
        ``(2) such continuance of existing duty-free or excise 
    treatment; or
        ``(3) such additional duties;
as the President determines to be necessary or appropriate to carry out 
article 401 of the Agreement and the schedule of duty reductions with 
respect to Canada set forth in Annexes 401.2 and 401.7 to the Agreement, 
as approved under section 101(a)(1). For purposes of proclaiming 
necessary modifications under such Annex 401.2, any article covered 
under subheading 9813.00.05 (contained in the United States Schedule in 
such Annex) shall, unless such article is a drawback eligible good under 
section 204(a), be treated as being subject to any otherwise applicable 
customs duty if the article, or merchandise incorporating such article, 
is exported to Canada.
    ``(b) Other Tariff Modifications.--Subject to the consultation and 
lay-over requirements of section 103(a), the President may proclaim--
        ``(1) such modifications as the United States and Canada may 
    agree to regarding the staging of any duty treatment set forth in 
    Annexes 401.2 and 401.7 of the Agreement;
        ``(2) such modifications or continuance of any existing duty;
        ``(3) such continuance of existing duty-free or excise 
    treatment; or
        ``(4) such additional duties;
as the President determines to be necessary or appropriate to maintain 
the general level of reciprocal and mutually advantageous concessions 
with respect to Canada provided for by the Agreement.
    ``(c) Modifications Affecting Plywood.--
        ``(1) The Congress encourages the President to facilitate the 
    preparation, and the implementation with Canada, of common 
    performance standards for the use of softwood plywood and other 
    structural panels in construction applications in the United States 
    and Canada.
        ``(2) The President shall report to the Congress on the 
    incorporation of common plywood performance standards into building 
    codes in the United States and Canada and may implement the 
    provisions of article 2008 of the Agreement when he determines that 
    the necessary conditions have been met.
        ``(3) Any tariff reduction undertaken pursuant to paragraph (2) 
    shall be in equal annual increments ending January 1, 1998, unless 
    those reductions commence after January 1, 1991.
``SEC. 202. RULES OF ORIGIN.
    ``(a) In General.--
        ``(1) For purposes of implementing the tariff treatment 
    contemplated under the Agreement, goods originate in the territory 
    of a Party if--
            ``(A) they are wholly obtained or produced in the territory 
        of either Party or both Parties; or
            ``(B) they--
                ``(i) have been transformed in the territory of either 
            Party or both Parties so as to be subject to a change in 
            tariff classification as described in the Annex rules or to 
            such other requirements as the Annex rules may provide when 
            no change in tariff classifications occurs, and
                ``(ii) meet the other conditions set out in the Annex.
        ``(2) A good shall not be considered to originate in the 
    territory of a party [Party] under paragraph (1)(B) merely by virtue 
    of having undergone--
            ``(A) simple packaging or, except as expressly provided by 
        the Annex rules, combining operations;
            ``(B) mere dilution with water or another substance that 
        does not materially alter the characteristics of the good; or
            ``(C) any process or work in respect of which it is 
        established, or in respect of which the facts as ascertained 
        clearly justify the presumption, that the sole object was to 
        circumvent the provisions of chapter 3 of the Agreement.
        ``(3) Accessories, spare parts, or tools delivered with any 
    piece of equipment, machinery, apparatus, or vehicle that form part 
    of its standard equipment shall be treated as having the same origin 
    as that equipment, machinery, apparatus, or vehicle if the 
    quantities and values of such accessories, spare parts, or tools are 
    customary for the equipment, machinery, apparatus, or vehicle.
    ``(b) Transshipment.--Goods exported from the territory of one Party 
originate in the territory of that Party only if--
        ``(1) the goods meet the applicable requirements of subsection 
    (a) and are shipped to the territory of the other Party without 
    having entered the commerce of any third country;
        ``(2) the goods, if shipped through the territory of a third 
    country, do not undergo any operation other than unloading, 
    reloading, or any operation necessary to transport them to the 
    territory of the other Party or to preserve them in good condition; 
    and
        ``(3) the documents related to the exportation and shipment of 
    the goods from the territory of a Party show the territory of the 
    other Party as their final destination.
    ``(c) Interpretation.--In interpreting this section, the following 
apply:
        ``(1) Whenever the processing or assembly of goods in the 
    territory of either Party or both Parties results in one of the 
    changes in tariff classification described in the Annex rules, such 
    goods shall be considered to have been transformed in the territory 
    of that Party and shall be treated as goods originating in the 
    territory of that Party if--
            ``(A) such processing or assembly occurs entirely within the 
        territory of either Party or both Parties; and
            ``(B) such goods have not subsequently undergone any 
        processing or assembly outside the territories of the Parties 
        that improves the goods in condition or advances them in value.
        ``(2) Whenever the assembly of goods in the territory of a Party 
    fails to result in a change of tariff classification because 
    either--
            ``(A) the goods were imported into the territory of the 
        Party in an unassembled or a disassembled form and were 
        classified as unassembled or disassembled goods pursuant to 
        General Rule of Interpretation 2(a) of the Harmonized System; or
            ``(B) the tariff subheading for the goods provides for both 
        the goods themselves and their parts;
    such goods shall not be treated as goods originating in the 
    territory of a Party.
        ``(3) Notwithstanding paragraph (2), goods described in that 
    paragraph shall be considered to have been transformed in the 
    territory of a Party and be treated as goods originating in the 
    territory of the Party if--
            ``(A) the value of materials originating in the territory of 
        either Party or both Parties used or consumed in the production 
        of the goods plus the direct cost of assembling the goods in the 
        territory of either Party or both Parties constitute not less 
        than 50 percent of the value of the goods when exported to the 
        territory of the other Party; and
            ``(B) the goods have not subsequent to assembly undergone 
        processing or further assembly in a third country and they meet 
        the requirements of subsection (b).
        ``(4) The provisions of paragraph (3) shall not apply to goods 
    of chapters 61-63 of the Harmonized System.
        ``(5) In making the determination required by paragraph (3)(A) 
    and in making the same or a similar determination when required by 
    the Annex rules, where materials originating in the territory of 
    either Party or both Parties and materials obtained or produced in a 
    third country are used or consumed together in the production of 
    goods in the territory of a Party, the value of materials 
    originating in the territory of either Party or both Parties may be 
    treated as such only to the extent that it is directly attributable 
    to the goods under consideration.
        ``(6) In applying the Annex rules, a specific rule shall take 
    precedence over a more general rule.
    ``(d) Annex Rules.--
        ``(1) The President is authorized to proclaim, as a part of the 
    Harmonized System, the rules set forth under the heading `Rules' in 
    Annex 301.2 of the Agreement. For purposes of carrying out this 
    paragraph--
            ``(A) the phrase `headings 2207-2209' in paragraph 7 of 
        section IV of such Annex 301.2 shall be treated as a reference 
        to headings 2203-2209; and
            ``(B) the phrase `any other heading' in paragraph 11 of 
        section XV in such Annex 301.2 shall be treated as a reference 
        to any other heading of chapter 74 of the Harmonized System.
        ``(2) Subject to the consultation and lay-over requirements of 
    section 103, the President is authorized to proclaim such 
    modifications to the rules as may from time-to-time be agreed to by 
    the United States and Canada.
    ``(e) Automotive Products.--
        ``(1) The President is authorized to proclaim such modifications 
    to the definition of Canadian articles (relating to the 
    administration of the Automotive Products Trade Act of 1965 [19 
    U.S.C. 2001 et seq.]) in the general notes of the Harmonized System 
    as may be necessary to conform that definition with chapter 3 of the 
    Agreement.
        ``(2) For purposes of administering the value requirement (as 
    defined in section 304(c)(3)) with respect to vehicles, the 
    Secretary of the Treasury shall prescribe regulations governing the 
    averaging of the value content of vehicles of the same class, or of 
    sister vehicles, assembled in the same plant as an alternative to 
    the calculation of the value content of each vehicle.
    ``(f) Definitions.--For purposes of this section:
        ``(1) The term `Annex' means--
            ``(A) the interpretative guidelines set forth in subsection 
        (c); and
            ``(B) the Annex rules.
        ``(2) The term `Annex rules' means the rules proclaimed under 
    subsection (d).
        ``(3) The term `direct cost of processing or direct cost of 
    assembling' means the costs directly incurred in, or that can 
    reasonably be allocated to, the production of goods, including--
            ``(A) the cost of all labor, including benefits and on-the-
        job training, labor provided in connection with supervision, 
        quality control, shipping, receiving, storage, packaging, 
        management at the location of the process or assembly, and other 
        like labor, whether provided by employees or independent 
        contractors;
            ``(B) the cost of inspecting and testing the goods;
            ``(C) the cost of energy, fuel, dies, molds, tooling, and 
        the depreciation and maintenance of machinery and equipment, 
        without regard to whether they originate within the territory of 
        a Party;
            ``(D) development, design, and engineering costs;
            ``(E) rent, mortgage interest, depreciation on buildings, 
        property insurance premiums, maintenance, taxes and the cost of 
        utilities for real property used in the production of goods; and
            ``(F) royalty, licensing, or other like payments for the 
        right to the goods;
    but not including--
                ``(i) costs relating to the general expense of doing 
            business, such as the cost of providing executive, 
            financial, sales, advertising, marketing, accounting and 
            legal services, and insurance;
                ``(ii) brokerage charges relating to the importation and 
            exportation of goods;
                ``(iii) the costs for telephone, mail, and other means 
            of communication;
                ``(iv) packing costs for exporting the goods;
                ``(v) royalty payments related to a licensing agreement 
            to distribute or sell the goods;
                ``(vi) rent, mortgage interest, depreciation on 
            buildings, property insurance premiums, maintenance, taxes, 
            and the cost of utilities for real property used by 
            personnel charged with administrative functions; or
                ``(vii) profit on the goods.
        ``(4) The term `goods wholly obtained or produced in the 
    territory of either Party or both Parties' means--
            ``(A) mineral goods extracted in the territory of either 
        Party or both Parties;
            ``(B) goods harvested in the territory of either Party or 
        both Parties;
            ``(C) live animals born and raised in the territory of 
        either Party or both Parties;
            ``(D) goods (fish, shellfish, and other marine life) taken 
        from the sea by vessels registered or recorded with a Party and 
        flying its flag;
            ``(E) goods produced on board factory ships from the goods 
        referred to in subparagraph (D) provided such factory ships are 
        registered or recorded with that Party and fly its flag;
            ``(F) goods taken by a Party or a person of a Party from the 
        seabed or beneath the seabed outside territorial waters, 
        provided that Party has rights to exploit such seabed;
            ``(G) goods taken from space, provided they are obtained by 
        a Party or a person of a Party and not processed in a third 
        country;
            ``(H) waste and scrap derived from manufacturing operations 
        and used goods, provided they were collected in the territory of 
        either Party or both Parties and are fit only for the recovery 
        of raw materials; and
            ``(I) goods produced in the territory of either Party or 
        both Parties exclusively from goods referred to in subparagraphs 
        (A) to (H) inclusive or from their derivatives, at any stage of 
        production.
        ``(5) The term `materials' means goods, other than those 
    included as part of the direct cost of processing or assembling, 
    used or consumed in the production of other goods.
        ``(6) The term `Party' means Canada or the United States.
        ``(7) The term `territory' means--
            ``(A) with respect to Canada, the territory to which its 
        customs laws apply, including any areas beyond the territorial 
        seas of Canada within which, in accordance with international 
        law and its domestic laws, Canada may exercise rights with 
        respect to the seabed and subsoil and their natural resources; 
        and
            ``(B) with respect to the United States--
                ``(i) the customs territory of the United States, which 
            includes the fifty States, the District of Columbia and the 
            Commonwealth of Puerto Rico,
                ``(ii) the foreign trade zones located in the United 
            States, and the Commonwealth of Puerto Rico, and
                ``(iii) any area beyond the territorial seas of the 
            United States within which, in accordance with international 
            law and its domestic laws, the United States may exercise 
            rights with respect to the seabed and subsoil and their 
            natural resources.
        ``(8) The term `third country' means any country other than 
    Canada or the United States or any territory not a part of the 
    territory of either.
        ``(9) The term `value of materials originating in the territory 
    of either Party or both Parties' means the aggregate of--
            ``(A) the price paid by the producer of an exported good for 
        materials originating in the territory of either Party or both 
        Parties or for materials imported from a third country used or 
        consumed in the production of such originating materials; and
            ``(B) when not included in that price, the following costs 
        related thereto--
                ``(i) freight, insurance, packing, and all other costs 
            incurred in transporting any of the materials referred to in 
            subparagraph (A) to the location of the producer;
                ``(ii) duties, taxes, and brokerage fees on such 
            materials paid in the territory of either Party or both 
            Parties;
                ``(iii) the cost of waste or spoilage resulting from the 
            use or consumption of such materials, less the value of 
            renewable scrap or byproduct; and
                ``(iv) the value of goods and services relating to such 
            materials determined in accordance with subparagraph 1(b) of 
            article 8 of the Agreement on Implementation of article VII 
            of the General Agreement on Tariffs and Trade.
        ``(10) The term `value of the goods when exported to the 
    territory of the other Party' means the aggregate of--
            ``(A) the price paid by the producer for all materials, 
        whether or not the materials originate in either Party or both 
        Parties, and, when not included in the price paid for the 
        materials, the costs related to--
                ``(i) freight, insurance, packing, and all other costs 
            incurred in transporting all materials to the location of 
            the producer;
                ``(ii) duties, taxes, and brokerage fees on all 
            materials paid in the territory of either Party or both 
            Parties;
                ``(iii) the cost of waste or spoilage resulting from the 
            use or consumption of such materials, less the value of 
            renewable scrap or byproduct; and
                ``(iv) the value of goods and services relating to all 
            materials determined in accordance with subparagraph 1(b) of 
            article 8 of the Agreement on Implementation of article VII 
            of the General Agreement on Tariffs and Trade; and
            ``(B) the direct cost of processing or the direct cost of 
        assembling the goods.
    ``(g) Special Provision Regarding Application of Rules of Origin to 
Certain Apparel.--The Secretary of Commerce is authorized to issue 
regulations governing the exportation to Canada of apparel products that 
are cut, or knit to shape, and sewn, or otherwise assembled, in either 
Party from fabric produced or obtained in a third country for the 
purpose of establishing which exports of such products shall be 
permitted to claim preferential tariff treatment under the rules of 
origin of the Agreement, to the extent that the Agreement provides for 
quantitative limits on the availability of preferential tariff treatment 
for such products.
``SEC. 203. CUSTOMS USER FEES.
    [Amended section 58c of this title.]
``SEC. 204. DRAWBACK.
    ``(a) Definition.--For purposes of this section, the term `drawback 
eligible goods' means--
        ``(1) goods provided for under paragraph 8 of article 404 of the 
    Agreement;
        ``(2) goods provided for under paragraphs 4 and 5 of such 
    article; and
        ``(3) goods other than those referred to in paragraphs (1) and 
    (2) that the United States and Canada agree are not subject to 
    paragraphs 1, 2, and 3 of such article.
No drawback may be paid with respect to countervailing duties or 
antidumping duties imposed on drawback eligible goods.
    ``(b) Implementation of Article 404.--The President is authorized--
        ``(1) to proclaim the identity, in accordance with the 
    nomenclature of the Harmonized System, of goods referred to in 
    subsection (a)(1); and
        ``(2) subject to the consultation and lay-over requirements of 
    section 103(a), to proclaim--
            ``(A) the identity, in accordance with the nomenclature of 
        the Harmonized System, of goods referred to in subsection 
        (a)(3); and
            ``(B) a delay in the taking effect of article 404 of the 
        Agreement to a date later than January 1, 1994, with respect to 
        any merchandise if the United States and Canada agree to the 
        delay under paragraph 7 of such article.
    ``(c) Consequential Amendments.--
        ``(1) Bonded manufacturing warehouses.--[Amended section 1311 of 
    this title.]
        ``(2) Bonded smelting and refining warehouses.--[Amended section 
    1312 of this title.]
        ``(3) Drawback.--[Amended section 1313 of this title.]
        ``(4) Manipulation in warehouse.--[Amended section 1562 of this 
    title.]
        ``(5) Foreign trade zones.--[Amended section 81c of this title.]
``SEC. 205. ENFORCEMENT.
    ``(a) Certifications of Origin.--
        ``(1) Any person that certifies in writing that goods exported 
    to Canada meet the rules of origin under section 202 of the United 
    States-Canada Free-Trade Agreement Implementation Act of 1988 
    [section 202 of this note] shall provide, upon request by any 
    customs official, a copy of that certification.
        ``(2) Any person that fails to provide a copy of a certification 
    requested under paragraph (1) shall be liable to the United States 
    for a civil penalty not to exceed $10,000.
        ``(3) Any person that certifies falsely that goods exported to 
    Canada meet the rules of origin under such section 202 shall be 
    liable to the United States for the same civil penalties provided 
    under section 592 of the Tariff Act of 1930 (19 U.S.C. 1592) for a 
    violation of section 592(a) of such Act by fraud, gross negligence, 
    or negligence, as the case may be. The procedures and provisions of 
    section 592 of such Act that are applicable to a violation under 
    section 592(a) of such Act shall apply with respect to such false 
    certification.
    ``(b) Housekeeping Requirements.--[Amended section 1508 of this 
title.]
``SEC. 206. EXEMPTION FROM LOTTERY TICKET EMBARGO
    [Amended section 1305 of this title.]
``SEC. 207. PRODUCTION-BASED DUTY REMISSION PROGRAMS WITH RESPECT TO 
        AUTOMOTIVE PRODUCTS.
    ``(a) USTR Study.--The United States Trade Representative shall--
        ``(1) undertake a study to determine whether any of the 
    production-based duty remission programs of Canada with respect to 
    automotive products is either--
            ``(A) inconsistent with the provisions of, or otherwise 
        denies the benefits to the United States under, the General 
        Agreement on Tariffs and Trade, or
            ``(B) being implemented inconsistently with the obligations 
        under article 1002 of the Agreement not--
                ``(i) to expand the extent or the application, or
                ``(ii) to extend the duration,
    of such programs; and
        ``(2) determine whether to initiate an investigation under 
    section 302 of the Trade Act of 1974 [19 U.S.C. 2412] with respect 
    to any of such production-based duty remission programs.
    ``(b) Report and Monitoring.--
        ``(1) The United States Trade Representative shall submit a 
    report to Congress no later than June 30, 1989 (or no later than 
    September 30, 1989, if the Trade Representative considers an 
    extension to be necessary) containing--
            ``(A) the results of the study under subsection (a)(1), as 
        well as a description of the basis used for measuring and 
        verifying compliance with the obligations referred to in 
        subsection (a)(1)(B); and
            ``(B) any determination made under subsection (a)(2) and the 
        reasons therefor.
        ``(2) Notwithstanding the submission of the report under 
    paragraph (1), the Trade Representative shall continue to monitor 
    the degree of compliance with the obligations referred to in 
    subsection (a)(1)(B).

  ``TITLE III--APPLICATION OF AGREEMENT TO SECTORS AND SERVICES

``SEC. 301. AGRICULTURE.
    ``(a) Special Tariff Provisions for Fresh Fruits and Vegetables.--
        ``(1) The Secretary of Agriculture (hereafter in this section 
    referred to as the `Secretary') may recommend to the President the 
    imposition of a temporary duty on any Canadian fresh fruit or 
    vegetable entered into the United States if the Secretary determines 
    that both of the following conditions exist at the time that 
    imposition of the duty is recommended:
            ``(A) For each of 5 consecutive working days the import 
        price of the Canadian fresh fruit or vegetable is below 90 
        percent of the corresponding 5-year average monthly import price 
        for such fruit or vegetable.
            ``(B) The planted acreage in the United States for the like 
        fresh fruit or vegetable is no higher than the average planted 
        acreage over the preceding 5 years, excluding the years with the 
        highest and lowest acreage. For the purposes of applying this 
        subparagraph, any acreage increase attributed directly to a 
        reduction in the acreage that was planted to wine grapes as of 
        October 4, 1987, shall be excluded.
    Whenever the Secretary makes a determination that the conditions 
    referred to in subparagraphs (A) and (B) regarding any Canadian 
    fresh fruit or vegetable exist, the Secretary shall immediately 
    submit for publication in the Federal Register notice of the 
    determination.
        ``(2) No later than 6 days after publication in the Federal 
    Register of the notice described in paragraph (1), the Secretary 
    shall decide whether to recommend the imposition of a temporary duty 
    to the President, and if the Secretary decides to make such a 
    recommendation, the recommendation shall be forwarded immediately to 
    the President.
        ``(3) In determining whether to recommend the imposition of a 
    temporary duty to the President under paragraph (1), the Secretary 
    shall consider whether the conditions in subparagraphs (A) and (B) 
    of such paragraph have led to a distortion in trade between the 
    United States and Canada of the fresh fruit or vegetable and, if so, 
    whether the imposition of the duty is appropriate, including 
    consideration of whether it would significantly correct this 
    distortion.
        ``(4) Not later than 7 days after receipt of a recommendation of 
    the Secretary under paragraph (1), the President, after taking into 
    account the national economic interests of the United States, shall 
    determine whether to impose a temporary duty on the Canadian fresh 
    fruit or vegetable concerned. If the determination is affirmative, 
    the President shall proclaim the imposition and the rate of the 
    temporary duty, but such duty shall not apply to the entry of 
    articles that were in transit to the United States on the first day 
    on which the temporary duty is in effect.
        ``(5) A temporary duty imposed under paragraph (4) shall cease 
    to apply with respect to articles that are entered on or after the 
    earlier of--
            ``(A) the day following the last of 5 consecutive working 
        days with respect to which the Secretary determines that the 
        point of shipment price in Canada for the Canadian fruit or 
        vegetable concerned exceeds 90 percent of the corresponding 5-
        year average monthly import price; or
            ``(B) the 180th day after the date on which the temporary 
        duty first took effect.
        ``(6) No temporary duty may be imposed under this subsection on 
    a Canadian fresh fruit or vegetable during such time as import 
    relief is provided with respect to such fresh fruit or vegetable 
    under chapter 1 of title II of the Trade Act of 1974 [19 U.S.C. 2251 
    et seq.].
        ``(7) For purposes of this subsection:
            ``(A) The term `Canadian fresh fruit or vegetable' means any 
        article originating in Canada (as determined in accordance with 
        section 202) and classified within any of the following headings 
        of the Harmonized System:
                ``(i) 07.01 (relating to potatoes, fresh or chilled);
                ``(ii) 07.02 (relating to tomatoes, fresh or chilled);
                ``(iii) 07.03 (relating to onions, shallots, garlic, 
            leeks and other alliaceous vegetables, fresh or chilled);
                ``(iv) 07.04 (relating to cabbages, cauliflowers, 
            kohlrabi, kale and similar edible brassicas, fresh or 
            chilled);
                ``(v) 07.05 (relating to lettuce (lactuca sativa) and 
            chicory (cichorium spp.), fresh or chilled);
                ``(vi) 07.06 (relating to carrots, salad beets or 
            beetroot, salsify, celeriac, radishes and similar edible 
            roots (excluding turnips), fresh or chilled);
                ``(vii) 07.07 (relating to cucumbers and gherkins, fresh 
            or chilled);
                ``(viii) 07.08 (relating to leguminous vegetables, 
            shelled or unshelled, fresh or chilled);
                ``(ix) 07.09 (relating to other vegetables (excluding 
            truffles), fresh or chilled);
                ``(x) 08.06.10 (relating to grapes, fresh);
                ``(xi) 08.08.20 (relating to pears and quinces, fresh);
                ``(xii) 08.09 (relating to apricots, cherries, peaches 
            (including nectarines), plums and sloes, fresh); and
                ``(xiii) 08.10 (relating to other fruit (excluding 
            cranberries and blueberries), fresh).
            ``(B) The term `corresponding 5-year average monthly import 
        price' for a particular day means the average import price of a 
        Canadian fresh fruit or vegetable, for the calendar month in 
        which that day occurs, for that month in each of the preceding 5 
        years, excluding the years with the highest and lowest monthly 
        averages.
            ``(C) The term `import price' has the meaning given such 
        term in article 711 of the Agreement.
            ``(D) The rate of a temporary duty imposed under this 
        subsection with respect to a Canadian fresh fruit or vegetable 
        means a rate that, including the rate of any other duty in 
        effect for such fruit or vegetable, does not exceed the lesser 
        of--
                ``(i) the duty that was in effect for the fresh fruit or 
            vegetable before January 1, 1989, under column one of the 
            Tariff Schedules of the United States for the applicable 
            season in which the temporary duty is applied; or
                ``(ii) the duty in effect for the fresh fruit or 
            vegetable under column one of such Schedules, or column 1 
            (General) of the Harmonized System, at the time the 
            temporary duty is applied.
        ``(8)(A) The Secretary shall, to the extent practicable, 
    administer the provisions of this subsection to the 8-digit level of 
    classification under the Harmonized System.
        ``(B) The Secretary may issue such regulations as may be 
    necessary to implement the provisions of this subsection.
        ``(9) For purposes of assisting the Secretary in carrying out 
    this subsection--
            ``(A) the Commissioner of Customs and the Director of the 
        Bureau of Census shall cooperate in providing the Secretary with 
        timely information and data relating to the importation of 
        Canadian fresh fruits and vegetables, and
            ``(B) importers shall report such information relating to 
        Canadian fresh fruits and vegetables to the Commissioner of 
        Customs at such time and in such manner as the Commissioner 
        requires.
        ``(10) The authority to impose temporary duties under this 
    subsection expires on the 20th anniversary of the date on which the 
    Agreement enters into force.
    ``(b) Meat Import Act of 1979.--[Amended section 2 of Pub. L. 88-
482, set out as a note under section 2253 of this title.]
    ``(c) Agricultural Adjustment Act.--[Amended section 624 of Title 7, 
Agriculture.]
    ``(d) Importation of Animal Vaccines.--[Amended section 152 of Title 
21, Food and Drugs.]
    ``(e) Importation of Seeds.--[Amended section 1582 of Title 7, 
Agriculture.]
    ``(f) Plant and Animal Health Regulations.--
        ``(1) [Amended section 150bb of Title 7.]
        ``(2) [Amended section 150cc of Title 7.]
        ``(3) [Amended sections 154 and 156 of Title 7.]
        ``(4) [Amended section 2803 of Title 7.]
        ``(5) [Amended section 1306 of this title.]
``SEC. 302. RELIEF FROM IMPORTS.
    ``(a) Relief From Imports of Canadian Articles.--
        ``(1) A petition requesting action under this section for the 
    purpose of adjusting to the obligations of the United States under 
    the Agreement may be filed with the United States International 
    Trade Commission (hereafter in this section referred to as the 
    `Commission') by an entity, including a trade association, firm, 
    certified or recognized union, or group of workers, which is 
    representative of an industry. The Commission shall transmit a copy 
    of any petition filed under this paragraph to the United States 
    Trade Representative.
        ``(2)(A) Upon the filing of a petition under paragraph (1), the 
    Commission shall promptly initiate an investigation to determine 
    whether, as a result of a reduction or elimination of a duty 
    provided for under the United States-Canada Free-Trade Agreement, an 
    article originating in Canada is being imported into the United 
    States in such increased quantities, in absolute terms, and under 
    such conditions, so that imports of such Canadian article, alone, 
    constitute a substantial cause of serious injury to the domestic 
    industry producing an article like, or directly competitive with, 
    the imported article.
        ``(B) The provisions of--
            ``(i) paragraphs (2), (3), (4), (6), and (7) of subsection 
        (b), other than paragraph (2)(B), and
            ``(ii) subsection (c),
    of section 201 of the Trade Act of 1974 (19 U.S.C. 2251), as in 
    effect on June 1, 1988, shall apply with respect to any 
    investigation initiated under subparagraph (A).
        ``(C) By no later than the date that is 120 days after the date 
    on which an investigation is initiated under subparagraph (A), the 
    Commission shall make a determination under subparagraph (A) with 
    respect to such investigation.
        ``(D) If the determination made by the Commission under 
    subparagraph (A) with respect to imports of an article is 
    affirmative, the Commission shall find and recommend to the 
    President the amount of import relief that is necessary to remedy 
    the injury found by the Commission in such affirmative 
    determination, which shall be limited to that set forth in paragraph 
    (3)(C).
        ``(E)(i) By no later than the date that is 30 days after the 
    date on which a determination is made under subparagraph (A) with 
    respect to an investigation, the Commission shall submit to the 
    President a report on the determination and the basis for the 
    determination. The report shall include any dissenting or separate 
    views and a transcript of the hearings and any briefs which were 
    submitted to the Commission in the course of the investigation 
    initiated under subparagraph (A).
        ``(ii) Any finding made under subparagraph (D) shall be included 
    in the report submitted to the President under clause (i).
        ``(F) Upon submitting a report to the President under 
    subparagraph (E), the Commission shall promptly make public such 
    report (with the exception of information which the Commission 
    determines to be confidential) and shall cause a summary thereof to 
    be published in the Federal Register.
        ``(G) For purposes of this subsection--
            ``(i) The provisions of paragraphs (1), (2), and (3) of 
        section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)) 
        shall be applied with respect to determinations and findings 
        made under this paragraph as if such determinations and findings 
        were made under section 201 of the Trade Act of 1974 (19 U.S.C. 
        2251).
            ``(ii) The determination of whether an article originates in 
        Canada shall be made in accordance with section 202 (including 
        any proclamations issued under section 202).
        ``(3)(A) By no later than the date that is 30 days after the 
    date on which the President receives the report of the Commission 
    containing an affirmative determination made by the Commission under 
    paragraph (2)(A), the President shall provide relief from imports of 
    the article originating in Canada that is the subject of such 
    determination to the extent that, and for such time (not to exceed 3 
    years) as the President determines to be necessary to remedy the 
    injury found by the Commission.
        ``(B) The President is not required to provide import relief by 
    reason of this paragraph if the President determines that the 
    provision of such import relief is not in the national economic 
    interest.
        ``(C) The import relief that the President is authorized to 
    provide by reason of this paragraph with respect to an article 
    originating in Canada is limited to--
            ``(i) the suspension of any further reductions provided for 
        under the Agreement in the duty imposed on such article 
        originating in Canada,
            ``(ii) an increase in the rate of duty imposed on such 
        article originating in Canada to a level that does not exceed 
        the lesser of--
                ``(I) the general subcolumn of the column 1 rate of duty 
            set forth in the Harmonized Tariff Schedule of the United 
            States that is imposed by the United States on such article 
            from any other foreign country at the time such import 
            relief is provided, or
                ``(II) the general subcolumn of the column 1 rate of 
            duty set forth in the Harmonized Tariff Schedule of the 
            United States that is imposed by the United States on such 
            article from any other foreign country on the day before the 
            date on which the Agreement enters into force [Jan. 1, 
            1989], or
            ``(iii) in the case of a duty applied on a seasonal basis to 
        such article originating in Canada, an increase in the rate of 
        duty imposed on such article originating in Canada to a level 
        that does not exceed the general subcolumn of the column 1 rate 
        of duty set forth in the Harmonized Tariff Schedule of the 
        United States imposed by the United States on such article 
        originating in Canada for the corresponding season immediately 
        prior to the date on which the Agreement enters into force.
        ``(4)(A) No investigation may be initiated under paragraph 
    (2)(A) with respect to any article for which import relief has been 
    provided under this subsection.
        ``(B) No import relief may be provided under this subsection 
    after the date that is 10 years after the date on which the 
    Agreement enters into force [Jan. 1, 1989].
        ``(5) For purposes of section 123 of the Trade Act of 1974 (19 
    U.S.C. 2133), any import relief provided by the President under 
    paragraph (3) shall be treated as action taken under chapter I [1] 
    of title II of such Act [19 U.S.C. 2251 et seq.].
    ``(b) Relief From Imports From All Countries.--
        ``(1)(A) If, in any investigation initiated under chapter 1 of 
    title II of the Trade Act of 1974 [19 U.S.C. 2251 et seq.], the 
    Commission makes an affirmative determination (or a determination 
    which is treated as an affirmative determination under such chapter 
    by reason of section 330(d) of the Tariff Act of 1930 [19 U.S.C. 
    1330(d)]) that an article is being imported into the United States 
    in such increased quantities as to be a substantial cause of serious 
    injury, or the threat thereof, to the domestic industry, the 
    Commission shall also find (and report to the President at the time 
    such injury determination is submitted to the President), whether 
    imports from Canada of the article that is the subject of such 
    investigation are substantial and are contributing importantly to 
    such injury or threat thereof.
        ``(B)(i) In determining under subparagraph (A) whether imports 
    of an article from Canada are substantial, the Commission shall not 
    normally consider imports from Canada in the range of 5 to 10 
    percent or less of total imports of such article to be substantial.
        ``(ii) For purposes of this paragraph, the term `contributing 
    importantly' means an important cause, but not necessarily the most 
    important cause, of the serious injury or threat thereof caused by 
    imports.
        ``(2)(A) In determining whether to take action under chapter 1 
    of title II of the Trade Act of 1974 with respect to imports from 
    Canada, the President shall determine whether imports from Canada of 
    such article are substantial and contributing importantly to the 
    serious injury or threat of serious injury found by the Commission.
        ``(B) In determining the nature and extent of action to be taken 
    under chapter 1 of title II of the Trade Act of 1974, the President 
    shall exclude from such action imports from Canada if the President 
    has made a negative determination under subparagraph (A) regarding 
    imports from Canada.
        ``(3)(A) If, under paragraph (2)(B), the President excludes 
    imports from Canada from action taken under chapter 1 of title II of 
    the Trade Act of 1974, the President may, if the President 
    thereafter determines that a surge in imports from Canada of the 
    article that is the subject of the action is undermining the 
    effectiveness of the action, take appropriate action under such 
    chapter with respect to such imports from Canada to include such 
    imports in such action.
        ``(B)(i) If, under paragraph (2)(B), the President excludes 
    imports from Canada from action taken under chapter 1 of title II of 
    the Trade Act of 1974, any entity, including a trade association, 
    firm, certified or recognized union, or group of workers, that is 
    representative of an industry for which such action is being taken 
    under such chapter may request the Commission to conduct an 
    investigation of imports from Canada of the article that is the 
    subject of such action.
        ``(ii) Upon receiving a request under clause (i), the Commission 
    shall conduct an investigation to determine whether a surge in 
    imports from Canada of the article that is the subject of action 
    being taken under chapter 1 of title II of the Trade Act of 1974 
    undermines the effectiveness of such action. The Commission shall 
    submit the findings of such investigation to the President by no 
    later than the date that is 30 days after the date on which such 
    request is received by the Commission.
        ``(C) For purposes of this paragraph, the term `surge' means a 
    significant increase in imports over the trend for a reasonable, 
    recent base period for which data are available.
    ``(c) Any entity that is representative of an industry may submit a 
petition for relief under subsection (a), under chapter 1 of title II of 
the Trade Act of 1974, or under both subsection (a) and such chapter at 
the same time. If petitions are submitted by such an entity under 
subsection (a) and such chapter at the same time, the Commission shall 
consider such petitions jointly.
``SEC. 303. ACTS IDENTIFIED IN NATIONAL TRADE ESTIMATES.
    ``With respect to any act, policy, or practice of Canada that is 
identified in the annual report submitted under section 181 of the Trade 
Act of 1974 (19 U.S.C. 2241), the United States Trade Representative 
shall include--
        ``(1) information with respect to the action taken regarding 
    such act, policy, or practice, including but not limited to--
            ``(A) any action under section 301 of the Trade Act of 1974 
        [19 U.S.C. 2411] (including resolution through appropriate 
        dispute settlement procedures),
            ``(B) any action under section 307 of the Trade and Tariff 
        Act of 1984 [section 307 of Pub. L. 98-573, enacting section 
        2114d of this title and amending this section], and
            ``(C) negotiations or consultations, whether on a bilateral 
        or multilateral basis; or
        ``(2) the reasons that no action was taken regarding such act, 
    policy, or practice.
``SEC. 304. NEGOTIATIONS REGARDING CERTAIN SECTORS; BIENNIAL REPORTS.
    ``(a) In General.--
        ``(1) The President is authorized to enter into negotiations 
    with the Government of Canada for the purpose of concluding an 
    agreement (including an agreement amending the Agreement) or 
    agreements to--
            ``(A) liberalize trade in services in accordance with 
        article 1405 of the Agreement;
            ``(B) liberalize investment rules;
            ``(C) improve the protection of intellectual property 
        rights;
            ``(D) increase the value requirement applied for purposes of 
        determining whether an automotive product is treated as 
        originating in Canada or the United States; and
            ``(E) liberalize government procurement practices, 
        particularly with regard to telecommunications.
        ``(2) As an exercise of the foreign relations powers of the 
    President under the Constitution, the President will enter into 
    immediate consultations with the Government of Canada to obtain the 
    exclusion from the transport rates established under Canada's 
    Western Grain Transportation Act of agricultural goods that 
    originate in Canada and are shipped via east coast ports for 
    consumption in the United States.
    ``(b) Negotiating Objectives Regarding Services, Investment, and 
Intellectual Property Rights.--
        ``(1) The objectives of the United States in negotiations 
    conducted under subsection (a)(1)(A) to liberalize trade in services 
    include--
            ``(A) with respect to developing services sectors not 
        covered in the Agreement, the elimination of those tariff, 
        nontariff, and subsidy trade distortions that have potential to 
        affect significant bilateral trade;
            ``(B) the elimination or reduction of measures grandfathered 
        by the Agreement that deny or restrict national treatment in the 
        provision of services;
            ``(C) the elimination of local presence requirements; and
            ``(D) the liberalization of government procurement of 
        services.
    In conducting such negotiations, the President shall consult with 
    the services advisory committees established under section 135 of 
    the Trade Act of 1974 (19 U.S.C. 2155).
        ``(2) The objectives of the United States in any negotiations 
    conducted under subsection (a)(1)(B) to liberalize investment rules 
    include--
            ``(A) the elimination of direct investment screening;
            ``(B) the extension of the principles of the Agreement to 
        energy and cultural industries, to the extent such industries 
        are not currently covered by the Agreement;
            ``(C) the elimination of technology transfer requirements 
        and other performance requirements not currently barred by the 
        Agreement; and
            ``(D) the subjection of all investment disputes to dispute 
        resolution under chapter 18 of the Agreement.
    In conducting such negotiations, the President shall consult with 
    persons representing diverse interests in the United States in 
    investment.
        ``(3) The objectives of the United States in any negotiations 
    conducted under subsection (a)(1)(C) to improve the protection of 
    intellectual property rights include--
            ``(A) the recognition and adequate protection of 
        intellectual property, including copyrights, patents, process 
        patents, trademarks, mask works, and trade secrets; and
            ``(B) the establishment of dispute resolution procedures and 
        binational enforcement of intellectual property standards.
    In conducting such negotiations, the President shall consult with 
    persons representing diverse interests in the United States in 
    intellectual property.
    ``(c) Negotiating Objectives Regarding Automotive Products.--
        ``(1) In conducting negotiations under subsection (a)(1)(D) 
    regarding the value requirement for automotive products, the 
    President shall seek to conclude an agreement by no later than 
    January 1, 1990, to increase the value requirement from 50 percent 
    to at least 60 percent.
        ``(2) The President is authorized, through January 1, 1999, to 
    proclaim any agreed increase in the value requirement.
        ``(3) As used in this section, the term `value requirement' 
    means the minimum percentage of the value of an automotive product 
    that must be accounted for by the value of the materials in the 
    product that originated in the United States or Canada, or both, 
    plus the direct cost of processing or assembly performed in the 
    United States or Canada, or both, with respect to the product.
    ``(d) Negotiation of Limitation on Potato Trade.--
        ``(1) During the 5-year period beginning on the date of 
    enactment of this Act [Sept. 28, 1988], the President is authorized 
    to enter into negotiations with Canada for the purpose of obtaining 
    an agreement to limit the exportation and importation of all 
    potatoes between the United States and Canada, including seed 
    potatoes, fresh, chilled or frozen potatoes, dried, desiccated or 
    dehydrated potatoes, and potatoes otherwise prepared or preserved. 
    Any agreement negotiated under this subsection shall provide for an 
    annual limitation divided equally into each half of the year.
        ``(2) For the purpose of conducting negotiations under paragraph 
    (1), the Secretary of Agriculture and the United States Trade 
    Representative shall consult with representatives of the potato 
    producing industry, including the Ad Hoc Potato Advisory Group and 
    the United States/Canada Horticultural Industry Advisory Committee, 
    to solicit their views on negotiations with Canada for reciprocal 
    quantitative limits on the potato trade.
        ``(3) The President is authorized to direct the Secretary of the 
    Treasury to--
            ``(A) carry out such actions as may be necessary or 
        appropriate to ensure the attainment of the objectives of any 
        agreement that is entered into under this section; and
            ``(B) enforce any quantitative limitation, restriction, and 
        other terms contained in the agreement.
    Such actions may include, but are not limited to, requirements that 
    valid export licenses or other documentation issued by a foreign 
    government be presented as a condition for the entry into the United 
    States of any article that is subject to the agreement.
        ``(4) The provisions of section 1204 of the Agriculture and Food 
    Act of 1981 (7 U.S.C. 1736j) and the last sentence of section 812 of 
    the Agricultural Act of 1970 (7 U.S.C. 612c-3) shall not apply in 
    the case of actions taken pursuant to this subsection.
    ``(e) Canadian Controls on Fish.--
        ``(1) Within 30 days of the application by Canada of export 
    controls on unprocessed fish under statutes exempted from the 
    Agreement under article 1203, or the application of landing 
    requirements for fish caught in Canadian waters, the President shall 
    take appropriate action to enforce United States rights under the 
    General Agreement on Tariffs and Trade that are retained in article 
    1205 of the Agreement.
        ``(2) In enforcing the United States rights referred to in 
    paragraph (1), the President has discretion to--
            ``(A) bring a challenge to the offending Canadian practices 
        before the GATT;
            ``(B) retaliate against such offending practices;
            ``(C) seek resolution directly with Canada;
            ``(D) refer the matter for dispute resolution to the Canada-
        United States Trade Commission; or
            ``(E) take other action that the President considers 
        appropriate to enforce such United States rights.
    ``(f) Biennial Report.--The President shall submit to the Congress, 
at the close of each biennial period occurring after the date on which 
the Agreement enters into force [Jan. 1, 1989], a report regarding--
        ``(1) the status of the negotiations regarding agreements that 
    the President is authorized to enter into with Canada under this 
    section;
        ``(2) the effectiveness and operation of any agreement entered 
    into under section 304 that is in force with respect to the United 
    States;
        ``(3) the effectiveness of operation of the Agreement generally; 
    and
        ``(4) the actions taken by the United States and Canada to 
    implement further the objectives of the Agreement.
``SEC. 305. ENERGY.
    ``(a) Alaskan Oil.--[Amended section 2406 of the Appendix to Title 
50, War and National Defense.]
    ``(b) Uranium.--[Amended section 2201 of Title 42, The Public Health 
and Welfare.]
``SEC. 306. LOWERED THRESHOLD FOR GOVERNMENT PROCUREMENT UNDER TRADE 
        AGREEMENTS ACT OF 1979 IN THE CASE OF CERTAIN CANADIAN PRODUCTS.
    [Amended section 2518 of this title.]
``SEC. 307. TEMPORARY ENTRY FOR BUSINESS PERSONS.
    ``(a) Nonimmigrant Traders and Investors.--Upon a basis of 
reciprocity secured by the United States-Canada Free-Trade Agreement, a 
citizen of Canada, and the spouse and children of any such citizen if 
accompanying or following to join such citizen, may, if otherwise 
eligible for a visa and if otherwise admissible into the United States 
under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), be 
considered to be classifiable as a nonimmigrant under section 
101(a)(15)(E) of such Act (8 U.S.C. 1101(a)(15)(E)) if entering solely 
for a purpose specified in Annex 1502.1 (United States of America), Part 
B--Traders and Investors, of such Agreement, but only if any such 
purpose shall have been specified in such Annex as of the date of entry 
into force of such Agreement [Jan. 1, 1989].
    ``(b) Nonimmigrant Professionals.--[Amended section 1184 of Title 8, 
Aliens and Nationality.]
``SEC. 308. AMENDMENT TO SECTION 5136 OF THE REVISED STATUTES.
    [Amended section 24 of Title 12, Banks and Banking.]
``SEC. 309. STEEL PRODUCTS.
    ``Nothing in this Act shall preclude any discussion or negotiation 
between the United States and Canada in order to conclude voluntary 
restraint agreements or mutually agreed quantitative restrictions on the 
volume of steel products entering the United States from Canada.

 ``TITLE IV--BINATIONAL PANEL DISPUTE SETTLEMENT IN ANTIDUMPING 
                 AND COUNTERVAILING DUTY CASES.

``SEC. 401. AMENDMENTS TO SECTION 516A OF THE TARIFF ACT OF 1930.
    [Amended section 1516a of this title.]
``SEC. 402. AMENDMENTS TO TITLE 28, UNITED STATES CODE.
    ``(a) Jurisdiction of Court of International Trade.--[Amended 
section 1581 of Title 28, Judiciary and Judicial Procedure.]
    ``(b) Relief in Court of International Trade.--[Amended section 2643 
of Title 28.]
    ``(c) Declaratory Judgments.--[Amended section 2201 of Title 28.]
    ``(d) Actions Under the Agreement.--[Enacted section 1584 of Title 
28.]
``SEC. 403. CONFORMING AMENDMENTS TO THE TARIFF ACT OF 1930.
    [Amended sections 1502, 1514, 1677, and 1677f of this title.]
``SEC. 404. AMENDMENTS TO ANTIDUMPING AND COUNTERVAILING DUTY LAW.
    ``Any amendment enacted after the Agreement enters into force with 
respect to the United States [Jan. 1, 1989] that is made to--
        ``(1) section 303 [19 U.S.C. 1303] or title VII of the Tariff 
    Act of 1930 [19 U.S.C. 1671 et seq.], or any successor statute, or
        ``(2) any other statute which--
            ``(A) provides for judicial review of final determinations 
        under such section, title, or statute, or
            ``(B) indicates the standard of review to be applied,
shall apply to Canada only to the extent specified in such amendment.
``SEC. 405. ORGANIZATIONAL AND ADMINISTRATIVE PROVISIONS REGARDING THE 
        IMPLEMENTATION OF CHAPTERS 18 AND 19 OF THE AGREEMENT.
    ``(a) Appointment of Individuals to Panels and Committees.--
        ``(1)(A) There is established within the interagency 
    organization established under section 242 of the Trade Expansion 
    Act of 1962 (19 U.S.C. 1872) an interagency group which shall--
            ``(i) be chaired by the United States Trade Representative 
        (hereafter in this section referred to as the `Trade 
        Representative'), and
            ``(ii) consist of such officers (or the designees thereof) 
        of the Government of the United States as the Trade 
        Representative considers appropriate.
        ``(B) The interagency group established under subparagraph (A) 
    shall, in a manner consistent with chapter 19 of the Agreement--
            ``(i) prepare by January 3 of each calendar year--
                ``(I) a list of individuals who are qualified to serve 
            as members of binational panels convened under chapter 19 of 
            the Agreement, and
                ``(II) a list of individuals who are qualified to serve 
            on extraordinary challenge committees convened under such 
            chapter,
            ``(ii) if the Trade Representative makes a request under 
        paragraph (5)(A)(i) with respect to a final candidate list 
        during any calendar year, prepare by July 1 of such calendar 
        year a list of those individuals who are qualified to be added 
        to that final candidate list,
            ``(iii) exercise oversight of the administration of the 
        United States Secretariat that is authorized to be established 
        under subsection (e), and
            ``(iv) make recommendations to the Trade Representative 
        regarding the convening of extraordinary challenge committees 
        under chapter 19 of the Agreement.
        ``(2)(A) The Trade Representative shall select individuals from 
    the respective lists prepared by the interagency group under 
    paragraph (1)(B)(i) for placement on a preliminary candidate list of 
    individuals eligible to serve as members of binational panels under 
    Annex 1901.2 of the Agreement and a preliminary candidate list of 
    individuals eligible for selection as members of extraordinary 
    challenge committees under Annex 1904.13 of the Agreement.
        ``(B) The selection of individuals for--
            ``(i) placement on lists prepared by the interagency group 
        under clause (i) or (ii) of paragraph (1)(B),
            ``(ii) placement on preliminary candidate lists under 
        subparagraph (A),
            ``(iii) placement on final candidate lists under paragraph 
        (3),
            ``(iv) placement by the Trade Representative on the rosters 
        described in Annex 1901.2(1) and Annex 1904.13(1) of the 
        Agreement, and
            ``(v) appointment by the Trade Representative for service on 
        binational panels and extraordinary challenge committees 
        convened under chapter 19 of the Agreement,
    shall be made on the basis of the criteria provided in Annex 
    1901.2(1) and Annex 1904.13(1) of the Agreement and shall be made 
    without regard to political affiliation.
        ``(C) For purposes of applying section 1001 of title 18, United 
    States Code, the written or oral responses of individuals to 
    inquiries of the interagency group established under paragraph (1) 
    or the Trade Representative regarding their personal and 
    professional qualifications, and financial and other relevant 
    interests, that bear on their suitability for the placements and 
    appointments described in subparagraph (B), shall be treated as 
    matters within the jurisdiction of an agency of the United States.
        ``(3)(A) By no later than January 3 of each calendar year, the 
    Trade Representative shall submit to the Committee on Finance of the 
    Senate and the Committee on Ways and Means of the House of 
    Representatives (hereafter in this section referred to as the 
    `appropriate Congressional Committees') the preliminary candidate 
    lists of those individuals selected by the Trade Representative 
    under paragraph (2)(A) to be candidates eligible to serve on 
    binational panels or extraordinary challenge committees convened 
    pursuant to chapter 19 of the Agreement during the 1-year period 
    beginning on April 1 of such calendar year.
        ``(B) Upon submission of the preliminary candidate lists under 
    subparagraph (A) to the appropriate Congressional Committees, the 
    Trade Representative shall consult with the appropriate 
    Congressional Committees with regard to the individuals listed on 
    the preliminary candidate lists.
        ``(C) The Trade Representative may add or delete individuals 
    from the preliminary candidate lists submitted under subparagraph 
    (A) after consulting the appropriate Congressional Committees with 
    regard to such addition or deletion. The Trade Representative shall 
    provide to the appropriate Congressional Committees written notice 
    of any addition or deletion of an individual from the preliminary 
    candidate lists.
        ``(4)(A) By no later than March 31 of each calendar year, the 
    Trade Representative shall submit to the appropriate Congressional 
    Committees the final candidate lists of those individuals selected 
    by the Trade Representative to be candidates eligible to serve on 
    binational panels and extraordinary challenge committees convened 
    pursuant to chapter 19 of the Agreement during the 1-year period 
    beginning on April 1 of such calendar year. An individual may be 
    included on a final candidate list only if written notice of the 
    addition of such individual to the preliminary candidate list was 
    submitted to the appropriate Congressional Committees at least 15 
    days before the date on which that final candidate list is submitted 
    to the appropriate Congressional Committees under this subparagraph.
        ``(B) Except as provided in paragraph (5), no additions may be 
    made to the final candidate lists after the final candidate lists 
    are submitted to the appropriate Congressional Committees under 
    subparagraph (A).
        ``(5)(A) If, after the Trade Representative has submitted the 
    final candidate lists to the appropriate Congressional Committees 
    under paragraph (4)(A) for a calendar year and before July 1 of such 
    calendar year, the Trade Representative determines that additional 
    individuals need to be added to a final candidate list, the Trade 
    Representative shall--
            ``(i) request the interagency group established under 
        paragraph (1)(A) to prepare a list of individuals who are 
        qualified to be added to such candidate list,
            ``(ii) select individuals from the list prepared by the 
        interagency group under paragraph (1)(B)(ii) to be included in a 
        proposed amendment to such final candidate list, and
            ``(iii) by no later than July 1 of such calendar year, 
        submit to the appropriate Congressional Committees the proposed 
        amendments to such final candidate list developed by the Trade 
        Representative under clause (ii).
        ``(B) Upon submission of a proposed amendment under subparagraph 
    (A)(iii) to the appropriate Congressional Committees, the Trade 
    Representative shall consult with the appropriate Congressional 
    Committees with regard to the individuals included in the proposed 
    amendment.
        ``(C) The Trade Representative may add or delete individuals 
    from any proposed amendment submitted under subparagraph (A)(iii) 
    after consulting the appropriate Congressional Committees with 
    regard to such addition or deletion. The Trade Representative shall 
    provide to the appropriate Congressional Committees written notice 
    of any addition or deletion of an individual from the proposed 
    amendment.
        ``(D)(i) If the Trade Representative submits under subparagraph 
    (A)(iii) in any calendar year a proposed amendment to a final 
    candidate list, the Trade Representative shall, by no later than 
    September 30 of such calendar year, submit to the appropriate 
    Congressional Committees the final form of such amendment. On 
    October 1 of such calendar year, such amendment shall take effect 
    and the individuals included in the final form of such amendment 
    shall be added to the final candidate list.
        ``(ii) An individual may be included in the final form of an 
    amendment submitted under clause (i) only if written notice of the 
    addition of such individual to the proposed form of such amendment 
    was submitted to the appropriate Congressional Committees at least 
    15 days before the date on which the final form of such amendment is 
    submitted under clause (i).
        ``(iii) Individuals added to a final candidate list under clause 
    (i) shall be eligible to serve on binational panels or extraordinary 
    challenge committees convened pursuant to chapter 19 of the 
    Agreement, as the case may be, during the 6-month period beginning 
    on October 1 of the calendar year in which such addition occurs.
        ``(iv) No additions may be made to the final form of an 
    amendment described in clause (i) after the final form of such 
    amendment is submitted to the appropriate Congressional Committees 
    under clause (i).
        ``(6)(A) The Trade Representative is the only officer of the 
    Government of the United States authorized to act on behalf of the 
    Government of the United States in making any selection or 
    appointment of an individual to--
            ``(i) the rosters described in Annex 1901.2(1) and Annex 
        1904.13(1) of the Agreement, or
            ``(ii) the binational panels or extraordinary challenge 
        committees convened pursuant to chapter 19 of the Agreement,
    that is to be made solely or jointly by the Government of the United 
    States under the terms of the Agreement.
        ``(B) Except as otherwise provided in paragraph (7)(B), the 
    Trade Representative may--
            ``(i) select an individual for placement on the rosters 
        described in Annex 1901.2(1) and Annex 1904.13(1) of the 
        Agreement during the 1-year period beginning on April 1 of any 
        calendar year,
            ``(ii) appoint an individual to serve as one of those 
        members of any binational panel or extraordinary challenge 
        committee convened pursuant to chapter 19 of the Agreement 
        during such 1-year period who, under the terms of the Agreement, 
        are to be appointed solely by the Government of the United 
        States, or
            ``(iii) act to make a joint appointment with the Government 
        of Canada, under the terms of the Agreement, of any individual 
        who is a citizen or national of the United States to serve as 
        any other member of such a panel or committee,
    only if such individual is on the appropriate final candidate list 
    that was submitted to the appropriate Congressional Committees under 
    paragraph (4)(A) during such calendar year or on such list as it may 
    be amended under paragraph (5)(D)(i).
        ``(7)(A) Except as otherwise provided in this paragraph, no 
    individual may--
            ``(i) be selected by the Government of the United States for 
        placement on the rosters described in Annex 1901.2(1) and Annex 
        1904.13(1) of the Agreement, or
            ``(ii) be appointed solely or jointly by the Government of 
        the United States to serve as a member of a binational panel or 
        extraordinary challenge committee convened pursuant to chapter 
        19 of the Agreement,
    during the 1-year period beginning on April 1 of any calendar year 
    for which the Trade Representative has not met the requirements of 
    this subsection.
        ``(B)(i) Notwithstanding paragraphs (3), (4), or (6)(B) (other 
    than paragraph (3)(A)), individuals listed on the preliminary 
    candidate lists submitted to the appropriate Congressional 
    Committees under paragraph (3)(A) may--
            ``(I) be selected by the Trade Representative for placement 
        on the rosters described in Annex 1901.2(1) and Annex 1904.13(1) 
        of the Agreement during the 3-month period beginning on the date 
        on which the Agreement enters into force, and
            ``(II) be appointed solely or jointly by the Trade 
        Representative under the terms of the Agreement to serve as 
        members of binational panels or extraordinary challenge 
        committees that are convened pursuant to chapter 19 of the 
        Agreement during such 3-month period.
        ``(ii) If the Agreement enters into force after January 3, 1989, 
    the provisions of this subsection shall be applied with respect to 
    the calendar year in which the Agreement enters into force--
            ``(I) by substituting `the date that is 30 days after the 
        date on which the Agreement enters into force' for `January 3 of 
        each calendar year' in paragraphs (1)(B)(i) and (3)(A), and
            ``(II) by substituting `the date that is 3 months after the 
        date on which the Agreement enters into force' for `March 31 of 
        each calendar year' in paragraph (4)(A).
    ``(b) Status of Panelists.--Notwithstanding any other provision of 
law, individuals appointed by the United States to serve on panels or 
committees convened pursuant to chapter 19 of the Agreement, and 
individuals designated to assist such appointed individuals, shall not 
be considered to be employees or special employees of, or to be 
otherwise affiliated with, the Government of the United States.
    ``(c) Immunity of Panelists.--With the exception of acts described 
in section 777f(d)(3) [777(d)(3)] of the Tariff Act of 1930, as added by 
this Act [19 U.S.C. 1677f(d)(3)], individuals serving on panels or 
committees convened pursuant to chapter 19 of the Agreement, and 
individuals designated to assist the individuals serving on such panels 
or committees, shall be immune from suit and legal process relating to 
acts performed by such individuals in their official capacity and within 
the scope of their functions as such panelists or committee members or 
assistants to such panelists or committee members.
    ``(d) Regulations.--The administering authority under title VII of 
the Tariff Act of 1930 [19 U.S.C. 1671 et seq.], the United States 
International Trade Commission, and the United States Trade 
Representative may promulgate such regulations as are necessary or 
appropriate to carry out actions in order to implement their respective 
responsibilities under chapters 18 and 19 of the Agreement. Initial 
regulations to carry out such functions shall be issued prior to the 
date of entry into force of the Agreement [Jan. 1, 1989].
    ``(e) Establishment of United States Secretariat.--
        ``(1) The President is authorized to establish within any 
    department or agency of the Federal Government a United States 
    Secretariat which, subject to the oversight of the interagency group 
    established under subsection (a)(1)(A), shall facilitate--
            ``(A) the operation of chapters 18 and 19 of the Agreement, 
        and
            ``(B) the work of the binational panels and extraordinary 
        challenge committees convened under chapters 18 and 19 of the 
        Agreement.
        ``(2) The United States Secretariat established by the President 
    under paragraph (1) shall not be considered to be an agency for 
    purposes of section 552 of title 5, United States Code.
``SEC. 406. AUTHORIZATION OF APPROPRIATIONS FOR THE SECRETARIAT, THE 
        PANELS, AND THE COMMITTEES.
    ``(a) The Secretariat.--There are authorized to be appropriated to 
the department or agency within which the United States Secretariat 
described in chapter 19 of the Agreement is established the lesser of--
        ``(1) such sums as may be necessary, or
        ``(2) $5,000,000,
for each fiscal year succeeding fiscal year 1988 for the establishment 
and operations of such United States Secretariat and for the payment of 
the United States share of the expenses of the dispute settlement 
proceedings under chapter 18 of the Agreement.
    ``(b) Panels and Committees.--
        ``(1) There are authorized to be appropriated to the Office of 
    the United States Trade Representative for fiscal year 1990, 
    $1,492,000 to pay during such fiscal year the United States share of 
    the expenses of binational panels and extraordinary challenge 
    committees convened pursuant to chapter 19 of the Agreement.
        ``(2) The United States Trade Representative is authorized to 
    transfer to any department or agency of the United States, from sums 
    appropriated pursuant to the authorization provided under paragraph 
    (1) or section 141(g)(1) of the Trade Act of 1974 [19 U.S.C. 
    2171(g)(1)], such funds as may be necessary to facilitate the 
    payment of the expenses described in paragraph (1).
        ``(3) Funds appropriated for the payment of expenses described 
    in paragraph (1) during any fiscal year may be expended only to the 
    extent such funds do not exceed the amount authorized to be 
    appropriated under paragraph (1) for such fiscal year. This 
    paragraph shall apply, notwithstanding any law enacted after the 
    date of enactment of this Act [Sept. 28, 1988], unless such 
    subsequent law specifically provides that this paragraph shall not 
    apply and specifically cites this paragraph.
        ``(4) If the Canadian Secretariat described in chapter 19 of the 
    Agreement provides funds during any fiscal year for the purpose of 
    paying, in accordance with Annex 1901.2 of the Agreement, the 
    Canadian share of the expenses of binational panels, the United 
    States Secretariat established under section 405(e)(1) may hereafter 
    retain and use such funds for such purposes.
``SEC. 407. TESTIMONY AND PRODUCTION OF PAPERS IN EXTRAORDINARY 
        CHALLENGES.
    ``(a) Authority of Extraordinary Challenge Committee To Obtain 
Information.--If an extraordinary challenge committee (hereinafter 
referred to in this section as the `committee') is convened pursuant to 
article 1904(13) of the Agreement, and the allegations before the 
committee include a matter referred to in article 1904(13)(a)(i) of the 
Agreement, for the purposes of carrying out its functions and duties 
under Annex 1904.13 of the Agreement, the committee--
        ``(1) shall have access to, and the right to copy, any document, 
    paper, or record pertinent to the subject matter under 
    consideration, in the possession of any individual, partnership, 
    corporation, association, organization, or other entity,
        ``(2) may summon witnesses, take testimony, and administer 
    oaths,
        ``(3) may require any individual, partnership, corporation, 
    association, organization, or other entity to produce documents, 
    books, or records relating to the matter in question, and
        ``(4) may require any individual, partnership, corporation, 
    association, organization, or other entity to furnish in writing, in 
    such detail and in such form as the committee may prescribe, 
    information in its possession pertaining to the matter.
Any member of the committee may sign subpoenas, and members of the 
committee, when authorized by the committee, may administer oaths and 
affirmations, examine witnesses, take testimony, and receive evidence.
    ``(b) Witnesses and Evidence.--The attendance of witnesses who are 
authorized to be summoned, and the production of documentary evidence 
authorized to be ordered, under subsection (a) may be required from any 
place in the United States at any designated place of hearing. In the 
case of disobedience to a subpoena authorized under subsection (a), the 
committee may request the Attorney General of the United States to 
invoke the aid of any district or territorial court of the United States 
in requiring the attendance and testimony of witnesses and the 
production of documentary evidence. Such court, within the jurisdiction 
of which such inquiry is carried on, may, in case of contumacy or 
refusal to obey a subpoena issued to any individual, partnership, 
corporation, association, organization, or other entity, issue an order 
requiring such individual or entity to appear before the committee, or 
to produce documentary evidence if so ordered or to give evidence 
concerning the matter in question. Any failure to obey such order of the 
court may be punished by such court as a contempt thereof.
    ``(c) Mandamus.--Any court referred to in subsection (b) shall have 
jurisdiction to issue writs of mandamus commanding compliance with the 
provisions of this section or any order of the committee made in 
pursuance thereof.
    ``(d) Depositions.--The committee may order testimony to be taken by 
deposition at any stage of the committee review. Such deposition may be 
taken before any person designated by the committee and having power to 
administer oaths. Such testimony shall be reduced to writing by the 
person taking the deposition, or under the direction of such person, and 
shall then be subscribed by the deponent. Any individual, partnership, 
corporation, association, organization or other entity may be compelled 
to appear and depose and to produce documentary evidence in the same 
manner as witnesses may be compelled to appear and testify and produce 
documentary evidence before the committee, as provided in this section.
``SEC. 408. REQUESTS FOR REVIEW OF CANADIAN ANTIDUMPING AND 
        COUNTERVAILING DUTY DETERMINATIONS.
    ``(a) Requests for Review by the United States.--In the case of a 
final antidumping or countervailing duty determination of a competent 
investigating authority of Canada, as defined in article 1911 of the 
Agreement, requests by the United States for binational panel review 
under article 1904 of the Agreement shall be made by the United States 
Secretary, described in article 1909(4) of the Agreement.
    ``(b) Requests for Review by a Person.--In the case of a final 
antidumping or countervailing duty determination of a competent 
investigating authority of Canada, as defined in article 1911 of the 
Agreement, a person, within the meaning of article 1904(5) of the 
Agreement, may request a binational panel review of such determination 
by filing with the United States Secretary, described in article 1909(4) 
of the Agreement, such a request within the time limit provided for in 
article 1904(4) of the Agreement. The receipt of such request by the 
United States Secretary shall be deemed to be a request for binational 
panel review within the meaning of article 1904(4) of the Agreement. 
Such request shall contain such information and be in such form, manner, 
and style as the administering authority shall prescribe by regulations. 
The request for such panel review shall not preclude the United States, 
Canada, or any other person from challenging before a binational panel 
the basis for a particular request for review.
    ``(c) Service of Request for Review.--Whenever binational panel 
review is requested under this section, the United States Secretary 
shall serve a copy of the request on all persons who would otherwise be 
entitled under Canadian law to commence procedures for judicial review 
of a final antidumping or countervailing duty determination made by a 
competent investigating authority of Canada.
``SEC. 409. SUBSIDIES.
    ``(a) Negotiating Authority.--
        ``(1) The President is authorized to enter into an agreement 
    with Canada, including an agreement to amend the Agreement, on rules 
    applicable to trade between the United States and Canada that--
            ``(A) deal with unfair pricing and government subsidization, 
        and
            ``(B) provide for increased discipline on subsidies.
        ``(2)(A) The objectives of the United States in negotiating an 
    agreement under paragraph (1) include (but are not limited to)--
            ``(i) achievement, on an expedited basis, of increased 
        discipline on government production and export subsidies that 
        have a significant impact, directly or indirectly, on bilateral 
        trade between the United States and Canada; and
            ``(ii) attainment of increased and more effective discipline 
        on those Canadian Government (including provincial) subsidies 
        having the most significant adverse impact on United States 
        producers that compete with subsidized products of Canada in the 
        markets of the United States and Canada.
        ``(B) Special emphasis should be given in negotiating an 
    agreement under paragraph (1) to obtain discipline on Canadian 
    subsidy programs that adversely affect United States industries 
    which directly compete with subsidized imports.
        ``(3) The United States members of the working group established 
    under article 1907 of the Agreement shall consult regularly with the 
    Committee on Finance of the Senate, the Committee on Ways and Means 
    of the House of Representatives, and advisory committees established 
    under section 135 of the Trade Act of 1974 [19 U.S.C. 2155] 
    regarding--
            ``(A) the issues being considered by the working group; and
            ``(B) as appropriate, the objectives and strategy of the 
        United States in the negotiations.
        ``(4) Notwithstanding any other provision of this Act or of any 
    other law, the provisions of section 151 of the Trade Act of 1974 
    (19 U.S.C. 2191) shall not apply to any bill or joint resolution 
    that implements an agreement entered into under paragraph (1), 
    unless the President determines and notifies the Congress that such 
    agreement--
            ``(A) will provide greater discipline over government 
        subsidies and no less discipline over unfair pricing practices 
        by producers than that provided by the agreements described in 
        paragraphs (5) and (6) of section 2[(c)] of the Trade Agreements 
        Act of 1979 [19 U.S.C. 2503(c)(5), (6)] (the Subsidies Code and 
        Antidumping Code), respectively, taking into account the effects 
        of the Agreement, and
            ``(B) will neither undermine such multilateral discipline 
        nor detract from United States efforts to increase such 
        discipline on a multilateral basis in, or subsequent to, the 
        Uruguay Round of multilateral trade negotiations.
    ``(b) Identification of Industries Facing Subsidized Imports.--
        ``(1) Any entity, including a trade association, firm, certified 
    or recognized union, or group of workers, that is representative of 
    a United States industry and has reason to believe that--
            ``(A)(i) as a result of implementation of provisions of the 
        Agreement, the industry is likely to face increased competition 
        from subsidized Canadian imports with which it directly 
        competes; or
            ``(ii) the industry is likely to face increased competition 
        from subsidized imports with which it directly competes from any 
        other country designated by the President, following 
        consultations with the Congress, as benefitting from a reduction 
        of tariffs or other trade barriers under a trade agreement that 
        enters into force after January 1, 1989; and
            ``(B) the industry is likely to experience a deterioration 
        of its competitive position before rules and disciplines 
        relating to the use of government subsidies have been developed 
        with respect to such country;
    may file a petition with the United States Trade Representative 
    (hereafter referred to in this section as the `Trade 
    Representative') to be identified under this section.
        ``(2) Within 90 days of receipt of a petition under paragraph 
    (1), the Trade Representative, in consultation with the Secretary of 
    Commerce, shall decide whether to identify the industry on the basis 
    that there is a reasonable likelihood that the industry may face 
    both the subsidization described in paragraph (1)(A) and the 
    deterioration described in paragraph (1)(B).
        ``(3) At the request of an entity that is representative of an 
    industry identified under paragraph (2), the Trade Representative 
    shall--
            ``(A) compile and make available to the industry information 
        under section 308 of the Trade Act of 1974 [19 U.S.C. 2418],
            ``(B) recommend to the President that an investigation by 
        the United States International Trade Commission be requested 
        under section 332 of the Tariff Act of 1930 [19 U.S.C. 1332], or
            ``(C) take actions described in both subparagraphs (A) and 
        (B).
    The industry may request the Trade Representative to take 
    appropriate action to update (as often as annually) any information 
    obtained under subparagraph (A) or (B), or both, as the case may be, 
    until an agreement on adequate rules and disciplines relating to 
    government subsidies is reached.
        ``(4)(A) The Trade Representative and the Secretary of Commerce 
    shall review information obtained under paragraph (3) and consult 
    with the industry identified under paragraph (2) with a view to 
    deciding whether any action is appropriate under section 301 of the 
    Trade Act of 1974 [19 U.S.C. 2411], including the initiation of an 
    investigation under section 302(c) of that Act [19 U.S.C. 2412(c)] 
    (in the case of the Trade Representative), or under subtitle A of 
    title VII of the Tariff Act of 1930 [19 U.S.C. 1671 et seq.], 
    including the initiation of an investigation under section 702(a) of 
    that Act [19 U.S.C. 1671a(a)] (in the case of the Secretary of 
    Commerce).
        ``(B) In determining whether to initiate any investigation under 
    section 301 of the Trade Act of 1974 [19 U.S.C. 2411] or any other 
    trade law, other than title VII of the Tariff Act of 1930 [19 U.S.C. 
    1671 et seq.], the Trade Representative, after consultation with the 
    Secretary of Commerce--
            ``(i) shall seek the advice of the advisory committees 
        established under section 135 of the Trade Act of 1974 [19 
        U.S.C. 2155];
            ``(ii) shall consult with the Committee on Finance of the 
        Senate and the Committee on Ways and Means of the House of 
        Representatives;
            ``(iii) shall coordinate with the interagency committee 
        established under section 242 of the Trade Expansion Act of 1962 
        [19 U.S.C. 1872]; and
            ``(iv) may ask the President to request advice from the 
        United States International Trade Commission.
        ``(C) In the event an investigation is initiated under section 
    302(c) of the Trade Act of 1974 [19 U.S.C. 2412(c)] as a result of a 
    review under this paragraph and the President, following such 
    investigation (including any applicable dispute settlement 
    proceedings under the Agreement or any other trade agreement), 
    determines to take action under section 301(a) of such Act [19 
    U.S.C. 2411(a)], the President shall give preference to actions that 
    most directly affect the products that benefit from governmental 
    subsidies and were the subject of the investigation, unless there 
    are no significant imports of such products or the President 
    otherwise determines that application of the action to other 
    products would be more effective.
        ``(5) Any decision, whether positive or negative, or any action 
    by the Trade Representative or the Secretary of Commerce under this 
    section shall not in any way--
            ``(A) prejudice the right of any industry to file a petition 
        under any trade law,
            ``(B) prejudice, affect, or substitute for, any proceeding, 
        investigation, determination, or action by the Secretary of 
        Commerce, the United States International Trade Commission, or 
        the Trade Representative pursuant to such a petition,
            ``(C) prejudice, affect, substitute for, or obviate any 
        proceeding, investigation, or determination under section 301 of 
        the Trade Act of 1974 [19 U.S.C. 2411], title VII of the Tariff 
        Act of 1930 [19 U.S.C. 1671 et seq.], or any other trade law.
        ``(6) Nothing in this subsection may be construed to alter in 
    any manner the requirements in effect before the enactment of this 
    Act [Sept. 28, 1988] for standing under any law of the United States 
    or to add any additional requirements for standing under any law of 
    the United States.
``SEC. 410. TERMINATION OF AGREEMENT.
    ``(a) In General.--If--
        ``(1) no agreement is entered into between the United States and 
    Canada on a substitute system of rules for antidumping and 
    countervailing duties before the date that is 7 years after the date 
    on which the Agreement enters into force [Jan. 1, 1989], and
        ``(2) the President decides not to exercise the rights of the 
    United States under article 1906 of the Agreement to terminate the 
    Agreement,
the President shall submit to the Congress a report on such decision 
which explains why continued adherence to the Agreement is in the 
national economic interest of the United States. In calculating the 7-
year period referred to in paragraph (1), any time during which Canada 
is a NAFTA country (as defined in section 2(4) of the North American 
Free Trade Agreement Implementation Act [19 U.S.C. 3301(4)]) shall be 
disregarded.
    ``(b) Transition Provisions.--
        ``(1) If on the date on which the Agreement should cease to be 
    in force an investigation or enforcement proceeding concerning the 
    violation of a protective order issued under section 777(d) of the 
    Tariff Act of 1930 (as amended by this Act) [19 U.S.C. 1677f(d)] or 
    a Canadian undertaking is pending, such investigation or proceeding 
    shall continue and sanctions may continue to be imposed in 
    accordance with the provisions of such section.
        ``(2) If on the date on which the Agreement should cease to be 
    in force a binational panel review under article 1904 of the 
    Agreement is pending, or has been requested, with respect to a 
    determination to which section 516A(g)(2) of the Tariff Act of 1930 
    (as added by this Act) [19 U.S.C. 1516a(g)(2)] applies, such 
    determination shall be reviewable under section 516A(a) of the 
    Tariff Act of 1930. In the case of a determination to which the 
    provisions of this paragraph apply, the time limits for commencing 
    an action under section 516A(a)(2)(A) of the Tariff Act of 1930 
    shall not begin to run until the date on which the Agreement ceases 
    to be in force.

           ``TITLE V--EFFECTIVE DATES AND SEVERABILITY

``SEC. 501. EFFECTIVE DATES.
    ``(a) In General.--Except as provided in subsection (b), the 
provisions of this Act, and the amendments made by this Act, shall take 
effect on the date the Agreement enters into force [Jan. 1, 1989].
    [A Presidential Memorandum on the Canada-United States Free-Trade 
Agreement, dated Dec. 31, 1988, directing the Secretary of State to 
exchange notes with the Government of Canada to provide for the entry 
into force of the Agreement on Jan. 1, 1989, is set out in 24 Weekly 
Compilation of Presidential Documents 1688, Jan. 2, 1989. See, also, 
confirmation by Office of the United States Trade Representative, 54 
F.R. 505.]
    ``(b) Exceptions.--Sections 1 and 2, title I, section 304 (except 
subsection (f)), section 309, this section and section 502 shall take 
effect on the date of enactment of this Act [Sept. 28, 1988].
    ``(c) Termination or Suspension of Agreement.--
        ``(1) Termination of agreement.--On the date the Agreement 
    ceases to be in force, the provisions of this Act (other than this 
    paragraph and section 410(b)), and the amendments made by this Act, 
    shall cease to have effect.
        ``(2) Effect of agreement suspension.--An agreement by the 
    United States and Canada to suspend the operation of the Agreement 
    shall not be deemed to cause the Agreement to cease to be in force 
    within the meaning of paragraph (1).
        ``(3) Suspension resulting from nafta.--On the date the United 
    States and Canada agree to suspend the operation of the Agreement by 
    reason of the entry into force between them of the North American 
    Free Trade Agreement, the following provisions of this Act are 
    suspended and shall remain suspended until such time as the 
    suspension of the Agreement may be terminated:
            ``(A) Sections 204(a) and (b) and 205(a).
            ``(B) Sections 302 and 304(f).
            ``(C) Sections 404, 409, and 410(b).
``SEC. 502. SEVERABILITY.
    ``If any provision of this Act, any amendment made by this Act, or 
the application of such a provision or amendment to any person or 
circumstances is held to be invalid, the remainder of this Act, the 
remaining amendments made by this Act, and the application of such 
provision or amendment to persons or circumstances other than those to 
which it is held invalid, shall not be affected thereby.''
    [Amendment by section 107 of Pub. L. 103-182 to section 501(c) of 
Pub. L. 100-449, set out above, effective on the date the North American 
Free Trade Agreement enters into force between the United States and 
Canada [Jan. 1, 1994], see section 109(a)(2) of Pub. L. 103-182, set out 
as an Effective Date; Termination of NAFTA Status note under section 
3311 of this title.]
    [Section 308(b) of Pub. L. 103-182 provided that: ``The amendments 
made by subsection (a) [amending section 301(a) of Pub. L. 100-449, set 
out above] take effect on the date of the enactment of this Act [Dec. 8, 
1993].'']
    [Amendment by section 413 of Pub. L. 103-182 to section 410(a) of 
Pub. L. 100-449, set out above, effective on the date the North American 
Free Trade Agreement enters into force with respect to the United States 
[Jan. 1, 1994], but not applicable to any final determination described 
in section 1516a(a)(1)(B) or (2)(B)(i) to (iii) of this title, notice of 
which is published in the Federal Register before such date, or to a 
determination described in section 1516a(a)(2)(B)(vi) of this title, 
notice of which is received by the Government of Canada before such 
date, or to any binational panel review under the United States-Canada 
Free-Trade Agreement, or any extraordinary challenge arising out of such 
review, that was commenced before such date, see section 416 of Pub. L. 
103-182, set out as an Effective Date note under section 3431 of this 
title.]
    [For provisions relating to effect of termination of NAFTA country 
status on the provisions of sections 401 to 416 of Pub. L. 103-182, see 
section 3451 of this title.]


           Plan Amendments Not Required Until January 1, 1989

    For provisions directing that if any amendments made by subtitle A 
or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 1801-1899A] of Pub. L. 99-514 require an amendment to any plan, 
such plan amendment shall not be required to be made before the first 
plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. 
L. 99-514, as amended, set out as a note under section 401 of Title 26, 
Internal Revenue Code.


           United States-Israel Free Trade Area Implementation

    Pub. L. 99-47, June 11, 1985, 99 Stat. 82, as amended by Pub. L. 
104-234, Sec. 1, Oct. 2, 1996, 110 Stat. 3058, provided that:
``SECTION 1. SHORT TITLE.
    ``This Act may be cited as the `United States-Israel Free Trade Area 
Implementation Act of 1985'.
``SEC. 2. PURPOSES.
    ``The purposes of this Act are--
        ``(1) to approve and implement the agreement on the 
    establishment of a free trade area between the United States and 
    Israel negotiated under the authority of section 102 of the Trade 
    Act of 1974 [19 U.S.C. 2112];
        ``(2) to strengthen and develop the economic relations between 
    the United States and Israel for their mutual benefit; and
        ``(3) to establish free trade between the two nations through 
    the removal of trade barriers.
``SEC. 3. APPROVAL OF A FREE TRADE AREA AGREEMENT.
    ``Pursuant to sections 102 and 151 of the Trade Act of 1974 (19 
U.S.C. 2112; 2191), the Congress approves--
        ``(1) the Agreement on the Establishment of a Free Trade Area 
    between the Government of the United States of America and the 
    Government of Israel (hereinafter in this Act referred to as `the 
    Agreement') entered into on April 22, 1985, and submitted to the 
    Congress on April 29, 1985, and
        ``(2) the statement of administrative action proposed to 
    implement the Agreement that was submitted to the Congress on April 
    29, 1985.
``SEC. 4. PROCLAMATION AUTHORITY.
    ``(a) Tariff Modifications.--Except as provided in subsection (c), 
the President may proclaim--
        ``(1) such modifications or continuance of any existing duty,
        ``(2) such continuance of existing duty-free or excise 
    treatment, or
        ``(3) such additional duties,
as the President determines to be required or appropriate to carry out 
the schedule of duty reductions with respect to Israel set forth in 
annex 1 of the Agreement.
    ``(b) Additional Tariff Modification Authority.--Except as provided 
in subsection (c), whenever the President determines that it is 
necessary to maintain the general level of reciprocal and mutually 
advantageous concessions with respect to Israel provided for by the 
Agreement, the President may proclaim--
        ``(1) such withdrawal, suspension, modification, or continuance 
    of any duty,
        ``(2) such continuance of existing duty-free or excise 
    treatment, or
        ``(3) such additional duties,
as the President determines to be required or appropriate to carry out 
the Agreement.
    ``(c) Exception to Authority.--No modification of any duty imposed 
on any article provided for in paragraph (4) of annex 1 of the Agreement 
that may be proclaimed under subsection (a) or (b) shall take effect 
prior to January 1, 1995.
``SEC. 5. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES LAW.
    ``(a) United States Statutes To Prevail in Conflict.--No provision 
of the Agreement, nor the application of any such provision to any 
person or circumstance, which is in conflict with--
        ``(1) title IV of the Trade and Tariff Act of 1984 [title IV of 
    Pub. L. 98-573, amending this section and enacting provisions set 
    out below], or
        ``(2) any other statute of the United States,
shall be given effect under the laws of the United States.
    ``(b) Implementing Regulations.--Regulations that are necessary or 
appropriate to carry out actions proposed in any statement of proposed 
administrative action submitted to the Congress under section 102 of the 
Trade Act of 1974 (19 U.S.C. 2112) in order to implement the Agreement 
shall be prescribed. Initial regulations to carry out such action shall 
be issued within one year after the date of the entry into force of the 
Agreement.
    ``(c) Changes in Statutes To Implement a Requirement, Amendment, or 
Recommendation.--
        ``(1) Except as otherwise provided in paragraph (2), the 
    provisions of section 3(c) of the Trade Agreements Act of 1979 (19 
    U.S.C. 2504(c)) shall apply with respect to the Agreement and--
            ``(A) no requirement of, amendment to, or recommendation 
        under the Agreement shall be implemented under United States 
        law, and
            ``(B) no amendment, repeal, or enactment of a statute of the 
        United States to implement any such requirement, amendment, or 
        recommendation shall enter into force with respect to the United 
        States,
    unless there has been compliance with the provisions of section 3(c) 
    of the Trade Agreements Act of 1979.
        ``(2) The provisions of section 3(c)(4) of the Trade Agreements 
    Act of 1979 (19 U.S.C. 2504(c)(4)) shall apply to any bill 
    implementing any requirement of, amendment to, or recommendation 
    made under, the Agreement that reduces or eliminates any duty 
    imposed on any article provided for in paragraph (4) of Annex 1 of 
    the Agreement only if--
            ``(A) any reduction of such duty provided in such bill--
                ``(i) takes effect after December 31, 1989, and
                ``(ii) takes effect gradually over the period that 
            begins on January 1, 1990, and ends on December 31, 1994,
            ``(B) any elimination of such duty provided in such bill 
        does not take effect prior to January 1, 1995, and
            ``(C) the consultations required under section 3(c)(1) of 
        such Act occur at least ninety days prior to the date on which 
        such bill is submitted to the Congress under section 3(c) of 
        such Act.
    ``(d) Private Remedies Not Created.--Neither the entry into force of 
the Agreement with respect to the United States, nor the enactment of 
this Act, shall be construed as creating any private right of action or 
remedy for which provision is not explicitly made under this Act or 
under the laws of the United States.
``SEC. 6. TERMINATION.
    ``The provisions of section 125(a) of the Trade Act of 1974 (19 
U.S.C. 2135(a)) shall not apply to the Agreement.
``SEC. 7. LOWERED THRESHOLD FOR GOVERNMENT PROCUREMENT UNDER TRADE 
        AGREEMENTS ACT OF 1979 IN THE CASE OF CERTAIN ISRAELI PRODUCTS.
    [Section amended section 2518(4)(C) of this title.]
``SEC. 8. TECHNICAL AMENDMENTS.
    [Section amended title IV of Pub. L. 98-573, set out as a note 
below, this section, and sections 2462 to 2464 of this title.]
``SEC. 9. ADDITIONAL PROCLAMATION AUTHORITY.
    ``(a) Elimination or Modifications of Duties.--The President is 
authorized to proclaim elimination or modification of any existing duty 
as the President determines is necessary to exempt any article from duty 
if--
        ``(1) that article is wholly the growth, product, or manufacture 
    of the West Bank, the Gaza Strip, or a qualifying industrial zone or 
    is a new or different article of commerce that has been grown, 
    produced, or manufactured in the West Bank, the Gaza Strip, or a 
    qualifying industrial zone;
        ``(2) that article is imported directly from the West Bank, the 
    Gaza Strip, Israel, or a qualifying industrial zone; and
        ``(3) the sum of--
            ``(A) the cost or value of the materials produced in the 
        West Bank, the Gaza Strip, Israel, or a qualifying industrial 
        zone, plus
            ``(B) the direct costs of processing operations performed in 
        the West Bank, the Gaza Strip, Israel, or a qualifying 
        industrial zone,
    is not less than 35 percent of the appraised value of the product at 
    the time it is entered into the United States.
For purposes of determining the 35 percent content requirement contained 
in paragraph (3), the cost or value of materials which are used in the 
production of an article in the West Bank, the Gaza Strip, or a 
qualifying industrial zone, and are the products of the United States, 
may be counted in an amount up to 15 percent of the appraised value of 
the article.
    ``(b) Applicability of Certain Provisions of the Agreement.--
        ``(1) Nonqualifying operations.--No article shall be considered 
    a new or different article of commerce under this section, and no 
    material shall be included for purposes of determining the 35 
    percent requirement of subsection (a)(3), by virtue of having merely 
    undergone--
            ``(A) simple combining or packaging operations, or
            ``(B) mere dilution with water or with another substance 
        that does not materially alter the characteristics of the 
        article or material.
        ``(2) Requirements for new or different article of commerce.--
    For purposes of subsection (a)(1), an article is a `new or different 
    article of commerce' if it is substantially transformed into an 
    article having a new name, character, or use.
        ``(3) Cost or value of materials.--(A) For purposes of this 
    section, the cost or value of materials produced in the West Bank, 
    the Gaza Strip, or a qualifying industrial zone includes--
            ``(i) the manufacturer's actual cost for the materials;
            ``(ii) when not included in the manufacturer's actual cost 
        for the materials, the freight, insurance, packing, and all 
        other costs incurred in transporting the materials to the 
        manufacturer's plant;
            ``(iii) the actual cost of waste or spoilage, less the value 
        of recoverable scrap; and
            ``(iv) taxes or duties imposed on the materials by the West 
        Bank, the Gaza Strip, or a qualifying industrial zone, if such 
        taxes or duties are not remitted on exportation.
        ``(B) If a material is provided to the manufacturer without 
    charge, or at less than fair market value, its cost or value shall 
    be determined by computing the sum of--
            ``(i) all expenses incurred in the growth, production, or 
        manufacture of the material, including general expenses;
            ``(ii) an amount for profit; and
            ``(iii) freight, insurance, packing, and all other costs 
        incurred in transporting the material to the manufacturer's 
        plant.
    If the information necessary to compute the cost or value of a 
    material is not available, the Customs Service may ascertain or 
    estimate the value thereof using all reasonable methods.
        ``(4) Direct costs of processing operations.--(A) For purposes 
    of this section, the `direct costs of processing operations 
    performed in the West Bank, Gaza Strip, or a qualifying industrial 
    zone' with respect to an article are those costs either directly 
    incurred in, or which can be reasonably allocated to, the growth, 
    production, manufacture, or assembly, of that article. Such costs 
    include, but are not limited to, the following to the extent that 
    they are includible in the appraised value of articles imported into 
    the United States:
            ``(i) All actual labor costs involved in the growth, 
        production, manufacture, or assembly of the article, including 
        fringe benefits, on-the-job training, and costs of engineering, 
        supervisory, quality control, and similar personnel.
            ``(ii) Dies, molds, tooling, and depreciation on machinery 
        and equipment which are allocable to the article.
            ``(iii) Research, development, design, engineering, and 
        blueprint costs insofar as they are allocable to the article.
            ``(iv) Costs of inspecting and testing the article.
        ``(B) Those items that are not included as direct costs of 
    processing operations with respect to an article are those which are 
    not directly attributable to the article or are not costs of 
    manufacturing the article. Such items include, but are not limited 
    to--
            ``(i) profit; and
            ``(ii) general expenses of doing business which are either 
        not allocable to the article or are not related to the growth, 
        production, manufacture, or assembly of the article, such as 
        administrative salaries, casualty and liability insurance, 
        advertising, and salesmen's salaries, commissions, or expenses.
        ``(5) Imported directly.--For purposes of this section--
            ``(A) articles are `imported directly' if--
                ``(i) the articles are shipped directly from the West 
            Bank, the Gaza Strip, a qualifying industrial zone, or 
            Israel into the United States without passing through the 
            territory of any intermediate country; or
                ``(ii) if shipment is through the territory of an 
            intermediate country, the articles in the shipment do not 
            enter into the commerce of any intermediate country and the 
            invoices, bills of lading, and other shipping documents 
            specify the United States as the final destination; or
            ``(B) if articles are shipped through an intermediate 
        country and the invoices and other documents do not specify the 
        United States as the final destination, then the articles in the 
        shipment, upon arrival in the United States, are imported 
        directly only if they--
                ``(i) remain under the control of the customs authority 
            in an intermediate country;
                ``(ii) do not enter into the commerce of an intermediate 
            country except for the purpose of a sale other than at 
            retail, but only if the articles are imported as a result of 
            the original commercial transactions between the importer 
            and the producer or the producer's sales agent; and
                ``(iii) have not been subjected to operations other than 
            loading, unloading, or other activities necessary to 
            preserve the article in good condition.
        ``(6) Documentation required.--An article is eligible for the 
    duty exemption under this section only if--
            ``(A) the importer certifies that the article meets the 
        conditions for the duty exemption; and
            ``(B) when requested by the Customs Service, the importer, 
        manufacturer, or exporter submits a declaration setting forth 
        all pertinent information with respect to the article, including 
        the following:
                ``(i) A description of the article, quantity, numbers, 
            and marks of packages, invoice numbers, and bills of lading.
                ``(ii) A description of the operations performed in the 
            production of the article in the West Bank, the Gaza Strip, 
            a qualifying industrial zone, or Israel and identification 
            of the direct costs of processing operations.
                ``(iii) A description of any materials used in 
            production of the article which are wholly the growth, 
            product, or manufacture of the West Bank, the Gaza Strip, a 
            qualifying industrial zone, Israel or United States, and a 
            statement as to the cost or value of such materials.
                ``(iv) A description of the operations performed on, and 
            a statement as to the origin and cost or value of, any 
            foreign materials used in the article which are claimed to 
            have been sufficiently processed in the West Bank, the Gaza 
            Strip, a qualifying industrial zone, or Israel so as to be 
            materials produced in the West Bank, the Gaza Strip, a 
            qualifying industrial zone, or Israel.
                ``(v) A description of the origin and cost or value of 
            any foreign materials used in the article which have not 
            been substantially transformed in the West Bank, the Gaza 
            Strip, or a qualifying industrial zone.
    ``(c) Shipment of Articles of Israel Through West Bank or Gaza 
Strip.--The President is authorized to proclaim that articles of Israel 
may be treated as though they were articles directly shipped from Israel 
for the purposes of the Agreement even if shipped to the United States 
from the West Bank, the Gaza Strip, or a qualifying industrial zone, if 
the articles otherwise meet the requirements of the Agreement.
    ``(d) Treatment of Cost or Value of Materials.--The President is 
authorized to proclaim that the cost or value of materials produced in 
the West Bank, the Gaza Strip, or a qualifying industrial zone may be 
included in the cost or value of materials produced in Israel under 
section 1(c)(i) of Annex 3 of the Agreement, and the direct costs of 
processing operations performed in the West Bank, the Gaza Strip, or a 
qualifying industrial zone may be included in the direct costs of 
processing operations performed in Israel under section 1(c)(ii) of 
Annex 3 of the Agreement.
    ``(e) Qualifying Industrial Zone Defined.--For purposes of this 
section, a `qualifying industrial zone' means any area that--
        ``(1) encompasses portions of the territory of Israel and Jordan 
    or Israel and Egypt;
        ``(2) has been designated by local authorities as an enclave 
    where merchandise may enter without payment of duty or excise taxes; 
    and
        ``(3) has been specified by the President as a qualifying 
    industrial zone.''


                      Trade Agreements With Israel

    Pub. L. 98-573, title IV, Secs. 402-405, formerly Secs. 402-404, 
406, Oct. 30, 1984, 98 Stat. 3015-3017, as renumbered and amended by 
Pub. L. 99-47, Sec. 8(a), June 11, 1985, 99 Stat. 84; Pub. L. 99-514, 
title XVIII, Sec. 1889(6), Oct. 22, 1986, 100 Stat. 2926; Pub. L. 100-
418, title I, Secs. 1214(s)(4), 1401(b)(3), Aug. 23, 1988, 102 Stat. 
1160, 1240, provided that:
``SEC. 402. CRITERIA FOR DUTY-FREE TREATMENT OF ARTICLES.
    ``(a)(1) The reduction or elimination of any duty imposed on any 
article by the United States provided for in a trade agreement entered 
into with Israel under section 102(b)(1) of the Trade Act of 1974 [19 
U.S.C. 2112(b)(1)] shall apply only if--
        ``(A) that article is the growth, product, or manufacture of 
    Israel or is a new or different article of commerce that has been 
    grown, produced, or manufactured in Israel;
        ``(B) that article is imported directly from Israel into the 
    customs territory of the United States; and
        ``(C) the sum of--
            ``(i) the cost of value of the materials produced in Israel, 
        plus
            ``(ii) the direct costs of processing operations performed 
        in Israel,
    is not less than 35 percent of the appraised value of such article 
    at the time it is entered.
If the cost or value of materials produced in the customs territory of 
the United States is included with respect to an article to which this 
subsection applies, an amount not to exceed 15 percent of the appraised 
value of the article at the time it is entered that is attributable to 
such United States cost or value may be applied toward determining the 
percentage referred to in subparagraph (C).
    ``(2) No article may be considered to meet the requirements of 
paragraph (1)(A) by virtue of having merely undergone--
        ``(A) simple combining or packaging operations; or
        ``(B) mere dilution with water or mere dilution with another 
    substance that does not materially alter the characteristics of the 
    article.
    ``(b) As used in this section, the phrase `direct costs of 
processing operations' includes, but is not limited to--
        ``(1) all actual labor costs involved in the growth, production, 
    manufacture, or assembly of the specific merchandise, including 
    fringe benefits, on-the-job training and the cost of engineering, 
    supervisory, quality control, and similar personnel; and
        ``(2) dies, molds, tooling, and depreciation on machinery and 
    equipment which are allocable to the specific merchandise.
Such phrase does not include costs which are not directly attributable 
to the merchandise concerned, or are not costs of manufacturing the 
product, such as (A) profit, and (B) general expenses of doing business 
which are either not allocable to the specific merchandise or are not 
related to the growth, production, manufacture, or assembly of the 
merchandise, such as administrative salaries, casualty and liability 
insurance, advertising, and salesmen's salaries, commissions or 
expenses.
    ``(c) Regulations.--The Secretary of the Treasury, after 
consultation with the United States Trade Representative, shall 
prescribe such regulations as may be necessary to carry out this 
section.
``SEC. 403. APPLICATION OF CERTAIN OTHER TRADE LAW PROVISIONS.
    ``(a) Suspension of Duty-Free Treatment.--The President may by 
proclamation suspend the reduction or elimination of any duty provided 
under any trade agreement provision entered into with Israel under the 
authority of section 102(b)(1) of the Trade Act of 1974 [19 U.S.C. 
2112(b)(1)] with respect to any article and may proclaim a duty rate for 
such article if such action is proclaimed under section 203 of the Trade 
Act of 1974 [19 U.S.C. 2253] or section 232 of the Trade Expansion Act 
of 1962 [19 U.S.C. 1862].
    ``(b) ITC Reports.--In any report by the United States International 
Trade Commission (hereinafter referred to in this title [this note] as 
the `Commission') to the President under section 202(f) of the Trade Act 
of 1974 [19 U.S.C. 2252(f)] regarding any article for which a reduction 
or elimination of any duty is provided under a trade agreement entered 
into with Israel under section 102(b)(1) of the Trade Act of 1974 [19 
U.S.C. 2112(b)(1)], the Commission shall state whether and to what 
extent its findings and recommendations apply to such an article when 
imported from Israel.
    ``(c) For purposes of section 203 of the Trade Act of 1974 [19 
U.S.C. 2253], the suspension of the reduction or elimination of a duty 
under subsection (a) shall be treated as an increase in duty.
    ``(d) No proclamation which provides solely for a suspension 
referred to in subsection (a) with respect to any article shall be made 
under section 203 of the Trade Act of 1974 [19 U.S.C. 2253], unless the 
Commission, in addition to making an affirmative determination with 
respect to such article under section 202(b) of the Trade Act of 1974 
[19 U.S.C. 2252(b)], determines in the course of its investigation under 
that section that the serious injury (or threat thereof) substantially 
caused by imports to the domestic industry producing a like or directly 
competitive article results from the reduction or elimination of any 
duty provided under any trade agreement provision entered into with 
Israel under section 102(b)(1) of the Trade Act of 1974 [19 U.S.C. 
2112(b)(1)].
    ``(e)(1) Any proclamation issued under section 203 of the Trade Act 
of 1974 [19 U.S.C. 2253] that is in effect when an agreement with Israel 
is entered into under section 102(b)(1) of the Trade Act of 1974 [19 
U.S.C. 2112(b)(1)] shall remain in effect until modified or terminated.
    ``(2) If any article is subject to import relief at the time an 
agreement is entered into with Israel under section 102(b)(1) of the 
Trade Act of 1974 [19 U.S.C. 2112(b)(1)], the President may reduce or 
terminate the application of such import relief to the importation of 
such article before the otherwise scheduled date on which such reduction 
or termination would occur pursuant to the criteria and procedures of 
sections 203 and 204 of the Trade Act of 1974 [19 U.S.C. 2253, 2254].
``SEC. 404. FAST TRACK PROCEDURES FOR PERISHABLE ARTICLES.
    ``(a) If a petition is filed with the Commission under the 
provisions of section 202(a) of the Trade Act of 1974 [19 U.S.C. 
2252(a)] regarding a perishable product which is subject to any 
reduction or elimination of a duty imposed by the United States under a 
trade agreement entered into with Israel under section 102(b)(1) of the 
Trade Act of 1974 [19 U.S.C. 2112(b)(1)] and alleges injury from imports 
of that product, then the petition may also be filed with the Secretary 
of Agriculture with a request that emergency relief be granted under 
subsection (c) with respect to such article.
    ``(b) Within 14 days after the filing of a petition under subsection 
(a)--
        ``(1) if the Secretary of Agriculture has reason to believe that 
    a perishable product from Israel is being imported into the United 
    States in such increased quantities as to be a substantial cause of 
    serious injury, or the threat thereof, to the domestic industry 
    producing a perishable product like or directly competitive with the 
    imported product and that emergency action is warranted, he shall 
    advise the President and recommend that the President take emergency 
    action; or
        ``(2) the Secretary of Agriculture shall publish a notice of his 
    determination not to recommend the imposition of emergency action 
    and so advise the petitioner.
    ``(c) Within 7 days after the President receives a recommendation 
from the Secretary of Agriculture to take emergency action under 
subsection (b), he shall issue a proclamation withdrawing the reduction 
or elimination of duty provided to the perishable product under any 
trade agreement provision entered into under section 102(b)(1) of the 
Trade Act of 1974 [19 U.S.C. 2112(b)(1)] or publish a notice of his 
determination not to take emergency action.
    ``(d) The emergency action provided under subsection (c) shall cease 
to apply--
        ``(1) upon the taking of actions under section 203 of the Trade 
    Act of 1974 [19 U.S.C. 2253];
        ``(2) on the day a determination of the President under section 
    203 of such Act [19 U.S.C. 2253] not to take action becomes final;
        ``(3) in the event of a report of the Commission containing a 
    negative finding, on the day the Commission's report is submitted to 
    the President; or
        ``(4) whenever the President determines that because of changed 
    circumstances such relief is no longer warranted.
    ``(e) For purposes of this section, the term `perishable product' 
means any--
        ``(1) live plants and fresh cut flowers provided for in chapter 
    6 of the Harmonized Tariff Schedule of the United States (19 U.S.C. 
    1202, hereinafter referred to as the `HTS');
        ``(2) vegetables, edible nuts or fruit provided for in chapters 
    7 and 8, heading 1105, subheadings 1106.10.00 and 1106.30, heading 
    1202, subheadings 1214.90.00 and 1704.90.60, headings 2001 through 
    2008 (excluding subheadings 2001.90.20 and 2004.90.10) and 
    subheading 2103.20.40 of the HTS;
        ``(3) concentrated citrus fruit juice provided for in 
    subheadings 2009.11.00, 2009.19.40, 2009.20.40, 2009.30.20, and 
    2009.30.60 of the HTS.
    ``(f) No trade agreement entered into with Israel under section 
102(b)(1) of the Trade Act of 1974 [19 U.S.C. 2112(b)(1)] shall affect 
fees imposed under section 22 of the Agricultural Adjustment Act (7 
U.S.C. 624).
``SEC. 405. CONSTRUCTION OF TITLE.
    ``Neither the taking effect of any trade agreement provision entered 
into with Israel under section 102(b)(1) [19 U.S.C. 2112(b)(1)], nor any 
proclamation issued to implement any such provision, may affect in any 
manner, or to any extent, the application to any Israeli articles of 
section 232 of the Trade Expansion Act of 1962 [19 U.S.C. 1862], section 
337 of title VII [probably should be ``title III'' of the Tariff Act of 
1930 [19 U.S.C. 1337], chapter 1 of title II and chapter 1 of title III 
of the Trade Act of 1974 [19 U.S.C. 2251 et seq., 2411 et seq.], or any 
other provision of law under which relief from injury caused by import 
competition or by unfair import trade practices may be sought.''
    [Amendment of section 404 of Pub. L. 98-573 by section 1214(s)(4) of 
Pub. L. 100-418 effective Jan. 1, 1989, and applicable with respect to 
articles entered on or after such date, see section 1217(b)(1) of Pub. 
L. 100-418, set out as an Effective Date note under section 3001 of this 
title.]
    [Amendment of sections 403 and 404 of Pub. L. 98-573 by section 1401 
of Pub. L. 100-418 effective Aug. 23, 1988, and applicable with respect 
to investigations initiated under part 1 (Sec. 2251 et seq.) of 
subchapter II of this chapter on or after that date, see section 1401(c) 
of Pub. L. 100-418, set out as an Effective Date of 1988 Amendment note 
under section 2251 of this title.]
    [The Harmonized Tariff Schedule of the United States is not set out 
in the Code. See Publication of Harmonized Tariff Schedule note set out 
under section 1202 of this title.]


  Presidential Determination Regarding Multilateral Trade Negotiations

    For provisions relating to Presidential determination regarding 
multilateral trade negotiations and Presidential determination regarding 
acceptance and application of certain international trade agreements, 
see notes set out under section 2503 of this title.

    Ex. Ord. No. 12662. Implementing United States-Canada Free-Trade 
                           Implementation Act

    Ex. Ord. No. 12662, Dec. 31, 1988, 54 F.R. 785, as amended by Ex. 
Ord. No. 12889, Sec. 4(c), Dec. 27, 1993, 58 F.R. 69681, provided:
    By virtue of the authority vested in me as President by the 
Constitution and laws of the United States of America, including the 
United States-Canada Free-Trade Agreement Implementation Act of 1988 
(Public Law 100-449, 102 Stat. 1851) (``FTA Implementation Act'') [set 
out as a note above], it is hereby ordered as follows:
    Section 1. [Superseded by Ex. Ord. No. 12889, Sec. 4(c), Dec. 27, 
1993, 58 F.R. 69681, see 19 U.S.C. 3311 note.]
    Sec. 2. Establishment of United States Secretariat. Pursuant to 
subsection 405(e) of the FTA Implementation Act, a ``United States 
Secretariat'' shall be established within the International Trade 
Administration of the Department of Commerce. The Secretariat shall 
facilitate:
    (1) the operation of Chapters 18 and 19 of the Free-Trade Agreement, 
and
    (2) the work of the binational panels and extraordinary challenge 
committees convened under those Chapters.
    Sec. 3. Acceptance by the President of Panel and Committee 
Decisions. In accordance with subsection 401(c) of the FTA 
Implementation Act, in the event that the provisions of subparagraph 
516A(g)(7)(B) of the Tariff Act of 1930, as amended, 19 U.S.C. section 
1516a(g)(7)(B), take effect, I accept, as a whole, all decisions of 
binational panels and extraordinary challenge committees.
    Sec. 4. Judicial Review. This Order does not create any right or 
benefit, substantive or procedural, enforceable at law by a party 
against the United States, its agencies, its officers, or any person.
    Sec. 5. Effective Date. This Order shall take effect upon the entry 
into force of the Free-Trade Agreement.

      Ex. Ord. No. 13141. Environmental Review of Trade Agreements

    Ex. Ord. No. 13141, Nov. 16, 1999, 64 F.R. 63169, provided:
    By the authority vested in me as President by the Constitution and 
the laws of the United States of America, and in order to further the 
environmental and trade policy goals of the United States, it is hereby 
ordered as follows:
    Section 1. Policy. The United States is committed to a policy of 
careful assessment and consideration of the environmental impacts of 
trade agreements. The United States will factor environmental 
considerations into the development of its trade negotiating objectives. 
Responsible agencies will accomplish these goals through a process of 
ongoing assessment and evaluation, and, in certain instances, written 
environmental reviews.
    Sec. 2. Purpose and Need. Trade agreements should contribute to the 
broader goal of sustainable development. Environmental reviews are an 
important tool to help identify potential environmental effects of trade 
agreements, both positive and negative, and to help facilitate 
consideration of appropriate responses to those effects whether in the 
course of negotiations, through other means, or both.
    Sec. 3. (a) Implementation. The United States Trade Representative 
(Trade Representative) and the Chair of the Council on Environmental 
Quality shall oversee the implementation of this order, including the 
development of procedures pursuant to this order, in consultation with 
appropriate foreign policy, environmental, and economic agencies.
    (b) Conduct of Environmental Reviews. The Trade Representative, 
through the interagency Trade Policy Staff Committee (TPSC), shall 
conduct the environmental reviews of the agreements under section 4 of 
this order.
    Sec. 4. Trade Agreements.
    (a) Certain agreements that the United States may negotiate shall 
require an environmental review. These include:
    (i) comprehensive multilateral trade rounds;
    (ii) bilateral or plurilateral free trade agreements; and
    (iii) major new trade liberalization agreements in natural resource 
sectors.
    (b) Agreements reached in connection with enforcement and dispute 
resolution actions are not covered by this order.
    (c) For trade agreements not covered under subsections 4(a) and (b), 
environmental reviews will generally not be required. Most sectoral 
liberalization agreements will not require an environmental review. The 
Trade Representative, through the TPSC, shall determine whether an 
environmental review of an agreement or category of agreements is 
warranted based on such factors as the significance of reasonably 
foreseeable environmental impacts.
    Sec. 5. Environmental Reviews.
    (a) Environmental reviews shall be:
    (i) written;
    (ii) initiated through a Federal Register notice, outlining the 
proposed agreement and soliciting public comment and information on the 
scope of the environmental review of the agreement;
    (iii) undertaken sufficiently early in the process to inform the 
development of negotiating positions, but shall not be a condition for 
the timely tabling of particular negotiating proposals;
    (iv) made available in draft form for public comment, where 
practicable; and
    (v) made available to the public in final form.
    (b) As a general matter, the focus of environmental reviews will be 
impacts in the United States. As appropriate and prudent, reviews may 
also examine global and transboundary impacts.
    Sec. 6. Resources. Upon request by the Trade Representative, with 
the concurrence of the Deputy Director for Management of the Office of 
Management and Budget, Federal agencies shall, to the extent permitted 
by law and subject to the availability of appropriations, provide 
analytical and financial resources and support, including the detail of 
appropriate personnel, to the Office of the United States Trade 
Representative to carry out the provisions of this order.
    Sec. 7. General Provisions. This order is intended only to improve 
the internal management of the executive branch and does not create any 
right, benefit, trust, or responsibility, substantive or procedural, 
enforceable at law or equity by a party against the United States, its 
agencies, its officers, or any person.
                                                     William J. Clinton.

  Delegation of Authority Under Section 103(a) of United States-Canada 
             Free-Trade Agreement Implementation Act of 1988

    Memorandum of President of the United States, Feb. 11, 1991, 56 F.R. 
6789, provided:
    Memorandum for the United States Trade Representative
    By virtue of the authority vested in me as President by the 
Constitution and laws of the United States, including section 301 of 
title 3 of the United States Code, you are hereby delegated the 
authority to perform the functions necessary to fulfill the consultation 
and lay-over requirements set forth in section 103(a)(1) through (4) of 
the United States-Canada Free-Trade Agreement Implementation Act of 1988 
(``the Act'') [Pub. L. 100-449, set out as a note above], including:
    (1) obtaining advice from the appropriate advisory committees and 
the U.S. International Trade Commission on the proposed implementation 
of an action by Presidential proclamation;
    (2) submitting a report on such action to the House Ways and Means 
and Senate Finance Committees; and
    (3) consulting with such committees during the 60-day period 
following the date on which the requirements under (1) and (2) have been 
met.
    The President retains the sole authority under the Act to implement 
an action by proclamation after the consultation and lay-over 
requirements set forth in section 103(a)(1) through (4) have been met.
    You are authorized and directed to publish this memorandum in the 
Federal Register.
                                                            George Bush.

                  Section Referred to in Other Sections

    This section is referred to in sections 2113, 2114, 2114a, 2115, 
2116, 2117, 2118, 2191, 2194, 2503, 2504, 2904 of this title; title 22 
section 5342.
