                        TITLE 19--CUSTOMS DUTIES
 
     CHAPTER 17--NEGOTIATION AND IMPLEMENTATION OF TRADE AGREEMENTS
 
Sec. 2905. Accession of state trading regimes to General 
        Agreement on Tariffs and Trade or WTO
        

(a) In general

    Before any major foreign country accedes, after August 23, 1988, to 
the GATT 1947, or to the WTO Agreement, the President shall determine--
        (1) whether state trading enterprises account for a significant 
    share of--
            (A) the exports of such major foreign country, or
            (B) the goods of such major foreign country that are subject 
        to competition from goods imported into such foreign country; 
        and

        (2) whether such state trading enterprises--
            (A) unduly burden and restrict, or adversely affect, the 
        foreign trade of the United States or the United States economy, 
        or
            (B) are likely to result in such a burden, restriction, or 
        effect.

(b) Effects of affirmative determination

    If both of the determinations made under paragraphs (1) and (2) of 
subsection (a) of this section with respect to a major foreign country 
are affirmative--
        (1) the President shall reserve the right of the United States 
    to withhold extension of the application of the GATT 1947 or the WTO 
    Agreement, between the United States and such major foreign country, 
    and
        (2) the GATT 1947 or the WTO Agreement shall not apply between 
    the United States and such major foreign country until--
            (A) such foreign country enters into an agreement with the 
        United States providing that the state trading enterprises of 
        such foreign country--
                (i) will--
                    (I) make purchases which are not for the use of such 
                foreign country, and
                    (II) make sales in international trade,

          in accordance with commercial considerations (including price, 
            quality, availability, marketability, and transportation), 
            and
                (ii) will afford United States business firms adequate 
            opportunity, in accordance with customary practice, to 
            compete for participation in such purchases or sales; or

            (B) a bill submitted under subsection (c) of this section 
        which approves of the extension of the application of the GATT 
        1947 or the WTO Agreement between the United States and such 
        major foreign country is enacted into law.

(c) Expedited consideration of bill to approve extension

    (1) The President may submit to the Congress any draft of a bill 
which approves of the extension of the application of the GATT 1947 or 
the WTO Agreement between the United States and a major foreign country.
    (2) Any draft of a bill described in paragraph (1) that is submitted 
by the President to the Congress shall--
        (A) be introduced by the majority leader of each House of the 
    Congress (by request) on the first day on which such House is in 
    session after the date such draft is submitted to the Congress; and
        (B) shall be treated as an implementing bill for purposes of 
    subsections (d), (e), (f), and (g) of section 2191 of this title.

(d) Publication

    The President shall publish in the Federal Register each 
determination made under subsection (a) of this section.

(e) Definitions

    For purposes of this section:
        (1) The term ``GATT 1947'' has the meaning given that term in 
    section 3501(1)(A) of this title.
        (2) The term ``WTO Agreement'' means the Agreement Establishing 
    the World Trade Organization entered into on April 15, 1994 and the 
    multilateral trade agreements (as such term is defined in section 
    3501(4) of this title).

(Pub. L. 100-418, title I, Sec. 1106, Aug. 23, 1988, 102 Stat. 1133; 
Pub. L. 103-465, title VI, Sec. 621(a)(4), Dec. 8, 1994, 108 Stat. 4993; 
Pub. L. 104-295, Sec. 20(f)(3), Oct. 11, 1996, 110 Stat. 3529.)


                               Amendments

    1996--Pub. L. 104-295 substituted ``or WTO'' for ``for WTO'' in 
section catchline.
    1994--Pub. L. 103-465, Sec. 621(a)(4)(D), inserted ``for WTO'' after 
``Trade'' in section catchline.
    Subsec. (a). Pub. L. 103-465, Sec. 621(a)(4)(A), substituted ``the 
GATT 1947, or to the WTO Agreement,'' for ``the GATT'' in introductory 
provisions.
    Subsecs. (b), (c). Pub. L. 103-465, Sec. 621(a)(4)(B), inserted 
``1947 or the WTO Agreement'' after ``the GATT'' wherever appearing.
    Subsec. (e). Pub. L. 103-465, Sec. 621(a)(4)(C), added subsec. (e).


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-465 effective on the date on which the WTO 
Agreement enters into force with respect to the United States [Jan. 1, 
1995], see section 621(b) of Pub. L. 103-465, set out as a note under 
section 1677k of this title.

                         Delegation of Functions

    For delegation of certain functions of President under this section 
to United States Trade Representative, see section 1-101 of Ex. Ord. No. 
12661, Dec. 27, 1988, 54 F.R. 779, set out as a note under section 2901 
of this title.
