[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2400 Placed on Calendar Senate (PCS)]





                                                       Calendar No. 517

105th CONGRESS

  2d Session

                                S. 2400

                          [Report No. 105-280]

_______________________________________________________________________

                                 A BILL

To authorize the negotiation of reciprocal trade agreements, implement 
     certain trade agreements, extend trade preferences to certain 
developing countries, extend the trade adjustment assistance programs, 
                        and for other purposes.

_______________________________________________________________________

                             July 31, 1998

                 Read twice and placed on the calendar





                                                       Calendar No. 517
105th CONGRESS
  2d Session
                                S. 2400

                          [Report No. 105-280]

To authorize the negotiation of reciprocal trade agreements, implement 
     certain trade agreements, extend trade preferences to certain 
developing countries, extend the trade adjustment assistance programs, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 31, 1998

    Mr. Roth, from the Committee on Finance, reported the following 
     original bill; which was read twice and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
To authorize the negotiation of reciprocal trade agreements, implement 
     certain trade agreements, extend trade preferences to certain 
developing countries, extend the trade adjustment assistance programs, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Trade and Tariff 
Act of 1998''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
                     TITLE I--TRADE AND DEVELOPMENT

            Subtitle A--Trade Policy for Sub-Saharan Africa

Sec. 1001. Short title.
Sec. 1002. Findings.
Sec. 1003. Statement of policy.
Sec. 1004. Eligibility for certain benefits.
Sec. 1005. Treatment of certain textiles and apparel.
Sec. 1006. United States-Sub-Saharan African Trade and Economic 
                            Cooperation Forum.
Sec. 1007. United States-sub-Saharan Africa free trade area.
Sec. 1008. Reporting requirement.
Sec. 1009. Sub-Saharan Africa defined.
             Subtitle B--Generalized System of Preferences.

Sec. 1101. Extension of duty-free treatment under general system of 
                            preferences
Sec. 1102. Effective date.
         Subtitle C--United States-Caribbean Trade Enhancement

Sec. 1201. Short title.
Sec. 1202. Findings and policy.
Sec. 1203. Definitions.
Sec. 1204. Temporary provisions to provide additional trade benefits to 
                            certain beneficiary countries.
Sec. 1205. Adequate and effective protection for intellectual property 
                            rights.
                 TITLE II--RECIPROCAL TRADE AGREEMENTS

Sec. 2001. Short title.
Sec. 2002. Trade negotiating objectives of the United States.
Sec. 2003. Trade agreement negotiating authority.
Sec. 2004. Notice and consultations.
Sec. 2005. Implementation of trade agreements.
Sec. 2006. Treatment of certain trade agreements.
Sec. 2007. Conforming amendments.
Sec. 2008. Definitions.
                 TITLE III--TRADE ADJUSTMENT ASSISTANCE

Sec. 3001. Trade adjustment assistance.
    TITLE IV--MARKET ACCESS IDENTIFICATION FOR CERTAIN AGRICULTURAL 
                                PRODUCTS

Sec. 4001. Short title.
Sec. 4002. Purposes.
Sec. 4003. Identification of countries that deny market access.
Sec. 4004. Investigations.
  TITLE V--APPROVAL AND IMPLEMENTATION OF OECD SHIPBUILDING AGREEMENT

Sec. 5001. Short title; purposes.
                     Subtitle A--General Provisions

Sec. 5101. Approval of the Shipbuilding Agreement.
Sec. 5102. Injurious pricing and countermeasures relating to 
                            shipbuilding.
Sec. 5103. Enforcement of countermeasures.
Sec. 5104. Judicial review in injurious pricing and countermeasure 
                            proceedings.
                      Subtitle B--Other Provisions

Sec. 5201. Equipment and repair of vessels.
Sec. 5202. Effect of Shipbuilding Agreement with respect to private 
                            remedies.
Sec. 5203. Implementing regulations.
Sec. 5204. Amendments to the Merchant Marine Act, 1936.
Sec. 5205. Applicability of title XI amendments.
Sec. 5206. Monitoring and enforcement.
Sec. 5207 Jones Act and related laws not affected.
Sec. 5208. Withdrawal from Shipbuilding Agreement.
Sec. 5209. Expanding membership in the Shipbuilding Agreement.
Sec. 5210. Protection of United States security interests.
Sec. 5211. Definitions.
                       Subtitle C--Effective Date

Sec. 5301. Effective date.
          TITLE VI--MISCELLANEOUS TRADE AND TARIFF PROVISIONS

      Subtitle A--Extension of Normal Trade Relations to Mongolia

Sec. 6001. Congressional findings.
Sec. 6002. Termination of application of title IV of the Trade Act of 
                            1974 to Mongolia.
              Subtitle B--Miscellaneous Tariff Provisions

Sec. 6101. Duty treatment of certain fabrics.
Sec. 6102. Temporary duty suspension for personal effects of 
                            participants in certain world athletic 
                            events.
Sec. 6103. Extension of United States Insular Possession Program.
Sec. 6104. Gum arabic.
Sec. 6105. Mobile offshore drilling units.
                     TITLE VII--REVENUE PROVISIONS

Sec. 7001. Capital construction fund conforming amendment.
Sec. 7002. Modification to foreign tax credit carryback and carryover 
                            periods.

                     TITLE I--TRADE AND DEVELOPMENT

            Subtitle A--Trade Policy for Sub-Saharan Africa

SEC. 1001. SHORT TITLE.

    This subtitle may be cited as the ``African Growth and Opportunity 
Act''.

SEC. 1002. FINDINGS.

    Congress finds that--
            (1) it is in the mutual interest of the United States and 
        the countries of sub-Saharan Africa to promote stable and 
        sustainable economic growth and development in sub-Saharan 
        Africa;
            (2) the 48 countries of sub-Saharan Africa form a region 
        richly endowed with both natural and human resources;
            (3) sub-Saharan Africa represents a region of enormous 
        economic potential and of enduring political significance to 
        the United States;
            (4) the region has experienced a rise in both economic 
        development and political freedom as countries in sub-Saharan 
        Africa have taken steps toward liberalizing their economies and 
        encouraged broader participation in the political process;
            (5) the countries of sub-Saharan Africa have made progress 
        toward regional economic integration that can have positive 
        benefits for the region;
            (6) despite those gains, the per capita income in sub-
        Saharan Africa averages less than $500 annually;
            (7) United States foreign direct investment in the region 
        has fallen in recent years and the sub-Saharan African region 
        receives only minor inflows of direct investment from around 
        the world;
            (8) trade between the United States and sub-Saharan Africa, 
        apart from the import of oil, remains an insignificant part of 
        total United States trade;
            (9) trade and investment, as the American experience has 
        shown, can represent powerful tools both for economic 
        development and for building a stable political environment in 
        which political freedom can flourish;
            (10) increased trade and investment flows have the greatest 
        impact in an economic environment in which trading partners 
        eliminate barriers to trade and capital flows and encourage the 
        development of a vibrant private sector that offers individual 
        African citizens the freedom to expand their economic 
        opportunities and provide for their families;
            (11) offering the countries of sub-Saharan Africa enhanced 
        trade preferences will encourage both higher levels of trade 
        and direct investment in support of the positive economic and 
        political developments under way throughout the region; and
            (12) encouraging the reciprocal reduction of trade and 
        investment barriers in Africa will enhance the benefits of 
        trade and investment for the region as well as enhance 
        commercial and political ties between the United States and 
        sub-Saharan Africa.

SEC. 1003. STATEMENT OF POLICY.

    Congress supports--
            (1) encouraging increased trade and investment between the 
        United States and sub-Saharan Africa;
            (2) reducing tariff and nontariff barriers and other 
        obstacles to sub-Saharan African and United States trade;
            (3) expanding United States assistance to sub-Saharan 
        Africa's regional integration efforts;
            (4) negotiating reciprocal and mutually beneficial trade 
        agreements, including the possibility of establishing free 
        trade areas that serve the interests of both the United States 
        and the countries of sub-Saharan Africa;
            (5) focusing on countries committed to accountable 
        government, economic reform, and the eradication of poverty;
            (6) strengthening and expanding the private sector in sub-
        Saharan Africa;
            (7) supporting the development of civil societies and 
        political freedom in sub-Saharan Africa; and
            (8) establishing a United States-Sub-Saharan African 
        Economic Cooperation Forum.

SEC. 1004. ELIGIBILITY FOR CERTAIN BENEFITS.

    (a) In General.--Title V of the Trade Act of 1974 is amended by 
inserting after section 506 the following new section:

``SEC. 506A. DESIGNATION OF SUB-SAHARAN AFRICAN COUNTRIES FOR CERTAIN 
              BENEFITS.

    ``(a) Authority To Designate.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the President is authorized to designate a country listed 
        in section 1009 of the African Growth and Opportunity Act as a 
        beneficiary sub-Saharan African country eligible for the 
        benefits described in subsection (b), if the President 
        determines that the country--
                    ``(A) has established, or is making continual 
                progress toward establishing--
                            ``(i) a market-based economy, where private 
                        property rights are protected and the 
                        principles of an open, rules-based trading 
                        system are observed;
                            ``(ii) a democratic society, where the rule 
                        of law, political freedom, participatory 
                        democracy, and the right to due process and a 
                        fair trial are observed;
                            ``(iii) an open trading system through the 
                        elimination of barriers to United States trade 
                        and investment and the resolution of bilateral 
                        trade and investment disputes; and
                            ``(iv) economic policies to reduce poverty, 
                        increase the availability of health care and 
                        educational opportunities, expand physical 
                        infrastructure, and promote the establishment 
                        of private enterprise;
                    ``(B) does not engage in gross violations of 
                internationally recognized human rights or provide 
                support for international terrorism and cooperates in 
                international efforts to eliminate human rights 
                violations and terrorist activities; and
                    ``(C) subject to the authority granted to the 
                President under section 502 (a), (d), and (e), 
                otherwise satisfies the eligibility criteria set forth 
                in section 502.
            ``(2) Monitoring and review of certain countries.--The 
        President shall monitor and review the progress of each country 
        listed in section 1009 of the African Growth and Opportunity 
        Act in meeting the requirements described in paragraph (1) in 
        order to determine the current or potential eligibility of each 
        country to be designated as a beneficiary sub-Saharan African 
        country for purposes of subsection (a). The President shall 
        include the reasons for the President's determinations in the 
        annual report required by section 1008 of the African Growth 
        and Opportunity Act.
            ``(3) Continuing compliance.--If the President determines 
        that a beneficiary sub-Saharan African country is not making 
        continual progress in meeting the requirements described in 
        paragraph (1), the President shall terminate the designation of 
        that country as a beneficiary sub-Saharan African country for 
        purposes of this section, effective on January 1 of the year 
following the year in which such determination is made.
    ``(b) Preferential Tariff Treatment for Certain Articles.--
            ``(1) In general.--The President may provide duty-free 
        treatment for any article described in section 503(b)(1) (B) 
        through (G) (except for textile luggage) that is the growth, 
        product, or manufacture of a beneficiary sub-Saharan African 
        country described in subsection (a), if, after receiving the 
        advice of the International Trade Commission in accordance with 
        subsection (e) of section 503, the President determines that 
        such article is not import-sensitive in the context of imports 
        from beneficiary sub-Saharan African countries.
            ``(2) Rules of origin.--The duty-free treatment provided 
        under paragraph (1) shall apply to any article described in 
        that paragraph that meets the requirements of section 
        503(a)(2), except that--
                    ``(A) if the cost or value of materials produced in 
                the customs territory of the United States is included 
                with respect to that article, an amount not to exceed 
                15 percent of the appraised value of the article at the 
                time it is entered that is attributed to such United 
                States cost or value may be applied toward determining 
                the percentage referred to in subparagraph (A) of 
                section 503(a)(2); and
                    ``(B) the cost or value of the materials included 
                with respect to that article that are produced in one 
                or more beneficiary sub-Saharan African countries shall 
                be applied in determining such percentage.
    ``(c) Beneficiary Sub-Saharan African Countries, etc.--For purposes 
of this title, the terms `beneficiary sub-Saharan African country' and 
`beneficiary sub-Saharan African countries' means a country or 
countries listed in section 1009 of the African Growth and Opportunity 
Act that the President has determined is eligible under subsection (a) 
of this section.''.
    (b) Waiver of Competitive Need Limitation.--Section 503(c)(2)(D) of 
the Trade Act of 1974 (19 U.S.C. 2463(c)(2)(D)) is amended to read as 
follows:
                    ``(D) Least-developed beneficiary developing 
                countries and beneficiary sub-saharan african 
                countries.--Subparagraph (A) shall not apply to any 
                least-developed beneficiary developing country or any 
                beneficiary sub-Saharan African country.''.
    (c) Clerical Amendment.--The table of contents for title V of the 
Trade Act of 1974 is amended by inserting after the item relating to 
section 506 the following new item:

``506A. Designation of sub-Saharan African countries for certain 
                            benefits.''.
    (d) Effective Date.--The amendments made by this section take 
effect January 1, 1999.

SEC. 1005. TREATMENT OF CERTAIN TEXTILES AND APPAREL.

    (a) Preferential Treatment.--Notwithstanding any other provision of 
law, textile and apparel articles described in subsection (b) 
(including textile luggage) imported from a beneficiary sub-Saharan 
African country, described in section 506A(c) of the Trade Act of 1974, 
shall enter the United States free of duty and free of any quantitative 
limitations, if--
            (1) the country adopts an efficient visa system to guard 
        against unlawful transshipment of textile and apparel goods and 
        the use of counterfeit documents; and
            (2) the country enacts legislation or regulations that 
        would permit United States Customs verification teams to have 
        the access necessary to investigate thoroughly allegations of 
        transshipment through such country.
    (b) Products Covered.--The preferential treatment described in 
subsection (a) shall apply only to the following textile and apparel 
products:
            (1) Apparel articles assembled in beneficiary sub-saharan 
        african countries.--Apparel articles assembled in one or more 
        beneficiary sub-Saharan African countries from fabrics wholly 
        formed and cut in the United States, from yarns wholly formed 
        in the United States that are--
                    (A) entered under subheading 9802.00.80 of the 
                Harmonized Tariff Schedule of the United States; or
                    (B) entered under chapter 61 or 62 of the 
                Harmonized Tariff Schedule of the United States, if, 
                after such assembly, the articles would have qualified 
                for entry under subheading 9802.00.80 of the Harmonized 
                Tariff Schedule of the United States but for the fact 
                that the articles were subjected to stone-washing, 
                enzyme-washing, acid washing, perma-pressing, oven-
                baking, bleaching, garment-dyeing, or other similar 
                processes.
            (2) Apparel articles cut and assembled in beneficiary sub-
        saharan african countries.--Apparel articles cut in one or more 
        beneficiary sub-Saharan African countries from fabric wholly 
        formed in the United States from yarns wholly formed in the 
        United States, if such articles are assembled in one or more 
        beneficiary sub-Saharan African countries with thread formed in 
        the United States.
            (3) Handloomed, handmade, and folklore articles.--A 
        handloomed, handmade, or folklore article of a beneficiary sub-
        Saharan African country or countries that is certified as such 
        by the competent authority of such beneficiary country or 
        countries. For purposes of this paragraph, the President, after 
        consultation with the beneficiary sub-Saharan African country 
        or countries concerned, shall determine which, if any, 
        particular textile and apparel goods of the country (or 
        countries) shall be treated as being handloomed, handmade, or 
        folklore goods.
    (c) Penalties for Transshipments.--
            (1) Penalties for exporters.--If the President determines, 
        based on sufficient evidence, that an exporter has engaged in 
        transshipment with respect to textile or apparel products from 
        a beneficiary sub-Saharan African country, then the President 
        shall deny all benefits under this section and section 506A of 
        the Trade Act of 1974 to such exporter, any successor of such 
        exporter, and any other entity owned or operated by the 
        principal of the exporter for a period of 2 years.
            (2) Transshipment described.--Transshipment within the 
        meaning of this subparagraph has occurred when preferential 
        treatment for a textile or apparel article under subsection (a) 
        has been claimed on the basis of material false information 
        concerning the country of origin, manufacture, processing, or 
        assembly of the article or any of its components. For purposes 
        of this clause, false information is material if disclosure of 
        the true information would mean or would have meant that the 
        article is or was ineligible for preferential treatment under 
        subsection (a).
    (d) Technical Assistance.--The Customs Service shall provide 
technical assistance to the beneficiary sub-Saharan African countries 
for the implementation of the requirements set forth in subsection 
(a)(1) and (2).
    (e) Monitoring and Reports to Congress.--The Customs Service shall 
monitor and the Commissioner of Customs shall submit to Congress, not 
later than March 31 of each year, a report on the effectiveness of the 
anti-circumvention systems described in this section and on measures 
taken by countries in sub-Saharan Africa which export textiles or 
apparel to the United States to prevent circumvention as described in 
article 5 of the Agreement on Textiles and Clothing.
    (f) Safeguard.--The President shall have the authority to impose 
appropriate remedies, including restrictions on or the removal of 
quota-free and duty-free treatment provided under this section, in the 
event that textile and apparel articles from a beneficiary sub-Saharan 
African country are being imported in such increased quantities as to 
cause serious damage, or actual threat thereof, to the domestic 
industry producing like or directly competitive articles. The President 
shall exercise his authority under this subsection consistent with the 
Agreement on Textiles and Clothing.
    (g) Definitions.--In this section:
            (1) Beneficiary sub-saharan african country, etc.--The 
        terms ``beneficiary sub-Saharan African country'' and 
        ``beneficiary sub-Saharan African countries'' have the same 
        meaning as such terms have under section 506A(c) of the Trade 
        Act of 1974.
            (2) Agreement on textiles and clothing.--The term 
        ``Agreement on Textiles and Clothing'' means the Agreement on 
        Textiles and Clothing referred to in section 101(d)(4) of the 
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
    (h) Effective Date.--The amendments made by this section take 
effect January 1, 1999 and shall remain in effect through June 30, 
2008.

SEC. 1006. UNITED STATES-SUB-SAHARAN AFRICAN TRADE AND ECONOMIC 
              COOPERATION FORUM.

    (a) Declaration of Policy.--The President shall convene annual 
meetings between senior officials of the United States Government and 
officials of the governments of sub-Saharan African countries in order 
to foster close economic ties between the United States and sub-Saharan 
Africa.
    (b) Establishment.--Not later than 12 months after the date of 
enactment of this Act, the President, after consulting with the 
officials of interested sub-Saharan African governments, shall 
establish a United States-Sub-Saharan African Trade and Economic 
Cooperation Forum (in this section referred to as the ``Forum'').
    (c) Requirements.--In creating the Forum, the President shall meet 
the following requirements:
            (1) First meeting.--The President shall direct the 
        Secretary of Commerce, the Secretary of the Treasury, the 
        Secretary of State, and the United States Trade Representative 
        to invite their counterparts from interested sub-Saharan 
        African governments and representatives of appropriate regional 
        organizations to participate in the first annual meeting to 
        discuss expanding trade and investment relations between the 
        United States and sub-Saharan Africa.
            (2) Nongovernmental organizations.--
                    (A) In general.--The President, in consultation 
                with Congress, shall invite United States 
                nongovernmental organizations to host meetings with 
                their counterparts from sub-Saharan Africa in 
                conjunction with meetings of the Forum for the purpose 
                of discussing the issues described in paragraph (1).
                    (B) Private sector.--The President, in consultation 
                with Congress, shall invite United States 
                representatives of the private sector to host meetings 
                with their counterparts from sub-Saharan Africa in 
                conjunction with meetings of the Forum for the purpose 
                of discussing the issues described in paragraph (1).
            (3) Annual meetings.--As soon as practicable after the date 
        of enactment of this Act, the President shall meet with the 
        heads of the governments of interested sub-Saharan African 
        countries for the purpose of discussing the issues described in 
        paragraph (1).

SEC. 1007. UNITED STATES-SUB-SAHARAN AFRICA FREE TRADE AREA.

    (a) In General.--The President shall examine the feasibility of 
negotiating a free trade agreement (or agreements) with interested sub-
Saharan African countries.
    (b) Report to Congress.--The President shall, within 12 months of 
the date of enactment of this Act, report to the Committee on Finance 
of the Senate and the Committee on Ways and Means of the House of 
Representatives regarding the President's conclusions on the 
feasibility of negotiating such agreement (or agreements). If the 
President determines that the negotiation of any such free trade 
agreement is feasible, the President shall provide a detailed plan for 
such negotiation that outlines the objectives, timing, any potential 
benefits to the United States and sub-Saharan Africa, and the likely 
economic impact of any such agreement.

SEC. 1008. REPORTING REQUIREMENT.

    The President shall submit to Congress, not later than 1 year after 
the date of enactment of this Act, and annually thereafter for 4 years, 
a report on the implementation of this subtitle.

SEC. 1009. SUB-SAHARAN AFRICA DEFINED.

    For purposes of this subtitle, the terms ``sub-Saharan Africa'', 
``sub-Saharan African country'', ``country in sub-Saharan Africa'', and 
``countries in sub-Saharan Africa'' refer to the following:
            (1) Republic of Angola (Angola).
            (2) Republic of Botswana (Botswana).
            (3) Republic of Burundi (Burundi).
            (4) Republic of Cape Verde (Cape Verde).
            (5) Republic of Chad (Chad).
            (6) Democratic Republic of Congo.
            (7) Republic of the Congo (Congo).
            (8) Republic of Djibouti (Djibouti).
            (9) State of Eritrea (Eritrea).
            (10) Gabonese Republic (Gabon).
            (11) Republic of Ghana (Ghana).
            (12) Republic of Guinea-Bissau (Guinea-Bissau).
            (13) Kingdom of Lesotho (Lesotho).
            (14) Republic of Madagascar (Madagascar).
            (15) Republic of Mali (Mali).
            (16) Republic of Mauritius (Mauritius).
            (17) Republic of Namibia (Namibia).
            (18) Federal Republic of Nigeria (Nigeria).
            (19) Democratic Republic of Sao Tome and Principe (Sao Tome 
        and Principe).
            (20) Republic of Sierra Leone (Sierra Leone).
            (21) Somalia.
            (22) Kingdom of Swaziland (Swaziland).
            (23) Republic of Togo (Togo).
            (24) Republic of Zimbabwe (Zimbabwe).
            (25) Republic of Benin (Benin).
            (26) Burkina Faso (Burkina).
            (27) Republic of Cameroon (Cameroon).
            (28) Central African Republic.
            (29) Federal Islamic Republic of the Comoros (Comoros).
            (30) Republic of Cote d'Ivoire (Cote d'Ivoire).
            (31) Republic of Equatorial Guinea (Equatorial Guinea).
            (32) Ethiopia.
            (33) Republic of the Gambia (Gambia).
            (34) Republic of Guinea (Guinea).
            (35) Republic of Kenya (Kenya).
            (36) Republic of Liberia (Liberia).
            (37) Republic of Malawi (Malawi).
            (38) Islamic Republic of Mauritania (Mauritania).
            (39) Republic of Mozambique (Mozambique).
            (40) Republic of Niger (Niger).
            (41) Republic of Rwanda (Rwanda).
            (42) Republic of Senegal (Senegal).
            (43) Republic of Seychelles (Seychelles).
            (44) Republic of South Africa (South Africa).
            (45) Republic of Sudan (Sudan).
            (46) United Republic of Tanzania (Tanzania).
            (47) Republic of Uganda (Uganda).
            (48) Republic of Zambia (Zambia).

             Subtitle B--Generalized System of Preferences.

SEC. 1101. EXTENSION OF DUTY-FREE TREATMENT UNDER GENERAL SYSTEM OF 
              PREFERENCES

    Section 505 of the Trade Act of 1974 (19 U.S.C. 2465) is amended to 
read as follows:

``SEC. 505. DATE OF TERMINATION.

    ``(a) In General.--Except as provided in subsection (b), the duty-
free treatment provided under this title shall remain in effect through 
December 31, 2000, with respect to beneficiary developing countries.
    ``(b) Countries in Sub-Saharan Africa.--In the case of a country 
listed in section 1009 of the African Growth and Opportunity Act that 
is a beneficiary developing country, duty-free treatment provided under 
this title shall remain in effect through June 30, 2008.''.

SEC. 1102. EFFECTIVE DATE.

    (a) In General.--The amendments made by this subtitle apply to 
articles entered on or after October 1, 1998.
    (b) Retroactive Application for Certain Liquidations and 
Reliquidations.--
            (1) General rule.--Notwithstanding section 514 of the 
        Tariff Act of 1930 or any other provision of law and subject to 
        subsection (c), any article that was entered--
                    (A) after June 30, 1998, and
                    (B) before October 1, 1998, and
        to which duty-free treatment under title V of the Trade Act of 
        1974 would have applied if the entry had been made on June 30, 
        1998, shall be liquidated or reliquidated as free of duty, and 
        the Secretary of the Treasury shall refund any duty paid with 
        respect to such entry.
            (2) Limitations on refunds.--No refund shall be made 
        pursuant to this subsection before October 1, 1998.
            (3) Entry.--As used in this subsection, the term ``entry'' 
        includes a withdrawal from warehouse for consumption.
    (c) Requests.--Liquidation or reliquidation may be made under 
subsection (b) with respect to an entry only if a request therefor is 
filed with the Customs Service, within 180 days after the date of 
enactment of this Act, that contains sufficient information to enable 
the Customs Service--
            (1) to locate the entry; or
            (2) to reconstruct the entry if it cannot be located.

         Subtitle C--United States-Caribbean Trade Enhancement

SEC. 1201. SHORT TITLE.

    This subtitle may be cited as the ``United States-Caribbean Basin 
Trade Enhancement Act''.

SEC. 1202. FINDINGS AND POLICY.

    (a) Findings.--Congress makes the following findings:
            (1) The Caribbean Basin Economic Recovery Act (referred to 
        in this subtitle as ``CBERA'') represents a permanent 
        commitment by the United States to encourage the development of 
        strong democratic governments and revitalized economies in 
        neighboring countries in the Caribbean Basin.
            (2) Thirty-four democratically elected leaders agreed at 
        the 1994 Summit of the Americas to conclude negotiation of a 
        Free Trade Area of the Americas (referred to in this subtitle 
        as ``FTAA'') by the year 2005.
            (3) The economic security of the countries in the Caribbean 
        Basin will be enhanced by the completion of the FTAA.
            (4) Offering temporary benefits to Caribbean Basin 
        countries will enhance trade between the United States and the 
        Caribbean Basin, encourage development of trade and investment 
        policies that will facilitate participation of Caribbean Basin 
        countries in the FTAA, preserve the United States commitment to 
        Caribbean Basin beneficiary countries, help further economic 
        development in the Caribbean Basin region, and accelerate the 
        trend toward more open economies in the region.
            (5) Promotion of the growth of free enterprise and economic 
        opportunity in the Caribbean Basin will enhance the national 
        security interests of the United States.
            (6) Increased trade and economic activity between the 
        United States and Caribbean Basin beneficiary countries will 
        create expanding export opportunities for United States 
        businesses and workers.
    (b) Policy.--It is the policy of the United States to--
            (1) offer Caribbean Basin beneficiary countries willing to 
        prepare to become a party to the FTAA or a comparable trade 
        agreement, tariff treatment essentially equivalent to that 
        accorded to products of NAFTA countries for certain products 
        not currently eligible for duty-free treatment under the CBERA; 
        and
            (2) seek the participation of Caribbean Basin beneficiary 
        countries in the FTAA or a trade agreement comparable to the 
        FTAA at the earliest possible date, with the goal of achieving 
        full participation in such agreement not later than 2005.

SEC. 1203. DEFINITIONS.

    In this subtitle:
            (1) Beneficiary country.--The term ``beneficiary country'' 
        has the meaning given the term in section 212(a)(1)(A) of the 
        Caribbean Basin Economic Recovery Act (19 U.S.C. 
        2702(a)(1)(A)).
            (2) CBTEA.--The term ``CBTEA'' means the United States-
        Caribbean Basin Trade Enhancement Act.
            (3) NAFTA.--The term ``NAFTA'' means the North American 
        Free Trade Agreement entered into between the United States, 
        Mexico, and Canada on December 17, 1992.
            (4) NAFTA country.--The term ``NAFTA country'' means any 
        country with respect to which the NAFTA is in force.
            (5) WTO and wto member.--The terms ``WTO'' and ``WTO 
        member'' have the meanings given those terms in section 2 of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501).

SEC. 1204. TEMPORARY PROVISIONS TO PROVIDE ADDITIONAL TRADE BENEFITS TO 
              CERTAIN BENEFICIARY COUNTRIES.

    (a) Temporary Provisions.--Section 213(b) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703(b)) is amended to read as 
follows:
    ``(b) Import-Sensitive Articles.--
            ``(1) In general.--Subject to paragraphs (2) through (5), 
        the duty-free treatment provided under this title does not 
        apply to--
                    ``(A) textile and apparel articles which were not 
                eligible articles for purposes of this title on January 
                1, 1994, as this title was in effect on that date;
                    ``(B) footwear not designated at the time of the 
                effective date of this title as eligible articles for 
                the purpose of the generalized system of preferences 
                under title V of the Trade Act of 1974;
                    ``(C) tuna, prepared or preserved in any manner, in 
                airtight containers;
                    ``(D) petroleum, or any product derived from 
                petroleum, provided for in headings 2709 and 2710 of 
                the HTS;
                    ``(E) watches and watch parts (including cases, 
                bracelets, and straps), of whatever type including, but 
                not limited to, mechanical, quartz digital or quartz 
                analog, if such watches or watch parts contain any 
                material which is the product of any country with 
                respect to which HTS column 2 rates of duty apply; or
                    ``(F) articles to which reduced rates of duty apply 
                under subsection (h).
            ``(2) Transition period treatment of certain textile and 
        apparel articles.--
                    ``(A) Products covered.--During the transition 
                period, the preferential treatment described in 
                subparagraph (B) shall apply to the following products:
                            ``(i) Apparel articles assembled in a cbtea 
                        beneficiary country.--Apparel articles 
                        assembled in a CBTEA beneficiary country from 
                        fabrics wholly formed and cut in the United 
                        States, from yarns wholly formed in the United 
                        States that are--
                                    ``(I) entered under subheading 
                                9802.00.80 of the HTS; or
                                    ``(II) entered under chapter 61 or 
                                62 of the HTS, if, after such assembly, 
                                the articles would have qualified for 
                                entry under subheading 9802.00.80 of 
                                the HTS but for the fact that the 
                                articles were subjected to stone-
                                washing, enzyme-washing, acid washing, 
                                perma-pressing, oven-baking, bleaching, 
                                garment-dyeing, or other similar 
                                processes.
                            ``(ii) Apparel articles cut and assembled 
                        in a cbtea beneficiary country.--Apparel 
                        articles cut in a CBTEA beneficiary country 
                        from fabric wholly formed in the United States 
                        from yarns wholly formed in the United States, 
                        if such articles are assembled in such country 
                        with thread formed in the United States.
                            ``(iii) Handloomed, handmade, and folklore 
                        articles.--A handloomed, handmade, or folklore 
                        article of a CBTEA beneficiary country 
                        identified under subparagraph (C) that is 
                        certified as such by the competent authority of 
                        such beneficiary country.
                            ``(iv) Textile luggage.--Textile luggage--
                                    ``(I) assembled in a CBTEA 
                                beneficiary country from fabric wholly 
                                formed and cut in the United States, 
                                from yarns wholly formed in the United 
                                States, that is entered under 
                                subheading 9802.00.80 of the HTS; or
                                    ``(II) assembled from fabric cut in 
                                a CBTEA beneficiary country from fabric 
                                wholly formed in the United States from 
                                yarns wholly formed in the United 
                                States, if such luggage is assembled in 
                                such country with thread formed in the 
                                United States.
                    ``(B) Preferential treatment.--Except as provided 
                in subparagraph (E), during the transition period, the 
                articles described in subparagraph (A) shall enter the 
                United States free of duty and free of any quantitative 
                limitations.
                    ``(C) Handloomed, handmade, and folklore articles 
                defined.--For purposes of subparagraph (A)(iii), the 
                President, after consultation with the CBTEA 
                beneficiary country concerned, shall determine which, 
                if any, particular textile and apparel goods of the 
                country shall be treated as being handloomed, handmade, 
                or folklore goods of a kind described in section 2.3 
                (a), (b), or (c) or Appendix 3.1.B.11 of the Annex.
                    ``(D) Penalties for transshipments.--
                            ``(i) Penalties for exporters.--If the 
                        President determines, based on sufficient 
                        evidence, that an exporter has engaged in 
                        transshipment with respect to textile or 
                        apparel products from a CBTEA beneficiary 
                        country, then the President shall deny all 
                        benefits under this title to such exporter, and 
                        any successor of such exporter, for a period of 
                        2 years.
                            ``(ii) Penalties for countries.--Whenever 
                        the President finds, based on sufficient 
                        evidence, that transshipment has occurred, the 
                        President shall request that the CBTEA 
                        beneficiary country or countries through whose 
                        territory the transshipment has occurred take 
                        all necessary and appropriate actions to 
                        prevent such transshipment. If the President 
                        determines that a country is not taking such 
                        actions, the President shall reduce the 
                        quantities of textile and apparel articles that 
                        may be imported into the United States from 
                        such country by the quantity of the 
                        transshipped articles multiplied by 3.
                            ``(iii) Transshipment described.--
                        Transshipment within the meaning of this 
                        subparagraph has occurred when preferential 
                        treatment for a textile or apparel article 
                        under subparagraph (B) has been claimed on the 
                        basis of material false information concerning 
                        the country of origin, manufacture, processing, 
                        or assembly of the article or any of its 
                        components. For purposes of this clause, false 
                        information is material if disclosure of the 
                        true information would mean or would have meant 
                        that the article is or was ineligible for 
                        preferential treatment under subparagraph (B).
                    ``(E) Bilateral emergency actions.--
                            ``(i) In general.--The President may take 
                        bilateral emergency tariff actions of a kind 
                        described in section 4 of the Annex with 
                        respect to any apparel article imported from a 
                        CBTEA beneficiary country if the application of 
                        tariff treatment under subparagraph (B) to such 
                        article results in conditions that would be 
                        cause for the taking of such actions under such 
                        section 4 with respect to a like article 
                        described in the same 8-digit subheading of the 
                        HTS that is imported from Mexico.
                            ``(ii) Rules relating to bilateral 
                        emergency action.--For purposes of applying 
                        bilateral emergency action under this 
                        subparagraph--
                                    ``(I) the requirements of paragraph 
                                (5) of section 4 of the Annex (relating 
                                to providing compensation) shall not 
                                apply;
                                    ``(II) the term `transition period' 
                                in section 4 of the Annex shall have 
                                the meaning given that term in 
                                paragraph (5)(D) of this subsection; 
                                and
                                    ``(III) the requirements to consult 
                                specified in section 4 of the Annex 
                                shall be treated as satisfied if the 
                                President requests consultations with 
                                the beneficiary country in question and 
                                the country does not agree to consult 
                                within the time period specified under 
                                section 4.
            ``(3) Preferential tariff treatment of certain other 
        articles originating in cbtea beneficiary countries.--
                    ``(A) In general.--During the transition period, 
                the President shall proclaim a rate of duty, with 
                respect to any article referred to in any of 
                subparagraphs (B) through (F) of paragraph (1) that is 
                a CBTEA originating good, equal to the lesser of--
                            ``(i) `x', or
                            ``(ii) the amount determined by using the 
                        formula `.5(x-y)+y'.
                For purposes of the preceding sentence, the terms `x' 
                and `y' have the meanings given such terms in 
                subparagraph (C).
                    ``(B) Additional reductions.--
                            ``(i) In general.--The President may 
                        proclaim further reductions in the rate of duty 
                        for any article described in subparagraph (A) 
                        in accordance with this subparagraph if the 
                        President determines that the performance of 
                        the country is satisfactory under the criteria 
                        listed in paragraph (5)(B)(ii).
                            ``(ii) Rate of duty.--The rate of duty 
                        proclaimed by the President under this 
                        subparagraph shall be no less than the lesser 
                        of--
                                    ``(I) the rate of duty that would 
                                apply to the article at the time of 
                                importation from the country but for 
                                the enactment of the CBTEA, or
                                    ``(II) the rate of duty that 
                                applies to a like article of Mexico 
                                under Annex 302.2 of NAFTA as 
                                implemented pursuant to United States 
                                law.
                    ``(C) Certain definitions.--For purposes of 
                subparagraph (A), the term `x' means the rate of duty 
                described in subparagraph (B)(ii)(I) and the term `y' 
                means the rate of duty described in subparagraph 
                (B)(ii)(II).
                    ``(D) Exception.--Subparagraphs (A) and (B) do not 
                apply to any article accorded duty-free treatment under 
                U.S. Note 2(b) to subchapter II of chapter 98 of the 
                HTS.
                    ``(E) Relationship to duty reductions under 
                subsection (h).--If at any time during the transition 
                period the rate of duty that would (but for action 
                taken under subparagraph (A) or (B)) apply with respect 
                to any article under subsection (h) is a rate of duty 
                that is lower than the rate of duty resulting from such 
                action, then such lower rate of duty shall be applied.
            ``(4) Customs procedures.--
                    ``(A) In general.--
                            ``(i) Regulations.--Any importer that 
                        claims preferential treatment under paragraph 
                        (2) or (3) shall comply with customs procedures 
                        similar in all material respects to the 
                        requirements of Article 502(1) of the NAFTA as 
                        implemented pursuant to United States law, in 
                        accordance with regulations promulgated by the 
                        Secretary of the Treasury.
                            ``(ii) Determination.--
                                    ``(I) In general.--In order to 
                                qualify for the preferential treatment 
                                under paragraph (2) or (3) and for a 
                                Certificate of Origin to be valid with 
                                respect to any article for which such 
                                treatment is claimed, there shall be in 
                                effect a determination by the President 
                                that each country described in 
                                subclause (II)--
                                            ``(aa) has implemented and 
                                        follows, or
                                            ``(bb) is making 
                                        substantial progress toward 
                                        implementing and following,
                                procedures and requirements similar in 
                                all material respects to the relevant 
                                procedures and requirements under 
                                chapter 5 of the NAFTA.
                                    ``(II) Country described.--A 
                                country is described in this subclause 
                                if it is a CBTEA beneficiary country--
                                            ``(aa) from which the 
                                        article is exported, or
                                            ``(bb) in which materials 
                                        used in the production of the 
                                        article originate or in which 
                                        the article or such materials 
                                        undergo production that 
                                        contributes to a claim that the 
                                        article is eligible for 
                                        preferential treatment.
                    ``(B) Certificate of origin.--The Certificate of 
                Origin that otherwise would be required pursuant to the 
                provisions of subparagraph (A) shall not be required in 
                the case of an article imported under paragraph (2) or 
                (3) if such Certificate of Origin would not be required 
                under Article 503 of the NAFTA (as implemented pursuant 
                to United States law), if the article were imported 
                from Mexico.
            ``(5) Definitions and special rules.--For purposes of this 
        subsection--
                    ``(A) Annex.--The term `the Annex' means Annex 300-
                B of the NAFTA.
                    ``(B) CBTEA beneficiary country.--
                            ``(i) In general.--The term `CBTEA 
                        beneficiary country' means any `beneficiary 
                        country', as defined by section 212(a)(1)(A) of 
                        this title, which the President determines has 
                        demonstrated a commitment to--
                                    ``(I) undertake its obligations 
                                under the WTO on or ahead of schedule;
                                    ``(II) participate in negotiations 
                                toward the completion of the FTAA or a 
                                comparable trade agreement; and
                                    ``(III) undertake other steps 
                                necessary for that country to become a 
                                party to the FTAA or a comparable trade 
                                agreement.
                            ``(ii) Criteria for determination.--In 
                        making the determination under clause (i), the 
                        President may consider the criteria in sections 
                        212 (b) and (c) and other appropriate criteria, 
                        including--
                                    ``(I) the extent to which the 
                                country follows accepted rules of 
                                international trade provided for under 
                                the agreements listed in section 101(d) 
                                of the Uruguay Round Agreements Act;
                                    ``(II) the extent to which the 
                                country provides protection of 
                                intellectual property rights--
                                            ``(aa) in accordance with 
                                        standards established in the 
                                        Agreement on Trade-Related 
                                        Aspects of Intellectual 
                                        Property Rights described in 
                                        section 101(d)(15) of the 
                                        Uruguay Round Agreements Act;
                                            ``(bb) in accordance with 
                                        standards established in 
                                        chapter 17 of the NAFTA; and
                                            ``(cc) by granting the 
                                        holders of copyrights the 
                                        ability to control the 
                                        importation and sale of 
                                        products that embody 
                                        copyrighted works, extending 
                                        the period set forth in Article 
                                        1711(6) of NAFTA for protecting 
                                        test data for agricultural 
                                        chemicals to 10 years, 
                                        protecting trademarks 
                                        regardless of their subsequent 
                                        designation as geographic 
                                        indications, and providing 
                                        enforcement against the 
                                        importation of infringing 
                                        products at the border;
                            ``(III) the extent to which the country 
                        provides protections to investors and 
                        investments of the United States substantially 
                        equivalent to those set forth in chapter 11 of 
                        the NAFTA;
                            ``(IV) the extent to which the country 
                        provides the United States and other WTO 
                        members nondiscriminatory, equitable, and 
                        reasonable market access with respect to the 
                        products for which benefits are provided under 
                        paragraphs (2) and (3), and in other relevant 
                        product sectors as determined by the President;
                            ``(V) the extent to which the country 
                        provides internationally recognized worker 
                        rights, including--
                                            ``(aa) the right of 
                                        association,
                                            ``(bb) the right to 
                                        organize and bargain 
                                        collectively,
                                            ``(cc) prohibition on the 
                                        use of any form of coerced or 
                                        compulsory labor,
                                            ``(dd) a minimum age for 
                                        the employment of children, and
                                            ``(ee) acceptable 
                                        conditions of work with respect 
                                        to minimum wages, hours of 
                                        work, and occupational safety 
                                        and health;
                                    ``(VI) whether the country has met 
                                the counter-narcotics certification 
                                criteria set forth in section 490 of 
                                the Foreign Assistance Act of 1961 (22 
                                U.S.C. 2291j) for eligibility for 
                                United States assistance;
                                    ``(VII) the extent to which the 
                                country becomes a party to and 
                                implements the Inter-American 
                                Convention Against Corruption, and 
                                becomes party to a convention regarding 
                                the extradition of its nationals;
                                    ``(VIII) the extent to which the 
                                country--
                                            ``(aa) supports the 
                                        multilateral and regional 
                                        objectives of the United States 
                                        with respect to government 
                                        procurement, including the 
                                        negotiation of government 
                                        procurement provisions as part 
                                        of the FTAA and conclusion of a 
                                        WTO transparency agreement as 
                                        provided in the declaration of 
                                        the WTO Ministerial Conference 
                                        held in Singapore on December 9 
                                        through 13, 1996, and
                                            ``(bb) applies transparent 
                                        and competitive procedures in 
                                        government procurement 
                                        equivalent to those contained 
                                        in the WTO Agreement on 
                                        Government Procurement 
                                        (described in section 
                                        101(d)(17) of the Uruguay Round 
                                        Agreements Act);
                                    ``(IX) the extent to which the 
                                country follows the rules on customs 
                                valuation set forth in the WTO 
                                Agreement on Implementation of Article 
                                VII of the GATT 1994 (described in 
                                section 101(d)(8) of the Uruguay Round 
                                Agreements Act);
                                    ``(X) the extent to which the 
                                country affords to products of the 
                                United States which the President 
                                determines to be of commercial 
                                importance to the United States with 
                                respect to such country, and on a 
                                nondiscriminatory basis to like 
                                products of other WTO members, tariff 
                                treatment that is no less favorable 
                                than the most favorable tariff 
                                treatment provided by the country to 
                                any other country pursuant to any free 
                                trade agreement to which such country 
                                is a party, other than the Central 
                                American Common Market or the Caribbean 
                                Community and Common Market.
                    ``(C) CBTEA originating good.--
                            ``(i) In general.--The term `CBTEA 
                        originating good' means a good that meets the 
                        rules of origin for a good set forth in chapter 
4 of the NAFTA as implemented pursuant to United States law.
                            ``(ii) Application of chapter 4.--In 
                        applying chapter 4 with respect to a CBTEA 
                        beneficiary country for purposes of this 
                        subsection--
                                    ``(I) no country other than the 
                                United States and a CBTEA beneficiary 
                                country may be treated as being a party 
                                to the NAFTA;
                                    ``(II) any reference to trade 
                                between the United States and Mexico 
                                shall be deemed to refer to trade 
                                between the United States and a CBTEA 
                                beneficiary country;
                                    ``(III) any reference to a party 
                                shall be deemed to refer to a CBTEA 
                                beneficiary country or the United 
                                States; and
                                    ``(IV) any reference to parties 
                                shall be deemed to refer to any 
                                combination of CBTEA beneficiary 
                                countries or to the United States and a 
                                CBTEA beneficiary country (or any 
                                combination thereof).
                    ``(D) Transition period.--The term `transition 
                period' means, with respect to a CBTEA beneficiary 
                country, the period that begins on January 1, 1999, and 
                ends on the earlier of--
                            ``(i) December 31, 2001, or
                            ``(ii) the date on which the FTAA or a 
                        comparable trade agreement enters into force 
                        with respect to the United States and the CBTEA 
                        beneficiary country.
                    ``(E) CBTEA.--The term `CBTEA' means the United 
                States-Caribbean Basin Trade Enhancement Act.
                    ``(F) FTAA.--The term `FTAA' means the Free Trade 
                Area of the Americas.''.
    (b) Determination Regarding Retention of Designation.--Section 
212(e) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(e)) 
is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively;
                    (B) by inserting ``(A)'' after ``(1)'';
                    (C) by striking ``would be barred'' and all that 
                follows through the end period and inserting: ``no 
                longer satisfies one or more of the conditions for 
                designation as a beneficiary country set forth in 
                subsection (b) or such country fails adequately to meet 
                one or more of the criteria set forth in subsection 
                (c).''; and
                    (D) by adding at the end the following:
                    ``(B) The President may, after the requirements of 
                subsection (a)(2) and paragraph (2) have been met--
                            ``(i) withdraw or suspend the designation 
                        of any country as a CBTEA beneficiary country, 
                        or
                            ``(ii) withdraw, suspend, or limit the 
                        application of preferential treatment under 
                        section 213(b) (2) and (3) to any article of 
                        any country, if, after such designation, the 
                        President determines that as a result of 
                        changed circumstances, the performance of such 
                        country is not satisfactory under the criteria 
                        set forth in section 213(b)(5)(B).''; and
            (2) by adding after paragraph (2) the following new 
        paragraph:
            ``(3) If preferential treatment under section 213(b) (2) 
        and (3) is withdrawn, suspended, or limited with respect to a 
        CBTEA beneficiary country, such country shall not be deemed to 
        be a `party' for the purposes of applying section 213(b)(5)(C) 
        to imports of articles for which preferential treatment has 
        been withdrawn, suspended, or limited with respect to such 
        country.''.
    (c) Reporting Requirements.--Section 212(f) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2702(f)) is amended to read as 
follows:
    ``(f) Reporting Requirements.--
            ``(1) In general.--Not later than December 31, 1998, and at 
        the end of each 3-year period thereafter, the President shall 
        submit to Congress a report regarding the operation of this 
        title, including--
                    ``(A) with respect to subsections (b) and (c), the 
                results of a general review of beneficiary countries 
                based on the considerations described in such 
                subsections; and
                    ``(B) the performance of each beneficiary country 
                or CBTEA beneficiary country, as the case may be, under 
                the criteria set forth in section 213(b)(5)(B)(ii).
            ``(2) Public comment.--Before submitting the report 
        described in paragraph (1), the United States Trade 
        Representative shall publish a notice in the Federal Register 
        requesting public comments on whether beneficiary countries are 
        meeting the criteria listed in section 213(b)(5)(B)(i), and on 
        the performance of each beneficiary country or CBTEA 
        beneficiary country, as the case may be, with respect to the 
        criteria listed in section 213(b)(5)(B)(ii).''.
    (d) International Trade Commission Reports.--
            (1) Section 215(a) of the Caribbean Basin Economic Recovery 
        Act (19 U.S.C. 2704(a)) is amended to read as follows:
    ``(a) Reporting Requirement.--
            ``(1) In general.--The United States International Trade 
        Commission (in this section referred to as the `Commission') 
        shall submit to Congress and the President, biennial reports 
        regarding the economic impact of this title on United States 
        industries and consumers.
            ``(2) First report.--The first report shall be submitted 
        not later than September 30 of the year following the year in 
        which the United States-Caribbean Basin Trade Enhancement Act 
        is enacted. No report shall be required under this section 
        after September 30, 2006.
            ``(3) Treatment of puerto rico, etc.--For purposes of this 
        section, industries in the Commonwealth of Puerto Rico and the 
        insular possessions of the United States are considered to be 
        United States industries.''.
            (2) Section 206(a) of the Andean Trade Preference Act (19 
        U.S.C. 3204(a)) is amended to read as follows:
    ``(a) Reporting Requirements.--
            ``(1) In general.--The United States International Trade 
        Commission (in this section referred to as the `Commission') 
        shall submit to Congress and the President, biennial reports 
        regarding the economic impact of this title on United States 
        industries and consumers, and, in conjunction with other 
        agencies, the effectiveness of this title in promoting drug-
        related crop eradication and crop substitution efforts of the 
        beneficiary countries.
            ``(2) Submission.--During the period that this title is in 
        effect, the report required by paragraph (1) shall be submitted 
        on September 30 of each year that the report required by 
        section 215 of the Caribbean Basin Economic Recovery Act is not 
        submitted.
            ``(3) Treatment of puerto rico, etc.--For purposes of this 
        section, industries in the Commonwealth of Puerto Rico and the 
        insular possessions of the United States are considered to be 
        United States industries.''.
    (e) Technical and Conforming Amendments.--
            (1) In general.--
                    (A) Section 211 of the Caribbean Basin Economic 
                Recovery Act (19 U.S.C. 2701) is amended by inserting 
                ``(or other preferential treatment)'' after 
                ``treatment''.
                    (B) Section 213(a)(1) of the Caribbean Basin 
                Economic Recovery Act (19 U.S.C. 2703(a)(1)) is amended 
                by inserting ``and except as provided in subsection (b) 
                (2) and (3),'' after ``Tax Reform Act of 1986,''.
            (2) Definitions.--Section 212(a)(1) of the Caribbean Basin 
        Economic Recovery Act (19 U.S.C. 2702(a)(1)) is amended by 
        adding at the end the following new subparagraphs:
                    ``(D) The term `NAFTA' means the North American 
                Free Trade Agreement entered into between the United 
                States, Mexico, and Canada on December 17, 1992.
                    ``(E) The terms `WTO' and `WTO member' have the 
                meanings given those terms in section 2 of the Uruguay 
                Round Agreements Act (19 U.S.C. 3501).''.

SEC. 1205. ADEQUATE AND EFFECTIVE PROTECTION FOR INTELLECTUAL PROPERTY 
              RIGHTS.

    Section 212(c) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2702(c)) is amended by adding at the end the following flush 
sentence:
``Notwithstanding any other provision of law, the President may 
determine that a country is not providing adequate and effective 
protection of intellectual property rights under paragraph (9), even if 
the country is in compliance with the country's obligations under the 
Agreement on Trade-Related Aspects of Intellectual Property Rights 
described in section 101(d)(15) of the Uruguay Round Agreements Act (19 
U.S.C. 3511(d)(15)).''.

                 TITLE II--RECIPROCAL TRADE AGREEMENTS

SEC. 2001. SHORT TITLE.

    This title may be cited as the ``Reciprocal Trade Agreements Act of 
1998''.

SEC. 2002. TRADE NEGOTIATING OBJECTIVES OF THE UNITED STATES.

    (a) Statement of Purposes.--The purposes of this title are to 
achieve, through trade agreements affording mutual benefits--
            (1) more open, equitable, and reciprocal market access for 
        United States goods, services, and investment;
            (2) the reduction or elimination of barriers and other 
        trade-distorting policies and practices;
            (3) a more effective system of international trading 
        disciplines and procedures; and
            (4) economic growth, higher living standards, and full 
        employment in the United States, and economic growth and 
        development among United States trading partners.
    (b) Principal Trade Negotiating Objectives.--The principal trade 
negotiating objectives of the United States for agreements subject to 
the provisions of section 2003 include the following:
            (1) Reduction of barriers to trade in goods.--The principal 
        negotiating objective of the United States regarding barriers 
        to trade in goods is to obtain competitive opportunities for 
        United States exports in foreign markets substantially 
        equivalent to the opportunities afforded foreign exports to 
        United States markets, including the reduction or elimination 
        of tariff and nontariff trade barriers, including--
                    (A) tariff and nontariff disparities remaining from 
                previous rounds of multilateral trade negotiations that 
                have put United States exports at a competitive 
                disadvantage in world markets;
                    (B) measures identified in the annual report 
                prepared under section 181 of the Trade Act of 1974 (19 
                U.S.C. 2241); and
                    (C) tariff elimination for products identified in 
                section 111(b) of the Uruguay Round Agreements Act (19 
                U.S.C. 3521(b)) and the accompanying Statement of 
                Administrative Action related to that section.
            (2) Trade in services.--
                    (A) The principal negotiating objectives of the 
                United States regarding trade in services are--
                            (i) to reduce or eliminate barriers to, or 
                        other distortions of, international trade in 
                        services, including regulatory and other 
                        barriers that deny national treatment or 
                        unreasonably restrict the establishment and 
                        operation of service suppliers in foreign 
                        markets; and
                            (ii) to develop internationally agreed 
                        rules, including dispute settlement procedures, 
                        that--
                                    (I) are consistent with the 
                                commercial policies of the United 
                                States, and
                                    (II) will reduce or eliminate such 
                                barriers or distortions, and help 
                                ensure fair, equitable opportunities 
                                for foreign markets.
                    (B) In pursuing the negotiating objectives 
                described in subparagraph (A), United States 
                negotiators shall take into account legitimate United 
                States domestic objectives, including protection of 
                legitimate health, safety, essential security, 
                environmental, consumer, and employment opportunity 
                interests. The preceding sentence shall not be 
                construed to authorize any modification of United 
                States law.
            (3) Foreign investment.--
                    (A) The principal negotiating objectives of the 
                United States regarding foreign investment are--
                            (i) to reduce or eliminate artificial or 
                        trade-distorting barriers to foreign 
                        investment, to expand the principle of national 
                        treatment, and to reduce unreasonable barriers 
                        to establishment; and
                            (ii) to develop internationally agreed 
                        rules through the negotiation of investment 
                        agreements, including dispute settlement 
                        procedures, that--
                                    (I) will help ensure a free flow of 
                                foreign investment, and
                                    (II) will reduce or eliminate the 
                                trade distortive effects of certain 
                                trade-related investment measures.
                    (B) In pursuing the negotiating objectives 
                described in subparagraph (A), United States 
                negotiators shall take into account legitimate United 
                States domestic objectives, including protection of 
                legitimate health, safety, essential security, 
                environmental, consumer, and employment opportunity 
                interests. The preceding sentence shall not be 
                construed to authorize any modification of United 
                States law.
            (4) Intellectual property.--The principal negotiating 
        objectives of the United States regarding intellectual property 
        are--
                    (A) to further promote adequate and effective 
                protection of intellectual property rights, by--
                            (i) seeking the enactment and effective 
                        enforcement by foreign countries of laws that--
                                    (I) recognize and adequately 
                                protect intellectual property, 
                                including copyrights, patents, 
                                trademarks, semiconductor chip layout 
                                designs, and trade secrets, and
                                    (II) provide protection against 
                                unfair competition;
                            (ii) accelerating and ensuring the full 
                        implementation of the Agreement on Trade-
                        Related Aspects of Intellectual Property Rights 
                        referred to in section 101(d)(15) of the 
                        Uruguay Round Agreements Act (19 U.S.C. 
                        3511(d)(15)), and achieving improvements in the 
                        standards of that Agreement;
                            (iii) providing strong protection for new 
                        and emerging technologies and new methods of 
                        transmitting and distributing products 
                        embodying intellectual property;
                            (iv) preventing or eliminating 
                        discrimination with respect to matters 
                        affecting the availability, acquisition, scope, 
                        maintenance, use, and enforcement of 
                        intellectual property rights; and
                            (v) providing for strong enforcement of 
                        intellectual property rights through 
                        accessible, expeditious, and effective civil, 
                        administrative, and criminal enforcement 
                        mechanisms;
                    (B) to secure fair, equitable, and 
                nondiscriminatory market access opportunities for 
                United States persons that rely on intellectual 
                property protection; and
                    (C) to recognize that the inclusion in the WTO of--
                            (i) adequate and effective substantive 
                        norms and standards for the protection and 
                        enforcement of intellectual property rights, 
                        and
                            (ii) dispute settlement provisions and 
                        enforcement procedures,
                is without prejudice to other complementary initiatives 
                undertaken in other international organizations.
            (5) Agriculture.--The principal negotiating objectives of 
        the United States with respect to agriculture are, in addition 
        to those set forth in section 1123(b) of the Food Security Act 
        of 1985 (7 U.S.C. 1736r(b)), to achieve, on an expedited basis 
        to the maximum extent feasible, more open and fair conditions 
        of trade in agricultural commodities by--
                    (A) developing, strengthening, and clarifying rules 
                for agricultural trade, including disciplines on 
                restrictive or trade-distorting import and export 
                practices such as those that would impact perishable or 
                cyclical products;
                    (B) increasing United States agricultural exports 
                by eliminating barriers to trade (including transparent 
                and nontransparent barriers) and reducing or 
                eliminating the subsidization of agricultural 
                production consistent with the United States policy of 
                agricultural stabilization in cyclical and 
                unpredictable markets;
                    (C) creating a free and more open world 
                agricultural trading system by resolving questions 
                pertaining to export and other trade-distorting 
                subsidies, market pricing, and market access;
                    (D) eliminating or reducing substantially other 
                specific constraints to fair trade and more open market 
                access, such as tariffs, quotas, and other nontariff 
                practices; and
                    (E) developing, strengthening, and clarifying rules 
                that address practices that unfairly decrease United 
                States market access opportunities or distort 
                agricultural markets to the detriment of the United 
                States, including--
                            (i) unfair or trade-distorting activities 
                        of state trading enterprises and other 
                        administrative mechanisms, including lack of 
                        price transparency;
                            (ii) unjustified restrictions or commercial 
                        requirements affecting new technologies, 
                        including biotechnology;
                            (iii) unjustified sanitary or phytosanitary 
                        restrictions;
                            (iv) other unjustified technical barriers 
                        to trade; and
                            (v) restrictive rules in the administration 
                        of tariff-rate quotas.
            (6) Unfair trade practices.--The principal negotiating 
        objectives of the United States with respect to unfair trade 
        practices are--
                    (A) to enhance the operation and effectiveness of 
                the relevant Uruguay Round Agreements and any other 
                agreements designed to define, deter, discourage the 
                persistent use of, and otherwise discipline, unfair 
                trade practices having adverse trade effects, including 
                forms of subsidy and dumping not adequately 
                disciplined, such as resource input subsidies, 
                diversionary dumping, dumped or subsidized inputs, 
                third country dumping, circumvention of antidumping or 
                countervailing duty orders, and export targeting 
                practices; and
                    (B) to obtain the enforcement of WTO rules 
                against--
                            (i) trade-distorting practices of state 
                        trading enterprises, and
                            (ii) the acts, practices, or policies of 
                        any foreign government which, as a practical 
                        matter, unreasonably require that--
                                    (I) substantial direct investment 
                                in the foreign country be made,
                                    (II) intellectual property be 
                                licensed to the foreign country or to 
                                any firm of the foreign country, or
                                    (III) other collateral concessions 
                                be made,
                        as a condition for the importation of any 
                        product or service of the United States into 
                        the foreign country or as a condition for 
                        carrying on business in the foreign country.
            (7) Safeguards.--The principal negotiating objectives of 
        the United States regarding safeguards are--
                    (A) to improve and expand rules and procedures 
                covering safeguard measures;
                    (B) to ensure that safeguard measures are--
                            (i) transparent,
                            (ii) temporary,
                            (iii) degressive, and
                            (iv) subject to review and termination when 
                        no longer necessary to remedy injury and to 
                        facilitate adjustment; and
                    (C) to require notification of, and to monitor the 
                use by, WTO members of import relief actions for their 
                domestic industries.
            (8) Improvement of the wto and multilateral trade 
        agreements.--The principal negotiating objectives of the United 
        States regarding the improvement of the WTO and other 
        multilateral trade agreements are--
                    (A) to improve the operation and extend the 
                coverage of the WTO and such agreements to products, 
                sectors, and conditions of trade not adequately 
                covered; and
                    (B) to expand country participation in particular 
                agreements, where appropriate.
            (9) Dispute settlement.--The principal negotiating 
        objectives of the United States with respect to dispute 
        settlement are--
                    (A) to provide for effective and expeditious 
                dispute settlement mechanisms and procedures in any 
                trade agreement entered into under this authority; and
                    (B) to ensure that such mechanisms within the WTO 
                and agreements concluded under the auspices of the WTO 
                provide for more effective and expeditious resolution 
                of disputes and enable better enforcement of United 
                States rights.
            (10) Transparency.--The principal negotiating objective of 
        the United States regarding transparency is to obtain broader 
        application of the principle of transparency through increased 
        public access to information regarding trade issues, 
        clarification of the costs and benefits of trade policy 
        actions, and the observance of open and equitable procedures by 
        United States trading partners and within the WTO.
            (11) Developing countries.--The principal negotiating 
        objectives of the United States regarding developing countries 
        are--
                    (A) to ensure that developing countries promote 
                economic development by assuming the fullest possible 
                measure of responsibility for achieving and maintaining 
                an open international trading system by providing 
                reciprocal benefits and assuming equivalent obligations 
                with respect to their import and export practices; and
                    (B) to establish procedures for reducing 
                nonreciprocal trade benefits for the more advanced 
                developing countries.
            (12) Current account surpluses.--The principal negotiating 
        objective of the United States regarding current account 
        surpluses is to promote policies to address large and 
        persistent global current account imbalances of countries 
        (including imbalances which threaten the stability of the 
        international trading system), by imposing greater 
        responsibility on such countries to undertake policy changes 
        aimed at restoring current account equilibrium through 
        expedited implementation of trade agreements where feasible and 
        appropriate.
            (13) Access to high technology.--
                    (A) The principal negotiating objective of the 
                United States regarding access to high technology is to 
                obtain the elimination or reduction of foreign barriers 
                to, and acts, policies, or practices by foreign 
                governments which limit, equitable access by United 
                States persons to foreign-developed technology, 
                including barriers, acts, policies, or practices which 
                have the effect of--
                            (i) restricting the participation of United 
                        States persons in government-supported research 
                        and development projects;
                            (ii) denying equitable access by United 
                        States persons to government-held patents;
                            (iii) requiring the approval of government 
                        entities, or imposing other forms of government 
                        intervention, as a condition of granting 
                        licenses to United States persons by foreign 
                        persons (other than approval which may be 
                        necessary for national security purposes to 
                        control the export of critical military 
                        technology); and
                            (iv) otherwise denying equitable access by 
                        United States persons to foreign-developed 
                        technology or contributing to the inequitable 
                        flow of technology between the United States 
                        and its trading partners.
                    (B) In pursuing the negotiating objective described 
                in subparagraph (A), the United States negotiators 
                shall take into account United States Government 
                policies in licensing or otherwise making available to 
                foreign persons technology and other information 
                developed by United States laboratories.
            (14) Border taxes.--The principal negotiating objective of 
        the United States regarding border taxes is, within the WTO, to 
        obtain a revision of the treatment of border adjustments for 
        internal taxes in order to redress the disadvantage to 
        countries that rely primarily on direct taxes rather than 
        indirect taxes for revenue.
            (15) Regulatory competition.--The principal trade 
        negotiating objectives of the United States regarding the use 
        of government regulation or other practices by foreign 
        governments to provide a competitive advantage to their 
        domestic producers, service providers, or investors and thereby 
        reduce market access for United States goods, services, and 
        investment are--
                    (A) to ensure that government regulation and other 
                government practices do not unfairly discriminate 
                against United States goods, services, or investment; 
                and
                    (B) to prevent the use of foreign government 
                regulation and other government practices, including 
                the lowering of, or derogation from, existing labor 
                (including child labor), health and safety, or 
                environmental standards, for the purpose of attracting 
                investment or inhibiting United States exports.
        Nothing in subparagraph (B) shall be construed to authorize in 
        an implementing bill, or in an agreement subject to an 
        implementing bill, the inclusion of provisions that would 
        restrict the autonomy of the United States in these areas.
    (c) International Economic Policy Objectives Designed To Reinforce 
the Trade Agreements Process.--
            (1) In general.--It is the policy of the United States to 
        reinforce the trade agreements process by--
                    (A) fostering stability in international currency 
                markets and developing mechanisms to assure greater 
                coordination, consistency, and cooperation between 
                international trade and monetary systems and 
                institutions in order to protect against the trade 
                consequences of significant and unanticipated currency 
                movements;
                    (B) supplementing and strengthening standards for 
                protection of intellectual property rights under 
                conventions designed to protect such rights that are 
                administered by international organizations other than 
                the WTO, expanding the conventions to cover new and 
                emerging technologies, and eliminating discrimination 
                and unreasonable exceptions or preconditions to such 
                protection;
                    (C) promoting respect for workers' rights, by--
                            (i) reviewing the relationship between 
                        workers' rights and the operation of 
                        international trading systems and specific 
                        trade arrangements; and
                            (ii) seeking the effective implementation 
                        in the International Labor Organization 
                        (referred to in this title as the ``ILO'') of 
                        the Declaration on Fundamental Principles and 
                        Rights at Work and its monitoring mechanism to 
                        ensure the systematic examination of, and 
                        reporting on, the extent to which ILO members 
                        promote and enforce the freedom of association, 
                        the right to organize and bargain collectively, 
                        a prohibition on the use of forced labor, a 
                        prohibition on exploitative child labor, and a 
                        prohibition on discrimination in employment; 
                        and
                    (D) expanding the production of goods and trade in 
                goods and services to ensure the optimal use of the 
                world's resources, while seeking to protect and 
preserve the environment and to enhance the international means for 
doing so.
            (2) Application of procedures.--Nothing in this subsection 
        shall be construed to authorize the use of the trade agreement 
        approval procedures described in section 2003 to modify United 
        States law.

SEC. 2003. TRADE AGREEMENT NEGOTIATING AUTHORITY.

    (a) Agreements Regarding Tariff Barriers.--
            (1) In general.--Whenever the President determines that 1 
        or more existing duties or other import restrictions of any 
        foreign country or the United States are unduly burdening and 
        restricting the foreign trade of the United States and that the 
        purposes, policies, and objectives of this title will be 
        promoted thereby, the President--
                    (A) may enter into trade agreements with foreign 
                countries before--
                            (i) October 1, 2001, or
                            (ii) October 1, 2005, if the authority 
                        provided by this title is extended under 
                        subsection (c); and
                    (B) may, consistent with paragraphs (2) through 
                (5), proclaim--
                            (i) such modification or continuance of any 
                        existing duty,
                            (ii) such continuance of existing duty-free 
                        or excise treatment, or
                            (iii) such additional duties,
                as the President determines to be required or 
                appropriate to carry out any such trade agreement.
            (2) Limitations.--No proclamation may be made under 
        paragraph (1) that--
                    (A) reduces any rate of duty (other than a rate of 
                duty that does not exceed 5 percent ad valorem on the 
                date of enactment of this Act) to a rate which is less 
                than 50 percent of the rate of such duty that applies 
                on such date of enactment;
                    (B) provides for a reduction of duty on an article 
                to take effect on a date that is more than 10 years 
                after the first reduction that is proclaimed to carry 
                out a trade agreement with respect to such article; or
                    (C) increases any rate of duty above the rate that 
                applied on the date of enactment of this Act.
            (3) Aggregate reduction; exemption from staging.--
                    (A) Aggregate reduction.--Except as provided in 
                subparagraph (B), the aggregate reduction in the rate 
                of duty on any article which is in effect on any day 
                pursuant to a trade agreement entered into under 
                paragraph (1) shall not exceed the aggregate reduction 
                which would have been in effect on such day if--
                            (i) a reduction of 3 percent ad valorem or 
                        a reduction of one-tenth of the total 
                        reduction, whichever is greater, had taken 
                        effect on the effective date of the first 
                        reduction proclaimed under paragraph (1) to 
                        carry out such agreement with respect to such 
                        article; and
                            (ii) a reduction equal to the amount 
                        applicable under clause (i) had taken effect at 
                        1-year intervals after the effective date of 
                        such first reduction.
                    (B) Exemption from staging.--No staging under 
                subparagraph (A) is required with respect to a rate 
                reduction that is proclaimed under paragraph (1) for an 
                article of a kind that is not produced in the United 
                States. The United States International Trade 
                Commission shall advise the President of the identity 
                of articles that may be exempted from staging under 
                this subparagraph.
            (4) Rounding.--If the President determines that such action 
        will simplify the computation of reductions under paragraph 
        (3), the President may round an annual reduction by the lesser 
        of--
                    (A) the difference between the reduction without 
                regard to this paragraph and the next lower whole 
                number; or
                    (B) one-half of 1 percent ad valorem.
            (5) Other limitations.--A rate of duty reduction or 
        increase that may not be proclaimed by reason of paragraph (2) 
        may take effect only if a provision authorizing such reduction 
        or increase is included within an implementing bill provided 
        for under section 2005 and that bill is enacted into law.
            (6) Expanded tariff proclamation authority.--
                    (A) In general.--Notwithstanding the provisions of 
                paragraphs (1) through (5), before October 1, 2001 (or 
                before October 1, 2005, if the authority provided by 
                this title is extended under subsection (c)), and 
                subject to the consultation and layover requirements of 
                section 115 of the Uruguay Round Agreements Act 
(19 U.S.C. 3524) and the notification and consultation requirements of 
section 2004(a) of this title, the President may proclaim the 
modification of any duty or staged rate reduction of any duty set forth 
in Schedule XX, as defined in section 2(5) of the Uruguay Round 
Agreements Act, if the United States has agreed to such modification or 
staged rate reduction in a negotiation for the reciprocal elimination 
or harmonization of duties, within the same tariff categories, under 
the auspices of the World Trade Organization or as part of an interim 
agreement leading to the formation of a regional free-trade area.
                    (B) Notice required.--The modification or staged 
                rate reduction authorized under subparagraph (A) with 
                respect to any negotiation initiated after the date of 
                enactment of this Act may be proclaimed only on 
                articles in tariff categories with respect to which the 
                President has provided notice in accordance with 
                section 2004(a).
            (7) Tariff modifications under uruguay round agreements 
        act.--Nothing in this subsection shall limit the authority 
        provided to the President under section 111(b) of the Uruguay 
        Round Agreements Act.
    (b) Agreements Regarding Tariff and Nontariff Barriers.--
            (1) In general.--
                    (A) Determination by president.--Whenever the 
                President determines that--
                            (i) any duty or other import restriction 
                        imposed by any foreign country or the United 
                        States or any other barrier to, or other 
                        distortion of, international trade--
                                    (I) unduly burdens or restricts the 
                                foreign trade of the United States or 
                                adversely affects the United States 
                                economy, or
                                    (II) is likely to result in such a 
                                burden, restriction, or effect, and
                            (ii) the purposes, policies, and objectives 
                        of this title will be promoted thereby,
                the President may, before October 1, 2001 (or before 
                October 1, 2005, if the authority provided under this 
                title is extended under subsection (c)) enter into a 
                trade agreement described in subparagraph (B).
                    (B) Trade agreement described.--A trade agreement 
                described in this subparagraph means an agreement with 
                a foreign country that provides for--
                            (i) the reduction or elimination of such 
                        duty, restriction, barrier, or other 
                        distortion; or
                            (ii) the prohibition of, or limitation on 
                        the imposition of, such barrier or other 
                        distortion.
            (2) Conditions.--A trade agreement may be entered into 
        under this subsection only if--
                    (A) such agreement makes progress in meeting the 
                applicable objectives described in section 2002(b); and
                    (B) the President satisfies the conditions set 
                forth in section 2004 with respect to such agreement.
            (3) Bills qualifying for trade agreement approval 
        procedures.--The provisions of section 151 of the Trade Act of 
        1974 (in this title referred to as ``trade agreement approval 
        procedures'') apply to implementing bills submitted with 
        respect to trade agreements entered into under this subsection, 
        except that, for purposes of applying section 151(b)(1), such 
        implementing bills shall contain only--
                    (A) provisions that approve a trade agreement 
                entered into under this subsection that achieves one or 
                more of the principal negotiating objectives set forth 
                in section 2002(b) and the statement of administrative 
                action (if any) proposed to implement such trade 
                agreement;
                    (B) provisions that are--
                            (i) necessary to implement such agreement; 
                        or
                            (ii) otherwise related to the 
                        implementation, enforcement, and adjustment to 
                        the effects of such trade agreement and are 
                        directly related to trade; and
                    (C) provisions necessary for purposes of complying 
                with section 252 of the Balanced Budget and Emergency 
                Deficit Control Act of 1985 in implementing the 
                applicable trade agreement.
    (c) Extension Procedures.--
            (1) In general.--Except as provided in section 2005(b)--
                    (A) subsections (a) and (b) shall apply with 
                respect to agreements entered into before October 1, 
                2001; and
                    (B) subsections (a) and (b) shall be extended to 
                apply with respect to agreements entered into on or 
                after October 1, 2001, and before October 1, 2005, if 
                (and only if)--
                            (i) the President requests such extension 
                        under paragraph (2); and
                            (ii) neither House of Congress adopts an 
                        extension disapproval resolution under 
                        paragraph (5) before October 1, 2001.
            (2) Report to congress by the president.--If the President 
        is of the opinion that the authority under subsections (a) and 
        (b) should be extended, the President shall submit to Congress, 
        not later than July 1, 2001, a written report that contains a 
        request for such extension, together with--
                    (A) a description of all trade agreements that have 
                been negotiated under subsections (a) and (b) and, 
                where applicable, the anticipated schedule for 
                submitting such agreements to Congress for approval;
                    (B) a description of the progress that has been 
                made in negotiations to achieve the purposes, policies, 
                and objectives set out in section 2002 (a) and (b) of 
                this title, and a statement that such progress 
                justifies the continuation of negotiations; and
                    (C) a statement of the reasons why the extension is 
                needed to complete the negotiations.
            (3) Report to congress by the advisory committee.--The 
        President shall promptly inform the Advisory Committee for 
        Trade Policy and Negotiations established under section 135 of 
        the Trade Act of 1974 (19 U.S.C. 2155) of the President's 
        decision to submit a report to Congress under paragraph (2). 
        The Advisory Committee shall submit to Congress as soon as 
        practicable, but not later than August 1, 2001, a written 
        report that contains--
                    (A) its views regarding the progress that has been 
                made in negotiations to achieve the purposes, policies, 
                and objectives of this title; and
                    (B) a statement of its views, and the reasons 
                therefor, regarding whether the extension requested 
                under paragraph (2) should be approved or disapproved.
            (4) Reports may be classified.--The reports submitted to 
        Congress under paragraphs (2) and (3), or any portion of the 
        reports, may be classified to the extent the President 
        determines appropriate.
            (5) Extension disapproval resolutions.--
                    (A) In general.--For purposes of this subsection, 
                the term ``extension disapproval resolution'' means a 
                resolution of either House of Congress, the sole matter 
                after the resolving clause of which is as follows: 
                ``That the ____ disapproves the request of the 
                President for an extension, under section 2003(c) of 
                the Reciprocal Trade Agreements Act of 1998, of 
                ________________ after September 30, 2001.'', with the 
                first blank space being filled with the name of the 
                resolving House of Congress and the second blank space 
                being filled with one or both of the following phrases: 
                ``the tariff proclamation authority provided under 
                section 2003(a) of the Reciprocal Trade Agreements Act 
                of 1998'' or ``the trade agreement approval procedures 
                provided under section 2003(b) of the Reciprocal Trade 
                Agreements Act of 1998''.
                    (B) Introduction and referral.--Extension 
                disapproval resolutions--
                            (i) may be introduced in either House of 
                        Congress by any member of such House;
                            (ii) shall be jointly referred, in the 
                        House of Representatives, to the Committee on 
                        Ways and Means and the Committee on Rules; and
                            (iii) shall be referred, in the Senate, to 
                        the Committee on Finance.
                    (C) Floor consideration.--The provisions of 
                sections 152 (d) and (e) of the Trade Act of 1974 (19 
                U.S.C. 2192(d) and (e)) (relating to the floor 
                consideration of certain resolutions in the House and 
                Senate) apply to extension disapproval resolutions.
                    (D) Committee action required.--It is not in order 
                for--
                            (i) the Senate to consider any extension 
                        disapproval resolution not reported by the 
                        Committee on Finance;
                            (ii) the House of Representatives to 
                        consider any extension disapproval resolution 
                        not reported by the Committee on Ways and Means 
and the Committee on Rules; or
                            (iii) either House of Congress to consider 
                        an extension disapproval resolution after 
                        September 30, 2001.

SEC. 2004. NOTICE AND CONSULTATIONS.

    (a) Notice and Consultation Before Negotiation.--With respect to 
any agreement subject to the provisions of section 2003 (a) or (b), the 
President shall--
            (1) not later than 90 calendar days before initiating 
        negotiations, provide written notice to Congress regarding--
                    (A) the President's intent to initiate the 
                negotiations;
                    (B) the date the President intends to initiate such 
                negotiations;
                    (C) the specific United States objectives for the 
                negotiations; and
                    (D) whether the President intends to seek an 
                agreement or changes to an existing agreement;
            (2) consult regarding the negotiations--
                    (A) before and promptly after submission of the 
                notice described in paragraph (1), with the Committee 
                on Finance of the Senate, the Committee on Ways and 
                Means of the House of Representatives, and such other 
                committees of the House and Senate as the President 
                deems appropriate; and
                    (B) with any other committee that requests 
                consultations in writing; and
            (3) consult with the appropriate industry sector advisory 
        groups established under section 135 of the Trade Act of 1974 
        before initiating negotiations.
    (b) Consultation With Congress Before Agreement Entered Into.--
            (1) Consultation.--Before entering into any trade agreement 
        under section 2003 (a) or (b), the President shall consult 
        with--
                    (A) the Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of the 
                Senate; and
                    (B) each other committee of the House and the 
                Senate, and each joint committee of Congress, which has 
                jurisdiction over legislation involving subject matters 
                that would be affected by the trade agreement.
            (2) Scope.--The consultation described in paragraph (1) 
        shall include consultation with respect to--
                    (A) the nature of the agreement;
                    (B) how and to what extent the agreement will 
                achieve the applicable purposes, policies, and 
                objectives of this title;
                    (C) where applicable, the implementation of the 
                agreement under section 2005, including whether the 
                agreement includes subject matter for which 
                supplemental implementing legislation may be required 
                which is not subject to trade agreement approval 
                procedures; and
                    (D) any other agreement the President has entered 
                into or intends to enter into with the country or 
                countries in question.
    (c) Advisory Committee Reports.--The report required under section 
135(e)(1) of the Trade Act of 1974 regarding any trade agreement 
entered into under section 2003(b) of this title shall be provided to 
the President, Congress, and the United States Trade Representative not 
later than 30 calendar days after the date on which the President 
notifies Congress under section 2005(a)(1)(A) of the President's 
intention to enter into the agreement.
    (d) Consultation Before Agreement Initialed.--In the course of 
negotiations conducted under this title, the United States Trade 
Representative shall consult closely and on a timely basis (including 
immediately before initialing an agreement) with, and keep fully 
apprised of the negotiations, the congressional advisers for trade 
policy and negotiations appointed under section 161 of the Trade Act of 
1974 (19 U.S.C. 2211), the Committee on Finance of the Senate, and the 
Committee on Ways and Means of the House of Representatives.
    (e) ITC assessment.--
            (1) In general.--The President, at least 90 calendar days 
        before the day on which the President enters into a trade 
        agreement under section 2003(b), shall provide the 
        International Trade Commission (referred to in this subsection 
        as ``the Commission'') with the details of the agreement as it 
        exists at that time and request the Commission to prepare and 
        submit an assessment of the agreement as described in paragraph 
        (2). Between the time the President makes the request under 
        this paragraph and the time the Commission submits the 
        assessment, the President shall keep the Commission current 
        with respect to the details of the agreement.
            (2) ITC assessment.--Not later than 90 calendar days after 
        the President enters into the agreement, the Commission shall 
        submit to the President and Congress a report assessing the 
        likely impact of the agreement on the United States economy as 
        a whole and on specific industry sectors, including the impact 
        the agreement will have on the gross domestic product, exports 
        and imports, aggregate employment and employment opportunities, 
        the production, employment, and the competitive position of 
        industries likely to be significantly affected by the 
        agreement, and the impact on United States consumers.
            (3) Review of empirical literature.--In preparing the 
        assessment, the Commission shall review available economic 
        assessments regarding the agreement, including literature 
        regarding any substantially equivalent proposed agreement, and 
        shall provide in its assessment a description of the analyses 
        used and conclusions drawn in such literature, and a discussion 
        of areas of consensus and divergence between the various 
        analyses and conclusions, including those of the Commission 
        regarding the agreement.

SEC. 2005. IMPLEMENTATION OF TRADE AGREEMENTS.

    (a) In General.--
            (1) Notification and submission.--Any agreement entered 
        into under section 2003(b) shall enter into force with respect 
        to the United States if (and only if)--
                    (A) the President, at least 90 calendar days before 
                the day on which the President enters into the trade 
                agreement, notifies the House of Representatives and 
                the Senate of the President's intention to enter into 
                the agreement, and promptly thereafter publishes notice 
                of such intention in the Federal Register;
                    (B) within 60 calendar days after entering into the 
                agreement, the President submits to Congress a 
                description of those changes to existing laws that the 
                President considers would be required in order to bring 
                the United States into compliance with the agreement;
                    (C) after entering into the agreement, the 
                President submits a copy of the final legal text of the 
                agreement, together with--
                            (i) a draft of an implementing bill 
                        described in section 2003(b)(3);
                            (ii) a statement of any administrative 
                        action proposed to implement the trade 
                        agreement; and
                            (iii) the supporting information described 
                        in paragraph (2); and
                    (D) the implementing bill is enacted into law.
            (2) Supporting information.--The supporting information 
        required under paragraph (1)(C)(iii) consists of--
                    (A) an explanation as to how the implementing bill 
                and proposed administrative action will change or 
                affect existing law; and
                    (B) a statement--
                            (i) asserting that the agreement makes 
                        progress in achieving the applicable purposes, 
                        policies, and objectives of this title; and
                            (ii) setting forth the reasons of the 
                        President regarding--
                                    (I) how and to what extent the 
                                agreement makes progress in achieving 
                                the applicable purposes, policies, and 
                                objectives referred to in clause (i), 
                                and why and to what extent the 
                                agreement does not achieve other 
                                applicable purposes, policies, and 
                                objectives;
                                    (II) whether and how the agreement 
                                changes provisions of an agreement 
                                previously negotiated;
                                    (III) how the agreement serves the 
                                interests of United States commerce;
                                    (IV) why the implementing bill 
                                qualifies for trade agreement approval 
                                procedures under section 2003(b)(3); 
                                and
                                    (V) any proposed administrative 
                                action.
            (3) Reciprocal benefits.--To ensure that a foreign country 
        which receives benefits under a trade agreement entered into 
        under section 2003 (a) or (b) is subject to the obligations 
        imposed by such agreement, the President shall recommend to 
        Congress in the implementing bill and statement of 
        administrative action submitted with respect to such agreement 
        that the benefits and obligations of such agreement apply 
        solely to the parties to such agreement, if such application is 
        consistent with the terms of such agreement. The President may 
        also recommend with respect to any such agreement that the 
        benefits and obligations of such agreement not apply uniformly 
        to all parties to such agreement, if such application is 
        consistent with the terms of such agreement.
    (b) Limitations on Trade Agreement Approval Procedures.--
            (1) Disapproval of the negotiation.--The trade agreement 
        approval procedures shall not apply to any implementing bill 
        that contains a provision approving any trade agreement that is 
        entered into under section 2003(b) with any foreign country if 
        the Committee on Finance of the Senate and the Committee on 
        Ways and Means of the House of Representatives disapprove of 
        the negotiation of the agreement before the close of the 90-
        calendar day period that begins on the date notice is provided 
        under section 2004(a)(1) with respect to the negotiation of 
        such agreement.
            (2) For lack of notice or consultations.--
                    (A) In general.--The trade agreement approval 
                procedures shall not apply to any implementing bill 
                submitted with respect to a trade agreement entered 
                into under section 2003(b) if during the 60-day period 
                beginning on the date that one House of Congress agrees 
                to a procedural disapproval resolution for lack of 
                notice or consultations with respect to that trade 
                agreement, the other House separately agrees to a 
                procedural disapproval resolution with respect to that 
                agreement.
                    (B) Procedural disapproval resolution.--For 
                purposes of this paragraph, the term ``procedural 
                disapproval resolution'' means a resolution of either 
                House of Congress, the sole matter after the resolving 
                clause of which is as follows: ``That the President has 
                failed or refused to notify or consult (as the case may 
                be) with Congress in accordance with sections 2004 and 
                2005 of the Reciprocal Trade Agreements Act of 1998 
                with respect to ____ and, therefore, the trade 
                agreement approval procedures set forth in section 
                2003(b) of that Act shall not apply to any implementing 
                bill submitted with respect to that trade agreement.'', 
                with the blank space being filled with a description of 
                the trade agreement with respect to which the President 
                is considered to have failed or refused to notify or 
                consult.
                    (C) Computation of certain periods of time.--The 
                60-day period of time described in subparagraph (A) 
                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.
            (3) Procedures for considering procedural disapproval 
        resolutions.--
                    (A) Procedural disapproval resolutions.--Procedural 
                disapproval resolutions--
                            (i) in the House of Representatives--
                                    (I) shall be introduced by the 
                                chairman or ranking minority member of 
                                the Committee on Ways and Means or the 
                                chairman or ranking minority member of 
                                the Committee on Rules;
                                    (II) shall be jointly referred to 
                                the Committee on Ways and Means and the 
                                Committee on Rules; and
                                    (III) may not be amended by either 
                                Committee; and
                            (ii) in the Senate shall be original 
                        resolutions of the Committee on Finance.
                    (B) Floor consideration.--The provisions of section 
                152 (d) and (e) of the Trade Act of 1974 (19 U.S.C. 
                2192 (d) and (e)) (relating to the floor consideration 
                of certain resolutions in the House and Senate) apply 
                to procedural disapproval resolutions.
                    (C) Committee action required.--
                            (i) House of representatives.--It is not in 
                        order for the House of Representatives to 
                        consider any procedural disapproval resolution 
                        not reported by the Committee on Ways and Means 
                        and the Committee on Rules.
                            (ii) Senate.--It is not in order for the 
                        Senate to consider any procedural disapproval 
                        resolution not reported by the Committee on 
                        Finance.
    (c) Rules of House of Representatives and Senate.--Subsection (b) 
of this section and section 2003(c) are enacted by Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such are 
        deemed a part of the rules of each House, respectively, and 
        such procedures supersede other rules only to the extent that 
        they are inconsistent with such other rules; and
            (2) with the full recognition of the constitutional right 
        of either House to change the rules (so far as relating to the 
        procedures of that House) at any time, in the same manner, and 
        to the same extent as any other rule of that House.

SEC. 2006. TREATMENT OF CERTAIN TRADE AGREEMENTS.

    (a) In General.--Notwithstanding section 2003(a)(6)(B) and section 
2003(b)(2), the provisions of section 2004(a) shall not apply with 
respect to agreements that result from--
            (1) negotiations under the auspices of the World Trade 
        Organization regarding trade in information technology 
        products;
            (2) negotiations or work programs initiated pursuant to a 
        Uruguay Round Agreement, as defined in section 2 of the Uruguay 
        Round Agreements Act;
            (3) negotiations with Chile; or
            (4) negotiations to achieve a free trade area of the 
        Americas,
that were commenced before the date of enactment of this Act, and the 
applicability of trade agreement approval procedures with respect to 
such agreements shall be determined without regard to the requirements 
of section 2004(a).
    (b) Procedural Disapproval Resolution Not In Order.--A procedural 
disapproval resolution under section 2005(b) shall not be in order with 
respect to an agreement described in subsection (a) of this section 
based on a failure or refusal to comply with section 2004(a).

SEC. 2007. CONFORMING AMENDMENTS.

    (a) In General.--Title I of the Trade Act of 1974 (19 U.S.C. 2111 
et seq.) is amended as follows:
            (1) Implementing bill.--
                    (A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is 
                amended--
                            (i) by striking ``section 1103(a)(1) of the 
                        Omnibus Trade and Competitiveness Act of 1988, 
                        or section 282 of the Uruguay Round Agreements 
                        Act'' and inserting ``section 282 of the 
                        Uruguay Round Agreements Act, or section 
                        2005(a)(1) of the Reciprocal Trade Agreements 
                        Act of 1998''; and
                            (ii) by adding after subparagraph (C) the 
                        following flush sentence:
        ``For purposes of applying this paragraph to implementing bills 
        submitted with respect to trade agreements entered into under 
        section 2003(b) of the Reciprocal Trade Agreements Act of 1998, 
        subparagraphs (A), (B), and (C) of section 2003(b)(3) of such 
        Act shall be substituted for subparagraphs (A), (B), and (C) of 
        this paragraph.''.
                    (B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is 
                amended by striking ``or section 282 of the Uruguay 
                Round Agreements Act'' and inserting ``, section 282 of 
                the Uruguay Round Agreements Act, or section 2005(a)(1) 
                of the Reciprocal Trade Agreements Act of 1998''.
            (2) Advice from international trade commission.--Section 
        131 (19 U.S.C. 2151) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``section 
                        123 of this Act or section 1102 (a) or (c) of 
                        the Omnibus Trade and Competitiveness Act of 
                        1988,'' and inserting ``section 123 of this Act 
                        or section 2003 (a) or (b) of the Reciprocal 
                        Trade Agreements Act of 1998,''; and
                            (ii) in paragraph (2), by striking 
                        ``section 1102 (b) or (c) of the Omnibus 
Trade and Competitiveness Act of 1988'' and inserting ``section 2003(b) 
of the Reciprocal Trade Agreements Act of 1998'';
                    (B) in subsection (b), by striking ``section 
                1102(a)(3)(A)'' and inserting ``section 2003(a)(3)(A) 
                of the Reciprocal Trade Agreements Act of 1998'' before 
                the end period; and
                    (C) in subsection (c), by striking ``section 1102 
                of the Omnibus Trade and Competitiveness Act of 1988,'' 
                and inserting ``section 2003 of the Reciprocal Trade 
                Agreements Act of 1998,''.
            (3) Hearings and advice.--Sections 132, 133(a), and 134(a) 
        (19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by 
        striking ``section 1102 of the Omnibus Trade and 
        Competitiveness Act of 1988,'' each place it appears and 
        inserting ``section 2003 of the Reciprocal Trade Agreements Act 
        of 1998,''.
            (4) Prerequisites for offers.--Section 134(b) (19 U.S.C. 
        2154(b)) is amended by striking ``section 1102 of the Omnibus 
        Trade and Competitiveness Act of 1988'' and inserting ``section 
        2003 of the Reciprocal Trade Agreements Act of 1998''.
            (5) Advice from private and public sectors.--Section 135 
        (19 U.S.C. 2155) is amended--
                    (A) in subsection (a)(1)(A), by striking ``section 
                1102 of the Omnibus Trade and Competitiveness Act of 
                1988'' and inserting ``section 2003 of the Reciprocal 
                Trade Agreements Act of 1998'';
                    (B) in subsection (e)(1)--
                            (i) by striking ``section 1102 of the 
                        Omnibus Trade and Competitiveness Act of 1988'' 
                        each place it appears and inserting ``section 
                        2003 of the Reciprocal Trade Agreements Act of 
                        1998''; and
                            (ii) by striking ``section 1103(a)(1)(A) of 
                        such Act of 1988'' and inserting ``section 
                        2005(a)(1)(A) of the Reciprocal Trade 
                        Agreements Act of 1998''; and
                    (C) in subsection (e)(2), by striking ``the 
                applicable overall and principal negotiating objectives 
                set forth in section 1101 of the Omnibus Trade and 
                Competitiveness Act of 1988'' and inserting ``the 
                purposes, policies, and objectives set forth in section 
                2002 (a) and (b) of the Reciprocal Trade Agreements Act 
                of 1998''.
            (6) Transmission of agreements to congress.--Section 162(a) 
        (19 U.S.C. 2212(a)) is amended by striking ``or under section 
        1102 of the Omnibus Trade and Competitiveness Act of 1988'' and 
        inserting ``or under section 2003 of the Reciprocal Trade 
        Agreements Act of 1998''.
    (b) Application of Certain Provisions.--For purposes of applying 
sections 125, 126, and 127 of the Trade Act of 1974 (19 U.S.C. 2135, 
2136(a), and 2137)--
            (1) any trade agreement entered into under section 2003 
        shall be treated as an agreement entered into under section 101 
        or 102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 
        2111 or 2112); and
            (2) any proclamation or Executive order issued pursuant to 
        a trade agreement entered into under section 2003 shall be 
        treated as a proclamation or Executive order issued pursuant to 
        a trade agreement entered into under section 102 of the Trade 
        Act of 1974.

SEC. 2008. DEFINITIONS.

    In this title:
            (1) Distortion.--The term ``distortion'' includes, but is 
        not limited to, a subsidy.
            (2) Trade.--The term ``trade'' includes, but is not limited 
        to--
                    (A) trade in both goods and services; and
                    (B) foreign investment by United States persons, 
                especially if such investment has implications for 
                trade in goods and services.
            (3) Uruguay round agreements.-- The term ``Uruguay Round 
        Agreements'' has the meaning given such term in section 2(7) of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501(7).
            (4) World trade organization.--The term ``World Trade 
        Organization'' means the organization established pursuant to 
        the WTO Agreement.
            (5) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.
            (6) WTO and wto member.--The terms ``WTO'' and ``WTO 
        member'' have the meanings given those terms in section 2 of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501).

                 TITLE III--TRADE ADJUSTMENT ASSISTANCE

SEC. 3001. TRADE ADJUSTMENT ASSISTANCE.

    (a) Authorization of Appropriations.--
            (1) In general.--Section 245 of the Trade Act of 1974 (19 
        U.S.C. 2317) is amended--
                    (A) in subsection (a), by striking ``1993, 1994, 
                1995, 1996, 1997, and'' and inserting ``1999, and 
                2000,'' after ``1998,''; and
                    (B) in subsection (b), by striking ``1994, 1995, 
                1996, 1997, and'' and inserting ``1999, and 2000,'' 
                after ``1998,''.
            (2) Assistance for firms.--Section 256(b) of the Trade Act 
        of 1974 (19 U.S.C. 2346(b)) is amended by striking ``1993, 
        1994, 1995, 1996, 1997, and'' and inserting ``, 1999, and 
        2000,'' after ``1998''.
    (b) Termination.--Section 285(c) of the Trade Act of 1974 (19 
U.S.C. 2271 note preceding) is amended--
            (1) in paragraph (1), by striking ``1998'' and inserting 
        ``2000''; and
            (2) in paragraph (2)(A), by striking ``the day that is'' 
        and all that follows through ``effective'' and inserting 
        ``September 30, 2000''.

    TITLE IV--MARKET ACCESS IDENTIFICATION FOR CERTAIN AGRICULTURAL 
                                PRODUCTS

SEC. 4001. SHORT TITLE.

    This title may be cited as the ``United States Agricultural 
Products Market Access Act of 1998''.

SEC. 4002. PURPOSES.

    The purposes of this title are--
            (1) to reduce or eliminate foreign unfair trade practices 
        and to remove constraints on fair and open trade in 
        agricultural products;
            (2) to ensure fair and equitable market access for exports 
        of United States agricultural products; and
            (3) to promote free and fair trade in agricultural 
        products.

SEC. 4003. IDENTIFICATION OF COUNTRIES THAT DENY MARKET ACCESS.

    (a) Identification Required.--Chapter 8 of title I of the Trade Act 
of 1974 is amended by adding at the end the following:

``SEC. 183. IDENTIFICATION OF COUNTRIES THAT DENY MARKET ACCESS FOR 
              AGRICULTURAL PRODUCTS.

    ``(a) In General.--Not later than the date that is 30 days after 
the date on which the annual report is required to be submitted to 
Congressional committees under section 181(b), the United States Trade 
Representative (hereafter in this section referred to as the `Trade 
Representative') shall identify--
            ``(1) those foreign countries that--
                    ``(A) deny fair and equitable market access to 
                United States agricultural products, or
                    ``(B) apply unjustified sanitary or phytosanitary 
                standards to agricultural products imported from the 
                United States;
            ``(2) those foreign countries identified under paragraph 
        (1) that are determined by the Trade Representative to be 
        priority foreign countries.
    ``(b) Special Rules for Identification.--
            ``(1) Criteria.--In identifying priority foreign countries 
        under subsection (a)(2), the Trade Representative shall only 
        identify those foreign countries--
                    ``(A) that engage in or have the most onerous or 
                egregious acts, policies, or practices that deny fair 
                and equitable market access to United States 
                agricultural products,
                    ``(B) whose acts, policies, or practices described 
                in subparagraph (A) have the greatest adverse impact 
                (actual or potential) on the relevant United States 
                products, and
                    ``(C) that are not--
                            ``(i) entering into good faith 
                        negotiations, or
                            ``(ii) making significant progress in 
                        bilateral or multilateral negotiations,
                to provide fair and equitable market access to United 
                States agricultural products.
            ``(2) Consultation and consideration requirements.--In 
        identifying priority foreign countries under subsection (a)(2), 
        the Trade Representative shall--
                    ``(A) consult with the Secretary of Agriculture and 
                other appropriate officers of the Federal Government, 
                and
                    ``(B) take into account information from such 
                sources as may be available to the Trade Representative 
                and such information as may be submitted to the Trade 
                Representative by interested persons, including 
                information contained in reports submitted under 
section 181(b) and petitions submitted under section 302.
            ``(3) Factual basis requirement.--The Trade Representative 
        may identify a foreign country under subsection (a)(1) only if 
        the Trade Representative finds that there is a factual basis 
        for the denial of fair and equitable market access as a result 
        of the violation of international law or agreement, or the 
        existence of barriers, referred to in subsection (d).
            ``(4) Consideration of historical factors.--In identifying 
        foreign countries under paragraphs (1) and (2) of subsection 
        (a), the Trade Representative shall take into account--
                    ``(A) the history of agricultural trade relations 
                with the foreign country, including any previous 
                identification under subsection (a)(2), and
                    ``(B) the history of efforts of the United States, 
                and the response of the foreign country, to achieve 
                fair and equitable market access for United States 
                agricultural products.
    ``(c) Revocations and Additional Identifications.--
            ``(1) Authority to act at any time.--If information 
        available to the Trade Representative indicates that such 
        action is appropriate, the Trade Representative may at any 
        time--
                    ``(A) revoke the identification of any foreign 
                country as a priority foreign country under this 
                section, or
                    ``(B) identify any foreign country as a priority 
                foreign country under this section.
            ``(2) Revocation reports.--The Trade Representative shall 
        include in the semiannual report submitted to the Congress 
        under section 309(3) a detailed explanation of the reasons for 
        the revocation under paragraph (1) of the identification of any 
        foreign country as a priority foreign country under this 
        section.
    ``(d) Definition and Special Rule.--For purposes of this section:
            ``(1) Agricultural products.--The term `agricultural 
        products' includes forest products, fish, and seafood products.
            ``(2) Fair and equitable market access.--A foreign country 
        denies fair and equitable market access if the foreign country 
        effectively denies access to a market for a product through the 
        use of laws, procedures, practices, or regulations which--
                    ``(A) violate provisions of international law or 
                international agreements to which both the United 
                States and the foreign country are parties, or
                    ``(B) constitute discriminatory nontariff trade 
                barriers.
    ``(e) Publication.--The Trade Representative shall publish in the 
Federal Register a list of foreign countries identified under 
subsection (a) and shall make such revisions to the list as may be 
required by reason of the action under subsection (c).
    ``(f) Annual Report.--The Trade Representative shall, not later 
than the date by which countries are identified under subsection (a), 
transmit to the Committee on Ways and Means and the Committee on 
Agriculture of the House of Representatives and the Committee on 
Finance and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate, a report on the actions taken under this section during the 
12 months preceding such report, and the reasons for such actions, 
including a description of progress made in achieving fair and 
equitable market access for United States agricultural products.''.
    (b) Clerical Amendment.--The table of contents for the Trade Act of 
1974 is amended by inserting after the item relating to section 182 the 
following:

``Sec. 183. Identification of countries that deny market access for 
                            agricultural products.''.

SEC. 4004. INVESTIGATIONS.

    (a) Investigation Required.--Subparagraph (A) of section 302(b)(2) 
of the Trade Act of 1974 (19 U.S.C. 2412(b)(2)) is amended by inserting 
``or 183(a)(2)'' after ``section 182(a)(2)'' in the matter preceding 
clause (i).
    (b) Conforming Amendments.--
            (1) Subparagraph (D) of section 302(b)(2) of such Act is 
        amended by inserting ``concerning intellectual property rights 
        that is'' after ``any investigation''.
            (2) Subparagraph (B) of section 304(a)(3) of such Act is 
        amended--
                    (A) by striking ``or'' at the end of clause (ii),
                    (B) by inserting ``or'' at the end of clause (iii), 
                and
                    (C) by inserting immediately after clause (iii) the 
                following new clause:
                            ``(iv) the foreign country involved in the 
                        investigation is making substantial progress in 
                        drafting or implementing legislative or 
                        administrative measures that will provide fair 
                        and equitable market access to United States 
                        agricultural products,''.

  TITLE V--APPROVAL AND IMPLEMENTATION OF OECD SHIPBUILDING AGREEMENT

SEC. 5001. SHORT TITLE; PURPOSES.

    (a) Short Title.--This title may be cited as the ``OECD 
Shipbuilding Trade Agreement Act''.
    (b) Purposes.--The purposes of this title are--
            (1) to enhance the competitiveness of United States 
        shipbuilders which has been diminished as a result of foreign 
        subsidies and predatory pricing practices;
            (2) to ensure that United States ownership, manning, 
        registry, and construction requirements for coastwise trade 
        vessels, which have provided the Department of Defense with 
        mariners and assets in time of national emergency, cannot be 
        compromised by the Shipbuilding Agreement; and
            (3) to strengthen the United States shipbuilding industrial 
        base to ensure that its full capabilities are available in time 
        of national emergency.

                     Subtitle A--General Provisions

SEC. 5101. APPROVAL OF THE SHIPBUILDING AGREEMENT.

    The Congress approves The Agreement Respecting Normal Competitive 
Conditions in the Commercial Shipbuilding and Repair Industry (referred 
to in this Act as the ``Shipbuilding Agreement''), a reciprocal trade 
agreement which resulted from negotiations under the auspices of the 
Organization for Economic Cooperation and Development, and was entered 
into on December 21, 1994.

SEC. 5102. INJURIOUS PRICING AND COUNTERMEASURES RELATING TO 
              SHIPBUILDING.

    The Tariff Act of 1930 is amended by adding at the end the 
following new title:

    ``TITLE VIII--INJURIOUS PRICING AND COUNTERMEASURES RELATING TO 
                              SHIPBUILDING

       ``Subtitle A--Imposition of Injurious Pricing Charge and 
                            Countermeasures

``Sec. 801. Injurious pricing charge.
``Sec. 802. Procedures for initiating an injurious pricing 
                            investigation.
``Sec. 803. Preliminary determinations.
``Sec. 804. Termination or suspension of investigation.
``Sec. 805. Final determinations.
``Sec. 806. Imposition and collection of injurious pricing charge.
``Sec. 807. Imposition of countermeasures.
``Sec. 808. Injurious pricing petitions by third countries.
``Sec. 809. Third country injurious pricing.
                      ``Subtitle B--Special Rules

``Sec. 821. Export price.
``Sec. 822. Normal value.
``Sec. 823. Currency conversion.
                        ``Subtitle C--Procedures

``Sec. 841. Hearings.
``Sec. 842. Determinations on the basis of the facts available.
``Sec. 843. Access to information.
``Sec. 844. Conduct of investigations.
``Sec. 845. Administrative action following Shipbuilding Agreement 
                            panel reports.
                       ``Subtitle D--Definitions

``Sec. 861. Definitions.

       ``Subtitle A--Imposition of Injurious Pricing Charge and 
                            Countermeasures

``SEC. 801. INJURIOUS PRICING CHARGE.

    ``(a) Basis for Charge.--If--
            ``(1) the administering authority determines that a foreign 
        vessel has been sold directly or indirectly to one or more 
        United States buyers at less than its fair value, and
            ``(2) the Commission determines that--
                    ``(A) an industry in the United States--
                            ``(i) is or has been materially injured, or
                            ``(ii) is threatened with material injury, 
                        or
                    ``(B) the establishment of an industry in the 
                United States is or has been materially retarded,
        by reason of the sale of such vessel, then there shall be 
        imposed upon the foreign producer of the subject vessel an 
        injurious pricing charge, in an amount equal to the amount by 
        which the normal value exceeds the export price for the vessel. 
        For purposes of this subsection and section 805(b)(1), a 
        reference to the sale of a foreign vessel includes the creation 
        or transfer of an ownership interest in the vessel, except for 
        an ownership interest created or acquired solely for the 
        purpose of providing security for a normal commercial loan.
    ``(b) Foreign Vessels Not Merchandise.--No foreign vessel may be 
considered to be, or to be part of, a class or kind of merchandise for 
purposes of subtitle B of title VII.

``SEC. 802. PROCEDURES FOR INITIATING AN INJURIOUS PRICING 
              INVESTIGATION.

    ``(a) Initiation by Administering Authority.--
            ``(1) General rule.--Except in the case in which subsection 
        (d)(6) applies, an injurious pricing investigation shall be 
        initiated whenever the administering authority determines, from 
        information available to it, that a formal investigation is 
        warranted into the question of whether the elements necessary 
        for the imposition of a charge under section 801(a) exist, and 
        whether a producer described in section 861(17)(C) would meet 
        the criteria of subsection (b)(1)(B) for a petitioner.
            ``(2) Time for initiation by administering authority.--An 
        investigation may only be initiated under paragraph (1) within 
        6 months after the time the administering authority first knew 
        or should have known of the sale of the vessel. Any period 
        during which an investigation is initiated and pending as 
        described in subsection (d)(6)(A) shall not be included in 
        calculating that 6-month period.
    ``(b) Initiation by Petition.--
            ``(1) Petition requirements.--
                    ``(A) In general.--Except in a case in which 
                subsection (d)(6) applies, an injurious pricing 
                proceeding shall be initiated whenever an interested 
                party, as defined in subparagraph (C), (D), (E), or (F) 
                of section 861(17), files a petition with the 
                administering authority, on behalf of an industry, 
                which alleges the elements necessary for the imposition 
                of an injurious pricing charge under section 801(a) and 
                the elements required under subparagraph (B), (C), (D), 
                or (E) of this paragraph, and which is accompanied by 
                information reasonably available to the petitioner 
                supporting those allegations and identifying the 
                transaction concerned.
                    ``(B) Petitioners described in section 
                861(17)(c).--
                            ``(i) In general.--If the petitioner is a 
                        producer described in section 861(17)(C), and--
                                    ``(I) if the vessel was sold 
                                through a broad multiple bid, the 
                                petition shall include information 
                                indicating that the petitioner was 
                                invited to tender a bid on the contract 
                                at issue, the petitioner actually did 
                                so, and the bid of the petitioner 
                                substantially met the delivery date and 
                                technical requirements of the bid,
                                    ``(II) if the vessel was sold 
                                through any bidding process other than 
                                a broad multiple bid and the petitioner 
                                was invited to tender a bid on the 
                                contract at issue, the petition shall 
                                include information indicating that the 
                                petitioner actually did so and the bid 
                                of the petitioner substantially met the 
                                delivery date and technical 
                                requirements of the bid, or
                                    ``(III) except in a case in which 
                                the vessel was sold through a broad 
                                multiple bid, if there is no invitation 
                                to tender a bid, the petition shall 
                                include information indicating that the 
                                petitioner was capable of building the 
                                vessel concerned and, if the petitioner 
                                knew or should have known of the 
                                proposed purchase, it made demonstrable 
                                efforts to conclude a sale with the 
                                United States buyer consistent with the 
                                delivery date and technical 
                                requirements of the buyer.
                            ``(ii) Rebuttable presumption regarding 
                        knowledge of proposed purchase.--For purposes 
                        of clause (i)(III), there is a rebuttable 
                        presumption that the petitioner knew or should 
                        have known of the proposed purchase if it is 
                        demonstrated that--
                                    ``(I) the majority of the producers 
                                in the industry have made efforts with 
                                the United States buyer to conclude a 
                                sale of the subject vessel, or
                                    ``(II) general information on the 
                                sale was available from brokers, 
                                financiers, classification societies, 
                                charterers, trade associations, or 
                                other entities normally involved in 
                                shipbuilding transactions with whom the 
                                petitioner had regular contacts or 
                                dealings.
                    ``(C) Petitioners described in section 
                861(17)(d).--If the petitioner is an interested party 
                described in section 861(17)(D), the petition shall 
                include information indicating that members of the 
                union or group of workers described in that section are 
                employed by a producer that meets the requirements of 
                subparagraph (B) of this paragraph.
                    ``(D) Petitioners described in section 
                861(17)(e).--If the petitioner is an interested party 
                described in section 861(17)(E), the petition shall 
                include information indicating that a member of the 
                association described in that section is a producer 
                that meets the requirements of subparagraph (B) of this 
                paragraph.
                    ``(E) Petitioners described in section 
                861(17)(f).--If the petitioner is an interested party 
                described in section 861(17)(F), the petition shall 
                include information indicating that a member of the 
                association described in that section meets the 
                requirements of subparagraph (C) or (D) of this 
                paragraph.
                    ``(F) Amendments.--The petition may be amended at 
                such time, and upon such conditions, as the 
                administering authority and the Commission may permit.
            ``(2) Simultaneous filing with commission.--The petitioner 
        shall file a copy of the petition with the Commission on the 
        same day as it is filed with the administering authority.
            ``(3) Deadline for filing petition.--
                    ``(A) Deadline.--(i) A petitioner to which 
                paragraph (1)(B)(i) (I) or (II) applies shall file the 
                petition no later than the earlier of--
                            ``(I) 6 months after the time that the 
                        petitioner first knew or should have known of 
                        the sale of the subject vessel, or
                            ``(II) 6 months after delivery of the 
                        subject vessel.
                    ``(ii) A petitioner to which paragraph 
                (1)(B)(i)(III) applies shall--
                            ``(I) file the petition no later than the 
                        earlier of 9 months after the time that the 
                        petitioner first knew or should have known of 
                        the sale of the subject vessel, or 6 months 
                        after delivery of the subject vessel, and
                            ``(II) submit to the administering 
                        authority a notice of intent to file a petition 
                        no later than 6 months after the time that the 
                        petitioner first knew or should have known of 
                        the sale (unless the petition itself is filed 
                        within that 6-month period).
                    ``(B) Presumption of knowledge.--For purposes of 
                this paragraph, if the existence of the sale, together 
                with general information concerning the vessel, is 
                published in the international trade press, there is a 
                rebuttable presumption that the petitioner knew or 
                should have known of the sale of the vessel from the 
                date of that publication.
    ``(c) Actions Before Initiating Investigations.--
            ``(1) Notification of governments.--Before initiating an 
        investigation under either subsection (a) or (b), the 
        administering authority shall notify the government of the 
        exporting country of the investigation. In the case of the 
        initiation of an investigation under subsection (b), such 
        notification shall include a public version of the petition.
            ``(2) Acceptance of communications.--The administering 
        authority shall not accept any unsolicited oral or written 
        communication from any person other than an interested party 
        described in section 861(17) (C), (D), (E), or (F) before the 
        administering authority makes its decision whether to initiate 
        an investigation pursuant to a petition, except for inquiries 
        regarding the status of the administering authority's 
        consideration of the petition or a request for consultation by 
        the government of the exporting country.
            ``(3) Nondisclosure of certain information.--The 
        administering authority and the Commission shall not disclose 
        information with regard to any draft petition submitted for 
        review and comment before it is filed under subsection (b)(1).
    ``(d) Petition Determination.--
            ``(1) Time for initial determination.--
                    ``(A) In general.--Within 45 days after the date on 
                which a petition is filed under subsection (b), the 
                administering authority shall, after examining, on the 
                basis of sources readily available to the administering 
                authority, the accuracy and adequacy of the evidence 
                provided in the petition, determine whether the 
                petition--
                            ``(i) alleges the elements necessary for 
                        the imposition of an injurious pricing charge 
                        under section 801(a) and the elements required 
                        under subsection (b)(1) (B), (C), (D), or (E), 
                        and contains information reasonably available 
                        to the petitioner supporting the allegations; 
                        and
                            ``(ii) determine if the petition has been 
                        filed by or on behalf of the industry.
                    ``(B) Calculation of 45-day period.--Any period in 
                which paragraph (6)(A) applies shall not be included in 
                calculating the 45-day period described in subparagraph 
                (A).
            ``(2) Affirmative determinations.--If the determinations 
        under clauses (i) and (ii) of paragraph (1)(A) are affirmative, 
        the administering authority shall initiate an investigation to 
        determine whether the vessel was sold at less than fair value, 
        unless paragraph (6) applies.
            ``(3) Negative determinations.--If--
                    ``(A) the determination under clause (i) or (ii) of 
                paragraph (1)(A) is negative, or
                    ``(B) paragraph (6)(B) applies,
        the administering authority shall dismiss the petition, 
        terminate the proceeding, and notify the petitioner in writing 
        of the reasons for the determination.
            ``(4) Determination of industry support.--
                    ``(A) General rule.--For purposes of this 
                subsection, the administering authority shall determine 
                that the petition has been filed by or on behalf of the 
                domestic industry, if--
                            ``(i) the domestic producers or workers who 
                        support the petition collectively account for 
                        at least 25 percent of the total capacity of 
                        domestic producers capable of producing a like 
                        vessel, and
                            ``(ii) the domestic producers or workers 
                        who support the petition collectively account 
                        for more than 50 percent of the total capacity 
                        to produce a like vessel of that portion of the 
                        domestic industry expressing support for or 
                        opposition to the petition.
                    ``(B) Certain positions disregarded.--In 
                determining industry support under subparagraph (A), 
                the administering authority shall disregard the 
                position of domestic producers who oppose the petition, 
                if such producers are related to the foreign producer 
                or United States buyer of the subject vessel, or the 
                domestic producer is itself the United States buyer, 
unless such domestic producers demonstrate that their interests as 
domestic producers would be adversely affected by the imposition of an 
injurious pricing charge.
                    ``(C) Polling the industry.--If the petition does 
                not establish support of domestic producers or workers 
                accounting for more than 50 percent of the total 
                capacity to produce a like vessel--
                            ``(i) the administering authority shall 
                        poll the industry or rely on other information 
                        in order to determine if there is support for 
                        the petition as required by subparagraph (A), 
                        or
                            ``(ii) if there is a large number of 
                        producers in the industry, the administering 
                        authority may determine industry support for 
                        the petition by using any statistically valid 
                        sampling method to poll the industry.
                    ``(D) Comments by interested parties.--Before the 
                administering authority makes a determination with 
                respect to initiating an investigation, any person who 
                would qualify as an interested party under section 
                861(17) if an investigation were initiated, may submit 
                comments or information on the issue of industry 
                support. After the administering authority makes a 
                determination with respect to initiating an 
                investigation, the determination regarding industry 
                support shall not be reconsidered.
            ``(5) Definition of domestic producers or workers.--For 
        purposes of this subsection, the term `domestic producers or 
        workers' means interested parties as defined in section 861(17) 
        (C), (D), (E), or (F).
            ``(6) Proceedings by wto members.--The administering 
        authority shall not initiate an investigation under this 
        section if, with respect to the vessel sale at issue, an 
        antidumping proceeding conducted by a WTO member who is not a 
        Shipbuilding Agreement Party--
                    ``(A) has been initiated and has been pending for 
                not more than one year, or
                    ``(B) has been completed and resulted in the 
                imposition of antidumping measures or a negative 
                determination with respect to whether the sale was at 
                less than fair value or with respect to injury.
    ``(e) Notification to Commission of Determination.--The 
administering authority shall--
            ``(1) notify the Commission immediately of any 
        determination it makes under subsection (a) or (d), and
            ``(2) if the determination is affirmative, make available 
        to the Commission such information as it may have relating to 
        the matter under investigation, under such procedures as the 
        administering authority and the Commission may establish to 
        prevent disclosure, other than with the consent of the party 
        providing it or under protective order, of any information to 
        which confidential treatment has been given by the 
        administering authority.

``SEC. 803. PRELIMINARY DETERMINATIONS.

    ``(a) Determination by Commission of Reasonable Indication of 
Injury.--
            ``(1) General rule.--Except in the case of a petition 
        dismissed by the administering authority under section 
        802(d)(3), the Commission, within the time specified in 
        paragraph (2), shall determine, based on the information 
        available to it at the time of the determination, whether there 
        is a reasonable indication that--
                    ``(A) an industry in the United States--
                            ``(i) is or has been materially injured, or
                            ``(ii) is threatened with material injury, 
                        or
                    ``(B) the establishment of an industry in the 
                United States is or has been materially retarded,
        by reason of the sale of the subject vessel. If the Commission 
        makes a negative determination under this paragraph, the 
        investigation shall be terminated.
            ``(2) Time for commission determination.--The Commission 
        shall make the determination described in paragraph (1) within 
        90 days after the date on which the petition is filed or, in 
        the case of an investigation initiated under section 802(a), 
        within 90 days after the date on which the Commission receives 
        notice from the administering authority that the investigation 
        has been initiated under such section.
    ``(b) Preliminary Determination by Administering Authority.--
            ``(1) Period of injurious pricing investigation.--
                    ``(A) In general.--The administering authority 
                shall make a determination, based upon the information 
                available to it at the time of the determination, of 
                whether there is a reasonable basis to believe or 
                suspect that the subject vessel was sold at less than 
                fair value.
                    ``(B) Cost data used for normal value.--If cost 
                data is required to determine normal value on the basis 
                of a sale of a foreign like vessel that has not been 
                delivered on or before the date on which the 
                administering authority initiates the investigation, 
                the administering authority shall make its 
                determination within 160 days after the date of 
                delivery of the foreign like vessel.
                    ``(C) Normal value based on constructed value.--If 
                normal value is to be determined on the basis of 
                constructed value, the administering authority shall 
                make its determination within 160 days after the date 
                of delivery of the subject vessel.
                    ``(D) Other cases.--In cases in which subparagraph 
                (B) or (C) does not apply, the administering authority 
                shall make its determination within 160 days after the 
                date on which the administering authority initiates the 
                investigation under section 802.
                    ``(E) Affirmative determination by commission 
                required.--In no event shall the administering 
                authority make its determination before an affirmative 
                determination is made by the Commission under 
                subsection (a).
            ``(2) De minimis injurious pricing margin.--In making a 
        determination under this subsection, the administering 
        authority shall disregard any injurious pricing margin that is 
        de minimis. For purposes of the preceding sentence, an 
        injurious pricing margin is de minimis if the administering 
        authority determines that the injurious pricing margin is less 
        than 2 percent of the export price.
    ``(c) Extension of Period in Extraordinarily Complicated Cases or 
for Good Cause.--
            ``(1) In general.--If--
                    ``(A) the administering authority concludes that 
                the parties concerned are cooperating and determines 
                that--
                            ``(i) the case is extraordinarily 
                        complicated by reason of--
                                    ``(I) the novelty of the issues 
                                presented, or
                                    ``(II) the nature and extent of the 
                                information required, and
                            ``(ii) additional time is necessary to make 
                        the preliminary determination, or
                    ``(B) a party to the investigation requests an 
                extension and demonstrates good cause for the 
                extension,
        then the administering authority may postpone the time for 
        making its preliminary determination.
            ``(2) Length of postponement.--The preliminary 
        determination may be postponed under paragraph (1) (A) or (B) 
        until not later than the 190th day after--
                    ``(A) the date of delivery of the foreign like 
                vessel, if subsection (b)(1)(B) applies,
                    ``(B) the date of delivery of the subject vessel, 
                if subsection (b)(1)(C) applies, or
                    ``(C) the date on which the administering authority 
                initiates an investigation under section 802, in a case 
                in which subsection (b)(1)(D) applies.
            ``(3) Notice of postponement.--The administering authority 
        shall notify the parties to the investigation, not later than 
        20 days before the date on which the preliminary determination 
        would otherwise be required under subsection (b)(1), if it 
        intends to postpone making the preliminary determination under 
        paragraph (1). The notification shall include an explanation of 
        the reasons for the postponement, and notice of the 
        postponement shall be published in the Federal Register.
    ``(d) Effect of Determination by the Administering Authority.--If 
the preliminary determination of the administering authority under 
subsection (b) is affirmative, the administering authority shall--
            ``(1) determine an estimated injurious pricing margin, and
            ``(2) make available to the Commission all information upon 
        which its determination was based and which the Commission 
        considers relevant to its injury determination, under such 
        procedures as the administering authority and the Commission 
        may establish to prevent disclosure, other than with the 
        consent of the party providing it or under protective order, of 
        any information to which confidential treatment has been given 
        by the administering authority.
    ``(e) Notice of Determination.--Whenever the Commission or the 
administering authority makes a determination under this section, the 
Commission or the administering authority, as the case may be, shall 
notify the petitioner, and other parties to the investigation, and the 
Commission or the administering authority (whichever is appropriate) of 
its determination. The administering authority shall include with such 
notification the facts and conclusions on which its determination is 
based. Not later than 5 days after the date on which the determination 
is required to be made under subsection (a)(2), the Commission shall 
transmit to the administering authority the facts and conclusions on 
which its determination is based.

``SEC. 804. TERMINATION OR SUSPENSION OF INVESTIGATION.

    ``(a) Termination of Investigation Upon Withdrawal of Petition.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        investigation under this subtitle may be terminated by either 
        the administering authority or the Commission, after notice to 
        all parties to the investigation, upon withdrawal of the 
        petition by the petitioner.
            ``(2) Limitation on termination by commission.--The 
        Commission may not terminate an investigation under paragraph 
        (1) before a preliminary determination is made by the 
        administering authority under section 803(b).
    ``(b) Termination of Investigations Initiated by Administering 
Authority.--The administering authority may terminate any investigation 
initiated by the administering authority under section 802(a) after 
providing notice of such termination to all parties to the 
investigation.
    ``(c) Alternate Equivalent Remedy.--The criteria set forth in 
subparagraphs (A) through (D) of section 806(e)(1) shall apply to any 
agreement that forms the basis for termination of an investigation 
under subsection (a) or (b).
    ``(d) Proceedings by WTO Members.--
            ``(1) Suspension of investigation.--The administering 
        authority and the Commission shall suspend an investigation 
        under this section if a WTO member that is not a Shipbuilding 
        Agreement Party initiates an antidumping proceeding described 
        in section 861(30)(A) with respect to the sale of the subject 
        vessel.
            ``(2) Termination of investigation.--If an antidumping 
        proceeding described in paragraph (1) is concluded by--
                    ``(A) the imposition of antidumping measures, or
                    ``(B) a negative determination with respect to 
                whether the sale is at less than fair value or with 
                respect to injury,
        the administering authority and the Commission shall terminate 
        the investigation under this section.
            ``(3) Continuation of investigation.--(A) If such a 
        proceeding--
                    ``(i) is concluded by a result other than a result 
                described in paragraph (2), or
                    ``(ii) is not concluded within one year from the 
                date of the initiation of the proceeding,
        then the administering authority and the Commission shall 
        terminate the suspension and continue the investigation. The 
        period in which the investigation was suspended shall not be 
        included in calculating deadlines applicable with respect to 
        the investigation.
            ``(B) Notwithstanding subparagraph (A)(ii), if the 
        proceeding is concluded by a result described in paragraph 
        (2)(A), the administering authority and the Commission shall 
        terminate the investigation under this section.

``SEC. 805. FINAL DETERMINATIONS.

    ``(a) Determinations by Administering Authority.--
            ``(1) In general.--Within 75 days after the date of its 
        preliminary determination under section 803(b), the 
        administering authority shall make a final determination of 
        whether the vessel which is the subject of the investigation 
        has been sold in the United States at less than its fair value.
            ``(2) Extension of period for determination.--
                    ``(A) General rule.--The administering authority 
                may postpone making the final determination under 
                paragraph (1) until not later than 290 days after--
                            ``(i) the date of delivery of the foreign 
                        like vessel, in an investigation to which 
                        section 803(b)(1)(B) applies,
                            ``(ii) the date of delivery of the subject 
                        vessel, in an investigation to which section 
                        803(b)(1)(C) applies, or
                            ``(iii) the date on which the administering 
                        authority initiates the investigation under 
                        section 802, in an investigation to which 
                        section 803(b)(1)(D) applies.
                    ``(B) Request required.--The administering 
                authority may apply subparagraph (A) if a request in 
                writing is made by--
                            ``(i) the producer of the subject vessel, 
                        in a proceeding in which the preliminary 
                        determination by the administering authority 
                        under section 803(b) was affirmative, or
                            ``(ii) the petitioner, in a proceeding in 
                        which the preliminary determination by the 
                        administering authority under section 803(b) 
                        was negative.
            ``(3) De minimis injurious pricing margin.--In making a 
        determination under this subsection, the administering 
        authority shall disregard any injurious pricing margin that is 
        de minimis as defined in section 803(b)(2).
    ``(b) Final Determination by Commission.--
            ``(1) In general.--The Commission shall make a final 
        determination of whether--
                    ``(A) an industry in the United States--
                            ``(i) is or has been materially injured, or
                            ``(ii) is threatened with material injury, 
                        or
                    ``(B) the establishment of an industry in the 
                United States is or has been materially retarded,
        by reason of the sale of the vessel with respect to which the 
        administering authority has made an affirmative determination 
        under subsection (a)(1).
            ``(2) Period for injury determination following affirmative 
        preliminary determination by administering authority.--If the 
        preliminary determination by the administering authority under 
        section 803(b) is affirmative, then the Commission shall make 
        the determination required by paragraph (1) before the later 
        of--
                    ``(A) the 120th day after the day on which the 
                administering authority makes its affirmative 
                preliminary determination under section 803(b), or
                    ``(B) the 45th day after the day on which the 
                administering authority makes its affirmative final 
                determination under subsection (a).
            ``(3) Period for injury determination following negative 
        preliminary determination by administering authority.--If the 
        preliminary determination by the administering authority under 
        section 803(b) is negative, and its final determination under 
        subsection (a) is affirmative, then the final determination by 
        the Commission under this subsection shall be made within 75 
        days after the date of that affirmative final determination.
    ``(c) Effect of Final Determinations.--
            ``(1) Effect of affirmative determination by the 
        administering authority.--If the determination of the 
        administering authority under subsection (a) is affirmative, 
        then the administering authority shall--
                    ``(A) make available to the Commission all 
                information upon which such determination was based and 
                which the Commission considers relevant to its 
                determination, under such procedures as the 
                administering authority and the Commission may 
                establish to prevent disclosure, other than with the 
                consent of the party providing it or under protective 
                order, of any information as to which confidential 
                treatment has been given by the administering 
                authority, and
                    ``(B) calculate an injurious pricing charge in an 
                amount equal to the amount by which the normal value 
                exceeds the export price of the subject vessel.
            ``(2) Issuance of order; effect of negative 
        determination.--If the determinations of the administering 
        authority and the Commission under subsections (a)(1) and 
        (b)(1) are affirmative, then the administering authority shall 
        issue an injurious pricing order under section 806. If either 
        of such determinations is negative, the investigation shall be 
        terminated upon the publication of notice of that negative 
        determination.
    ``(d) Publication of Notice of Determinations.--Whenever the 
administering authority or the Commission makes a determination under 
this section, it shall notify the petitioner, other parties to the 
investigation, and the other agency of its determination and of the 
facts and conclusions of law upon which the determination is based, and 
it shall publish notice of its determination in the Federal Register.
    ``(e) Correction of Ministerial Errors.--The administering 
authority shall establish procedures for the correction of ministerial 
errors in final determinations within a reasonable time after the 
determinations are issued under this section. Such procedures shall 
ensure opportunity for interested parties to present their views 
regarding any such errors. As used in this subsection, the term 
`ministerial error' includes errors in addition, subtraction, or other 
arithmetic function, clerical errors resulting from inaccurate copying, 
duplication, or the like, and any other type of unintentional error 
which the administering authority considers ministerial.

``SEC. 806. IMPOSITION AND COLLECTION OF INJURIOUS PRICING CHARGE.

    ``(a) In General.--Within 7 days after being notified by the 
Commission of an affirmative determination under section 805(b), the 
administering authority shall publish an order imposing an injurious 
pricing charge on the foreign producer of the subject vessel which--
            ``(1) directs the foreign producer of the subject vessel to 
        pay to the Secretary of the Treasury, or the designee of the 
        Secretary, within 180 days from the date of publication of the 
        order, an injurious pricing charge in an amount equal to the 
        amount by which the normal value exceeds the export price of 
        the subject vessel,
            ``(2) includes the identity and location of the foreign 
        producer and a description of the subject vessel, in such 
        detail as the administering authority deems necessary, and
            ``(3) informs the foreign producer that--
                    ``(A) failure to pay the injurious pricing charge 
                in a timely fashion may result in the imposition of 
                countermeasures with respect to that producer under 
                section 807,
                    ``(B) payment made after the deadline described in 
                paragraph (1) shall be subject to interest charges at 
                the Commercial Interest Reference Rate (CIRR), and
                    ``(C) the foreign producer may request an extension 
                of the due date for payment under subsection (b).
    ``(b) Extension of Due Date for Payment in Extraordinary 
Circumstances.--
            ``(1) Extension.--Upon request, the administering authority 
        may amend the order under subsection (a) to set a due date for 
        payment or payments later than the date that is 180 days from 
        the date of publication of the order, if the administering 
        authority determines that full payment in 180 days would render 
        the producer insolvent or would be incompatible with a 
        judicially supervised reorganization. When an extended payment 
        schedule provides for a series of partial payments, the 
        administering authority shall specify the circumstances under 
        which default on one or more payments will result in the 
        imposition of countermeasures.
            ``(2) Interest charges.--If a request is granted under 
        paragraph (1), payments made after the date that is 180 days 
        from the publication of the order shall be subject to interest 
        charges at the CIRR.
    ``(c) Notification of Order.--The administering authority shall 
deliver a copy of the order requesting payment to the foreign producer 
of the subject vessel and to an appropriate representative of the 
government of the exporting country.
    ``(d) Revocation of Order.--The administering authority--
            ``(1) may revoke an injurious pricing order if the 
        administering authority determines that producers accounting 
        for substantially all of the capacity to produce a domestic 
        like vessel have expressed a lack of interest in the order, and
            ``(2) shall revoke an injurious pricing order--
                    ``(A) if the sale of the vessel that was the 
                subject of the injurious pricing determination is 
                voided,
                    ``(B) if the injurious pricing charge is paid in 
                full, including any interest accrued for late payment,
                    ``(C) upon full implementation of an alternative 
                equivalent remedy described in subsection (e), or
                    ``(D) if, with respect to the vessel sale that was 
                at issue in the investigation that resulted in the 
                injurious pricing order, an antidumping proceeding 
                conducted by a WTO member who is not a Shipbuilding 
                Agreement Party has been completed and resulted in the 
                imposition of antidumping measures.
    ``(e) Alternative Equivalent Remedy.--
            ``(1) Agreement for alternate remedy.--The administering 
        authority may suspend an injurious pricing order if the 
        administering authority enters into an agreement with the 
        foreign producer subject to the order on an alternative 
        equivalent remedy, that the administering authority 
        determines--
                    ``(A) is at least as effective a remedy as the 
                injurious pricing charge,
                    ``(B) is in the public interest,
                    ``(C) can be effectively monitored and enforced, 
                and
                    ``(D) is otherwise consistent with the domestic law 
                and international obligations of the United States.
            ``(2) Prior consultations and submission of comments.--
        Before entering into an agreement under paragraph (1), the 
        administering authority shall consult with the industry, and 
        provide for the submission of comments by interested parties, 
        with respect to the agreement.
            ``(3) Material violations of agreement.--If the injurious 
        pricing order has been suspended under paragraph (1), and the 
        administering authority determines that the foreign producer 
        concerned has materially violated the terms of the agreement 
        under paragraph (1), the administering authority shall 
        terminate the suspension.

``SEC. 807. IMPOSITION OF COUNTERMEASURES.

    ``(a) General Rule.--
            ``(1) Issuance of order imposing countermeasures.--Unless 
        an injurious pricing order is revoked or suspended under 
        section 806 (d) or (e), the administering authority shall issue 
        an order imposing countermeasures.
            ``(2) Contents of order.--The countermeasure order shall--
                    ``(A) state that, as provided in section 468, a 
                permit to lade or unlade passengers or merchandise may 
                not be issued with respect to vessels contracted to be 
                built by the foreign producer of the vessel with 
                respect to which an injurious pricing order was issued 
                under section 806, and
                    ``(B) specify the scope and duration of the 
                prohibition on the issuance of a permit to lade or 
                unlade passengers or merchandise.
    ``(b) Notice of Intent To Impose Countermeasures.--
            ``(1) General rule.--The administering authority shall 
        issue a notice of intent to impose countermeasures not later 
        than 30 days before the expiration of the time for payment 
        specified in the injurious pricing order (or extended payment 
        provided for under section 806(b)), and shall publish the 
        notice in the Federal Register within 7 days after issuing the 
        notice.
            ``(2) Elements of the notice of intent.--The notice of 
        intent shall contain at least the following elements:
                    ``(A) Scope.--A permit to lade or unlade passengers 
                or merchandise may not be issued with respect to any 
                vessel--
                            ``(i) built by the foreign producer subject 
                        to the proposed countermeasures, and
                            ``(ii) with respect to which the material 
                        terms of sale are established within a period 
                        of 4 consecutive years beginning on the date 
                        that is 30 days after publication in the 
Federal Register of the notice of intent described in paragraph (1).
                    ``(B) Duration.--For each vessel described in 
                subparagraph (A), a permit to lade or unlade passengers 
                or merchandise may not be issued for a period of 4 
                years after the date of delivery of the vessel.
    ``(c) Determination To Impose Countermeasures; Order.--
            ``(1) General rule.--The administering authority shall, 
        within the time specified in paragraph (2), issue a 
        determination and order imposing countermeasures.
            ``(2) Time for determination.--The determination shall be 
        issued within 90 days after the date on which the notice of 
        intent to impose countermeasures under subsection (b) is 
        published in the Federal Register. The administering authority 
        shall publish the determination, and the order described in 
        paragraph (4), in the Federal Register within 7 days after 
        issuing the final determination, and shall provide a copy of 
        the determination and order to the Customs Service.
            ``(3) Content of the determination.--In the determination 
        imposing countermeasures, the administering authority shall 
        determine whether, in light of all of the circumstances, an 
        interested party has demonstrated that the scope or duration of 
        the countermeasures described in subsection (b)(2) should be 
        narrower or shorter than the scope or duration set forth in the 
        notice of intent to impose countermeasures.
            ``(4) Order.--At the same time it issues its determination, 
        the administering authority shall issue an order imposing 
        countermeasures, consistent with its determination under 
        paragraph (1).
    ``(d) Administrative Review of Determination To Impose 
Countermeasures.--
            ``(1) Request for review.--Each year, in the anniversary 
        month of the issuance of the order imposing countermeasures 
        under subsection (c), the administering authority shall publish 
        in the Federal Register a notice providing that interested 
        parties may request--
                    ``(A) a review of the scope or duration of the 
                countermeasures determined under subsection (c)(3), and
                    ``(B) a hearing in connection with such a review.
            ``(2) Review.--If a proper request has been received under 
        paragraph (1), the administering authority shall--
                    ``(A) publish notice of initiation of a review in 
                the Federal Register not later than 15 days after the 
                end of the anniversary month of the issuance of the 
                order imposing countermeasures, and
                    ``(B) review and determine whether the requesting 
                party has demonstrated that the scope or duration of 
                the countermeasures is excessive in light of all of the 
                circumstances.
            ``(3) Time for review.--The administering authority shall 
        make its determination under paragraph (2)(B) within 90 days 
        after the date on which the notice of initiation of the review 
        is published. If the determination under paragraph (2)(B) is 
        affirmative, the administering authority shall amend the order 
        accordingly. The administering authority shall promptly publish 
        the determination and any amendment to the order in the Federal 
        Register, and shall provide a copy of any amended order to the 
        Customs Service. In extraordinary circumstances, the 
        administering authority may extend the time for its 
        determination under paragraph (2)(B) to not later than 150 days 
after the date on which the notice of initiation of the review is 
published.
    ``(e) Extension of Countermeasures.--
            ``(1) Request for extension.--Within the time described in 
        paragraph (2), an interested party may file with the 
        administering authority a request that the scope or duration of 
        countermeasures be extended.
            ``(2) Deadline for request for extension.--
                    ``(A) Request for extension beyond 4 years.--If the 
                request seeks an extension that would cause the scope 
                or duration of countermeasures to exceed 4 years, 
                including any prior extensions, the request for 
                extension under paragraph (1) shall be filed not 
                earlier than the date that is 15 months, and not later 
                than the date that is 12 months, before the date that 
                marks the end of the period that specifies the vessels 
                that fall within the scope of the order by virtue of 
                the establishment of material terms of sale within that 
                period.
                    ``(B) Other requests.--If the request seeks an 
                extension under paragraph (1) other than one described 
                in subparagraph (A), the request shall be filed not 
                earlier than the date that is 6 months, and not later 
                than a date that is 3 months, before the date that 
                marks the end of the period referred to in subparagraph 
                (A).
            ``(3) Determination.--
                    ``(A) Notice of request for extension.--If a proper 
                request has been received under paragraph (1), the 
                administering authority shall publish notice of 
                initiation of an extension proceeding in the Federal 
                Register not later than 15 days after the applicable 
                deadline in paragraph (2) for requesting the extension.
                    ``(B) Procedures.--
                            ``(i) Requests for extension beyond 4 
                        years.--If paragraph (2)(A) applies to the 
                        request, the administering authority shall 
                        consult with the Trade Representative under 
                        paragraph (4).
                            ``(ii) Other requests.--If paragraph (2)(B) 
                        applies to the request, the administering 
                        authority shall determine, within 90 days after 
                        the date on which the notice of initiation of 
                        the proceeding is published, whether the 
                        requesting party has demonstrated that the 
                        scope or duration of the countermeasures is 
                        inadequate in light of all of the 
                        circumstances. If the administering authority 
                        determines that an extension is warranted, it 
                        shall amend the countermeasure order 
                        accordingly. The administering authority shall 
                        promptly publish the determination and any 
                        amendment to the order in the Federal Register, 
                        and shall provide a copy of any amended order 
                        to the Customs Service.
            ``(4) Consultation with trade representative.--If paragraph 
        (3)(B)(i) applies, the administering authority shall consult 
        with the Trade Representative concerning whether it would be 
        appropriate to request establishment of a dispute settlement 
        panel under the Shipbuilding Agreement for the purpose of 
        seeking authorization to extend the scope or duration of 
        countermeasures for a period in excess of 4 years.
            ``(5) Decision not to request panel.--If, based on 
        consultations under paragraph (4), the Trade Representative 
        decides not to request establishment of a panel, the Trade 
        Representative shall inform the party requesting the extension 
        of the countermeasures of the reasons for its decision in 
        writing. The decision shall not be subject to judicial review.
            ``(6) Panel proceedings.--If, based on consultations under 
        paragraph (4), the Trade Representative requests the 
        establishment of a panel under the Shipbuilding Agreement to 
        authorize an extension of the period of countermeasures, and 
        the panel authorizes such an extension, the administering 
        authority shall promptly amend the countermeasure order. The 
        administering authority shall publish notice of the amendment 
        in the Federal Register.
    ``(f) List of Vessels Subject to Countermeasures.--
            ``(1) General rule.--At least once during each 12-month 
        period beginning on the anniversary date of a determination to 
        impose countermeasures under this section, the administering 
        authority shall publish in the Federal Register a list of all 
        delivered vessels subject to countermeasures under the 
        determination.
            ``(2) Content of list.--The list under paragraph (1) shall 
        include the following information for each vessel, to the 
        extent the information is available:
                    ``(A) The name and general description of the 
                vessel.
                    ``(B) The vessel identification number.
                    ``(C) The shipyard where the vessel was 
                constructed.
                    ``(D) The last-known registry of the vessel.
                    ``(E) The name and address of the last-known owner 
                of the vessel.
                    ``(F) The delivery date of the vessel.
                    ``(G) The remaining duration of countermeasures on 
                the vessel.
                    ``(H) Any other identifying information available.
            ``(3) Amendment of list.--The administering authority may 
        amend the list from time to time to reflect new information 
        that comes to its attention and shall publish any amendments in 
        the Federal Register.
            ``(4) Service of list and amendments.--
                    ``(A) Service of list.--The administering authority 
                shall serve a copy of the list described in paragraph 
                (1) on--
                            ``(i) the petitioner under section 802(b),
                            ``(ii) the United States Customs Service,
                            ``(iii) the Secretariat of the Organization 
                        for Economic Cooperation and Development,
                            ``(iv) the owners of vessels on the list,
                            ``(v) the shipyards on the list, and
                            ``(vi) the government of the country in 
                        which a shipyard on the list is located.
                    ``(B) Service of amendments.--The administering 
                authority shall serve a copy of any amendments to the 
                list under paragraph (3) or subsection (g)(3) on--
                            ``(i) the parties listed in clauses (i), 
                        (ii), and (iii) of subparagraph (A), and
                            ``(ii) if the amendment affects their 
                        interests, the parties listed in clauses (iv), 
                        (v), and (vi) of subparagraph (A).
    ``(g) Administrative Review of List of Vessels Subject to 
Countermeasures.--
            ``(1) Request for review.--
                    ``(A) In general.--An interested party may request 
                in writing a review of the list described in subsection 
                (f)(1), including any amendments thereto, to determine 
                whether--
                            ``(i) a vessel included in the list does 
                        not fall within the scope of the applicable 
                        countermeasure order and should be deleted, or
                            ``(ii) a vessel not included in the list 
                        falls within the scope of the applicable 
                        countermeasure order and should be added.
                    ``(B) Time for making request.--Any request seeking 
                a determination described in subparagraph (A)(i) shall 
                be made within 90 days after the date of publication of 
                the applicable list.
            ``(2) Review.--If a proper request for review has been 
        received, the administering authority shall--
                    ``(A) publish notice of initiation of a review in 
                the Federal Register--
                            ``(i) not later than 15 days after the 
                        request is received, or
                            ``(ii) if the request seeks a determination 
                        described in paragraph (1)(A)(i), not later 
                        than 15 days after the deadline described in 
                        paragraph (1)(B), and
                    ``(B) review and determine whether the requesting 
                party has demonstrated that--
                            ``(i) a vessel included in the list does 
                        not qualify for such inclusion, or
                            ``(ii) a vessel not included in the list 
                        qualifies for inclusion.
            ``(3) Time for determination.--The administering authority 
        shall make its determination under paragraph (2)(B) within 90 
        days after the date on which the notice of initiation of such 
        review is published. If the administering authority determines 
        that a vessel should be added or deleted from the list, the 
        administering authority shall amend the list accordingly. The 
        administering authority shall promptly publish in the Federal 
        Register the determination and any such amendment to the list.
    ``(h) Expiration of Countermeasures.--Upon expiration of a 
countermeasure order imposed under this section, the administering 
authority shall promptly publish a notice of the expiration in the 
Federal Register.
    ``(i) Suspension or Termination of Proceedings or Countermeasures; 
Temporary Reduction of Countermeasures.--
            ``(1) If injurious pricing order revoked or suspended.--If 
        an injurious pricing order has been revoked or suspended under 
        section 806 (d) or (e), the administering authority shall, as 
        appropriate, suspend or terminate proceedings under this 
        section with respect to that order, or suspend or revoke a 
        countermeasure order issued with respect to that injurious 
        pricing order.
            ``(2) If payment date amended.--
                    ``(A) Suspension or modification of deadline.--
                Subject to subparagraph (C), if the payment date under 
                an injurious pricing order is amended under section 
                845, the administering authority shall, as appropriate, 
                suspend proceedings or modify deadlines under this 
                section, or suspend or amend a countermeasure order 
                issued with respect to that injurious pricing order.
                    ``(B) Date for application of countermeasure.--In 
                taking action under subparagraph (A), the administering 
                authority shall ensure that countermeasures are not 
                applied before the date that is 30 days after 
                publication in the Federal Register of the amended 
                payment date.
                    ``(C) Reinstitution of proceedings.--If--
                            ``(i) a countermeasure order is issued 
                        under subsection (c) before an amendment is 
                        made under section 845 to the payment date of 
                        the injurious pricing order to which the 
                        countermeasure order applies, and
                            ``(ii) the administering authority 
                        determines that the period of time between the 
                        original payment date and the amended payment 
                        date is significant for purposes of determining 
                        the appropriate scope or duration of 
                        countermeasures,
                the administering authority may, in lieu of acting 
                under subparagraph (A), reinstitute proceedings under 
                subsection (c) for purposes of issuing a new 
                determination under that subsection.
    ``(j) Comment and Hearing.--In the course of any proceeding under 
subsection (c), (d), (e), or (g), the administering authority--
            ``(1) shall solicit comments from interested parties, and
            ``(2)(A) in a proceeding under subsection (c), (d), or (e), 
        upon the request of an interested party, shall hold a hearing 
        in accordance with section 841(b) in connection with that 
        proceeding, or
            ``(B) in a proceeding under subsection (g), upon the 
        request of an interested party, may hold a hearing in 
        accordance with section 841(b) in connection with that 
        proceeding.

``SEC. 808. INJURIOUS PRICING PETITIONS BY THIRD COUNTRIES.

    ``(a) Filing of Petition.--The government of a Shipbuilding 
Agreement Party may file with the Trade Representative a petition 
requesting that an investigation be conducted to determine if--
            ``(1) a vessel from another Shipbuilding Agreement Party 
        has been sold directly or indirectly to one or more United 
        States buyers at less than fair value, and
            ``(2) an industry, in the petitioning country, producing or 
        capable of producing a like vessel is materially injured by 
        reason of such sale.
    ``(b) Initiation.--The Trade Representative, after consultation 
with the administering authority and the Commission and obtaining the 
approval of the Parties Group under the Shipbuilding Agreement, shall 
determine whether to initiate an investigation described in subsection 
(a).
    ``(c) Determinations.--Upon initiation of an investigation under 
subsection (a), the Trade Representative shall request the following 
determinations be made in accordance with substantive and procedural 
requirements specified by the Trade Representative, notwithstanding any 
other provision of this title:
            ``(1) Sale at less than fair value.--The administering 
        authority shall determine whether the subject vessel has been 
        sold at less than fair value.
            ``(2) Injury to industry.--The Commission shall determine 
        whether an industry in the petitioning country is or has been 
        materially injured by reason of the sale of the subject vessel 
        in the United States.
    ``(d) Public Comment.--An opportunity for public comment shall be 
provided, as appropriate--
            ``(1) by the Trade Representative, in making the 
        determinations required by subsection (b), and
            ``(2) by the administering authority and the Commission, in 
        making the determinations required by subsection (c).
    ``(e) Issuance of Order.--If the administering authority makes an 
affirmative determination under paragraph (1) of subsection (c), and 
the Commission makes an affirmative determination under paragraph (2) 
of subsection (c), the administering authority shall--
            ``(1) order an injurious pricing charge in accordance with 
        section 806, and
            ``(2) make such determinations and take such other actions 
        as are required by sections 806 and 807, as if affirmative 
        determinations had been made under subsections (a) and (b) of 
        section 805.
    ``(f) Reviews of Determinations.--For purposes of review under 
section 516B, if an order is issued under subsection (e)--
            ``(1) the final determinations of the administering 
        authority and the Commission under subsection (c) shall be 
        treated as final determinations made under section 805, and
            ``(2) determinations of the administering authority under 
        subsection (e)(2) shall be treated as determinations made under 
        section 806 or 807, as the case may be.
    ``(g) Access to Information.--Section 843 shall apply to 
investigations under this section, to the extent specified by the Trade 
Representative, after consultation with the administering authority and 
the Commission.

``SEC. 809. THIRD COUNTRY INJURIOUS PRICING.

    ``(a) Petition by Domestic Industry.--
            ``(1) With respect to the sale of a vessel to a buyer in a 
        Shipbuilding Agreement Party, any interested party who would be 
        eligible to file a petition under section 802(b)(1) with 
        respect to the sale if it had been to a United States buyer, if 
        it has reason to believe that--
                    ``(A) the vessel has been sold at less than fair 
                value, and
                    ``(B) an industry in the United States is or has 
                been materially injured, or is threatened with material 
                injury by reason of the sale of the vessel,
        may submit a petition to the Trade Representative that alleges 
        the elements referred to in subparagraphs (A) and (B) and 
        requests the Trade Representative to take action under 
        subsection (b) of this section on behalf of the domestic 
        industry.
            ``(2) A petition submitted under paragraph (1) shall 
        contain such detailed information as the Trade Representative 
        may require in support of the allegations in the petition.
    ``(b) Application for Injurious Pricing Action on Behalf of the 
Domestic Industry.--
            ``(1) If the Trade Representative, on the basis of the 
        information contained in a petition submitted under subsection 
        (a), determines that there is a reasonable basis for the 
        allegations in the petition, the Trade Representative shall 
submit to the appropriate authority of the Shipbuilding Agreement Party 
where the alleged injurious pricing is occurring an application 
pursuant to Article 10 of Annex III of the Shipbuilding Agreement. The 
application shall request that appropriate injurious pricing action be 
taken on behalf of the United States with respect to the sale of the 
vessel under the law of the country of that Party consistent with the 
terms of the Shipbuilding Agreement.
            ``(2) At the request of the Trade Representative, the 
        appropriate officers of the Department of Commerce and the 
        United States International Trade Commission shall assist the 
        Trade Representative in preparing the application under 
        paragraph (1).
    ``(c) Consultation After Submission of Application.--After 
submitting an application under subsection (b)(1), the Trade 
Representative shall seek consultations with the appropriate authority 
of the Shipbuilding Agreement Party regarding the request for injurious 
pricing action.
    ``(d) Action Upon Refusal of Shipbuilding Agreement Party To Act.--
If the appropriate authority of the Shipbuilding Agreement Party 
refuses to undertake injurious pricing measures in response to a 
request made by the Trade Representative under subsection (b), the 
Trade Representative promptly shall consult with the domestic industry 
on whether action under any other law of the United States is 
appropriate.

                      ``Subtitle B--Special Rules

``SEC. 821. EXPORT PRICE.

    ``(a) Export Price.--For purposes of this title, the term `export 
price' means the price at which the subject vessel is first sold (or 
agreed to be sold) by or for the account of the foreign producer of the 
subject vessel to an unaffiliated United States buyer. The term `sold 
(or agreed to be sold) by or for the account of the foreign producer' 
includes any transfer of an ownership interest, including by way of 
lease or long-term bareboat charter, in conjunction with the original 
transfer from the producer, either directly or indirectly, to a United 
States buyer.
    ``(b) Adjustments to Export Price.--The price used to establish 
export price shall be--
            ``(1) increased by the amount of any import duties imposed 
        by the country of exportation which have been rebated, or which 
        have not been collected, by reason of the exportation of the 
        subject vessel, and
            ``(2) reduced by--
                    ``(A) the amount, if any, included in such price, 
                attributable to any additional costs, charges, or 
                expenses which are incident to bringing the subject 
                vessel from the shipyard in the exporting country to 
                the place of delivery,
                    ``(B) the amount, if included in such price, of any 
                export tax, duty, or other charge imposed by the 
                exporting country on the exportation of the subject 
                vessel, and
                    ``(C) all other expenses incidental to placing the 
                vessel in condition for delivery to the buyer.

``SEC. 822. NORMAL VALUE.

    ``(a) Determination.--In determining under this title whether a 
subject vessel has been sold at less than fair value, a fair comparison 
shall be made between the export price and normal value of the subject 
vessel. In order to achieve a fair comparison with the export price, 
normal value shall be determined as follows:
            ``(1) Determination of normal value.--
                    ``(A) In general.--The normal value of the subject 
                vessel shall be the price described in subparagraph 
                (B), at a time reasonably corresponding to the time of 
                the sale used to determine the export price under 
                section 821(a).
                    ``(B) Price.--The price referred to in subparagraph 
                (A) is--
                            ``(i) the price at which a foreign like 
                        vessel is first sold in the exporting country, 
                        in the ordinary course of trade and, to the 
                        extent practicable, at the same level of trade, 
                        or
                            ``(ii) in a case to which subparagraph (C) 
                        applies, the price at which a foreign like 
                        vessel is so sold for consumption in a country 
                        other than the exporting country or the United 
                        States, if--
                                    ``(I) such price is representative, 
                                and
                                    ``(II) the administering authority 
                                does not determine that the particular 
                                market situation in such other country 
                                prevents a proper comparison with the 
                                export price.
                    ``(C) Third country sales.--This subparagraph 
                applies when--
                            ``(i) a foreign like vessel is not sold in 
                        the exporting country as described in 
                        subparagraph (B)(i), or
                            ``(ii) the particular market situation in 
                        the exporting country does not permit a proper 
                        comparison with the export price.
                    ``(D) Contemporaneous sale.--For purposes of 
                subparagraph (A), `a time reasonably corresponding to 
                the time of the sale' means within 3 months before or 
                after the sale of the subject vessel or, in the absence 
                of such sales, such longer period as the administering 
                authority determines would be appropriate.
            ``(2) Fictitious markets.--No pretended sale, and no sale 
        intended to establish a fictitious market, shall be taken into 
        account in determining normal value.
            ``(3) Use of constructed value.--If the administering 
        authority determines that the normal value of the subject 
        vessel cannot be determined under paragraph (1)(B) or (1)(C), 
        then the normal value of the subject vessel shall be the 
        constructed value of that vessel, as determined under 
        subsection (e).
            ``(4) Indirect sales.--If a foreign like vessel is sold 
        through an affiliated party, the price at which the foreign 
        like vessel is sold by such affiliated party may be used in 
        determining normal value.
            ``(5) Adjustments.--The price described in paragraph (1)(B) 
        shall be--
                    ``(A) reduced by--
                            ``(i) the amount, if any, included in the 
                        price described in paragraph (1)(B), 
                        attributable to any costs, charges, and 
                        expenses incident to bringing the foreign like 
                        vessel from the shipyard to the place of 
                        delivery to the purchaser,
                            ``(ii) the amount of any taxes imposed 
                        directly upon the foreign like vessel or 
                        components thereof which have been rebated, or 
                        which have not been collected, on the subject 
                        vessel, but only to the extent that such taxes 
                        are added to or included in the price of the 
                        foreign like vessel, and
                            ``(iii) the amount of all other expenses 
                        incidental to placing the foreign like vessel 
                        in condition for delivery to the buyer, and
                    ``(B) increased or decreased by the amount of any 
                difference (or lack thereof) between the export price 
                and the price described in paragraph (1)(B) (other than 
                a difference for which allowance is otherwise provided 
                under this section) that is established to the 
                satisfaction of the administering authority to be 
                wholly or partly due to--
                            ``(i) physical differences between the 
                        subject vessel and the vessel used in 
                        determining normal value, or
                            ``(ii) other differences in the 
                        circumstances of sale.
            ``(6) Adjustments for level of trade.--The price described 
        in paragraph (1)(B) shall also be increased or decreased to 
        make due allowance for any difference (or lack thereof) between 
        the export price and the price described in paragraph (1)(B) 
        (other than a difference for which allowance is otherwise made 
        under this section) that is shown to be wholly or partly due to 
        a difference in level of trade between the export price and 
        normal value, if the difference in level of trade--
                    ``(A) involves the performance of different selling 
                activities, and
                    ``(B) is demonstrated to affect price 
                comparability, based on a pattern of consistent price 
                differences between sales at different levels of trade 
                in the country in which normal value is determined.
        In a case described in the preceding sentence, the amount of 
        the adjustment shall be based on the price differences between 
        the two levels of trade in the country in which normal value is 
        determined.
            ``(7) Adjustments to constructed value.--Constructed value 
        as determined under subsection (e) may be adjusted, as 
        appropriate, pursuant to this subsection.
    ``(b) Sales at Less Than Cost of Production.--
            ``(1) Determination; sales disregarded.--Whenever the 
        administering authority has reasonable grounds to believe or 
        suspect that the sale of the foreign like vessel under 
        consideration for the determination of normal value has been 
        made at a price which represents less than the cost of 
        production of the foreign like vessel, the administering 
        authority shall determine whether, in fact, such sale was made 
        at less than the cost of production. If the administering 
        authority determines that the sale was made at less than the 
        cost of production and was not at a price which permits 
        recovery of all costs within 5 years, such sale may be 
        disregarded in the determination of normal value. Whenever such 
a sale is disregarded, normal value shall be based on another sale of a 
foreign like vessel in the ordinary course of trade. If no sales made 
in the ordinary course of trade remain, the normal value shall be based 
on the constructed value of the subject vessel.
            ``(2) Definitions and special rules.--For purposes of this 
        subsection:
                    ``(A) Reasonable grounds to believe or suspect.--
                There are reasonable grounds to believe or suspect that 
                the sale of a foreign like vessel was made at a price 
                that is less than the cost of production of the vessel, 
                if an interested party described in subparagraph (C), 
                (D), (E), or (F) of section 861(17) provides 
                information, based upon observed prices or constructed 
                prices or costs, that the sale of the foreign like 
                vessel under consideration for the determination of 
                normal value has been made at a price which represents 
                less than the cost of production of the vessel.
                    ``(B) Recovery of costs.--If the price is below the 
                cost of production at the time of sale but is above the 
                weighted average cost of production for the period of 
                investigation, such price shall be considered to 
                provide for recovery of costs within 5 years.
            ``(3) Calculation of cost of production.--For purposes of 
        this section, the cost of production shall be an amount equal 
        to the sum of--
                    ``(A) the cost of materials and of fabrication or 
                other processing of any kind employed in producing the 
                foreign like vessel, during a period which would 
                ordinarily permit the production of that vessel in the 
                ordinary course of business, and
                    ``(B) an amount for selling, general, and 
                administrative expenses based on actual data pertaining 
                to the production and sale of the foreign like vessel 
                by the producer in question.
        For purposes of subparagraph (A), if the normal value is based 
        on the price of the foreign like vessel sold in a country other 
        than the exporting country, the cost of materials shall be 
        determined without regard to any internal tax in the exporting 
        country imposed on such materials or on their disposition which 
        are remitted or refunded upon exportation.
    ``(c) Nonmarket Economy Countries.--
            ``(1) In general.--If--
                    ``(A) the subject vessel is produced in a nonmarket 
                economy country, and
                    ``(B) the administering authority finds that 
                available information does not permit the normal value 
                of the subject vessel to be determined under subsection 
                (a), the administering authority shall determine the 
                normal value of the subject vessel on the basis of the 
                value of the factors of production utilized in 
                producing the vessel and to which shall be added an 
                amount for general expenses and profit plus the cost of 
                expenses incidental to placing the vessel in a 
                condition for delivery to the buyer. Except as provided 
                in paragraph (2), the valuation of the factors of 
                production shall be based on the best available 
                information regarding the values of such factors in a 
                market economy country or countries considered to be 
                appropriate by the administering authority.
            ``(2) Exception.--If the administering authority finds that 
        the available information is inadequate for purposes of 
        determining the normal value of the subject vessel under 
        paragraph (1), the administering authority shall determine the 
        normal value on the basis of the price at which a vessel that 
        is--
                    ``(A) comparable to the subject vessel, and
                    ``(B) produced in one or more market economy 
                countries that are at a level of economic development 
                comparable to that of the nonmarket economy country,
        is sold in other countries, including the United States.
            ``(3) Factors of production.--For purposes of paragraph 
        (1), the factors of production utilized in producing the vessel 
        include, but are not limited to--
                    ``(A) hours of labor required,
                    ``(B) quantities of raw materials employed,
                    ``(C) amounts of energy and other utilities 
                consumed, and
                    ``(D) representative capital cost, including 
                depreciation.
            ``(4) Valuation of factors of production.--The 
        administering authority, in valuing factors of production under 
        paragraph (1), shall utilize, to the extent possible, the 
        prices or costs of factors of production in one or more market 
        economy countries that are--
                    ``(A) at a level of economic development comparable 
                to that of the nonmarket economy country, and
                    ``(B) significant producers of comparable vessels.
    ``(d) Special Rule for Certain Multinational Corporations.--
Whenever, in the course of an investigation under this title, the 
administering authority determines that--
            ``(1) the subject vessel was produced in facilities which 
        are owned or controlled, directly or indirectly, by a person, 
        firm, or corporation which also owns or controls, directly or 
        indirectly, other facilities for the production of a foreign 
        like vessel which are located in another country or countries,
            ``(2) subsection (a)(1)(C) applies, and
            ``(3) the normal value of a foreign like vessel produced in 
        one or more of the facilities outside the exporting country is 
        higher than the normal value of the foreign like vessel 
        produced in the facilities located in the exporting country,
the administering authority shall determine the normal value of the 
subject vessel by reference to the normal value at which a foreign like 
vessel is sold from one or more facilities outside the exporting 
country. The administering authority, in making any determination under 
this subsection, shall make adjustments for the difference between the 
costs of production (including taxes, labor, materials, and overhead) 
of the foreign like vessel produced in facilities outside the exporting 
country and costs of production of the foreign like vessel produced in 
facilities in the exporting country, if such differences are 
demonstrated to its satisfaction.
    ``(e) Constructed Value.--
            ``(1) In general.--For purposes of this title, the 
        constructed value of a subject vessel shall be an amount equal 
        to the sum of--
                    ``(A) the cost of materials and fabrication or 
                other processing of any kind employed in producing the 
                subject vessel, during a period which would ordinarily 
                permit the production of the vessel in the ordinary 
                course of business, and
                    ``(B)(i) the actual amounts incurred and realized 
                by the foreign producer of the subject vessel for 
                selling, general, and administrative expenses, and for 
                profits, in connection with the production and sale of 
                a foreign like vessel, in the ordinary course of trade, 
                in the domestic market of the country of origin of the 
                subject vessel, or
                    ``(ii) if actual data are not available with 
                respect to the amounts described in clause (i), then--
                            ``(I) the actual amounts incurred and 
                        realized by the foreign producer of the subject 
                        vessel for selling, general, and administrative 
                        expenses, and for profits, in connection with 
                        the production and sale of the same general 
                        category of vessel in the domestic market of 
                        the country of origin of the subject vessel,
                            ``(II) the weighted average of the actual 
                        amounts incurred and realized by producers in 
                        the country of origin of the subject vessel 
                        (other than the producer of the subject vessel) 
                        for selling, general, and administrative 
                        expenses, and for profits, in connection with 
                        the production and sale of a foreign like 
                        vessel, in the ordinary course of trade, in the 
                        domestic market, or
                            ``(III) if data are not available under 
                        subclause (I) or (II), the amounts incurred and 
                        realized for selling, general, and 
                        administrative expenses, and for profits, based 
                        on any other reasonable method, except that the 
                        amount allowed for profit may not exceed the 
                        amount normally realized by foreign producers 
                        (other than the producer of the subject vessel) 
                        in connection with the sale of vessels in the 
                        same general category of vessel as the subject 
                        vessel in the domestic market of the country of 
                        origin of the subject vessel.
        For purposes of this paragraph, the profit shall be based on 
        the average profit realized over a reasonable period of time 
        before and after the sale of the subject vessel and shall 
        reflect a reasonable profit at the time of such sale. For 
        purposes of the preceding sentence, a `reasonable period of 
        time' shall not, except where otherwise appropriate, exceed 6 
        months before, or 6 months after, the sale of the subject 
        vessel. In calculating profit under this paragraph, any 
        distortion which would result in other than a profit which is 
        reasonable at the time of the sale shall be eliminated.
            ``(2) Costs and profits based on other reasonable 
        methods.--When costs and profits are determined under paragraph 
        (1)(B)(ii)(III), such determination shall, except where 
otherwise appropriate, be based on appropriate export sales by the 
producer of the subject vessel or, absent such sales, to export sales 
by other producers of a foreign like vessel or the same general 
category of vessel as the subject vessel in the country of origin of 
the subject vessel.
            ``(3) Costs of materials.--For purposes of paragraph 
        (1)(A), the cost of materials shall be determined without 
        regard to any internal tax in the exporting country imposed on 
        such materials or their disposition which are remitted or 
        refunded upon exportation of the subject vessel produced from 
        such materials.
    ``(f) Special Rules for Calculation of Cost of Production and for 
Calculation of Constructed Value.--For purposes of subsections (b) and 
(e)--
            ``(1) Costs.--
                    ``(A) In general.--Costs shall normally be 
                calculated based on the records of the foreign producer 
                of the subject vessel, if such records are kept in 
                accordance with the generally accepted accounting 
                principles of the exporting country and reasonably 
                reflect the costs associated with the production and 
                sale of the vessel. The administering authority shall 
                consider all available evidence on the proper 
                allocation of costs, including that which is made 
                available by the foreign producer on a timely basis, if 
                such allocations have been historically used by the 
                foreign producer, in particular for establishing 
                appropriate amortization and depreciation periods, and 
                allowances for capital expenditures and other 
                development costs.
                    ``(B) Nonrecurring costs.--Costs shall be adjusted 
                appropriately for those nonrecurring costs that benefit 
                current or future production, or both.
                    ``(C) Startup costs.--
                            ``(i) In general.--Costs shall be adjusted 
                        appropriately for circumstances in which costs 
                        incurred during the time period covered by the 
                        investigation are affected by startup 
                        operations.
                            ``(ii) Startup operations.--Adjustments 
                        shall be made for startup operations only 
                        where--
                                    ``(I) a producer is using new 
                                production facilities or producing a 
                                new type of vessel that requires 
                                substantial additional investment, and
                                    ``(II) production levels are 
                                limited by technical factors associated 
                                with the initial phase of commercial 
                                production.
                For purposes of subclause (II), the initial phase of 
                commercial production ends at the end of the startup 
                period. In determining whether commercial production 
                levels have been achieved, the administering authority 
                shall consider factors unrelated to startup operations 
                that might affect the volume of production processed, 
                such as demand, seasonality, or business cycles.
                            ``(iii) Adjustment for startup 
                        operations.--The adjustment for startup 
                        operations shall be made by substituting the 
                        unit production costs incurred with respect to 
                        the vessel at the end of the startup period for 
                        the unit production costs incurred during the 
                        startup period. If the startup period extends 
                        beyond the period of the investigation under 
                        this title, the administering authority shall 
                        use the most recent cost of production data 
                        that it reasonably can obtain, analyze, and 
                        verify without delaying the timely completion 
                        of the investigation.
                For purposes of this subparagraph, the startup period 
                ends at the point at which the level of commercial 
                production that is characteristic of the vessel, the 
                producer, or the industry is achieved.
                    ``(D) Costs due to extraordinary circumstances not 
                included.--Costs shall not include actual costs which 
                are due to extraordinary circumstances (including, but 
                not limited to, labor disputes, fire, and natural 
                disasters) and which are significantly over the cost 
                increase which the shipbuilder could have reasonably 
                anticipated and taken into account at the time of sale.
            ``(2) Transactions disregarded.--A transaction directly or 
        indirectly between affiliated persons may be disregarded if, in 
        the case of any element of value required to be considered, the 
        amount representing that element does not fairly reflect the 
        amount usually reflected in sales of a like vessel in the 
        market under consideration. If a transaction is disregarded 
        under the preceding sentence and no other transactions are 
available for consideration, the determination of the amount shall be 
based on the information available as to what the amount would have 
been if the transaction had occurred between persons who are not 
affiliated.
            ``(3) Major input rule.--If, in the case of a transaction 
        between affiliated persons involving the production by one of 
        such persons of a major input to the subject vessel, the 
        administering authority has reasonable grounds to believe or 
        suspect that an amount represented as the value of such input 
        is less than the cost of production of such input, then the 
        administering authority may determine the value of the major 
        input on the basis of the information available regarding such 
        cost of production, if such cost is greater than the amount 
        that would be determined for such input under paragraph (2).

``SEC. 823. CURRENCY CONVERSION.

    ``(a) In General.--In an injurious pricing proceeding under this 
title, the administering authority shall convert foreign currencies 
into United States dollars using the exchange rate in effect on the 
date of sale of the subject vessel, except that if it is established 
that a currency transaction on forward markets is directly linked to a 
sale under consideration, the exchange rate specified with respect to 
such foreign currency in the forward sale agreement shall be used to 
convert the foreign currency.
    ``(b) Date of Sale.--For purposes of this section, `date of sale' 
means the date of the contract of sale or, where appropriate, the date 
on which the material terms of sale are otherwise established. If the 
material terms of sale are significantly changed after such date, the 
date of sale is the date of such change. In the case of such a change 
in the date of sale, the administering authority shall make appropriate 
adjustments to take into account any unreasonable effect on the 
injurious pricing margin due only to fluctuations in the exchange rate 
between the original date of sale and the new date of sale.

                        ``Subtitle C--Procedures

``SEC. 841. HEARINGS.

    ``(a) Upon Request.--The administering authority and the Commission 
shall each hold a hearing in the course of an investigation under this 
title, upon the request of any party to the investigation, before 
making a final determination under section 805.
    ``(b) Procedures.--Any hearing required or permitted under this 
title shall be conducted after notice published in the Federal 
Register, and a transcript of the hearing shall be prepared and made 
available to the public. The hearing shall not be subject to the 
provisions of subchapter II of chapter 5 of title 5, United States 
Code, or to section 702 of such title.

``SEC. 842. DETERMINATIONS ON THE BASIS OF THE FACTS AVAILABLE.

    ``(a) In General.--If--
            ``(1) necessary information is not available on the record, 
        or
            ``(2) an interested party or any other person--
                    ``(A) withholds information that has been requested 
                by the administering authority or the Commission under 
                this title,
                    ``(B) fails to provide such information by the 
                deadlines for the submission of the information or in 
                the form and manner requested, subject to subsections 
                (b)(1) and (d) of section 844,
                    ``(C) significantly impedes a proceeding under this 
                title, or
                    ``(D) provides such information but the information 
                cannot be verified as provided in section 844(g), the 
                administering authority and the Commission shall, 
                subject to section 844(c), use the facts otherwise 
                available in reaching the applicable determination 
                under this title.
    ``(b) Adverse Inferences.--If the administering authority or the 
Commission (as the case may be) finds that an interested party has 
failed to cooperate by not acting to the best of its ability to comply 
with a request for information from the administering authority or the 
Commission, the administering authority or the Commission (as the case 
may be), in reaching the applicable determination under this title, may 
use an inference that is adverse to the interests of that party in 
selecting from among the facts otherwise available. Such adverse 
inference may include reliance on information derived from--
            ``(1) the petition, or
            ``(2) any other information placed on the record.
    ``(c) Corroboration of Secondary Information.--When the 
administering authority or the Commission relies on secondary 
information rather than on information obtained in the course of an 
investigation under this title, the administering authority and the 
Commission, as the case may be, shall, to the extent practicable, 
corroborate that information from independent sources that are 
reasonably at their disposal.

``SEC. 843. ACCESS TO INFORMATION.

    ``(a) Information Generally Made Available.--
            ``(1) Progress of investigation reports.--The administering 
        authority and the Commission shall, from time to time upon 
        request, inform the parties to an investigation under this 
        title of the progress of that investigation.
            ``(2) Ex parte meetings.--The administering authority and 
        the Commission shall maintain a record of any ex parte meeting 
        between--
                    ``(A) interested parties or other persons providing 
                factual information in connection with a proceeding 
                under this title, and
                    ``(B) the person charged with making the 
                determination, or any person charged with making a 
                final recommendation to that person, in connection with 
                that proceeding,
        if information relating to that proceeding was presented or 
        discussed at such meeting. The record of such an ex parte 
        meeting shall include the identity of the persons present at 
        the meeting, the date, time, and place of the meeting, and a 
        summary of the matters discussed or submitted. The record of 
        the ex parte meeting shall be included in the record of the 
        proceeding.
            ``(3) Summaries; nonproprietary submissions.--The 
        administering authority and the Commission shall disclose--
                    ``(A) any proprietary information received in the 
                course of a proceeding under this title if it is 
                disclosed in a form which cannot be associated with, or 
                otherwise be used to identify, operations of a 
                particular person, and
                    ``(B) any information submitted in connection with 
                a proceeding which is not designated as proprietary by 
                the person submitting it.
            ``(4) Maintenance of public record.--The administering 
        authority and the Commission shall maintain and make available 
        for public inspection and copying a record of all information 
        which is obtained by the administering authority or the 
        Commission, as the case may be, in a proceeding under this 
        title to the extent that public disclosure of the information 
        is not prohibited under this chapter or exempt from disclosure 
        under section 552 of title 5, United States Code.
    ``(b) Proprietary Information.--
            ``(1) Proprietary status maintained.--
                    ``(A) In general.--Except as provided in subsection 
                (a)(4) and subsection (c), information submitted to the 
                administering authority or the Commission which is 
                designated as proprietary by the person submitting the 
                information shall not be disclosed to any person 
                without the consent of the person submitting the 
                information, other than--
                            ``(i) to an officer or employee of the 
                        administering authority or the Commission who 
                        is directly concerned with carrying out the 
                        investigation in connection with which the 
                        information is submitted or any other 
                        proceeding under this title covering the same 
                        subject vessel, or
                            ``(ii) to an officer or employee of the 
                        United States Customs Service who is directly 
                        involved in conducting an investigation 
                        regarding fraud under this title.
                    ``(B) Additional requirements.--The administering 
                authority and the Commission shall require that 
                information for which proprietary treatment is 
                requested be accompanied by--
                            ``(i) either--
                                    ``(I) a nonproprietary summary in 
                                sufficient detail to permit a 
                                reasonable understanding of the 
                                substance of the information submitted 
                                in confidence, or
                                    ``(II) a statement that the 
                                information is not susceptible to 
                                summary, accompanied by a statement of 
                                the reasons in support of the 
                                contention, and
                            ``(ii) either--
                                    ``(I) a statement which permits the 
                                administering authority or the 
                                Commission to release under 
                                administrative protective order, in 
                                accordance with subsection (c), the 
                                information submitted in confidence, or
                                    ``(II) a statement to the 
                                administering authority or the 
                                Commission that the business 
                                proprietary information is of a type 
                                that should not be released under 
                                administrative protective order.
            ``(2) Unwarranted designation.--If the administering 
        authority or the Commission determines, on the basis of the 
        nature and extent of the information or its availability from 
        public sources, that designation of any information as 
        proprietary is unwarranted, then it shall notify the person who 
        submitted it and ask for an explanation of the reasons for the 
        designation. Unless that person persuades the administering 
        authority or the Commission that the designation is warranted, 
        or withdraws the designation, the administering authority or 
        the Commission, as the case may be, shall return it to the 
        party submitting it. In a case in which the administering 
        authority or the Commission returns the information to the 
        person submitting it, the person may thereafter submit other 
        material concerning the subject matter of the returned 
        information if the submission is made within the time otherwise 
        provided for submitting such material.
    ``(c) Limited Disclosure of Certain Proprietary Information Under 
Protective Order.--
            ``(1) Disclosure by administering authority or 
        commission.--
                    ``(A) In general.--Upon receipt of an application 
                (before or after receipt of the information requested) 
                which describes in general terms the information 
                requested and sets forth the reasons for the request, 
                the administering authority or the Commission shall 
                make all business proprietary information presented to, 
or obtained by it, during a proceeding under this title (except 
privileged information, classified information, and specific 
information of a type for which there is a clear and compelling need to 
withhold from disclosure) available to all interested parties who are 
parties to the proceeding under a protective order described in 
subparagraph (B), regardless of when the information is submitted 
during the proceeding. Customer names (other than the name of the 
United States buyer of the subject vessel) obtained during any 
investigation which requires a determination under section 805(b) may 
not be disclosed by the administering authority under protective order 
until either an order is published under section 806(a) as a result of 
the investigation or the investigation is suspended or terminated. The 
Commission may delay disclosure of customer names (other than the name 
of the United States buyer of the subject vessel) under protective 
order during any such investigation until a reasonable time before any 
hearing provided under section 841 is held.
                    ``(B) Protective order.--The protective order under 
                which information is made available shall contain such 
                requirements as the administering authority or the 
                Commission may determine by regulation to be 
                appropriate. The administering authority and the 
                Commission shall provide by regulation for such 
                sanctions as the administering authority and the 
                Commission determine to be appropriate, including 
                disbarment from practice before the agency.
                    ``(C) Time limitations on determinations.--The 
                administering authority or the Commission, as the case 
                may be, shall determine whether to make information 
                available under this paragraph--
                            ``(i) not later than 14 days (7 days if the 
                        submission pertains to a proceeding under 
                        section 803(a)) after the date on which the 
                        information is submitted, or
                            ``(ii) if--
                                    ``(I) the person that submitted the 
                                information raises objection to its 
                                release, or
                                    ``(II) the information is unusually 
                                voluminous or complex, not later than 
                                30 days (10 days if the submission 
                                pertains to a proceeding under section 
                                803(a)) after the date on which the 
                                information is submitted.
                    ``(D) Availability after determination.--If the 
                determination under subparagraph (C) is affirmative, 
                then--
                            ``(i) the business proprietary information 
                        submitted to the administering authority or the 
                        Commission on or before the date of the 
                        determination shall be made available, subject 
                        to the terms and conditions of the protective 
                        order, on such date, and
                            ``(ii) the business proprietary information 
                        submitted to the administering authority or the 
                        Commission after the date of the determination 
                        shall be served as required by subsection (d).
                    ``(E) Failure to disclose.--If a person submitting 
                information to the administering authority refuses to 
                disclose business proprietary information which the 
                administering authority determines should be released 
                under a protective order described in subparagraph (B), 
                the administering authority shall return the 
                information, and any nonconfidential summary thereof, 
                to the person submitting the information and summary 
                and shall not consider either.
            ``(2) Disclosure under court order.--If the administering 
        authority or the Commission denies a request for information 
        under paragraph (1), then application may be made to the United 
        States Court of International Trade for an order directing the 
        administering authority or the Commission, as the case may be, 
        to make the information available. After notification of all 
        parties to the investigation and after an opportunity for a 
        hearing on the record, the court may issue an order, under such 
        conditions as the court deems appropriate, which shall not have 
        the effect of stopping or suspending the investigation, 
        directing the administering authority or the Commission to make 
        all or a portion of the requested information described in the 
        preceding sentence available under a protective order and 
        setting forth sanctions for violation of such order if the 
        court finds that, under the standards applicable in proceedings 
        of the court, such an order is warranted, and that--
                    ``(A) the administering authority or the Commission 
                has denied access to the information under subsection 
                (b)(1),
                    ``(B) the person on whose behalf the information is 
                requested is an interested party who is a party to the 
                investigation in connection with which the information 
                was obtained or developed, and
                    ``(C) the party which submitted the information to 
                which the request relates has been notified, in advance 
                of the hearing, of the request made under this section 
                and of its right to appear and be heard.
    ``(d) Service.--Any party submitting written information, including 
business proprietary information, to the administering authority or the 
Commission during a proceeding shall, at the same time, serve the 
information upon all interested parties who are parties to the 
proceeding, if the information is covered by a protective order. The 
administering authority or the Commission shall not accept any such 
information that is not accompanied by a certificate of service and a 
copy of the protective order version of the document containing the 
information. Business proprietary information shall only be served upon 
interested parties who are parties to the proceeding that are subject 
to protective order, except that a nonconfidential summary thereof 
shall be served upon all other interested parties who are parties to 
the proceeding.
    ``(e) Information Relating to Violations of Protective Orders and 
Sanctions.--The administering authority and the Commission may withhold 
from disclosure any correspondence, private letters of reprimand, 
settlement agreements, and documents and files compiled in relation to 
investigations and actions involving a violation or possible violation 
of a protective order issued under subsection (c), and such information 
shall be treated as information described in section 552(b)(3) of title 
5, United States Code.
    ``(f) Opportunity for Comment by Vessel Buyers.--The administering 
authority and the Commission shall provide an opportunity for buyers of 
subject vessels to submit relevant information to the administering 
authority concerning a sale at less than fair value or countermeasures, 
and to the Commission concerning material injury by reason of the sale 
of a vessel at less than fair value.
    ``(g) Publication of Determinations; Requirements for Final 
Determinations.--
            ``(1) In general.--Whenever the administering authority 
        makes a determination under section 802 whether to initiate an 
        investigation, or the administering authority or the Commission 
        makes a preliminary determination under section 803, a final 
        determination under section 805, a determination under 
        subsection (b), (c), (d), (e)(3)(B)(ii), (g), or (i) of section 
        807, or a determination to suspend an investigation under this 
        title, the administering authority or the Commission, as the 
        case may be, shall publish the facts and conclusions supporting 
        that determination, and shall publish notice of that 
        determination in the Federal Register.
            ``(2) Contents of notice or determination.--The notice or 
        determination published under paragraph (1) shall include, to 
        the extent applicable--
                    ``(A) in the case of a determination of the 
                administering authority--
                            ``(i) the names of the United States buyer 
                        and the foreign producer, and the country of 
                        origin of the subject vessel,
                            ``(ii) a description sufficient to identify 
                        the subject vessel (including type, purpose, 
                        and size),
                            ``(iii) with respect to an injurious 
                        pricing charge, the injurious pricing margin 
                        established and a full explanation of the 
                        methodology used in establishing such margin,
                            ``(iv) with respect to countermeasures, the 
                        scope and duration of countermeasures and, if 
                        applicable, any changes thereto, and
                            ``(v) the primary reasons for the 
                        determination, and
                    ``(B) in the case of a determination of the 
                Commission--
                            ``(i) considerations relevant to the 
                        determination of injury, and
                            ``(ii) the primary reasons for the 
                        determination.
            ``(3) Additional requirements for final determinations.--In 
        addition to the requirements set forth in paragraph (2)--
                    ``(A) the administering authority shall include in 
                a final determination under section 805 or 807(c) an 
                explanation of the basis for its determination that 
                addresses relevant arguments, made by interested 
                parties who are parties to the investigation, 
                concerning the establishment of the injurious pricing 
charge with respect to which the determination is made, and
                    ``(B) the Commission shall include in a final 
                determination of injury an explanation of the basis for 
                its determination that addresses relevant arguments 
                that are made by interested parties who are parties to 
                the investigation concerning the effects and impact on 
                the industry of the sale of the subject vessel.

``SEC. 844. CONDUCT OF INVESTIGATIONS.

    ``(a) Certification of Submissions.--Any person providing factual 
information to the administering authority or the Commission in 
connection with a proceeding under this title on behalf of the 
petitioner or any other interested party shall certify that such 
information is accurate and complete to the best of that person's 
knowledge.
    ``(b) Difficulties in Meeting Requirements.--
            ``(1) Notification by interested party.--If an interested 
        party, promptly after receiving a request from the 
        administering authority or the Commission for information, 
        notifies the administering authority or the Commission (as the 
        case may be) that such party is unable to submit the 
        information requested in the requested form and manner, 
        together with a full explanation and suggested alternative 
        forms in which such party is able to submit the information, 
        the administering authority or the Commission (as the case may 
        be) shall consider the ability of the interested party to 
        submit the information in the requested form and manner and may 
        modify such requirements to the extent necessary to avoid 
        imposing an unreasonable burden on that party.
            ``(2) Assistance to interested parties.--The administering 
        authority and the Commission shall take into account any 
        difficulties experienced by interested parties, particularly 
        small companies, in supplying information requested by the 
        administering authority or the Commission in connection with 
        investigations under this title, and shall provide to such 
        interested parties any assistance that is practicable in 
        supplying such information.
    ``(c) Deficient Submissions.--If the administering authority or the 
Commission determines that a response to a request for information 
under this title does not comply with the request, the administering 
authority or the Commission (as the case may be) shall promptly inform 
the person submitting the response of the nature of the deficiency and 
shall, to the extent practicable, provide that person with an 
opportunity to remedy or explain the deficiency in light of the time 
limits established for the completion of investigations or reviews 
under this title. If that person submits further information in 
response to such deficiency and either--
            ``(1) the administering authority or the Commission (as the 
        case may be) finds that such response is not satisfactory, or
            ``(2) such response is not submitted within the applicable 
        time limits, then the administering authority or the Commission 
        (as the case may be) may, subject to subsection (d), disregard 
        all or part of the original and subsequent responses.
    ``(d) Use of Certain Information.--In reaching a determination 
under section 803, 805, or 807, the administering authority and the 
Commission shall not decline to consider information that is submitted 
by an interested party and is necessary to the determination but does 
not meet all the applicable requirements established by the 
administering authority or the Commission if--
            ``(1) the information is submitted by the deadline 
        established for its submission,
            ``(2) the information can be verified,
            ``(3) the information is not so incomplete that it cannot 
        serve as a reliable basis for reaching the applicable 
        determination,
            ``(4) the interested party has demonstrated that it acted 
        to the best of its ability in providing the information and 
        meeting the requirements established by the administering 
        authority or the Commission with respect to the information, 
        and
            ``(5) the information can be used without undue 
        difficulties.
    ``(e) Nonacceptance of Submissions.--If the administering authority 
or the Commission declines to accept into the record any information 
submitted in an investigation under this title, it shall, to the extent 
practicable, provide to the person submitting the information a written 
explanation of the reasons for not accepting the information.
    ``(f) Public Comment on Information.--Information that is submitted 
on a timely basis to the administering authority or the Commission 
during the course of a proceeding under this title shall be subject to 
comment by other parties to the proceeding within such reasonable time 
as the administering authority or the Commission shall provide. The 
administering authority and the Commission, before making a final 
determination under section 805 or 807, shall cease collecting 
information and shall provide the parties with a final opportunity to 
comment on the information obtained by the administering authority or 
the Commission (as the case may be) upon which the parties have not 
previously had an opportunity to comment. Comments containing new 
factual information shall be disregarded.
    ``(g) Verification.--The administering authority shall verify all 
information relied upon in making a final determination under section 
805.

``SEC. 845. ADMINISTRATIVE ACTION FOLLOWING SHIPBUILDING AGREEMENT 
              PANEL REPORTS.

    ``(a) Action by United States International Trade Commission.--
            ``(1) Advisory report.--If a dispute settlement panel under 
        the Shipbuilding Agreement finds in a report that an action by 
        the Commission in connection with a particular proceeding under 
        this title is not in conformity with the obligations of the 
        United States under the Shipbuilding Agreement, the Trade 
        Representative may request the Commission to issue an advisory 
        report on whether this title permits the Commission to take 
        steps in connection with the particular proceeding that would 
        render its action not inconsistent with the findings of the 
        panel concerning those obligations. The Trade Representative 
        shall notify the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate of 
        such request.
            ``(2) Time limits for report.--The Commission shall 
        transmit its report under paragraph (1) to the Trade 
        Representative within 30 calendar days after the Trade 
        Representative requests the report.
            ``(3) Consultations on request for commission 
        determination.--If a majority of the Commissioners issues an 
        affirmative report under paragraph (1), the Trade 
        Representatives shall consult with the congressional committees 
        listed in paragraph (1) concerning the matter.
            ``(4) Commission determination.--Notwithstanding any other 
        provision of this title, if a majority of the Commissioners 
        issues an affirmative report under paragraph (1), the 
        Commission, upon the written request of the Trade 
        Representative, shall issue a determination in connection with 
        the particular proceeding that would render the Commission's 
        action described in paragraph (1) not inconsistent with the 
        findings of the panel. The Commission shall issue its 
        determination not later than 120 calendar days after the 
        request from the Trade Representative is made.
            ``(5) Consultations on implementation of commission 
        determination.--The Trade Representative shall consult with the 
        congressional committees listed in paragraph (1) before the 
        Commission's determination under paragraph (4) is implemented.
            ``(6) Revocation of order.--If, by virtue of the 
        Commission's determination under paragraph (4), an injurious 
        pricing order is no longer supported by an affirmative 
        Commission determination under this title, the Trade 
        Representative may, after consulting with the congressional 
        committees under paragraph (5), direct the administering 
        authority to revoke the injurious pricing order.
    ``(b) Action by Administering Authority.--
            ``(1) Consultations with administering authority and 
        congressional committees.--Promptly after a report or other 
        determination by a dispute settlement panel under the 
        Shipbuilding Agreement is issued that contains findings that--
                    ``(A) an action by the administering authority in a 
                proceeding under this title is not in conformity with 
                the obligations of the United States under the 
                Shipbuilding Agreement,
                    ``(B) the due date for payment of an injurious 
                pricing charge contained in an order issued under 
                section 806 should be amended,
                    ``(C) countermeasures provided for in an order 
                issued under section 807 should be provisionally 
                suspended or reduced pending the final decision of the 
                panel, or
                    ``(D) the scope or duration of countermeasures 
                imposed under section 807 should be narrowed or 
                shortened,
        the Trade Representative shall consult with the administering 
        authority and the congressional committees listed in subsection 
        (a)(1) on the matter.
            ``(2) Determination by administering authority.--
        Notwithstanding any other provision of this title, the 
        administering authority shall, in response to a written request 
        from the Trade Representative, issue a determination, or an 
        amendment to or suspension of an injurious pricing or 
        countermeasure order, as the case may be, in connection with 
        the particular proceeding that would render the administering 
        authority's action described in paragraph (1) not inconsistent 
        with the findings of the panel.
            ``(3) Time limits for determinations.--The administering 
        authority shall issue its determination, amendment, or 
        suspension under paragraph (2)--
                    ``(A) with respect to a matter described in 
                subparagraph (A) of paragraph (1), within 180 calendar 
                days after the request from the Trade Representative is 
                made, and
                    ``(B) with respect to a matter described in 
                subparagraph (B), (C), or (D) of paragraph (1), within 
                15 calendar days after the request from the Trade 
                Representative is made.
            ``(4) Consultations before implementation.--Before the 
        administering authority implements any determination, 
        amendment, or suspension under paragraph (2), the Trade 
        Representative shall consult with the administering authority 
        and the congressional committees listed in subsection (a)(1) 
        with respect to such determination, amendment, or suspension.
            ``(5) Implementation of determination.--The Trade 
        Representative may, after consulting with the administering 
        authority and the congressional committees under paragraph (4), 
        direct the administering authority to implement, in whole or in 
        part, the determination, amendment, or suspension made under 
        paragraph (2). The administering authority shall publish notice 
        of such implementation in the Federal Register.
    ``(c) Opportunity for Comment by Interested Parties.--Before 
issuing a determination, amendment, or suspension, the administering 
authority, in a matter described in subsection (b)(1)(A), or the 
Commission, in a matter described in subsection (a)(1), as the case may 
be, shall provide interested parties with an opportunity to submit 
written comments and, in appropriate cases, may hold a hearing, with 
respect to the determination.

                       ``Subtitle D--Definitions

``SEC. 861. DEFINITIONS.

    ``In this title:
            ``(1) Administering authority.--The term `administering 
        authority' means the Secretary of Commerce, or any other 
        officer of the United States to whom the responsibility for 
        carrying out the duties of the administering authority under 
        this title are transferred by law.
            ``(2) Commission.--The term `Commission' means the United 
        States International Trade Commission.
            ``(3) Country.--The term `country' means a foreign country, 
        a political subdivision, dependent territory, or possession of 
        a foreign country and, except as provided in paragraph 
        (16)(E)(iii), may not include an association of 2 or more 
        foreign countries, political subdivisions, dependent 
        territories, or possessions of countries into a customs union 
        outside the United States.
            ``(4) Industry.--
                    ``(A) In general.--Except as used in section 808, 
                the term `industry' means the producers as a whole of a 
                domestic like vessel, or those producers whose 
                collective capability to produce a domestic like vessel 
                constitutes a major proportion of the total domestic 
                capability to produce a domestic like vessel.
                    ``(B) Producer.--A `producer' of a domestic like 
                vessel includes an entity that is producing the 
                domestic like vessel and an entity with the capability 
                to produce the domestic like vessel.
                    ``(C) Capability to produce a domestic like 
                vessel.--A producer has the `capability to produce a 
                domestic like vessel' if it is capable of producing a 
                domestic like vessel with its present facilities or 
                could adapt its facilities in a timely manner to 
                produce a domestic like vessel.
                    ``(D) Related parties.--(i) In an investigation 
                under this title, if a producer of a domestic like 
                vessel and the foreign producer, seller (other than the 
                foreign producer), or United States buyer of the 
                subject vessel are related parties, or if a producer of 
                a domestic like vessel is also a United States buyer of 
                the subject vessel, the domestic producer may, in 
                appropriate circumstances, be excluded from the 
                industry.
                    ``(ii) For purposes of clause (i), a domestic 
                producer and the foreign producer, seller, or United 
                States buyer shall be considered to be related parties, 
                if--
                            ``(I) the domestic producer directly or 
                        indirectly controls the foreign producer, 
                        seller, or United States buyer,
                            ``(II) the foreign producer, seller, or 
                        United States buyer directly or indirectly 
                        controls the domestic producer,
                            ``(III) a third party directly or 
                        indirectly controls the domestic producer and 
                        the foreign producer, seller, or United States 
                        buyer, or
                            ``(IV) the domestic producer and the 
                        foreign producer, seller, or United States 
                        buyer directly or indirectly control a third 
                        party and there is reason to believe that the 
                        relationship causes the domestic producer to 
                        act differently than a nonrelated producer.
                For purposes of this subparagraph, a party shall be 
                considered to directly or indirectly control another 
                party if the party is legally or operationally in a 
                position to exercise restraint or direction over the 
                other party.
                    ``(E) Product lines.--In an investigation under 
                this title, the effect of the sale of the subject 
                vessel shall be assessed in relation to the United 
                States production (or production capability) of a 
                domestic like vessel if available data permit the 
                separate identification of production (or production 
                capability) in terms of such criteria as the production 
                process or the producer's profits. If the domestic 
                production (or production capability) of a domestic 
                like vessel has no separate identity in terms of such 
                criteria, then the effect of the sale of the subject 
                vessel shall be assessed by the examination of the 
                production (or production capability) of the narrowest 
                group or range of vessels, which includes a domestic 
                like vessel, for which the necessary information can be 
                provided.
            ``(5) Buyer.--The term `buyer' means any person who 
        acquires an ownership interest in a vessel, including by way of 
        lease or long-term bareboat charter, in conjunction with the 
        original transfer from the producer, either directly or 
        indirectly, including an individual or company which owns or 
        controls a buyer. There may be more than one buyer of any one 
        vessel.
            ``(6) United states buyer.--The term `United States buyer' 
        means a buyer that is any of the following:
                    ``(A) A United States citizen.
                    ``(B) A juridical entity, including any 
                corporation, company, association, or other 
                organization, that is legally constituted under the 
                laws and regulations of the United States or a 
                political subdivision thereof, regardless of whether 
                the entity is organized for pecuniary gain, privately 
                or government owned, or organized with limited or 
                unlimited liability.
                    ``(C) A juridical entity that is owned or 
                controlled by nationals or entities described in 
                subparagraphs (A) and (B). For the purposes of this 
                subparagraph--
                            ``(i) the term `own' means having more than 
                        a 50 percent interest, and
                            ``(ii) the term `control' means the actual 
                        ability to have substantial influence on 
                        corporate behavior, and control is presumed to 
                        exist where there is at least a 25 percent 
                        interest.
                If ownership of a company is established under clause 
                (i), other control is presumed not to exist unless it 
                is otherwise established.
            ``(7) Ownership interest.--An `ownership interest' in a 
        vessel includes any contractual or proprietary interest which 
        allows the beneficiary or beneficiaries of such interest to 
        take advantage of the operation of the vessel in a manner 
        substantially comparable to the way in which an owner may 
        benefit from the operation of the vessel. In determining 
        whether such substantial comparability exists, the 
        administering authority shall consider--
                    ``(A) the terms and circumstances of the 
                transaction which conveys the interest,
                    ``(B) commercial practice within the industry,
                    ``(C) whether the vessel subject to the transaction 
                is integrated into the operations of the beneficiary or 
                beneficiaries, and
                    ``(D) whether in practice there is a likelihood 
                that the beneficiary or beneficiaries of such interests 
                will take advantage of and the risk for the operation 
                of the vessel for a significant part of the life-time 
                of the vessel.
            ``(8) Vessel.--
                    ``(A) In general.--Except as otherwise specifically 
                provided under international agreements, the term 
                `vessel' means--
                            ``(i) a self-propelled seagoing vessel of 
                        100 gross tons or more used for transportation 
                        of goods or persons or for performance of a 
                        specialized service (including, but not limited 
                        to, ice breakers and dredges), or
                            ``(ii) a tug of 365 kilowatts or more,
                that is produced in a Shipbuilding Agreement Party or a 
                country that is not a Shipbuilding Agreement Party and 
                not a WTO member.
                    ``(B) Exclusions.--The term `vessel' does not 
                include--
                            ``(i) any fishing vessel destined for the 
                        fishing fleet of the country in which the 
                        vessel is built,
                            ``(ii) any military vessel or any military 
                        reserve vessel, and
                            ``(iii) any vessel sold before the date 
                        that the Shipbuilding Agreement enters into 
                        force with respect to the United States, except 
                        that any vessel sold after December 21, 1994, 
                        for delivery more than 5 years after the date 
                        of the contract of sale shall be a `vessel' for 
                        purposes of this title unless the shipbuilder 
                        demonstrates to the administering authority 
                        that the extended delivery date was for normal 
                        commercial reasons and not to avoid 
                        applicability of this title.
                    ``(C) Self-propelled seagoing vessel.--A vessel is 
                `self-propelled seagoing' if its permanent propulsion 
                and steering provide it all the characteristics of 
                self-navigability in the high seas.
                    ``(D) Military vessel.--A `military vessel' is a 
                vessel that, according to its basic structural 
                characteristics and ability, is intended to be used 
                exclusively for military purposes.
            ``(9) Like vessel.--The term `like vessel' means a vessel 
        of the same type, same purpose, and approximate size as the 
        subject vessel and possessing characteristics closely 
        resembling those of the subject vessel.
            ``(10) Domestic like vessel.--The term `domestic like 
        vessel' means a like vessel produced in the United States.
            ``(11) Foreign like vessel.--Except as used in section 
        822(e)(1)(B)(ii)(II), the term `foreign like vessel' means a 
        like vessel produced by the foreign producer of the subject 
        vessel for sale in the producer's domestic market or in a third 
        country.
            ``(12) Same general category of vessel.--The term `same 
        general category of vessel' means a vessel of the same type and 
        purpose as the subject vessel, but of a significantly different 
        size.
            ``(13) Subject vessel.--The term `subject vessel' means a 
        vessel subject to an investigation or an injurious pricing 
        order under this title.
            ``(14) Foreign producer.--The term `foreign producer' means 
        the producer or producers of the subject vessel.
            ``(15) Exporting country.--The term `exporting country' 
        means the country in which the subject vessel was built.
            ``(16) Material injury.--
                    ``(A) In general.--The term `material injury' means 
                harm which is not inconsequential, immaterial, or 
                unimportant.
                    ``(B) Sale and consequent impact.--In making 
                determinations under sections 803(a) and 805(b), the 
                Commission in each case--
                            ``(i) shall consider--
                                    ``(I) the sale of the subject 
                                vessel,
                                    ``(II) the effect of the sale of 
                                the subject vessel on prices in the 
                                United States for a domestic like 
                                vessel, and
                                    ``(III) the impact of the sale of 
                                the subject vessel on domestic 
                                producers of a domestic like vessel, 
                                but only in the context of production 
                                operations within the United States, 
                                and
                            ``(ii) may consider such other economic 
                        factors as are relevant to the determination 
                        regarding whether there is or has been material 
                        injury by reason of the sale of the subject 
                        vessel.
                In the notification required under section 805(d), the 
                Commission shall explain its analysis of each factor 
                considered under clause (i), and identify each factor 
                considered under clause (ii) and explain in full its 
                relevance to the determination.
                    ``(C) Evaluation of relevant factors.--For purposes 
                of subparagraph (B)--
                            ``(i) Sale of the subject vessel.--In 
                        evaluating the sale of the subject vessel, the 
                        Commission shall consider whether the sale, 
                        either in absolute terms or relative to 
                        production or demand in the United States, in 
                        terms of either volume or value, is or has been 
                        significant.
                            ``(ii) Price.--In evaluating the effect of 
                        the sale of the subject vessel on prices, the 
                        Commission shall consider whether--
                                    ``(I) there has been significant 
                                price underselling of the subject 
                                vessel as compared with the price of a 
                                domestic like vessel, and
                                    ``(II) the effect of the sale of 
                                the subject vessel otherwise depresses 
                                or has depressed prices to a 
                                significant degree or prevents or has 
                                prevented price increases, which 
                                otherwise would have occurred, to a 
                                significant degree.
                            ``(iii) Impact on affected domestic 
                        industry.--In examining the impact required to 
                        be considered under subparagraph (B)(i)(III), 
                        the Commission shall evaluate all relevant 
                        economic factors which have a bearing on the 
                        state of the industry in the United States, 
                        including, but not limited to--
                                    ``(I) actual and potential decline 
                                in output, sales, market share, 
                                profits, productivity, return on 
                                investments, and utilization of 
                                capacity,
                                    ``(II) factors affecting domestic 
                                prices, including with regard to sales,
                                    ``(III) actual and potential 
                                negative effects on cash flow, 
                                employment, wages, growth, ability to 
                                raise capital, and investment,
                                    ``(IV) actual and potential 
                                negative effects on the existing 
                                development and production efforts of 
                                the domestic industry, including 
                                efforts to develop a derivative or more 
                                advanced version of a domestic like 
                                vessel, and
                                    ``(V) the magnitude of the 
                                injurious pricing margin.
                        The Commission shall evaluate all relevant 
                        economic factors described in this clause 
                        within the context of the business cycle and 
                        conditions of competition that are distinctive 
                        to the affected industry.
                    ``(D) Standard for determination.--The presence or 
                absence of any factor which the Commission is required 
                to evaluate under subparagraph (C) shall not 
                necessarily give decisive guidance with respect to the 
                determination by the Commission of material injury.
                    ``(E) Threat of material injury.--
                            ``(i) In general.--In determining whether 
                        an industry in the United States is threatened 
                        with material injury by reason of the sale of 
                        the subject vessel, the Commission shall 
                        consider, among other relevant economic 
                        factors--
                                    ``(I) any existing unused 
                                production capacity or imminent, 
                                substantial increase in production 
                                capacity in the exporting country 
                                indicating the likelihood of 
                                substantially increased sales of a 
                                foreign like vessel to United States 
                                buyers, taking into account the 
                                availability of other export markets to 
                                absorb any additional exports,
                                    ``(II) whether the sale of a 
                                foreign like vessel or other factors 
                                indicate the likelihood of significant 
                                additional sales to United States 
                                buyers,
                                    ``(III) whether sale of the subject 
                                vessel or sale of a foreign like vessel 
                                by the foreign producer are at prices 
                                that are likely to have a significant 
                                depressing or suppressing effect on 
                                domestic prices, and are likely to 
                                increase demand for further sales,
                                    ``(IV) the potential for product-
                                shifting if production facilities in 
                                the exporting country, which can 
                                presently be used to produce a foreign 
                                like vessel or could be adapted in a 
                                timely manner to produce a foreign like 
                                vessel, are currently being used to 
                                produce other types of vessels,
                                    ``(V) the actual and potential 
                                negative effects on the existing 
                                development and production efforts of 
                                the domestic industry, including 
                                efforts to develop a derivative or more 
                                advanced version of a domestic like 
                                vessel, and
                                    ``(VI) any other demonstrable 
                                adverse trends that indicate the 
                                probability that there is likely to be 
                                material injury by reason of the sale 
                                of the subject vessel.
                            ``(ii) Basis for determination.--The 
                        Commission shall consider the factors set forth 
                        in clause (i) as a whole. The presence or 
                        absence of any factor which the Commission is 
                        required to consider under clause (i) shall not 
                        necessarily give decisive guidance with respect 
                        to the determination. Such a determination may 
                        not be made on the basis of mere conjecture or 
                        supposition.
                            ``(iii) Effect of injurious pricing in 
                        third-country markets.--
                                    ``(I) In general.--The Commission 
                                shall consider whether injurious 
                                pricing in the markets of foreign 
                                countries (as evidenced by injurious 
                                pricing findings or injurious pricing 
                                remedies of other Shipbuilding 
                                Agreement Parties, or antidumping 
                                determinations of, or measures imposed 
                                by, other countries, against a like 
                                vessel produced by the producer under 
                                investigation) suggests a threat of 
                                material injury to the domestic 
                                industry. In the course of its 
                                investigation, the Commission shall 
                                request information from the foreign 
                                producer or United States buyer 
                                concerning this issue.
                                    ``(II) European communities.--For 
                                purposes of this clause, the European 
                                Communities as a whole shall be treated 
                                as a single foreign country.
                    ``(F) Cumulation for determining material injury.--
                            ``(i) In general.--For purposes of clauses 
                        (i) and (ii) of subparagraph (C), and subject 
                        to clause (ii) of this subparagraph, the 
                        Commission shall cumulatively assess the 
                        effects of sales of foreign like vessels from 
                        all foreign producers with respect to which--
                                    ``(I) petitions were filed under 
                                section 802(b) on the same day,
                                    ``(II) investigations were 
                                initiated under section 802(a) on the 
                                same day, or
                                    ``(III) petitions were filed under 
                                section 802(b) and investigations were 
                                initiated under section 802(a) on the 
                                same day,
                        if, with respect to such vessels, the foreign 
                        producers compete with each other and with 
                        producers of a domestic like vessel in the 
                        United States market.
                            ``(ii) Exceptions.--The Commission shall 
                        not cumulatively assess the effects of sales 
                        under clause (i)--
                                    ``(I) with respect to which the 
                                administering authority has made a 
                                preliminary negative determination, 
                                unless the administering authority 
                                subsequently made a final affirmative 
                                determination with respect to those 
                                sales before the Commission's final 
                                determination is made, or
                                    ``(II) from any producer with 
                                respect to which the investigation has 
                                been terminated.
                            ``(iii) Records in final investigations.--
                        In each final determination in which it 
                        cumulatively assesses the effects of sales 
                        under clause (i), the Commission may make its 
                        determinations based on the record compiled in 
                        the first investigation in which it makes a 
                        final determination, except that when the 
                        administering authority issues its final 
                        determination in a subsequently completed 
                        investigation, the Commission shall permit the 
                        parties in the subsequent investigation to 
                        submit comments concerning the significance of 
                        the administering authority's final 
                        determination, and shall include such comments 
                        and the administering authority's final 
                        determination in the record for the subsequent 
                        investigation.
                    ``(G) Cumulation for determining threat of material 
                injury.--To the extent practicable and subject to 
                subparagraph (F)(ii), for purposes of clause (i) (II) 
                and (III) of subparagraph (E), the Commission may 
                cumulatively assess the effects of sales of like 
                vessels from all countries with respect to which--
                            ``(i) petitions were filed under section 
                        802(b) on the same day,
                            ``(ii) investigations were initiated under 
                        section 802(a) on the same day, or
                            ``(iii) petitions were filed under section 
                        802(b) and investigations were initiated under 
                        section 802(a) on the same day,
                if, with respect to such vessels, the foreign producers 
                compete with each other and with producers of a 
                domestic like vessel in the United States market.
            ``(17) Interested party.--The term `interested party' 
        means, in a proceeding under this title--
                    ``(A)(i) the foreign producer, seller (other than 
                the foreign producer), and the United States buyer of 
                the subject vessel, or
                    ``(ii) a trade or business association a majority 
                of the members of which are the foreign producer, 
                seller, or United States buyer of the subject vessel,
                    ``(B) the government of the country in which the 
                subject vessel is produced or manufactured,
                    ``(C) a producer that is a member of an industry,
                    ``(D) a certified union or recognized union or 
                group of workers which is representative of an 
                industry,
                    ``(E) a trade or business association a majority of 
                whose members are producers in an industry,
                    ``(F) an association, a majority of whose members 
                is composed of interested parties described in 
                subparagraph (C), (D), or (E), and
                    ``(G) for purposes of section 807, a purchaser who, 
                after the effective date of an order issued under that 
                section, entered into a contract of sale with the 
                foreign producer that is subject to the order.
            ``(18) Affirmative determinations by divided commission.--
        If the Commissioners voting on a determination by the 
        Commission are evenly divided as to whether the determination 
        should be affirmative or negative, the Commission shall be 
        deemed to have made an affirmative determination. For the 
        purpose of applying this paragraph when the issue before the 
        Commission is to determine whether there is or has been--
                    ``(A) material injury to an industry in the United 
                States,
                    ``(B) threat of material injury to such an 
                industry, or
                    ``(C) material retardation of the establishment of 
                an industry in the United States,
        by reason of the sale of the subject vessel, an affirmative 
        vote on any of the issues shall be treated as a vote that the 
        determination should be affirmative.
            ``(19) Ordinary course of trade.--The term `ordinary course 
        of trade' means the conditions and practices which, for a 
        reasonable time before the sale of the subject vessel, have 
        been normal in the shipbuilding industry with respect to a like 
        vessel. The administering authority shall consider the 
        following sales and transactions, among others, to be outside 
        the ordinary course of trade:
                    ``(A) Sales disregarded under section 822(b)(1).
                    ``(B) Transactions disregarded under section 
                822(f)(2).
            ``(20) Nonmarket economy country.--
                    ``(A) In general.--The term `nonmarket economy 
                country' means any foreign country that the 
                administering authority determines does not operate on 
                market principles of cost or pricing structures, so 
                that sales of vessels in such country do not reflect 
                the fair value of the vessels.
                    ``(B) Factors to be considered.--In making 
                determinations under subparagraph (A) the administering 
                authority shall take into account--
                            ``(i) the extent to which the currency of 
                        the foreign country is convertible into the 
                        currency of other countries,
                            ``(ii) the extent to which wage rates in 
                        the foreign country are determined by free 
                        bargaining between labor and management,
                            ``(iii) the extent to which joint ventures 
                        or other investments by firms of other foreign 
                        countries are permitted in the foreign country,
                            ``(iv) the extent of government ownership 
                        or control of the means of production,
                            ``(v) the extent of government control over 
                        the allocation of resources and over the price 
                        and output decisions of enterprises, and
                            ``(vi) such other factors as the 
                        administering authority considers appropriate.
                    ``(C) Determination in effect.--
                            ``(i) Any determination that a foreign 
                        country is a nonmarket economy country shall 
                        remain in effect until revoked by the 
                        administering authority.
                            ``(ii) The administering authority may make 
                        a determination under subparagraph (A) with 
                        respect to any foreign country at any time.
                    ``(D) Determinations not in issue.--Notwithstanding 
                any other provision of law, any determination made by 
                the administering authority under subparagraph (A) 
                shall not be subject to judicial review in any 
                investigation conducted under subtitle A.
            ``(21) Shipbuilding agreement.--The term `Shipbuilding 
        Agreement' means The Agreement Respecting Normal Competitive 
        Conditions in the Commercial Shipbuilding and Repair Industry, 
        resulting from negotiations under the auspices of the 
        Organization for Economic Cooperation and Development, and 
        entered into on December 21, 1994.
            ``(22) Shipbuilding agreement party.--The term 
        `Shipbuilding Agreement Party' means a state or separate 
        customs territory that is a Party to the Shipbuilding 
        Agreement, and with respect to which the United States applies 
        the Shipbuilding Agreement.
            ``(23) WTO agreement.--The term `WTO Agreement' means the 
        Agreement defined in section 2(9) of the Uruguay Round 
        Agreements Act.
            ``(24) WTO member.--The term `WTO member' means a state, or 
        separate customs territory (within the meaning of Article XII 
        of the WTO Agreement), with respect to which the United States 
        applies the WTO Agreement.
            ``(25) Trade representative.--The term `Trade 
        Representative' means the United States Trade Representative.
            ``(26) Affiliated persons.--The following persons shall be 
        considered to be `affiliated' or `affiliated persons':
                    ``(A) Members of a family, including brothers and 
                sisters (whether by the whole or half blood), spouse, 
                ancestors, and lineal descendants.
                    ``(B) Any officer or director of an organization 
                and such organization.
                    ``(C) Partners.
                    ``(D) Employer and employee.
                    ``(E) Any person directly or indirectly owning, 
                controlling, or holding with power to vote, 5 percent 
                or more of the outstanding voting stock or shares of 
                any organization, and such organization.
                    ``(F) Two or more persons directly or indirectly 
                controlling, controlled by, or under common control 
                with, any person.
                    ``(G) Any person who controls any other person, and 
                such other person.
        For purposes of this paragraph, a person shall be considered to 
        control another person if the person is legally or 
        operationally in a position to exercise restraint or direction 
        over the other person.
            ``(27) Injurious pricing.--The term `injurious pricing' 
        refers to the sale of a vessel at less than fair value.
            ``(28) Injurious pricing margin.--
                    ``(A) In general.--The term `injurious pricing 
                margin' means the amount by which the normal value 
                exceeds the export price of the subject vessel.
                    ``(B) Magnitude of the injurious pricing margin.--
                The magnitude of the injurious pricing margin used by 
                the Commission shall be--
                            ``(i) in making a preliminary determination 
                        under section 803(a) in an investigation 
                        (including any investigation in which the 
                        Commission cumulatively assesses the effect of 
                        sales under paragraph (16)(F)(i)), the 
                        injurious pricing margin or margins published 
                        by the administering authority in its notice of 
                        initiation of the investigation; and
                            ``(ii) in making a final determination 
                        under section 805(b), the injurious pricing 
                        margin or margins most recently published by 
                        the administering authority before the closing 
                        of the Commission's administrative record.
            ``(29) Commercial interest reference rate.--The term 
        `Commercial Interest Reference Rate' or `CIRR' means an 
        interest rate that the administering authority determines to be 
        consistent with Annex III, and appendices and notes thereto, of 
        the Understanding on Export Credits for Ships, resulting from 
        negotiations under the auspices of the Organization for 
        Economic Cooperation, and entered into on December 21, 1994.
            ``(30) Antidumping.--
                    ``(A) WTO members.--In the case of a WTO member, 
                the term `antidumping' refers to action taken pursuant 
                to the Agreement on Implementation of Article VI of the 
                General Agreement on Tariffs and Trade 1994.
                    ``(B) Other cases.--In the case of any country that 
                is not a WTO member, the term `antidumping' refers to 
                action taken by the country against the sale of a 
                vessel at less than fair value that is comparable to 
                action described in subparagraph (A).
            ``(31) Broad multiple bid.--The term `broad multiple bid' 
        means a bid in which the proposed buyer extends an invitation 
        to bid to at least all the producers in the industry known by 
        the buyer to be capable of building the subject vessel.''.

SEC. 5103. ENFORCEMENT OF COUNTERMEASURES.

    Part II of title IV of the Tariff Act of 1930 is amended by adding 
at the end the following:

``SEC. 468. SHIPBUILDING AGREEMENT COUNTERMEASURES.

    ``(a) In General.--Notwithstanding any other provision of law, upon 
receiving from the Secretary of Commerce a list of vessels subject to 
countermeasures under section 807, the Customs Service shall deny any 
request for a permit to lade or unlade passengers, merchandise, or 
baggage from or onto those vessels so listed.
    ``(b) Exceptions.--Subsection (a) shall not be applied to deny a 
permit for the following:
            ``(1) To unlade any United States citizen or permanent 
        legal resident alien from a vessel included in the list 
        described in subsection (a), or to unlade any refugee or any 
        alien who would otherwise be eligible to apply for asylum and 
        withholding of deportation under the Immigration and 
        Nationality Act.
            ``(2) To lade or unlade any crewmember of such vessel.
            ``(3) To lade or unlade coal and other fuel supplies (for 
        the operation of the listed vessel), ships' stores, sea stores, 
        and the legitimate equipment of such vessel.
            ``(4) To lade or unlade supplies for the use or sale on 
        such vessel.
            ``(5) To lade or unlade such other merchandise, baggage, or 
        passenger as the Customs Service shall determine necessary to 
        protect the immediate health, safety, or welfare of a human 
        being.
    ``(c) Correction of Ministerial or Clerical Errors.--
            ``(1) Petition for correction.--If the master of any vessel 
        whose application for a permit to lade or unlade has been 
        denied under this section believes that such denial resulted 
        from a ministerial or clerical error, not amounting to a 
        mistake of law, committed by any Customs officer, the master 
        may petition the Customs Service for correction of such error, 
        as provided by regulation.
            ``(2) Inapplicability of sections 514 and 520.--
        Notwithstanding paragraph (1), imposition of countermeasures 
        under this section shall not be deemed an exclusion or other 
        protestable decision under section 514, and shall not be 
        subject to correction under section 520.
            ``(3) Petitions seeking administrative review.--Any 
        petition seeking administrative review of any matter regarding 
        the Secretary of Commerce's decision to list a vessel under 
        section 807 must be brought under that section.
    ``(d) Penalties.--In addition to any other provision of law, the 
Customs Service may impose a civil penalty of not to exceed $10,000 
against the master of any vessel--
            ``(1) who submits false information in requesting any 
        permit to lade or unlade; or
            ``(2) who attempts to, or actually does, lade or unlade in 
        violation of any denial of such permit under this section.''.

SEC. 5104. JUDICIAL REVIEW IN INJURIOUS PRICING AND COUNTERMEASURE 
              PROCEEDINGS.

    (a) Judicial Review.--Part III of title IV of the Tariff Act of 
1930 is amended by inserting after section 516A the following:

``SEC. 516B. JUDICIAL REVIEW IN INJURIOUS PRICING AND COUNTERMEASURE 
              PROCEEDINGS.

    ``(a) Review of Determination.--
            ``(1) In general.--Within 30 days after the date of 
        publication in the Federal Register of--
                    ``(A)(i) a determination by the administering 
                authority under section 802(c) not to initiate an 
                investigation,
                    ``(ii) a negative determination by the Commission 
                under section 803(a) as to whether there is or has been 
                reasonable indication of material injury, threat of 
                material injury, or material retardation,
                    ``(iii) a determination by the administering 
                authority to suspend or revoke an injurious pricing 
                order under section 806 (d) or (e),
                    ``(iv) a determination by the administering 
                authority under section 807(c),
                    ``(v) a determination by the administering 
                authority in a review under section 807(d),
                    ``(vi) a determination by the administering 
                authority concerning whether to extend the scope or 
                duration of a countermeasure order under section 
                807(e)(3)(B)(ii),
                    ``(vii) a determination by the administering 
                authority to amend a countermeasure order under section 
                807(e)(6),
                    ``(viii) a determination by the administering 
                authority in a review under section 807(g),
                    ``(ix) a determination by the administering 
                authority under section 807(i) to terminate 
                proceedings, or to amend or revoke a countermeasure 
                order,
                    ``(x) a determination by the administering 
                authority under section 845(b), with respect to a 
                matter described in paragraph (1)(D) of that section, 
                or
                    ``(B)(i) an injurious pricing order based on a 
                determination described in subparagraph (A) of 
                paragraph (2),
                    ``(ii) notice of a determination described in 
                subparagraph (B) of paragraph (2),
                    ``(iii) notice of implementation of a determination 
                described in subparagraph (C) of paragraph (2), or
                    ``(iv) notice of revocation of an injurious pricing 
                order based on a determination described in 
                subparagraph (D) of paragraph (2), an interested party 
                who is a party to the proceeding in connection with 
                which the matter arises may commence an action in the 
                United States Court of International Trade by filing 
                concurrently a summons and complaint, each with the 
                content and in the form, manner, and style prescribed 
                by the rules of that court, contesting any factual 
                findings or legal conclusions upon which the 
                determination is based.
            ``(2) Reviewable determinations.--The determinations 
        referred to in paragraph (1)(B) are--
                    ``(A) a final affirmative determination by the 
                administering authority or by the Commission under 
                section 805, including any negative part of such a 
                determination (other than a part referred to in 
                subparagraph (B)),
                    ``(B) a final negative determination by the 
                administering authority or the Commission under section 
                805,
                    ``(C) a determination by the administering 
                authority under section 845(b), with respect to a 
                matter described in paragraph (1)(A) of that section, 
                and
                    ``(D) a determination by the Commission under 
                section 845(a) that results in the revocation of an 
                injurious pricing order.
            ``(3) Exception.--Notwithstanding the 30-day limitation 
        imposed by paragraph (1) with regard to an order described in 
        paragraph (1)(B)(i), a final affirmative determination by the 
        administering authority under section 805 may be contested by 
        commencing an action, in accordance with the provisions of 
        paragraph (1), within 30 days after the date of publication in 
        the Federal Register of a final negative determination by the 
        Commission under section 805.
            ``(4) Procedures and fees.--The procedures and fees set 
        forth in chapter 169 of title 28, United States Code, apply to 
        an action under this section.
    ``(b) Standards of Review.--
            ``(1) Remedy.--The court shall hold unlawful any 
        determination, finding, or conclusion found--
                    ``(A) in an action brought under subparagraph (A) 
                of subsection (a)(1), to be arbitrary, capricious, an 
                abuse of discretion, or otherwise not in accordance 
                with law, or
                    ``(B) in an action brought under subparagraph (B) 
                of subsection (a)(1), to be unsupported by substantial 
                evidence on the record, or otherwise not in accordance 
                with law.
            ``(2) Record for review.--
                    ``(A) In general.--For purposes of this subsection, 
                the record, unless otherwise stipulated by the parties, 
                shall consist of--
                            ``(i) a copy of all information presented 
                        to or obtained by the administering authority 
                        or the Commission during the course of the 
                        administrative proceeding, including all 
                        governmental memoranda pertaining to the case 
                        and the record of ex parte meetings required to 
                        be kept by section 843(a)(2); and
                            ``(ii) a copy of the determination, all 
                        transcripts or records of conferences or 
                        hearings, and all notices published in the 
                        Federal Register.
                    ``(B) Confidential or privileged material.--The 
                confidential or privileged status accorded to any 
                documents, comments, or information shall be preserved 
                in any action under this section. Notwithstanding the 
                preceding sentence, the court may examine, in camera, 
                the confidential or privileged material, and may 
                disclose such material under such terms and conditions 
                as it may order.
    ``(c) Standing.--Any interested party who was a party to the 
proceeding under title VIII shall have the right to appear and be heard 
as a party in interest before the United States Court of International 
Trade in an action under this section. The party filing the action 
shall notify all such interested parties of the filing of an action 
under this section, in the form, manner, and within the time prescribed 
by rules of the court.
    ``(d) Definitions.--For purposes of this section:
            ``(1) Administering authority.--The term `administering 
        authority' has the meaning given that term in section 861(1).
            ``(2) Commission.--The term `Commission' means the United 
        States International Trade Commission.
            ``(3) Interested party.--The term `interested party' means 
        any person described in section 861(17).''.
    (b) Conforming Amendments.--
            (1) Jurisdiction of the court.--Section 1581(c) of title 
        28, United States Code, is amended by inserting ``or 516B'' 
        after ``section 516A''.
            (2) Relief.--Section 2643 of title 28, United States Code, 
        is amended--
                    (A) in subsection (c)(1) by striking ``and (5)'' 
                and inserting ``(5), and (6)''; and
                    (B) in subsection (c) by adding at the end the 
                following new paragraph:
    ``(6) In any civil action under section 516B of the Tariff Act of 
1930, the Court of International Trade may not issue injunctions or any 
other form of equitable relief, except with regard to implementation of 
a countermeasure order under section 468 of that Act, upon a proper 
showing that such relief is warranted.''.

                      Subtitle B--Other Provisions

SEC. 5201. EQUIPMENT AND REPAIR OF VESSELS.

    (a) In General.--Section 466 of the Tariff Act of 1930 (19 U.S.C. 
1466), is amended by adding at the end the following new subsection:
    ``(i) Exception to Imposition of Duty.--
            ``(1) In general.--The duty imposed by subsection (a) shall 
        not apply with respect to activities occurring in a 
        Shipbuilding Agreement Party, as defined in section 861(22), 
        with respect to--
                    ``(A) self-propelled seagoing vessels of 100 gross 
                tons or more that are used for transportation of goods 
                or persons or for performance of a specialized service 
                (including, but not limited to, ice breakers and 
                dredges);
                    ``(B) tugs of 365 kilowatts or more; and
                    ``(C) integrated tug-barges or tug-barge 
                combinations.
            ``(2) Self-propelled seagoing; integrated tug-barge.--
                    ``(A) Self-propelled seagoing.--A vessel shall be 
                considered `self-propelled seagoing' if its permanent 
                propulsion and steering provide it all the 
                characteristics of self-navigability in the high seas.
                    ``(B) Integrated tug-barge.--An integrated tug-
                barge or tug-barge combination means a vessel that is 
                designed to operate together in either the push mode or 
                pull mode, if the barge is of 100 gross tons or more 
                and the tug is of 365 kilowatts or more.''.

SEC. 5202. EFFECT OF SHIPBUILDING AGREEMENT WITH RESPECT TO PRIVATE 
              REMEDIES.

    No person other than the United States--
            (1) shall have any cause of action or defense under the 
        Shipbuilding Agreement or by virtue of congressional approval 
        of the Shipbuilding Agreement, or
            (2) may 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, the 
        District of Columbia, any State, any political subdivision of a 
        State, or any territory or possession of the United States on 
        the ground that such action or inaction is inconsistent with 
        such Shipbuilding Agreement.

SEC. 5203. IMPLEMENTING REGULATIONS.

    After the date of enactment of this Act, the heads of agencies with 
functions under this subtitle and the amendments made by this subtitle 
may issue such regulations as may be necessary to ensure that this 
subtitle is appropriately implemented on the date the Shipbuilding 
Agreement enters into force with respect to the United States.

SEC. 5204. AMENDMENTS TO THE MERCHANT MARINE ACT, 1936.

    The Merchant Marine Act, 1936, is amended as follows:
            (1) Section 511(a)(2) (46 App. U.S.C. 1161(a)(2)) is 
        amended by inserting after ``1939,'' the following: ``or, if 
        the vessel is a Shipbuilding Agreement vessel, constructed in a 
        Shipbuilding Agreement Party, but only with regard to moneys 
        deposited, on or after the date on which the OECD Shipbuilding 
        Trade Agreement Act takes effect, into a construction reserve 
        fund established under subsection (b)''.
            (2) Section 601(a) (46 App. U.S.C. 1171(a)) is amended by 
        striking ``, and that such vessel or vessels were built in the 
        United States, or have been documented under the laws of the 
        United States not later than February 1, 1928, or actually 
        ordered and under construction for the account of citizens of 
        the United States prior to such date;'' and inserting ``and 
        that such vessel or vessels were built in the United States, 
        or, if the vessel or vessels are Shipbuilding Agreement 
        vessels, in a Shipbuilding Agreement Party;''.
            (3) Section 606(6) (46 App. U.S.C. 1176(6)) is amended by 
        inserting ``or, if the vessel is a Shipbuilding Agreement 
        vessel, in a Shipbuilding Agreement Party or in the United 
        States,'' before ``, except in an emergency.''.
            (4) Section 607 (46 App. U.S.C. 1177) is amended as 
        follows:
                    (A) Subsection (a) is amended by inserting ``or, if 
                the vessel is a Shipbuilding Agreement vessel, in a 
                Shipbuilding Agreement Party,'' after ``built in the 
                United States''.
                    (B) Subsection (k) is amended as follows:
                            (i) Paragraph (1) is amended by striking 
                        subparagraph (A) and inserting the following:
                    ``(A)(i) constructed in the United States and, if 
                reconstructed, reconstructed in the United States or in 
                a Shipbuilding Agreement Party, or
                    ``(ii) that is a Shipbuilding Agreement vessel and 
                is constructed in a Shipbuilding Agreement Party and, 
                if reconstructed, is reconstructed in a Shipbuilding 
                Agreement Party or in the United States,''.
                            (ii) Paragraph (2)(A) is amended to read as 
                        follows:
                    ``(A)(i) constructed in the United States and, if 
                reconstructed, reconstructed in the United States or in 
                a Shipbuilding Agreement Party, or
                    ``(ii) that is a Shipbuilding Agreement vessel and 
                is constructed in a Shipbuilding Agreement Party and, 
                if reconstructed, is reconstructed in a Shipbuilding 
                Agreement Party or in the United States, but only with 
                regard to moneys deposited into the fund on or after 
                the date on which the OECD Shipbuilding Trade Agreement 
                Act takes effect,''.
            (5) Section 610 (46 App. U.S.C. 1180) is amended by 
        striking ``shall be built in a domestic yard or shall have been 
        documented under the laws of the United States not later than 
        February 1, 1928, or actually ordered and under construction 
        for the account of citizens of the United States prior to such 
        date,'' and inserting ``shall be built in the United States or, 
        if the vessel is a Shipbuilding Agreement vessel, in a 
        Shipbuilding Agreement Party,''.
            (6) Section 901(b)(1) (46 App. U.S.C. 1241(b)(1)) is 
        amended by striking the third sentence and inserting the 
        following: ``For purposes of this section, the term `privately 
        owned United States-flag commercial vessels' shall be deemed to 
        include--
                    ``(A) any privately owned United States-flag 
                commercial vessel constructed in the United States, and 
                if rebuilt, rebuilt in the United States or in a 
                Shipbuilding Agreement Party on or after the date on 
                which the OECD Shipbuilding Trade Agreement Act takes 
                effect, and
                    ``(B) any privately owned vessel constructed in a 
                Shipbuilding Agreement Party on or after the date on 
                which the OECD Shipbuilding Trade Agreement Act takes 
                effect, and if rebuilt, rebuilt in a Shipbuilding 
                Agreement Party or in the United States, that is 
                documented pursuant to chapter 121 of title 46, United 
                States Code.
        The term `privately owned United States-flag commercial 
        vessels' shall also be deemed to include any cargo vessel that 
        so qualified pursuant to section 615 of this Act or this 
        paragraph before the date on which the OECD Shipbuilding Trade 
        Agreement Act takes effect. The term `privately owned United 
        States-flag commercial vessels' shall not be deemed to include 
        any liquid bulk cargo vessel that does not meet the 
        requirements of section 3703a of title 46, United States 
        Code.''.
            (7) Section 905 (46 App. U.S.C. 1244) is amended by adding 
        at the end the following:
    ``(h) The term `Shipbuilding Agreement' means the Agreement 
Respecting Normal Competitive Conditions in the Commercial Shipbuilding 
and Repair Industry, which resulted from negotiations under the 
auspices of the Organization for Economic Cooperation and Development, 
and was entered into on December 21, 1994.
    ``(i) The term `Shipbuilding Agreement Party' means a state or 
separate customs territory that is a Party to the Shipbuilding 
Agreement, and with respect to which the United States applies the 
Shipbuilding Agreement.
    ``(j) The term `Shipbuilding Agreement vessel' means a vessel to 
which the Secretary determines Article 2.1 of the Shipbuilding 
Agreement applies.
    ``(k) The term `Export Credit Understanding' means the 
Understanding on Export Credits for Ships which resulted from 
negotiations under the auspices of the Organization for Economic 
Cooperation and Development and was entered into on December 21, 1994.
    ``(l) The term `Export Credit Understanding vessel' means a vessel 
to which the Secretary determines the Export Credit Understanding 
applies.
    ``(m) The term `integrated tug-barge' has the meaning given such 
term in section 466(i) of the Tariff Act of 1930 (19 U.S.C. 
1466(i)).''.
            (8) Section 1104A (46 App. U.S.C. 1274) is amended--
                    (A) in subsection (b), by amending paragraph (5) to 
                read as follows:
            ``(5) shall bear interest (exclusive of charges for the 
        guarantee and service charges, if any) at rates not to exceed 
        such percent per annum on the unpaid principal as the Secretary 
        determines to be reasonable, taking into account the range of 
        interest rates prevailing in the private market for similar 
        loans and the risks assumed by the Secretary, except that, with 
        respect to Export Credit Understanding vessels, and 
        Shipbuilding Agreement vessels, the obligations shall bear 
        interest at a rate the Secretary determines to be consistent 
        with obligations of the United States under the Export Credit 
        Understanding or the Shipbuilding Agreement, as the case may 
        be;'';
                    (B) by amending subsection (i) to read as follows:
    ``(i)(1) Except as provided in paragraph (2), the Secretary may 
not, with respect to--
            ``(A) the general 75 percent or less limitation contained 
        in subsection (b)(2),
            ``(B) the 87\1/2\ percent or less limitation contained in 
        the 1st, 2nd, 4th, or 5th proviso to subsection (b)(2) or in 
        section 1112(b), or
            ``(C) the 80 percent or less limitation in the 3rd proviso 
        to subsection (b)(2),
establish by rule, regulation, or procedure any percentage within any 
such limitation that is, or is intended to be, applied uniformly to all 
guarantees or commitments to guarantee made under this section that are 
subject to the limitation.
    ``(2) With respect to Export Credit Understanding vessels and 
Shipbuilding Agreement vessels, the Secretary may establish by rule, 
regulation, or procedure a uniform percentage that the Secretary 
determines to be consistent with obligations of the United States under 
the Export Credit Understanding or the Shipbuilding Agreement, as the 
case may be.''; and
                    (C) by adding at the end the following new 
                subsection:
    ``(k) The Secretary shall establish by rule, regulation, or 
procedure a uniform percentage with respect to integrated tug-barges 
that the Secretary determines to be consistent with the percentages 
applied with respect to Export Credit Understanding vessels and 
Shipbuilding Agreement vessels under subsections (b)(5) and (i)(2).''.
            (9) Section 1104B(b) (46 App. U.S.C. 1274a(b)) is amended 
        by striking the period at the end and inserting the following: 
        ``, except that, with respect to Export Credit Understanding 
        vessels and Shipbuilding Agreement vessels, the Secretary may 
        establish by rule, regulation, or procedure a uniform 
        percentage that the Secretary determines to be consistent with 
        obligations of the United States under the Export Credit 
        Understanding or the Shipbuilding Agreement, as the case may 
        be. With respect to integrated tug-barges, the Secretary shall 
        establish by rule, regulation, or procedure a uniform 
        percentage that the Secretary determines to be consistent with 
        the percentages applied with respect to Export Credit 
        Understanding vessels and Shipbuilding Agreement vessels 
        pursuant to the preceding sentence.''.

SEC. 5205. APPLICABILITY OF TITLE XI AMENDMENTS.

    (a) Effective Date.--
            (1) In general.--Notwithstanding any provision of the 
        Shipbuilding Agreement or the Export Credit Understanding, the 
        amendments made by paragraphs (8) and (9) of section 5204 shall 
        not apply with respect to any commitment to guarantee made 
        under title XI of the Merchant Marine Act, 1936, before January 
        1, 2001, with respect to a vessel delivered--
                    (A) before January 1, 2004, or
                    (B) in the case of unusual circumstances (as 
                described in paragraph (2)), as soon after December 31, 
                2003, as practicable.
            (2) Unusual circumstances described.--As used in this 
        subsection, the term ``unusual circumstances'' means an act of 
        God (other than ordinary storms or inclement weather 
        conditions) labor strikes, acts of sabotage, explosions, fires, 
        or vandalism, and similar circumstances beyond the control of 
        the parties concerned which prevent the delivery of a vessel 
        before January 1, 2004.
    (b) Matching Competition by Nonmembers.--Section 5204 shall not 
prevent the Secretary of Transportation from exercising the Secretary's 
full discretion and authority under title XI of the Merchant Marine 
Act, 1936, consistent with clause 8 and Annex III of the Export Credit 
Understanding, to assist United States shipyards in meeting unfairly 
subsidized bids by foreign yards in countries not covered by the 
Shipbuilding Agreement.

SEC. 5206. MONITORING AND ENFORCEMENT.

    (a) In General.--The United States Trade Representative shall 
establish a program to monitor the compliance of Shipbuilding Agreement 
Parties with their obligations under the Shipbuilding Agreement. The 
program shall include--
            (1) the establishment of a task force composed of 
        representatives of the Departments of Commerce, Labor, State, 
        Transportation, and other appropriate agencies;
            (2) coordination of gathering and analysis of relevant 
        information;
            (3) consultation with United States embassies located in 
        countries that are Shipbuilding Agreement Parties to assist in 
        obtaining information that is publicly available on the 
        policies and practices in those countries;
            (4) regular consultations with representatives of industry, 
        labor, and other interested parties regarding policies and 
        practices of Shipbuilding Agreement Parties and of other 
        countries with significant commercial shipbuilding industries;
            (5) annual publication of a notice in the Federal Register 
        affording an opportunity for interested parties to comment on 
        the implementation of the Shipbuilding Agreement; and
            (6) taking of any other appropriate action to monitor 
        compliance of Shipbuilding Agreement Parties.
    (b) Report to Congress.--Before the end of each 12-month period in 
which the United States is a Party to the Shipbuilding Agreement, the 
United States Trade Representative shall report to Congress on--
            (1) the activities undertaken as part of its monitoring 
        program;
            (2) the results of its consultations under subsection 
        (a)(4); and
            (3) compliance with the provisions of the Shipbuilding 
        Agreement.
    (c) Action if Violation.--If the United States Trade Representative 
receives information, including information provided by representatives 
of industry, labor, and other interested parties, indicating that a 
Shipbuilding Agreement Party is in material violation of the 
Shipbuilding Agreement in a manner that is detrimental to the interests 
of the United States, the United States Trade Representative should use 
vigorously the consultation procedures under the Shipbuilding 
Agreement. If the matter is not otherwise resolved, the United States 
Trade Representative should use the dispute settlement procedures under 
the Shipbuilding Agreement to redress the situation.

SEC. 5207. JONES ACT AND RELATED LAWS NOT AFFECTED.

    (a) In General.--Nothing in the Shipbuilding Agreement shall be 
construed to amend, alter, or modify in any manner the Merchant Marine 
Act, 1920 (46 App. U.S.C. 861 et seq.), the Act of June 19, 1886 (46 
App. U.S.C. 289), or any other provision of law set forth in 
Accompanying Note 2 to Annex II of the Shipbuilding Agreement. Nor 
shall the Shipbuilding Agreement be interpreted to undermine the 
operation or administration of any of the foregoing provisions of law 
or impede the objectives of such laws.
    (b) Relation to GATT 1994.--Nothing in the Shipbuilding Agreement 
shall be construed to provide a mechanism for withdrawal of concessions 
under GATT 1994 or any World Trade Organization Agreement because of 
the construction of vessels by United States shipbuilders for operation 
in the coastwise trade of the United States.
    (c) Annual Review; Notification.--As part of the annual review of 
all trade agreements conducted under section 163 of the Trade Act of 
1974, the United States Trade Representative shall--
            (1) review the impact, if any, of the Shipbuilding 
        Agreement on the operation or implementation of any of the 
        provisions of law listed in subsection (a);
            (2) in conducting the review, consult with the Secretary of 
        Transportation, the Secretary of Defense, United States 
        industry, labor groups, and other interested parties; and
            (3) report the results of the review to the President and 
        the appropriate committees.

SEC. 5208. WITHDRAWAL FROM SHIPBUILDING AGREEMENT.

    (a) Withdrawal by President.--
            (1) Notice.--The President shall give notice, under Article 
        14 of the Shipbuilding Agreement, of intent of the United 
        States to withdraw from the Shipbuilding Agreement, as soon as 
        is practicable after one or more Shipbuilding Agreement Parties 
        gives notice, under such Article, of intent to withdraw from 
        the Shipbuilding Agreement, if the circumstances described in 
        paragraph (2) apply, except that the President may not 
        implement the notice of withdrawal of the United States from 
        the Shipbuilding Agreement under this subsection until the 
        withdrawal of one or more Shipbuilding Agreement Parties 
        described in this paragraph is in effect and the circumstances 
        described in paragraph (2) apply to the Shipbuilding Agreement 
        Parties whose withdrawal from the Shipbuilding Agreement is in 
        effect.
            (2) Tonnage of new construction in withdrawing parties.--
        The circumstances described in this paragraph are that the 
        combined gross tonnage of Shipbuilding Agreement vessels that--
                    (A) were constructed in all Shipbuilding Agreement 
                Parties who have given notice to withdraw from the 
                Shipbuilding Agreement, and
                    (B) were delivered in the calendar year preceding 
                the calendar year in which the notice is given,
        is 15 percent or more of the gross tonnage of Shipbuilding 
        Agreement vessels that were constructed in all Shipbuilding 
        Agreement Parties and were delivered in the calendar year 
        preceding the calendar year in which the notice is given.
            (3) Termination of withdrawal.--If a Shipbuilding Agreement 
        Party described in paragraph (2) takes action to terminate its 
        withdrawal from the Shipbuilding Agreement, so that paragraph 
        (2) would not apply if that Party had not given the notice to 
        withdraw, the President may take the necessary steps to 
        terminate the notice of withdrawal of the United States from 
        the Shipbuilding Agreement.
            (4) Notice to Congress.--The President shall notify the 
        appropriate committees as soon as practicable of any notice 
        given under paragraph (1) and of any termination of such notice 
        under paragraph (3).
    (b) Congressional Resolution Withdrawing Approval of the 
Shipbuilding Agreement.--
            (1) Notification by the president.--The President shall 
        notify the appropriate committees as soon as practicable of any 
        decision by a Shipbuilding Agreement Party to apply responsive 
        measures under the provisions of paragraph 2.e of Annex II B of 
        the Shipbuilding Agreement against the United States and the 
        applicable date of such measures.
            (2) Congressional action.--If Congress receives a 
        notification described in paragraph (1), the approval of 
        Congress, provided under section 5101 of this Act, shall cease 
        to be effective if, and only if, a joint resolution is enacted 
        into law pursuant to the provisions of paragraphs (3) and (4).
            (3) Procedural provisions.--
                    (A) In general.--The requirements of this paragraph 
                are met if a joint resolution is adopted under 
                paragraph (4), and--
                            (i) Congress transmits the joint resolution 
                        to the President before the end of the 90-day 
                        period, beginning on the applicable date 
                        referred to in paragraph (1), and
                            (ii) if the President vetoes the joint 
                        resolution, each House of Congress votes to 
                        override that veto on or before the later of--
                                    (I) the last day of the 90-day 
                                period referred to in clause (i), or
                                    (II) the last day of the 15-day 
                                period beginning on the date on which 
                                Congress receives the veto message from 
                                the President.
                    (B) Introduction.--A joint resolution to which this 
                subsection applies may be introduced at any time on or 
                after the applicable date referred to in paragraph (1).
            (4) Joint resolution.--
                    (A) Joint resolution.--For purposes of this 
                subsection, the term ``joint resolution'' means only a 
                joint resolution of the 2 Houses of Congress, the 
                matter after the resolving clause of which is as 
                follows: ``That Congress withdraws its approval, 
                provided under section 5101 of the OECD Shipbuilding 
                Trade Agreement Act, of the Shipbuilding Agreement 
                described in section 5101 of that Act.''.
                    (B) Procedures.--
                            (i) In general.--Joint resolutions may be 
                        introduced in either House of Congress by any 
                        Member of such House.
                            (ii) Application of section 152 of the 
                        trade act of 1974.--Subject to the provisions 
                        of this subsection, the provisions of 
                        subsections (b), (d), (e), and (f) of section 
                        152 of the Trade Act of 1974 (19 U.S.C. 2192 
                        (b), (d), (e), and (f)) apply to joint 
                        resolutions to the same extent as such 
                        provisions apply to resolutions under such 
                        section.
                            (iii) Discharge of committee.--If a 
                        committee of either House to which a joint 
                        resolution has been referred has not reported 
                        it by the close of the 45th day after its 
                        introduction, such committee shall be 
                        automatically discharged from further 
                        consideration of the joint resolution and it 
                        shall be placed on the appropriate calendar.
                            (iv) Floor consideration.--It is not in 
                        order for--
                                    (I) the Senate to consider any 
                                joint resolution unless it has been 
                                reported by the Committee on Finance or 
                                the committee has been discharged under 
                                clause (iii);
                                    (II) the House of Representatives 
                                to consider any joint resolution unless 
                                it has been reported by the Committee 
                                on Ways and Means or the committee has 
                                been discharged under clause (iii); or
                                    (III) either House to consider any 
                                joint resolution or take any action 
                                under paragraph (3)(A) (i) or (ii), if 
                                the President has notified the 
                                appropriate committees that the 
                                decision to apply responsive measures 
                                described in paragraph (1) has been 
                                withdrawn and the responsive measures 
                                have not actually been applied.
                            (v) Consideration in the house.--A motion 
                        in the House of Representatives to proceed to 
                        the consideration of a joint resolution may 
                        only be made on the second legislative day 
                        after the calendar day on which the Member 
                        making the motion announces his or her 
                        intention to do so.
                    (C) Consideration of second resolution not in 
                order.--It shall not be in order in either the House of 
                Representatives or the Senate to consider another joint 
                resolution under this subsection (other than a joint 
                resolution received from the other House), if that 
                House has previously voted on a joint resolution under 
                this subsection with respect to the same Presidential 
                notification described in paragraph (1).
            (5) Applicable date.--For purposes of this subsection, the 
        term ``applicable date'' means the date on which the responsive 
        measures described in paragraph (1) are first scheduled to be 
        applied by the Shipbuilding Agreement Party.
    (c) Snapback Implementation Bills.--
            (1) In general.--
                    (A) Reporting by committees.--Not later than 45 
                days after the date the President notifies Congress 
                under subsection (a)(4) of the intent to withdraw from 
                the Shipbuilding Agreement or a joint resolution is 
                introduced under subsection (b), the Committee on 
                Commerce, Science, and Transportation of the Senate or 
                the Committee on National Security of the House of 
                Representatives may report an original snapback 
                implementing bill to their respective Houses.
                    (B) Snapback implementing bill.--For purposes of 
                this section, the term ``snapback implementing bill'' 
                means a bill that--
                            (i) contains only provisions that--
                                    (I) are necessary to reinstate the 
                                requirements regarding ships built in 
                                the United States that were amended by 
                                section 5204 and would not otherwise be 
                                reinstated pursuant to the provisions 
                                of section 5301; and
                                    (II) take effect on the date of the 
                                withdrawal of the United States from 
                                the Shipbuilding Agreement; and
                            (ii) is enacted pursuant to the procedures 
                        described in this subsection and meets the 
                        requirements described in paragraph (3).
            (2) Expedited procedures.--
                    (A) In general.--Subject to the provisions of this 
                subsection, the provisions of subsections (d), (e), and 
                (f) (1)(A)(ii), (1)(B), (2), and (3) of section 152 of 
                the Trade Act of 1974 (19 U.S.C. 2192 (d), (e), and (f) 
                (1)(A)(ii), (1)(B), (2), and (3)) apply to snapback 
                implementing bills under this subsection to the same 
                extent as such provisions apply to resolutions under 
                such section.
                    (B) Time for floor action.--Except as provided in 
                subparagraph (C), if a snapback implementing bill is 
                reported by a committee referred to in paragraph (1), a 
                vote on final passage of the bill described in 
                paragraph (1) shall be taken in each House on or before 
                the 15th day after the bill is reported by the 
                committee of that House.
                    (C) Exception.--In the case of withdrawal based on 
                a joint resolution described in subsection (b), final 
                passage of the bill described in paragraph (1) shall 
                not occur in a House until after the date that that 
                House has adopted a joint resolution, but shall occur 
                not later than the later of--
                            (i) 5 days after the date the joint 
                        resolution is adopted; or
                            (ii) the 15th day described in subparagraph 
                        (B).
            (3) Presidential action.--The requirements described in 
        this paragraph are met--
                    (A) if a snapback implementing bill is enacted 
                under paragraph (2) and Congress transmits the snapback 
                implementing bill to the President not later than 5 
                days after the date described in paragraph (2)(B) or 
                paragraph (2)(C), whichever is applicable; and
                    (B) if the President vetoes the snapback 
                implementing bill, each House of Congress votes to 
                override that veto on or before the last day of the 15-
                day period beginning on the date on which Congress 
                receives the veto message from the President.
    (d) Special Rules.--
            (1) Computation of time periods.--The 90-day period in 
        subsection (b)(3)(A) (i) and (ii), the 45-day period in 
        subsection (b)(4)(B)(iii) and subsection (c)(1)(A), the 15-day 
        period in subsection (b)(3)(A)(ii) and subsection (c) (2)(B) 
        and (3)(B), and the 5-day periods described in subsection 
        (c)(2)(C) and (c)(3)(A), shall be computed by excluding--
                    (A) the days on which either House 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
                    (B) any Saturday and Sunday, not excluded under 
                subparagraph (A), when either House is not in session.
            (2) Rules of house of representatives and senate.--
        Subsections (b) and (c) are enacted by Congress--
                    (A) as an exercise of the rulemaking power of the 
                House of Representatives and the Senate, respectively, 
                and such procedures supersede other rules only to the 
                extent that such procedures are inconsistent with such 
                other rules; and
                    (B) with the full recognition of the constitutional 
                right of either House to change the rules (so far as 
                relating to the procedures of that House) at any time, 
                in the same manner, and to the same extent as any other 
                rule of that House.

SEC. 5209. EXPANDING MEMBERSHIP IN THE SHIPBUILDING AGREEMENT.

    (a) Monitoring.--The United States Trade Representative shall 
monitor the impact of the policies and practices pursued by countries 
that are not Shipbuilding Agreement Parties, and shall seek the prompt 
accession to the Shipbuilding Agreement of countries that have 
significant commercial shipbuilding and repair industries, including, 
but not limited to, Australia, Brazil, India, the People's Republic of 
China, Poland, Romania, the Russian Federation, Singapore, and Ukraine.
    (b) Report.--The United States Trade Representative shall report to 
Congress annually on the results of efforts to expand the membership of 
the Shipbuilding Agreement. If it is determined that the continuing 
failure of a country to adopt the disciplines of the Shipbuilding 
Agreement is undermining the effectiveness of the Shipbuilding 
Agreement and placing United States shipyards at a competitive 
disadvantage, the United States Trade Representative shall take 
vigorous action to redress the situation by--
            (1) using mechanisms available under United States trade 
        laws,
            (2) seeking consultations with the country involved, and
            (3) initiating dispute settlement under applicable 
        international agreements.
The United States Trade Representative may also take action with other 
Shipbuilding Agreement Parties.

SEC. 5210. PROTECTION OF UNITED STATES SECURITY INTERESTS.

    Nothing in the Shipbuilding Agreement shall be construed to prevent 
the United States from taking any action which the United States 
considers necessary for the protection of the essential security 
interests of the United States, including invoking its sovereign 
authority to define, for purposes of exclusion from coverage under the 
Shipbuilding Agreement and from any dispute or challenge based on Annex 
I to the Shipbuilding Agreement, ``military vessel'', ``military 
reserve vessel'', and ``essential security interest'', on a case-by-
case basis, as determined by the Secretary of Defense.

SEC. 5211. DEFINITIONS.

    In this title:
            (1) Appropriate committees.--The term ``appropriate 
        committees'' means the Committees on Finance and Commerce, 
        Science, and Transportation of the Senate, and the Committees 
        on Ways and Means and National Security of the House of 
        Representatives.
            (2) Shipbuilding agreement, etc.--The terms ``Shipbuilding 
        Agreement'', ``Shipbuilding Agreement Party'', ``Shipbuilding 
        Agreement vessels'', and ``Export Credit Understanding'' have 
        the meanings given those terms in subsections (h), (i), (j), 
        and (k), respectively, of section 905 of the Merchant Marine 
        Act, 1936, as added by section 5204(7) of this Act.
            (3) GATT 1994.--The term ``GATT 1994'' has the meaning 
        given that term in section 2 of the Uruguay Round Agreements 
        Act (19 U.S.C. 3501).
            (4) Military vessel.--The term ``military vessel'' means a 
        vessel that, according to its basic structural characteristics 
        and ability, is intended to be used exclusively for military 
        purposes.

                       Subtitle C--Effective Date

SEC. 5301. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this title, this 
title and the amendments made by this title take effect on the date 
that the Shipbuilding Agreement enters into force with respect to the 
United States.
    (b) Termination of Title and Amendments.--
            (1) In general.--This title and the amendments made by this 
        title shall cease to be effective on the date the withdrawal of 
        the United States from the Shipbuilding Agreement becomes 
        effective.
            (2) Treatment of privately-owned united states-flag 
        vessel.--Notwithstanding the provisions of paragraph (1), any 
        vessel deemed to be a privately-owned United States-flag vessel 
        for the purposes of sections 901(b)(1) and 901b of the Merchant 
        Marine Act, 1936 (46 U.S.C. App. 1241(b)(1) and 1241f) on the 
        date the withdrawal of the United States from the Shipbuilding 
        Agreement becomes effective shall continue to be deemed a 
        privately-owned United States-flag vessel for the purposes of 
        sections 901(b)(1) and 901b of the Merchant Marine Act, 1936 
        (46 U.S.C. App. 1241(b)(1) and 1241f) after the date of 
        withdrawal of the United States from the Shipbuilding 
        Agreement.

          TITLE VI--MISCELLANEOUS TRADE AND TARIFF PROVISIONS

      Subtitle A--Extension of Normal Trade Relations to Mongolia

SEC. 6001. CONGRESSIONAL FINDINGS.

    Congress makes the following findings:
            (1) Mongolia has received normal trade relations treatment 
        since 1991 and has been found to be in full compliance with the 
        freedom of emigration requirements under title IV of the Trade 
        Act of 1974.
            (2) Mongolia has, since ending its nearly 70 years of 
        dependence on the former Soviet Union, made remarkable progress 
        in establishing a democratic political system and creating a 
        free-market economic system.
            (3) In 1996 Mongolia held its third election under its new 
        constitution, resulting in a parliamentary majority for the 
        coalition of democratic opposition parties and a peaceable 
        transfer of power to the new government.
            (4) Mongolia has concluded a bilateral trade treaty with 
        the United States in 1991, and a bilateral investment treaty in 
        1994.
            (5) Mongolia has acceded to the Agreement Establishing the 
        World Trade Organization.
            (6) Mongolia has demonstrated a strong desire to build a 
        friendly and cooperative relationship with the United States on 
        trade matters.
            (7) The extension of unconditional normal trade relations 
        treatment to the products of Mongolia would enable the United 
        States to avail itself of all rights under the World Trade 
        Organization with respect to Mongolia.

SEC. 6002. TERMINATION OF APPLICATION OF TITLE IV OF THE TRADE ACT OF 
              1974 TO MONGOLIA.

    (a) Presidential Determinations and Extensions of Normal Trade 
Relations Treatment.--Notwithstanding any provision of title IV of the 
Trade Act of 1974 (19 U.S.C. 2431 et seq.), the President may--
            (1) determine that such title should no longer apply to 
        Mongolia; and
            (2) after making a determination under paragraph (1) with 
        respect to Mongolia, proclaim the extension of normal trade 
        relations treatment to the products of that country.
    (b) Termination of Application of Title IV.--On or after the 
effective date of the extension under subsection (a)(2) of 
nondiscriminatory treatment (normal trade relations treatment) to the 
products of Mongolia, title IV of the Trade Act of 1974 shall cease to 
apply to that country.

              Subtitle B--Miscellaneous Tariff Provisions

SEC. 6101. DUTY TREATMENT OF CERTAIN FABRICS.

    (a) In General.--Subchapter II of chapter 99 of the Harmonized 
Tariff Schedule of the United States is amended--
            (1) by adding at the end of the U.S. notes the following 
        new note:
    ``13. For purposes of headings 9902.51.11 and 9902.51.12, the term 
`suit' has the same meaning such term has for purposes of headings 6203 
and 6204.''; and
            (2) by inserting in numerical sequence the following new 
        headings:


``     9902.51.11      Fabrics, of carded                                                                       
                        or combed wool or                                                                       
                        fine animal hair,                                                                       
                        all the foregoing                                                                       
                        certified by the                                                                        
                        importer as                                                                             
                        `Super 70's' or                                                                         
                        `Super 80's'                                                                            
                        intended for use                                                                        
                        in making suits,                                                                        
                        suit-type jackets                                                                       
                        or trousers                                                                             
                        (provided for in                                                                        
                        subheadings                                                                             
                        5111.11.70,                                                                             
                        5111.19.60,                                                                             
                        5112.11.20, or                                                                          
                        5112.19.90)......  20.2%        No change         No change         On or before 12/    
                                                                                             31/2004            
       9902.51.12      Fabrics, of carded                                                                       
                        or combed wool or                                                                       
                        fine animal hair,                                                                       
                        all the foregoing                                                                       
                        certified by the                                                                        
                        importer as                                                                             
                        `Super 90's' or                                                                         
                        higher grade                                                                            
                        intended for use                                                                        
                        in making suits,                                                                        
                        suit-type jackets                                                                       
                        or trousers                                                                             
                        (provided for in                                                                        
                        subheadings                                                                             
                        5111.11.70,                                                                             
                        5111.19.60,                                                                             
                        5112.11.20, or                                                                          
                        5112.19.90)......  Free         Free (CA,IL,MX)   No change         On or before 12/    
                                                                                             31/2004            
                                                                                                                

    (b) Staged Rate Reduction.--Any staged reduction of a rate of duty 
set forth in heading 6203.31.00 of the Harmonized Tariff Schedule of 
the United States that is proclaimed by the President shall also apply 
to the corresponding rate of duty set forth in heading 9902.51.11 of 
such Schedule (as added by subsection (a)).
    (c) Effective Date.--The amendments made by subsection (a) apply 
with respect to goods entered, or withdrawn from warehouse for 
consumption, on or after October 1, 1998.

SEC. 6102. TEMPORARY DUTY SUSPENSION FOR PERSONAL EFFECTS OF 
              PARTICIPANTS IN CERTAIN WORLD ATHLETIC EVENTS.

    (a) In General.--Subchapter II of chapter 99 of the Harmonized 
Tariff Schedule of the United States is amended by inserting in 
numerical sequence the following new heading:


``     9902.98.08      Any of the                                                                               
                        following                                                                               
                        articles not                                                                            
                        intended for sale                                                                       
                        or distribution                                                                         
                        to the public:                                                                          
                        personal effects                                                                        
                        of aliens who are                                                                       
                        participants in,                                                                        
                        officials of, or                                                                        
                        accredited                                                                              
                        members of                                                                              
                        delegations to,                                                                         
                        the 1999                                                                                
                        International                                                                           
                        Special Olympics,                                                                       
                        the 1999 Women's                                                                        
                        World Cup Soccer,                                                                       
                        the 2001                                                                                
                        International                                                                           
                        Special Olympics,                                                                       
                        the 2002 Salt                                                                           
                        Lake City Winter                                                                        
                        Olympics, and the                                                                       
                        2002 Winter                                                                             
                        Paralympic Games,                                                                       
                        and of persons                                                                          
                        who are immediate                                                                       
                        family members of                                                                       
                        or servants to                                                                          
                        any of the                                                                              
                        foregoing                                                                               
                        persons;                                                                                
                        equipment and                                                                           
                        materials                                                                               
                        imported in                                                                             
                        connection with                                                                         
                        the foregoing                                                                           
                        events by or on                                                                         
                        behalf of the                                                                           
                        foregoing persons                                                                       
                        or the organizing                                                                       
                        committees of                                                                           
                        such events;                                                                            
                        articles to be                                                                          
                        used in                                                                                 
                        exhibitions                                                                             
                        depicting the                                                                           
                        culture of a                                                                            
                        country                                                                                 
                        participating in                                                                        
                        any such event;                                                                         
                        and, if                                                                                 
                        consistent with                                                                         
                        the foregoing,                                                                          
                        such other                                                                              
                        articles as the                                                                         
                        Secretary of                                                                            
                        Treasury may                                                                            
                        allow............  Free         No change         Free              On or before 1/1/   
                                                                                             2003               
                                                                                                                

    (b) Taxes and Fees Not To Apply.--The articles described in heading 
9902.98.08 of the Harmonized Tariff Schedule of the United States (as 
added by subsection (a)) shall be free of taxes and fees which may be 
otherwise applicable.
    (c) No Exemption From Customs Inspections.--The articles described 
in heading 9902.98.08 of the Harmonized Tariff Schedule of the United 
States (as added by subsection (a)) shall not be free or otherwise 
exempt or excluded from routine or other inspections as may be required 
by the Customs Service.
    (d) Effective Date.--The amendment made by this section applies to 
articles entered, or withdrawn from warehouse, for consumption on or 
after October 1, 1998.

SEC. 6103. EXTENSION OF UNITED STATES INSULAR POSSESSION PROGRAM.

    (a) In General.--The additional U.S. notes to chapter 71 of the 
Harmonized Tariff Schedule of the United States are amended by adding 
at the end the following new note:
    ``3.(a) Notwithstanding any provision in additional U.S. note 5 to 
chapter 91, any article of jewelry provided for in heading 7113 which 
is the product of the Virgin Islands, Guam, or American Samoa 
(including any such article which contains any foreign component) shall 
be eligible for the benefits provided in paragraph (h) of additional 
U.S. note 5 to chapter 91, subject to the provisions and limitations of 
that note and of paragraphs (b), (c), and (d) of this note.
    ``(b) Nothing in this note shall result in an increase or a 
decrease in the aggregate amount referred to in paragraph (h)(iii) of, 
or the quantitative limitation otherwise established pursuant to the 
requirements of, additional U.S. note 5 to chapter 91.
    ``(c) Nothing in this note shall be construed to permit a reduction 
in the amount available to watch producers under paragraph (h)(iv) of 
additional U.S. note 5 to chapter 91.
    ``(d) The Secretary of Commerce and the Secretary of the Interior 
shall issue such regulations, not inconsistent with the provisions of 
this note and additional U.S. note 5 to chapter 91, as the Secretaries 
determine necessary to carry out their respective duties under this 
note. Such regulations shall not be inconsistent with substantial 
transformation requirements established by the United States Customs 
Service but may define the circumstances under which articles of 
jewelry shall be deemed to be `units' for purposes of the benefits, 
provisions, and limitations of additional U.S. note 5 to chapter 91.''.
    (b) Effective Date.--The amendment made by this section takes 
effect October 1, 1998.

SEC. 6104. GUM ARABIC.

    Notwithstanding any other provision of law, Executive Order 13067 
shall not apply to the importation into the United States on or before 
December 31, 2002, of any article of Sudanese origin that is described 
in subheading 1301.20.00 or 1301.90.90 of the Harmonized Tariff 
Schedule of the United States.

SEC. 6105. MOBILE OFFSHORE DRILLING UNITS.

    Section 313 of the Tariff Act of 1930 (19 U.S.C. 1313) is amended 
by adding at the end the following new subsection:
    ``(x) Mobile Offshore Drilling Units.--The provisions of this 
section shall apply to materials imported and used in the construction 
and equipment of a mobile offshore drilling unit operated outside the 
exclusive economic zone of the United States for the unit's useful 
life, notwithstanding that such unit may not within the strict meaning 
of the term be an article exported. Nothing in this subsection shall be 
construed to modify customs entry procedures or any antidumping or 
countervailing duty imposed under title VII with respect to imported 
materials used in the construction of a unit.''.

                     TITLE VII--REVENUE PROVISIONS

SEC. 7001. CAPITAL CONSTRUCTION FUND CONFORMING AMENDMENT.

    (a) In General.--Section 7518(i) of the Internal Revenue Code of 
1986 is amended by inserting before the end period the following: ``, 
except that in the case of the terms `eligible vessel' and `qualified 
vessel', the amendments to such section by the OECD Shipbuilding Trade 
Agreement Act shall be taken into account''.
    (b) Effective Date.--
            (1) General rule.--The amendment made by this section takes 
        effect on the date that the Shipbuilding Agreement enters into 
        force with respect to the United States.
            (2) Shipbuilding agreement.--For purposes of this 
        subsection, the term ``Shipbuilding Agreement'' means the 
        Agreement Respecting Normal Competitive Conditions in the 
        Commercial Shipbuilding and Repair Industry, which resulted 
        from negotiations under the auspices of the Organization for 
        Economic Cooperation and Development, and was entered into on 
        December 21, 1994.

SEC. 7002. MODIFICATION TO FOREIGN TAX CREDIT CARRYBACK AND CARRYOVER 
              PERIODS.

    (a) In General.--Section 904(c) of the Internal Revenue Code of 
1986 (relating to limitation on credit) is amended--
            (1) by striking ``in the second preceding taxable year,'', 
        and
            (2) by striking ``or fifth'' and inserting ``fifth, sixth, 
        or seventh''.
    (b) Effective Date.--The amendments made by subsection (a) apply to 
credits arising in taxable years beginning after December 31, 1998.