[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 984 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 984

 To promote the growth of free enterprise and economic opportunity in 
 the Caribbean Basin region, increase trade and investment between the 
    Caribbean Basin region and the United States, and encourage the 
    adoption by Caribbean Basin countries of policies necessary for 
         participation in the free trade area of the Americas.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 27, 1997

  Mr. Graham (for himself, Mr. DeWine, Mr. Mack, Mr. McCain, and Ms. 
 Moseley-Braun) (by request) introduced the following bill; which was 
          read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To promote the growth of free enterprise and economic opportunity in 
 the Caribbean Basin region, increase trade and investment between the 
    Caribbean Basin region and the United States, and encourage the 
    adoption by Caribbean Basin countries of policies necessary for 
         participation in the free trade area of the Americas.

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

SECTION 1. SHORT TITLE.

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

 SEC. 2. FINDINGS AND POLICY.

    (a) Findings.--Congress makes the following findings:
            (1) The Caribbean Basin Economic Recovery Act (referred to 
        in this Act 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 Act 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 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. 3. DEFINITIONS.

    In this Act:
            (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. 4. 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) Preferential tariff and quota treatment.--
                During the transition period--
                            ``(i) Goods originating in beneficiary 
                        country.--Clause (iii) applies with respect to 
                        a textile or apparel article that is a CBTEA 
                        originating good.
                            ``(ii) Certain other goods.--Clause (iii) 
                        applies with respect to a textile or apparel 
                        article that is imported into the United States 
                        from a CBTEA beneficiary country and that--
                                    ``(I) is assembled in a CBTEA 
                                beneficiary country from fabrics wholly 
                                formed and cut in the United States 
                                from yarns formed in the United States, 
                                and is imported into the United 
                                States--
                                            ``(aa) under subheading 
                                        9802.00.80 of the HTS; or
                                            ``(bb) under chapter 61, 
                                        62, or 63 of the HTS, if after 
                                        such assembly the article would 
                                        have qualified for entry under 
                                        subheading 9802.00.80 of the 
                                        HTS but for the fact the 
                                        article was subjected to stone-
                                        washing, enzyme-washing, acid-
                                        washing, perma-pressing, oven-
                                        baking, bleaching, embroidery, 
                                        or garment-dyeing; or
                                    ``(II) is identified under 
                                subparagraph (C) as a handloomed, 
                                handmade, or folklore article of such 
                                country and is certified as such by the 
                                competent authority of such country.
                            ``(iii) Tariff treatment.--
                                    ``(I) In general.--The President 
                                shall proclaim--
                                            ``(aa) with respect to an 
                                        article described in clause (i) 
                                        imported into the United States 
                                        from a CBTEA beneficiary 
                                        country, a rate of duty equal 
                                        to the lesser of `x' or the 
                                        amount determined by using the 
                                        formula `.5(x-y)+y', in which 
                                        the terms `x' and `y' have the 
                                        meanings given such terms in 
                                        subclause (IV); and
                                            ``(bb) with respect to an 
                                        article described in clause 
                                        (ii), imported into the United 
                                        States from a CBTEA beneficiary 
                                        country, a rate of duty equal 
                                        to 50 percent of the amount of 
                                        duty that otherwise would apply 
                                        to such article.
                                    ``(II) Additional reductions.--On 
                                or after the date on which the 
                                President submits to Congress the first 
                                report required under section 212(f), 
                                the President may proclaim further 
                                reductions in duty for an article 
                                described in clause (i) or (ii) that is 
                                a product of a CBTEA beneficiary 
                                country if the President determines 
                                that the performance of the country is 
                                satisfactory under the criteria listed 
                                in paragraph (5)(C)(ii). The rate of 
                                duty proclaimed by the President shall 
                                be no less than--
                                            ``(aa) with respect to an 
                                        article described in clause 
                                        (i), the amount determined 
                                        under subclause (III); and
                                            ``(bb) with respect to an 
                                        article described in clause 
                                        (ii), zero.
                                    ``(III) Rate of duty for articles 
                                described in clause (i).--For purposes 
                                of subclause (II)(aa), the amount of 
                                duty that the President may proclaim 
                                under such subclause with respect to an 
                                article described in clause (i) shall 
                                be the lesser of--
                                            ``(aa) the rate of duty 
                                        that would apply to an article 
                                        at the time of importation from 
                                        a CBTEA beneficiary country but 
                                        for the enactment of the CBTEA, 
                                        or
                                            ``(bb) the tariff treatment 
                                        that is accorded to a like 
                                        article of Mexico under section 
                                        2 of the Annex as implemented 
                                        pursuant to United States law.
                                    ``(IV) Certain definitions.--For 
                                purposes of this clause, the term `x' 
                                means the rate of duty described in 
                                subclause (III)(aa) and the term `y' 
                                means the tariff treatment described in 
                                subclause (III)(bb).
                            ``(iv) No quantitative restrictions.--
                        Except as provided in subparagraph (E), no 
                        quantitative restriction or consultation level 
                        may be applied to the importation into the 
                        United States of any textile or apparel article 
                        that--
                                    ``(I) is a CBTEA originating good, 
                                or
                                    ``(II) qualifies for preferential 
                                tariff treatment under clause (ii)(I) 
                                or (II).
                    ``(B) Transition period treatment of certain 
                nonoriginating textile and apparel articles.--
                            ``(i) Request for preferential tariff 
                        treatment.--At any time during the transition 
                        period, an interested United States person may 
                        submit in writing to the President a request 
                        that the President proclaim preferential tariff 
                        treatment described in clauses (iii) and (iv) 
                        with respect to any eligible textile or apparel 
                        article described in clause (ii). Upon 
                        receiving the request, the President shall 
                        determine promptly whether the article is 
                        eligible for preferential tariff treatment. If 
                        the President determines that the article is 
                        eligible for preferential treatment, the 
                        President shall proclaim such treatment with 
                        respect to the article. If the President does 
                        not make a determination within 120 days after 
                        the date a request is received, the request 
                        shall be treated as approved and all articles 
                        listed in the request that are described in 
                        clause (ii) shall be accorded the preferential 
                        treatment described in clauses (iii) and (iv).
                            ``(ii) Eligible articles.--An article is 
                        described in this clause if it is an apparel 
                        article provided for in chapter 61 or 62 of the 
                        HTS and if--
                                    ``(I) it is a product of a CBTEA 
                                beneficiary country but does not 
                                qualify as a CBTEA originating good;
                                    ``(II) it is an article described 
                                in the same 8-digit subheading of the 
                                HTS as an article that would be 
                                eligible for the preferential tariff 
                                treatment under Appendix 6.B of the 
                                Annex, as implemented pursuant to 
                                United States law, if the article were 
                                imported from Mexico in quantities that 
                                are less than or equal to the 
                                quantities specified in Schedule 6.B.1; 
                                and
                                    ``(III) the President determines 
                                that--
                                            ``(aa) the fabric from 
                                        which the article is made is 
                                        not commercially available from 
                                        producers in the United States, 
                                        or
                                            ``(bb) if the article is 
                                        knit-to-shape in a CBTEA 
                                        beneficiary country, the yarn 
                                        from which it is knit is not 
                                        commercially available from 
                                        producers in the United States.
                            ``(iii) Preferential tariff treatment.--The 
                        amount of duty imposed during the transition 
                        period on an article receiving preferential 
                        tariff treatment under this subparagraph shall 
                        be identical to the tariff treatment that would 
                        apply to the article under subparagraph 
                        (A)(iii) if the article were a CBTEA 
                        originating good.
                            ``(iv) Quantity of eligible articles 
                        receiving preferential treatment.--In any 12-
                        month period, the quantity of eligible articles 
                        in any category imported from a CBTEA 
                        beneficiary country that may receive the 
                        preferential tariff treatment described in 
                        clause (iii) may not exceed ten percent of the 
                        quantity of articles in such category imported 
                        from such country under subheading 9802.00.80 
                        of the HTS, excluding articles that qualified 
                        for preferential tariff treatment under 
                        subparagraph (A)(ii) (or would have qualified 
                        for such treatment if that paragraph had been 
                        in effect with respect to imports of such 
                        articles from such country), in the preceding 
                        12-month period.
                    ``(C) Handloomed, handmade, and folklore 
                articles.--For purposes of subparagraph (A), 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) Transition period adjustment of existing 
                quantitative restrictions.--
                            ``(i) In general.--During the transition 
                        period, the President, after negotiating with 
                        the CBTEA beneficiary country concerned, may 
                        reduce the quantities of textile and apparel 
                        articles that can be imported into the United 
                        States from that country under existing 
                        quantitative restrictions to reflect the 
                        quantities of textile and apparel articles from 
                        such country that are exempt from quota 
                        restrictions pursuant to subparagraph (A)(iv).
                            ``(ii) Transshipments.--Whenever the 
                        President finds, based on sufficient evidence, 
                        that transshipment within the meaning of clause 
                        (iii) has occurred, the President, after 
                        consultations with the CBTEA beneficiary 
                        countries through whose territories the 
                        President finds transshipment to have occurred, 
                        may reduce the quantities of textile and 
                        apparel articles that can be imported into the 
                        United States from each such country by such 
                        amount as the President determines.
                            ``(iii) Transshipment described.--
                        Transshipment within the meaning of this clause 
                        has occurred when preferential tariff treatment 
                        for a textile or apparel article under 
                        subparagraph (A) or (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 tariff treatment under 
                        subparagraph (A) or (B).
                    ``(E) Bilateral emergency actions.--
                            ``(i) In general.--The President may take--
                                    ``(I) bilateral emergency tariff 
                                actions of a kind described in section 
                                4 of the Annex with respect to any 
                                textile or apparel article imported 
                                from a CBTEA beneficiary country if the 
                                application of tariff treatment under 
                                subparagraph (A) 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; or
                                    ``(II) bilateral emergency 
                                quantitative restriction actions of a 
                                kind described in section 5 of the 
                                Annex with respect to imports of any 
                                textile or apparel article of a CBTEA 
                                beneficiary country, including articles 
                                eligible for preferential tariff 
                                treatment under subparagraph (A), if 
                                the importation of such an article into 
                                the United States results in conditions 
                                that would be cause for the taking of 
                                such actions under such section 5 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 sections 4 and 5 of the Annex shall 
                                have the meaning given that term in 
                                paragraph (5)(G) of this subsection;
                                    ``(III) the requirements to consult 
                                specified in section 4 or 5 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 or 5, 
                                whichever is applicable;
                                    ``(IV) during the first 14 months 
                                after imports commence from a CBTEA 
                                beneficiary country under paragraph 
                                (2)(A) (or recommence because of a 
                                redesignation of such country), the 
                                minimum quantity of any textile or 
                                apparel article from such country 
                                subject to quantitative restrictions 
                                may be determined under paragraph 7 of 
                                section 5 of the Annex based on a 
                                reasonable estimate (using available 
                                data where possible) of the quantity of 
                                such articles imported from such 
                                country during the relevant period (as 
                                defined in such paragraph 7) that did 
                                not qualify or would not have qualified 
                                as originating goods; and
                                    ``(V) after the 14-month period 
                                described in subclause (IV), the 
                                minimum quantity of articles subject to 
                                such quantitative restrictions shall be 
                                determined under paragraph 7 of section 
                                5 of the Annex based on the most 
                                recently available Bureau of the Census 
                                import statistics.
            ``(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.--On or after the date on 
                        which the President submits to Congress the 
                        first report required under section 212(f), 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)(C)(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 tariff treatment that is 
                                accorded 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 tariff treatment described in subparagraph 
                (B)(ii)(II).
                    ``(D) Exception.--Paragraphs (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 tariff 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.--In order to qualify 
                        for such preferential tariff treatment 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--
                                    ``(I) the CBTEA beneficiary country 
                                from which the article is exported, and
                                    ``(II) each CBTEA beneficiary 
                                country in which materials used in the 
                                production of the article originate or 
                                undergo production that contributes to 
                                a claim that the article is a CBTEA 
                                originating good, has implemented and 
                                follows, or 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.
                    ``(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) Category.--For purposes of paragraph 
                (2)(B)(iv), `category' means a category that is 
                described in the most current edition of the 
                Correlation: Textile and Apparel Categories with the 
                Harmonized Tariff Schedule of the United States, 
                prepared by the Department of Commerce.
                    ``(C) 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) the extent to which the 
                                country adopts, maintains, and 
                                effectively enforces laws providing for 
                                high levels of environmental 
                                protection;
                                    ``(VII) whether the country has met 
                                the counter-narcotics certification 
                                criteria set forth in section 490 of 
                                the Foreign Assistance Act of 1961 for 
                                eligibility for United States 
                                assistance;
                                    ``(VIII) 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;
                                    ``(IX) the extent to which the 
                                country enters into and implements an 
                                agreement with the United States for 
                                the exchange of tax information, as 
                                described in section 274(h)(6)(C) of 
                                the Internal Revenue Code;
                                    ``(X) 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 
                                        9-13, 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);
                                    ``(XI) 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);
                                    ``(XII) 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.
                    ``(D) 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, and, in the case of a good 
                        described in Appendix 6.A of the Annex, the 
                        requirements stated in Appendix 6.A as 
                        implemented pursuant to United States law.
                            ``(ii) Application of chapter 4 and annex 
                        6.a.--In applying chapter 4 and Appendix 6.A 
                        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).
                    ``(E) Interested united states person.--For 
                purposes of paragraph (2)(B)(i), the term 'interested 
                United States person' means--
                            ``(i) a person doing business in the United 
                        States as--
                                    ``(I) an importer of wearing 
                                apparel or fabric piece goods, or
                                    ``(II) a producer of wearing 
                                apparel, or
                            ``(ii) a labor union representing workers 
                        employed in the United States in the production 
                        of wearing apparel.
                    ``(F) Textile or apparel article.--The term 
                `textile or apparel article' means any article referred 
                to in paragraph (1)(A) that is a good listed in 
                Appendix 1.1 of the Annex.
                    ``(G) Transition period.--The term `transition 
                period' means, with respect to a CBTEA beneficiary 
                country, the period that begins on the date of 
                enactment of the CBTEA and ends on the earlier of--
                            ``(i) September 30, 2005, 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.
                    ``(H) CBTEA.--The term `CBTEA' means the United 
                States-Caribbean Basin Trade Enhancement Act.
                    ``(I) 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 tariff 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)(C).''; 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)(D) 
        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.--Not later than December 15, 2000, 
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--
            ``(1) 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
            ``(2) the performance of each CBTEA beneficiary country 
        with respect to the criteria set forth in section 
        213(b)(5)(C)(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 Caribbean Basin Trade Enhancement Act is enacted. No 
        report shall be required under this section after September 30, 
        2005.
            ``(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) Conforming Amendments.--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,''.

 SEC. 5. 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 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)).''.

 SEC. 6. 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 
subparagraph:
                    ``(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).''.
                                 <all>