[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 434 Enrolled Bill (ENR)]

        H.R.434

                       One Hundred Sixth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
             the twenty-fourth day of January, two thousand


                                 An Act


 
 To authorize a new trade and investment policy for sub-Saharan Africa, 
expand trade benefits to the countries in the Caribbean Basin, renew the 
generalized system of preferences, and reauthorize the trade adjustment 
                          assistance programs.

    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 
Development Act of 2000''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

   TITLE I--EXTENSION OF CERTAIN TRADE BENEFITS TO SUB-SAHARAN AFRICA

             Subtitle A--Trade Policy for Sub-Saharan Africa

Sec. 101. Short title; table of contents.
Sec. 102. Findings.
Sec. 103. Statement of policy.
Sec. 104. Eligibility requirements.
Sec. 105. United States-Sub-Saharan Africa Trade and Economic 
          Cooperation Forum.
Sec. 106. Reporting requirement.
Sec. 107. Sub-Saharan Africa defined.

                       Subtitle B--Trade Benefits

Sec. 111. Eligibility for certain benefits.
Sec. 112. Treatment of certain textiles and apparel.
Sec. 113. Protections against transshipment.
Sec. 114. Termination.
Sec. 115. Clerical amendments.
Sec. 116. Free trade agreements with sub-Saharan African countries.
Sec. 117. Assistant United States Trade Representative for African 
          Affairs.

             Subtitle C--Economic Development Related Issues

Sec. 121. Sense of the Congress regarding comprehensive debt relief for 
          the world's poorest countries.
Sec. 122. Executive branch initiatives.
Sec. 123. Overseas Private Investment Corporation initiatives.
Sec. 124. Export-Import Bank initiatives.
Sec. 125. Expansion of the United States and Foreign Commercial Service 
          in sub-Saharan Africa.
Sec. 126. Donation of air traffic control equipment to eligible sub-
          Saharan African countries.
Sec. 127. Additional authorities and increased flexibility to provide 
          assistance under the Development Fund for Africa.
Sec. 128. Assistance from United States private sector to prevent and 
          reduce HIV/AIDS in sub-Saharan Africa.
Sec. 129. Sense of the Congress relating to HIV/AIDS crisis in sub-
          Saharan Africa.
Sec. 130. Study on improving African agricultural practices.
Sec. 131. Sense of the Congress regarding efforts to combat 
          desertification in Africa and other countries.

              TITLE II--TRADE BENEFITS FOR CARIBBEAN BASIN

         Subtitle A--Trade Policy for Caribbean Basin Countries

Sec. 201. Short title.
Sec. 202. Findings and policy.
Sec. 203. Definitions.

        Subtitle B--Trade Benefits for Caribbean Basin Countries

Sec. 211. Temporary provisions to provide additional trade benefits to 
          certain beneficiary countries.
Sec. 212. Duty-free treatment for certain beverages made with Caribbean 
          rum.
Sec. 213. Meetings of trade ministers and USTR.

                    TITLE III--NORMAL TRADE RELATIONS

Sec. 301. Normal trade relations for Albania.
Sec. 302. Normal trade relations for Kyrgyzstan.

                    TITLE IV--OTHER TRADE PROVISIONS

Sec. 401. Report on employment and trade adjustment assistance.
Sec. 402. Trade adjustment assistance.
Sec. 403. Reliquidation of certain nuclear fuel assemblies.
Sec. 404. Reports to the Finance and Ways and Means committees.
Sec. 405. Clarification of section 334 of the Uruguay Round Agreements 
          Act.
Sec. 406. Chief agricultural negotiator.
Sec. 407. Revision of retaliation list or other remedial action.
Sec. 408. Report on trade adjustment assistance for agricultural 
          commodity producers.
Sec. 409. Agricultural trade negotiating objectives and consultations 
          with Congress.
Sec. 410. Entry procedures for foreign trade zone operations.
Sec. 411. Goods made with forced or indentured child labor.
Sec. 412. Worst forms of child labor.

                TITLE V--IMPORTS OF CERTAIN WOOL ARTICLES

Sec. 501. Temporary duty reductions.
Sec. 502. Temporary duty suspensions.
Sec. 503. Separate tariff line treatment for wool yarn and men's or 
          boys' suits and suit-type jackets and trousers of worsted wool 
          fabric.
Sec. 504. Monitoring of market conditions and authority to modify tariff 
          reductions.
Sec. 505. Refund of duties paid on imports of certain wool articles.
Sec. 506. Wool research, development, and promotion trust fund.

                      TITLE VI--REVENUE PROVISIONS

Sec. 601. Application of denial of foreign tax credit regarding trade 
          and investment with respect to certain foreign countries.
Sec. 602. Acceleration of cover over payments to Puerto Rico and Virgin 
          Islands.

   TITLE I--EXTENSION OF CERTAIN TRADE BENEFITS TO SUB-SAHARAN AFRICA
            Subtitle A--Trade Policy for Sub-Saharan Africa

SEC. 101. SHORT TITLE.

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

SEC. 102. 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 the strengthening of democracy 
    as countries in sub-Saharan Africa have taken steps to encourage 
    broader participation in the political process;
        (5) certain countries in sub-Saharan Africa have increased 
    their economic growth rates, taken significant steps towards 
    liberalizing their economies, and 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 approximately $500 annually;
        (7) trade and investment, as the American experience has shown, 
    can represent powerful tools both for economic development and for 
    encouraging broader participation in a political process in which 
    political freedom can flourish;
        (8) 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;
        (9) 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
        (10) 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. 103. 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 the rule of law, 
    economic reform, and the eradication of poverty;
        (6) strengthening and expanding the private sector in sub-
    Saharan Africa, especially enterprises owned by women and small 
    businesses;
        (7) facilitating the development of civil societies and 
    political freedom in sub-Saharan Africa;
        (8) establishing a United States-Sub-Saharan Africa Trade and 
    Economic Cooperation Forum; and
        (9) the accession of the countries in sub-Saharan Africa to the 
    Organization for Economic Cooperation and Development (OECD) 
    Convention on Combating Bribery of Foreign Public Officials in 
    International Business Transactions.

SEC. 104. ELIGIBILITY REQUIREMENTS.

    (a) In General.--The President is authorized to designate a sub-
Saharan African country as an eligible sub-Saharan African country if 
the President determines that the country--
        (1) has established, or is making continual progress toward 
    establishing--
            (A) a market-based economy that protects private property 
        rights, incorporates an open rules-based trading system, and 
        minimizes government interference in the economy through 
        measures such as price controls, subsidies, and government 
        ownership of economic assets;
            (B) the rule of law, political pluralism, and the right to 
        due process, a fair trial, and equal protection under the law;
            (C) the elimination of barriers to United States trade and 
        investment, including by--
                (i) the provision of national treatment and measures to 
            create an environment conducive to domestic and foreign 
            investment;
                (ii) the protection of intellectual property; and
                (iii) the resolution of bilateral trade and investment 
            disputes;
            (D) economic policies to reduce poverty, increase the 
        availability of health care and educational opportunities, 
        expand physical infrastructure, promote the development of 
        private enterprise, and encourage the formation of capital 
        markets through micro-credit or other programs;
            (E) a system to combat corruption and bribery, such as 
        signing and implementing the Convention on Combating Bribery of 
        Foreign Public Officials in International Business 
        Transactions; and
            (F) protection of internationally recognized worker rights, 
        including the right of association, the right to organize and 
        bargain collectively, a prohibition on the use of any form of 
        forced or compulsory labor, a minimum age for the employment of 
        children, and acceptable conditions of work with respect to 
        minimum wages, hours of work, and occupational safety and 
        health;
        (2) does not engage in activities that undermine United States 
    national security or foreign policy interests; and
        (3) does not engage in gross violations of internationally 
    recognized human rights or provide support for acts of 
    international terrorism and cooperates in international efforts to 
    eliminate human rights violations and terrorist activities.
    (b) Continuing Compliance.--If the President determines that an 
eligible sub-Saharan African country is not making continual progress 
in meeting the requirements described in subsection (a)(1), the 
President shall terminate the designation of the country made pursuant 
to subsection (a).

SEC. 105. UNITED STATES-SUB-SAHARAN AFRICA TRADE AND ECONOMIC 
              COOPERATION FORUM.

    (a) Declaration of Policy.--The President shall convene annual 
high-level meetings between appropriate 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 the 
enactment of this Act, the President, after consulting with Congress 
and the governments concerned, shall establish a United States-Sub-
Saharan Africa 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) The President shall direct the Secretary of Commerce, the 
    Secretary of the Treasury, the Secretary of State, and the United 
    States Trade Representative to host the first annual meeting with 
    their counterparts from the governments of sub-Saharan African 
    countries eligible under section 104, and those sub-Saharan African 
    countries that the President determines are taking substantial 
    positive steps towards meeting the eligibility requirements in 
    section 104. The purpose of the meeting shall be to discuss 
    expanding trade and investment relations between the United States 
    and sub-Saharan Africa and the implementation of this title 
    including encouraging joint ventures between small and large 
    businesses. The President shall also direct the Secretaries and the 
    United States Trade Representative to invite to the meeting 
    representatives from appropriate sub-Saharan African regional 
    organizations and government officials from other appropriate 
    countries in sub-Saharan Africa.
        (2)(A) The President, in consultation with the Congress, shall 
    encourage United States nongovernmental organizations to host 
    annual meetings with nongovernmental organizations from sub-Saharan 
    Africa in conjunction with the annual meetings of the Forum for the 
    purpose of discussing the issues described in paragraph (1).
        (B) The President, in consultation with the Congress, shall 
    encourage United States representatives of the private sector to 
    host annual meetings with representatives of the private sector 
    from sub-Saharan Africa in conjunction with the annual meetings of 
    the Forum for the purpose of discussing the issues described in 
    paragraph (1).
        (3) The President shall, to the extent practicable, meet with 
    the heads of governments of sub-Saharan African countries eligible 
    under section 104, and those sub-Saharan African countries that the 
    President determines are taking substantial positive steps toward 
    meeting the eligibility requirements in section 104, not less than 
    once every 2 years for the purpose of discussing the issues 
    described in paragraph (1). The first such meeting should take 
    place not later than 12 months after the date of the enactment of 
    this Act.
    (d) Dissemination of Information by USIS.--In order to assist in 
carrying out the purposes of the Forum, the United States Information 
Service shall disseminate regularly, through multiple media, economic 
information in support of the free market economic reforms described in 
this title.
    (e) HIV/AIDS Effect on the sub-Saharan African Workforce.--In 
selecting issues of common interest to the United States-Sub-Saharan 
Africa Trade and Economic Cooperation Forum, the President shall 
instruct the United States delegates to the Forum to promote a review 
by the Forum of the HIV/AIDS epidemic in each sub-Saharan African 
country and the effect of the HIV/AIDS epidemic on economic development 
in each country.

SEC. 106. REPORTING REQUIREMENT.

    The President shall submit to the Congress, not later than 1 year 
after the date of the enactment of this Act, and annually thereafter 
through 2008, a comprehensive report on the trade and investment policy 
of the United States for sub-Saharan Africa, and on the implementation 
of this title and the amendments made by this title.

SEC. 107. SUB-SAHARAN AFRICA DEFINED.

    For purposes of this title, the terms ``sub-Saharan Africa'', 
``sub-Saharan African country'', ``country in sub-Saharan Africa'', and 
``countries in sub-Saharan Africa'' refer to the following or any 
successor political entities:
        Republic of Angola (Angola).
        Republic of Benin (Benin).
        Republic of Botswana (Botswana).
        Burkina Faso (Burkina).
        Republic of Burundi (Burundi).
        Republic of Cameroon (Cameroon).
        Republic of Cape Verde (Cape Verde).
        Central African Republic.
        Republic of Chad (Chad).
        Federal Islamic Republic of the Comoros (Comoros).
        Democratic Republic of Congo.
        Republic of the Congo (Congo).
        Republic of Cote d'Ivoire (Cote d'Ivoire).
        Republic of Djibouti (Djibouti).
        Republic of Equatorial Guinea (Equatorial Guinea).
        State of Eritrea (Eritrea).
        Ethiopia.
        Gabonese Republic (Gabon).
        Republic of the Gambia (Gambia).
        Republic of Ghana (Ghana).
        Republic of Guinea (Guinea).
        Republic of Guinea-Bissau (Guinea-Bissau).
        Republic of Kenya (Kenya).
        Kingdom of Lesotho (Lesotho).
        Republic of Liberia (Liberia).
        Republic of Madagascar (Madagascar).
        Republic of Malawi (Malawi).
        Republic of Mali (Mali).
        Islamic Republic of Mauritania (Mauritania).
        Republic of Mauritius (Mauritius).
        Republic of Mozambique (Mozambique).
        Republic of Namibia (Namibia).
        Republic of Niger (Niger).
        Federal Republic of Nigeria (Nigeria).
        Republic of Rwanda (Rwanda).
        Democratic Republic of Sao Tome and Principe (Sao Tome and 
    Principe).
        Republic of Senegal (Senegal).
        Republic of Seychelles (Seychelles).
        Republic of Sierra Leone (Sierra Leone).
        Somalia.
        Republic of South Africa (South Africa).
        Republic of Sudan (Sudan).
        Kingdom of Swaziland (Swaziland).
        United Republic of Tanzania (Tanzania).
        Republic of Togo (Togo).
        Republic of Uganda (Uganda).
        Republic of Zambia (Zambia).
        Republic of Zimbabwe (Zimbabwe).

                       Subtitle B--Trade Benefits

SEC. 111. 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 107 of the African Growth and Opportunity Act as a 
    beneficiary sub-Saharan African country eligible for the benefits 
    described in subsection (b)--
            ``(A) if the President determines that the country meets 
        the eligibility requirements set forth in section 104 of that 
        Act, as such requirements are in effect on the date of the 
        enactment of that Act; and
            ``(B) subject to the authority granted to the President 
        under subsections (a), (d), and (e) of section 502, if the 
        country otherwise meets the eligibility criteria set forth in 
        section 502.
        ``(2) Monitoring and review of certain countries.--The 
    President shall monitor, review, and report to Congress annually on 
    the progress of each country listed in section 107 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 this section. The 
    President's determinations, and explanations of such 
    determinations, with specific analysis of the eligibility 
    requirements described in paragraph (1)(A), shall be included in 
    the annual report required by section 106 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) 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 section 503(e), 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' mean a country or countries 
listed in section 107 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.''.

SEC. 112. TREATMENT OF CERTAIN TEXTILES AND APPAREL.

    (a) Preferential Treatment.--Textile and apparel articles described 
in subsection (b) that are imported directly into the customs territory 
of the United States 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 in 
accordance with the provisions set forth in subsection (b), if the 
country has satisfied the requirements set forth in section 113.
    (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, (including fabrics not formed from yarns, if 
    such fabrics are classifiable under heading 5602 or 5603 of the 
    Harmonized Tariff Schedule of the United States and are wholly 
    formed and cut 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 embroidered or 
        subjected to stone-washing, enzyme-washing, acid washing, 
        perma-pressing, oven-baking, bleaching, garment-dyeing, screen 
        printing, 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, 
    (including fabrics not formed from yarns, if such fabrics are 
    classifiable under heading 5602 or 5603 of the Harmonized Tariff 
    Schedule of the United States and are 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) Apparel articles assembled from regional and other 
    fabric.--Apparel articles wholly assembled in one or more 
    beneficiary sub-Saharan African countries from fabric wholly formed 
    in one or more beneficiary sub-Saharan African countries from yarn 
    originating either in the United States or one or more beneficiary 
    sub-Saharan African countries (including fabrics not formed from 
    yarns, if such fabrics are classifiable under heading 5602 or 5603 
    of the Harmonized Tariff Schedule of the United States and are 
    wholly formed and cut in one or more beneficiary sub-Saharan 
    African countries), subject to the following:
            (A) Limitations on benefits.--
                (i) In general.--Preferential treatment under this 
            paragraph shall be extended in the 1-year period beginning 
            on October 1, 2000, and in each of the seven succeeding 1-
            year periods, to imports of apparel articles in an amount 
            not to exceed the applicable percentage of the aggregate 
            square meter equivalents of all apparel articles imported 
            into the United States in the preceding 12-month period for 
            which data are available.
                (ii) Applicable percentage.--For purposes of this 
            subparagraph, the term ``applicable percentage'' means 1.5 
            percent for the 1-year period beginning October 1, 2000, 
            increased in each of the seven succeeding 1-year periods by 
            equal increments, so that for the period beginning October 
            1, 2007, the applicable percentage does not exceed 3.5 
            percent.
            (B) Special rule for lesser developed countries.--
                (i) In general.--Subject to subparagraph (A), 
            preferential treatment shall be extended through September 
            30, 2004, for apparel articles wholly assembled in one or 
            more lesser developed beneficiary sub-Saharan African 
            countries regardless of the country of origin of the fabric 
            used to make such articles.
                (ii) Lesser developed beneficiary sub-saharan african 
            country.--For purposes of this subparagraph the term 
            ``lesser developed beneficiary sub-Saharan African 
            country'' means a beneficiary sub-Saharan African country 
            that had a per capita gross national product of less than 
            $1,500 a year in 1998, as measured by the World Bank.
            (C) Surge mechanism.--
                (i) Import monitoring.--The Secretary of Commerce shall 
            monitor imports of articles described in this paragraph on 
            a monthly basis to determine if there has been a surge in 
            imports of such articles. In order to permit public access 
            to preliminary international trade data and to facilitate 
            the early identification of potentially disruptive import 
            surges, the Director of the Office of Management and Budget 
            may grant an exception to the publication dates established 
            for the release of data on United States international 
            trade in covered articles, if the Director notifies 
            Congress of the early release of the data.
                (ii) Determination of damage or threat thereof.--
            Whenever the Secretary of Commerce determines, based on the 
            data described in clause (i), or pursuant to a written 
            request made by an interested party, that there has been a 
            surge in imports of an article described in this paragraph 
            from a beneficiary sub-Saharan African country, the 
            Secretary shall determine whether such article from such 
            country is being imported in such increased quantities as 
            to cause serious damage, or threat thereof, to the domestic 
            industry producing a like or directly competitive article. 
            If the Secretary's determination is affirmative, the 
            President shall suspend the duty-free treatment provided 
            for such article under this paragraph. If the inquiry is 
            initiated at the request of an interested party, the 
            Secretary shall make the determination within 60 days after 
            the date of the request.
                (iii) Factors to consider.--In determining whether a 
            domestic industry has been seriously damaged, or is 
            threatened with serious damage, the Secretary shall examine 
            the effect of the imports on relevant economic indicators 
            such as domestic production, sales, market share, capacity 
            utilization, inventories, employment, profits, exports, 
            prices, and investment.
                (iv) Procedure.--

                    (I) Initiation.--The Secretary of Commerce shall 
                initiate an inquiry within 10 days after receiving a 
                written request and supporting information for an 
                inquiry from an interested party. Notice of initiation 
                of an inquiry shall be published in the Federal 
                Register.
                    (II) Participation by interested parties.--The 
                Secretary of Commerce shall establish procedures to 
                ensure participation in the inquiry by interested 
                parties.
                    (III) Notice of determination.--The Secretary shall 
                publish the determination described in clause (ii) in 
                the Federal Register.
                    (IV) Information available.--If relevant 
                information is not available on the record or any party 
                withholds information that has been requested by the 
                Secretary, the Secretary shall make the determination 
                on the basis of the facts available. When the Secretary 
                relies on information submitted in the inquiry as facts 
                available, the Secretary shall, to the extent 
                practicable, corroborate the information from 
                independent sources that are reasonably available to 
                the Secretary.

                (v) Interested party.--For purposes of this 
            subparagraph, the term ``interested party'' means any 
            producer of a like or directly competitive article, a 
            certified union or recognized union or group of workers 
            which is representative of an industry engaged in the 
            manufacture, production, or sale in the United States of a 
            like or directly competitive article, a trade or business 
            association representing producers or sellers of like or 
            directly competitive articles, producers engaged in the 
            production of essential inputs for like or directly 
            competitive articles, a certified union or group of workers 
            which is representative of an industry engaged in the 
            manufacture, production, or sale of essential inputs for 
            the like or directly competitive article, or a trade or 
            business association representing companies engaged in the 
            manufacture, production, or sale of such essential inputs.
        (4) Sweaters knit-to-shape from cashmere or merino wool.--
            (A) Cashmere.--Sweaters, in chief weight of cashmere, knit-
        to-shape in one or more beneficiary sub-Saharan African 
        countries and classifiable under subheading 6110.10 of the 
        Harmonized Tariff Schedule of the United States.
            (B) Merino wool.--Sweaters, 50 percent or more by weight of 
        wool measuring 18.5 microns in diameter or finer, knit-to-shape 
        in one or more beneficiary sub-Saharan African countries.
        (5) Apparel articles wholly assembled from fabric or yarn not 
    available in commercial quantities in the united states.--
            (A) In general.--Apparel articles that are both cut (or 
        knit-to-shape) and sewn or otherwise assembled in one or more 
        beneficiary sub-Saharan African countries, from fabric or yarn 
        that is not formed in the United States or a beneficiary sub-
        Saharan African country, to the extent that apparel articles of 
        such fabrics or yarns would be eligible for preferential 
        treatment, without regard to the source of the fabric or yarn, 
        under Annex 401 to the NAFTA.
            (B) Additional apparel articles.--At the request of any 
        interested party and subject to the following requirements, the 
        President is authorized to proclaim the treatment provided 
        under subparagraph (A) for yarns or fabrics not described in 
        subparagraph (A) if--
                (i) the President determines that such yarns or fabrics 
            cannot be supplied by the domestic industry in commercial 
            quantities in a timely manner;
                (ii) the President has obtained advice regarding the 
            proposed action from the appropriate advisory committee 
            established under section 135 of the Trade Act of 1974 (19 
            U.S.C. 2155) and the United States International Trade 
            Commission;
                (iii) within 60 calendar days after the request, the 
            President has submitted a report to the Committee on Ways 
            and Means of the House of Representatives and the Committee 
            on Finance of the Senate that sets forth--

                    (I) the action proposed to be proclaimed and the 
                reasons for such action; and
                    (II) the advice obtained under clause (ii);

                (iv) a period of 60 calendar days, beginning with the 
            first day on which the President has met the requirements 
            of subclauses (I) and (II) of clause (iii), has expired; 
            and
                (v) the President has consulted with such committees 
            regarding the proposed action during the period referred to 
            in clause (iii).
        (6) 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 articles.
    (c) Treatment of Quotas on Textile and Apparel Imports from Kenya 
and Mauritius.--The President shall eliminate the existing quotas on 
textile and apparel articles imported into the United States--
        (1) from Kenya within 30 days after that country adopts an 
    effective visa system to prevent unlawful transshipment of textile 
    and apparel articles and the use of counterfeit documents relating 
    to the importation of the articles into the United States; and
        (2) from Mauritius within 30 days after that country adopts 
    such a visa system.
The Customs Service shall provide the necessary technical assistance to 
Kenya and Mauritius in the development and implementation of the visa 
systems.
    (d) Special Rules.--
        (1) Findings and trimmings.--
            (A) General rule.--An article otherwise eligible for 
        preferential treatment under this section shall not be 
        ineligible for such treatment because the article contains 
        findings or trimmings of foreign origin, if the value of such 
        findings and trimmings do not exceed 25 percent of the cost of 
        the components of the assembled article. Examples of findings 
        and trimmings are sewing thread, hooks and eyes, snaps, 
        buttons, ``bow buds'', decorative lace trim, elastic strips, 
        and zippers, including zipper tapes and labels. Elastic strips 
        are considered findings or trimmings only if they are each less 
        than 1 inch in width and used in the production of brassieres.
            (B) Certain interlinings.--
                (i) General rule.--An article otherwise eligible for 
            preferential treatment under this section shall not be 
            ineligible for such treatment because the article contains 
            certain interlinings of foreign origin, if the value of 
            such interlinings (and any findings and trimmings) does not 
            exceed 25 percent of the cost of the components of the 
            assembled article.
                (ii) Interlinings described.--Interlinings eligible for 
            the treatment described in clause (i) include only a chest 
            type plate, a ``hymo'' piece, or ``sleeve header'', of 
            woven or weft-inserted warp knit construction and of coarse 
            animal hair or man-made filaments.
                (iii) Termination of treatment.--The treatment 
            described in this subparagraph shall terminate if the 
            President makes a determination that United States 
            manufacturers are producing such interlinings in the United 
            States in commercial quantities.
            (C) Exception.--In the case of an article described in 
        subsection (b)(2), sewing thread shall not be treated as 
        findings or trimmings under subparagraph (A).
        (2) De minimis rule.--An article otherwise eligible for 
    preferential treatment under this section shall not be ineligible 
    for such treatment because the article contains fibers or yarns not 
    wholly formed in the United States or one or more beneficiary sub-
    Saharan African countries if the total weight of all such fibers 
    and yarns is not more than 7 percent of the total weight of the 
    article.
    (e) Definitions.--In this section and section 113:
        (1) 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)).
        (2) 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.
        (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.
    (f) Effective Date.--This section takes effect on October 1, 2000, 
and shall remain in effect through September 30, 2008.

SEC. 113. PROTECTIONS AGAINST TRANSSHIPMENT.

    (a) Preferential Treatment Conditioned on Enforcement Measures.--
        (1) In general.--The preferential treatment under section 
    112(a) shall not be provided to textile and apparel articles that 
    are imported from a beneficiary sub-Saharan African country unless 
    that country--
            (A) has adopted an effective visa system, domestic laws, 
        and enforcement procedures applicable to covered articles to 
        prevent unlawful transshipment of the articles and the use of 
        counterfeit documents relating to the importation of the 
        articles into the United States;
            (B) has enacted legislation or promulgated regulations that 
        would permit United States Customs Service verification teams 
        to have the access necessary to investigate thoroughly 
        allegations of transshipment through such country;
            (C) agrees to report, on a timely basis, at the request of 
        the United States Customs Service, on the total exports from 
        and imports into that country of covered articles, consistent 
        with the manner in which the records are kept by that country;
            (D) will cooperate fully with the United States to address 
        and take action necessary to prevent circumvention as provided 
        in Article 5 of the Agreement on Textiles and Clothing;
            (E) agrees to require all producers and exporters of 
        covered articles in that country to maintain complete records 
        of the production and the export of covered articles, including 
        materials used in the production, for at least 2 years after 
        the production or export (as the case may be); and
            (F) agrees to report, on a timely basis, at the request of 
        the United States Customs Service, documentation establishing 
        the country of origin of covered articles as used by that 
        country in implementing an effective visa system.
        (2) Country of origin documentation.--For purposes of paragraph 
    (1)(F), documentation regarding the country of origin of the 
    covered articles includes documentation such as production records, 
    information relating to the place of production, the number and 
    identification of the types of machinery used in production, the 
    number of workers employed in production, and certification from 
    both the manufacturer and the exporter.
    (b) Customs Procedures and Enforcement.--
        (1) In general.--
            (A) Regulations.--Any importer that claims preferential 
        treatment under section 112 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.
            (B) Determination.--
                (i) In general.--In order to qualify for the 
            preferential treatment under section 112 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 clause (ii)--

                    (I) has implemented and follows; or
                    (II) 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 
            clause if it is a beneficiary sub-Saharan African country--

                    (I) from which the article is exported; or
                    (II) 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.

        (2) Certificate of origin.--The Certificate of Origin that 
    otherwise would be required pursuant to the provisions of paragraph 
    (1) shall not be required in the case of an article imported under 
    section 112 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.
        (3) Penalties for exporters.--If the President determines, 
    based on sufficient evidence, that an exporter has engaged in 
    transshipment as defined in paragraph (4), then the President shall 
    deny for a period of 5 years all benefits under section 112 to such 
    exporter, any successor of such exporter, and any other entity 
    owned or operated by the principal of the exporter.
        (4) Transshipment described.--Transshipment within the meaning 
    of this subsection has occurred when preferential treatment for a 
    textile or apparel article under this Act 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 paragraph, 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 section 112.
        (5) 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 visa systems and the implementation of 
    legislation and regulations described in subsection (a) 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.
    (c) Customs Service Enforcement.--The Customs Service shall--
        (1) make available technical assistance to the beneficiary sub-
    Saharan African countries--
            (A) in the development and implementation of visa systems, 
        legislation, and regulations described in subsection (a)(1)(A); 
        and
            (B) to train their officials in anti-transshipment 
        enforcement;
        (2) send production verification teams to at least four 
    beneficiary sub-Saharan African countries each year; and
        (3) to the extent feasible, place beneficiary sub-Saharan 
    African countries on the Electronic Visa (ELVIS) program.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out subsection (c) the sum of $5,894,913.

SEC. 114. TERMINATION.

    Title V of the Trade Act of 1974 is amended by inserting after 
section 506A the following new section:

``SEC. 506B. TERMINATION OF BENEFITS FOR SUB-SAHARAN AFRICAN COUNTRIES.

    ``In the case of a beneficiary sub-Saharan African country, as 
defined in section 506A(c), duty-free treatment provided under this 
title shall remain in effect through September 30, 2008.''.

SEC. 115. CLERICAL AMENDMENTS.

    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 items:

``Sec. 506A. Designation of sub-Saharan African countries for certain 
          benefits.
``Sec. 506B. Termination of benefits for sub-Saharan African 
          countries.''.

SEC. 116. FREE TRADE AGREEMENTS WITH SUB-SAHARAN AFRICAN COUNTRIES.

    (a) Declaration of Policy.--Congress declares that free trade 
agreements should be negotiated, where feasible, with interested 
countries in sub-Saharan Africa, in order to serve as the catalyst for 
increasing trade between the United States and sub-Saharan Africa and 
increasing private sector investment in sub-Saharan Africa.
    (b) Plan Requirement.--
        (1) In general.--The President, taking into account the 
    provisions of the treaty establishing the African Economic 
    Community and the willingness of the governments of sub-Saharan 
    African countries to engage in negotiations to enter into free 
    trade agreements, shall develop a plan for the purpose of 
    negotiating and entering into one or more trade agreements with 
    interested beneficiary sub-Saharan African countries.
        (2) Elements of plan.--The plan shall include the following:
            (A) The specific objectives of the United States with 
        respect to negotiations described in paragraph (1) and a 
        suggested timetable for achieving those objectives.
            (B) The benefits to both the United States and the relevant 
        sub-Saharan African countries with respect to the applicable 
        free trade agreement or agreements.
            (C) A mutually agreed-upon timetable for the negotiations.
            (D) The implications for and the role of regional and sub-
        regional organizations in sub-Saharan Africa with respect to 
        such free trade agreement or agreements.
            (E) Subject matter anticipated to be covered by the 
        negotiations and United States laws, programs, and policies, as 
        well as the laws of participating eligible African countries 
        and existing bilateral and multilateral and economic 
        cooperation and trade agreements, that may be affected by the 
        agreement or agreements.
            (F) Procedures to ensure the following:
                (i) Adequate consultation with the Congress and the 
            private sector during the negotiations.
                (ii) Consultation with the Congress regarding all 
            matters relating to implementation of the agreement or 
            agreements.
                (iii) Approval by the Congress of the agreement or 
            agreements.
                (iv) Adequate consultations with the relevant African 
            governments and African regional and subregional 
            intergovernmental organizations during the negotiation of 
            the agreement or agreements.
    (c) Reporting Requirement.--Not later than 12 months after the date 
of the enactment of this Act, the President shall prepare and transmit 
to the Congress a report containing the plan developed pursuant to 
subsection (b).

SEC. 117. ASSISTANT UNITED STATES TRADE REPRESENTATIVE FOR AFRICAN 
              AFFAIRS.

    It is the sense of the Congress that--
        (1) the position of Assistant United States Trade 
    Representative for African Affairs is integral to the United States 
    commitment to increasing United States-sub-Saharan African trade 
    and investment;
        (2) the position of Assistant United States Trade 
    Representative for African Affairs should be maintained within the 
    Office of the United States Trade Representative to direct and 
    coordinate interagency activities on United States-Africa trade 
    policy and investment matters and serve as--
            (A) a primary point of contact in the executive branch for 
        those persons engaged in trade between the United States and 
        sub-Saharan Africa; and
            (B) the chief advisor to the United States Trade 
        Representative on issues of trade and investment with Africa; 
        and
        (3) the United States Trade Representative should have adequate 
    funding and staff to carry out the duties of the Assistant United 
    States Trade Representative for African Affairs described in 
    paragraph (2), subject to the availability of appropriations.

            Subtitle C--Economic Development Related Issues

SEC. 121. SENSE OF THE CONGRESS REGARDING COMPREHENSIVE DEBT RELIEF FOR 
              THE WORLD'S POOREST COUNTRIES.

    (a) Findings.--Congress makes the following findings:
        (1) The burden of external debt has become a major impediment 
    to economic growth and poverty reduction in many of the world's 
    poorest countries.
        (2) Until recently, the United States Government and other 
    official creditors sought to address this problem by rescheduling 
    loans and in some cases providing limited debt reduction.
        (3) Despite such efforts, the cumulative debt of many of the 
    world's poorest countries continued to grow beyond their capacity 
    to repay.
        (4) In 1997, the Group of Seven, the World Bank, and the 
    International Monetary Fund adopted the Heavily Indebted Poor 
    Countries Initiative (HIPC), a commitment by the international 
    community that all multilateral and bilateral creditors, acting in 
    a coordinated and concerted fashion, would reduce poor country debt 
    to a sustainable level.
        (5) The HIPC Initiative is currently undergoing reforms to 
    address concerns raised about country conditionality, the amount of 
    debt forgiven, and the allocation of savings realized through the 
    debt forgiveness program to ensure that the Initiative accomplishes 
    the goals of economic growth and poverty alleviation in the world's 
    poorest countries.
    (b) Sense of the Congress.--It is the sense of the Congress that--
        (1) Congress and the President should work together, without 
    undue delay and in concert with the international community, to 
    make comprehensive debt relief available to the world's poorest 
    countries in a manner that promotes economic growth and poverty 
    alleviation;
        (2) this program of bilateral and multilateral debt relief 
    should be designed to strengthen and expand the private sector, 
    encourage increased trade and investment, support the development 
    of free markets, and promote broad-scale economic growth in 
    beneficiary countries;
        (3) this program of debt relief should also support the 
    adoption of policies to alleviate poverty and to ensure that 
    benefits are shared widely among the population, such as through 
    initiatives to advance education, improve health, combat AIDS, and 
    promote clean water and environmental protection;
        (4) these debt relief agreements should be designed and 
    implemented in a transparent manner and with the broad 
    participation of the citizenry of the debtor country and should 
    ensure that country circumstances are adequately taken into 
    account;
        (5) no country should receive the benefits of debt relief if 
    that country does not cooperate with the United States on terrorism 
    or narcotics enforcement, is a gross violator of the human rights 
    of its citizens, or is engaged in conflict or spends excessively on 
    its military; and
        (6) in order to prevent adverse impact on a key industry in 
    many developing countries, the International Monetary Fund must 
    mobilize its own resources for providing debt relief to eligible 
    countries without allowing gold to reach the open market, or 
    otherwise adversely affecting the market price of gold.

SEC. 122. EXECUTIVE BRANCH INITIATIVES.

    (a) Statement of the Congress.--The Congress recognizes that the 
stated policy of the executive branch in 1997, the ``Partnership for 
Growth and Opportunity in Africa'' initiative, is a step toward the 
establishment of a comprehensive trade and development policy for sub-
Saharan Africa. It is the sense of the Congress that this Partnership 
is a companion to the policy goals set forth in this title.
    (b) Technical Assistance To Promote Economic Reforms and 
Development.--In addition to continuing bilateral and multilateral 
economic and development assistance, the President shall target 
technical assistance toward--
        (1) developing relationships between United States firms and 
    firms in sub-Saharan Africa through a variety of business 
    associations and networks;
        (2) providing assistance to the governments of sub-Saharan 
    African countries to--
            (A) liberalize trade and promote exports;
            (B) bring their legal regimes into compliance with the 
        standards of the World Trade Organization in conjunction with 
        membership in that Organization;
            (C) make financial and fiscal reforms; and
            (D) promote greater agribusiness linkages;
        (3) addressing such critical agricultural policy issues as 
    market liberalization, agricultural export development, and 
    agribusiness investment in processing and transporting agricultural 
    commodities;
        (4) increasing the number of reverse trade missions to growth-
    oriented countries in sub-Saharan Africa;
        (5) increasing trade in services; and
        (6) encouraging greater sub-Saharan African participation in 
    future negotiations in the World Trade Organization on services and 
    making further commitments in their schedules to the General 
    Agreement on Trade in Services in order to encourage the removal of 
    tariff and nontariff barriers.

SEC. 123. OVERSEAS PRIVATE INVESTMENT CORPORATION INITIATIVES.

    (a) Initiation of Funds.--It is the sense of the Congress that the 
Overseas Private Investment Corporation should exercise the authorities 
it has to initiate an equity fund or equity funds in support of 
projects in the countries in sub-Saharan Africa, in addition to the 
existing equity fund for sub-Saharan Africa created by the Corporation.
    (b) Structure and Types of Funds.--
        (1) Structure.--Each fund initiated under subsection (a) should 
    be structured as a partnership managed by professional private 
    sector fund managers and monitored on a continuing basis by the 
    Corporation.
        (2) Capitalization.--Each fund should be capitalized with a 
    combination of private equity capital, which is not guaranteed by 
    the Corporation, and debt for which the Corporation provides 
    guaranties.
        (3) Infrastructure fund.--One or more of the funds, with 
    combined assets of up to $500,000,000, should be used in support of 
    infrastructure projects in countries of sub-Saharan Africa.
        (4) Emphasis.--The Corporation shall ensure that the funds are 
    used to provide support in particular to women entrepreneurs and to 
    innovative investments that expand opportunities for women and 
    maximize employment opportunities for poor individuals.
    (c) Overseas Private Investment Corporation.--
        (1) Investment advisory council.--Section 233 of the Foreign 
    Assistance Act of 1961 is amended by adding at the end the 
    following:
    ``(e) Investment Advisory Council.--The Board shall take prompt 
measures to increase the loan, guarantee, and insurance programs, and 
financial commitments, of the Corporation in sub-Saharan Africa, 
including through the use of an investment advisory council to assist 
the Board in developing and implementing policies, programs, and 
financial instruments with respect to sub-Saharan Africa. In addition, 
the investment advisory council shall make recommendations to the Board 
on how the Corporation can facilitate greater support by the United 
States for trade and investment with and in sub-Saharan Africa. The 
investment advisory council shall terminate 4 years after the date of 
the enactment of this subsection.''.
        (2) Reports to congress.--Within 6 months after the date of the 
    enactment of this Act, and annually for each of the 4 years 
    thereafter, the Board of Directors of the Overseas Private 
    Investment Corporation shall submit to Congress a report on the 
    steps that the Board has taken to implement section 233(e) of the 
    Foreign Assistance Act of 1961 (as added by paragraph (1)) and any 
    recommendations of the investment advisory council established 
    pursuant to such section.

SEC. 124. EXPORT-IMPORT BANK INITIATIVES.

    (a) Sense of the Congress.--It is the sense of the Congress that 
the Board of Directors of the Bank shall continue to take comprehensive 
measures, consistent with the credit standards otherwise required by 
law, to promote the expansion of the Bank's financial commitments in 
sub-Saharan Africa under the loan, guarantee and insurance programs of 
the Bank.
    (b)  Sub-Saharan Africa Advisory Committee.--The sub-Saharan Africa 
Advisory Committee (SAAC) is to be commended for aiding the Bank in 
advancing the economic partnership between the United States and the 
nations of sub-Saharan Africa by doubling the number of sub-Saharan 
African countries in which the Bank is open for traditional financing 
and by increasing by tenfold the Bank's support for sales to sub-
Saharan Africa from fiscal year 1998 to fiscal year 1999. The Board of 
Directors of the Bank and its staff shall continue to review carefully 
the sub-Saharan Africa Advisory Committee recommendations on the 
development and implementation of new and innovative policies and 
programs designed to promote the Bank's expansion in sub-Saharan 
Africa.

SEC. 125. EXPANSION OF THE UNITED STATES AND FOREIGN COMMERCIAL SERVICE 
              IN SUB-SAHARAN AFRICA.

    (a) Findings.--The Congress makes the following findings:
        (1) The United States and Foreign Commercial Service (hereafter 
    in this section referred to as the ``Commercial Service'') plays an 
    important role in helping United States businesses identify export 
    opportunities and develop reliable sources of information on 
    commercial prospects in foreign countries.
        (2) During the 1980s, the presence of the Commercial Service in 
    sub-Saharan Africa consisted of 14 professionals providing services 
    in eight countries. By early 1997, that presence had been reduced 
    by half to seven professionals in only four countries.
        (3) Since 1997, the Department of Commerce has slowly begun to 
    increase the presence of the Commercial Service in sub-Saharan 
    Africa, adding five full-time officers to established posts.
        (4) Although the Commercial Service Officers in these countries 
    have regional responsibilities, this kind of coverage does not 
    adequately service the needs of United States businesses attempting 
    to do business in sub-Saharan Africa.
        (5) The Congress has, on several occasions, encouraged the 
    Commercial Service to focus its resources and efforts in countries 
    or regions in Europe or Asia to promote greater United States 
    export activity in those markets, and similar encouragement should 
    be provided for countries in sub-Saharan Africa as well.
        (6) Because market information is not widely available in many 
    sub-Saharan African countries, the presence of additional 
    Commercial Service Officers and resources can play a significant 
    role in assisting United States businesses in markets in those 
    countries.
    (b) Appointments.--Subject to the availability of appropriations, 
by not later than December 31, 2001, the Secretary of Commerce, acting 
through the Assistant Secretary of Commerce and Director General of the 
United States and Foreign Commercial Service, shall take steps to 
ensure that--
        (1) at least 20 full-time Commercial Service employees are 
    stationed in sub-Saharan Africa; and
        (2) full-time Commercial Service employees are stationed in not 
    less than 10 different sub-Saharan African countries.
    (c) Initiative for Sub-Saharan Africa.--In order to encourage the 
export of United States goods and services to sub-Saharan African 
countries, the International Trade Administration shall make a special 
effort to--
        (1) identify United States goods and services which are the 
    best prospects for export by United States companies to sub-Saharan 
    Africa;
        (2) identify, where appropriate, tariff and nontariff barriers 
    that are preventing or hindering sales of United States goods and 
    services to, or the operation of United States companies in, sub-
    Saharan Africa;
        (3) hold discussions with appropriate authorities in sub-
    Saharan Africa on the matters described in paragraphs (1) and (2) 
    with a view to securing increased market access for United States 
    exporters of goods and services;
        (4) identify current resource allocations and personnel levels 
    in sub-Saharan Africa for the Commercial Service and consider plans 
    for the deployment of additional resources or personnel to that 
    region; and
        (5) make available to the public, through printed and 
    electronic means of communication, the information derived pursuant 
    to paragraphs (1) through (4) for each of the 4 years after the 
    date of the enactment of this Act.

SEC. 126. DONATION OF AIR TRAFFIC CONTROL EQUIPMENT TO ELIGIBLE SUB-
              SAHARAN AFRICAN COUNTRIES.

    It is the sense of the Congress that, to the extent appropriate, 
the United States Government should make every effort to donate to 
governments of sub-Saharan African countries determined to be eligible 
under section 104 air traffic control equipment that is no longer in 
use, including appropriate related reimbursable technical assistance.

SEC. 127. ADDITIONAL AUTHORITIES AND INCREASED FLEXIBILITY TO PROVIDE 
              ASSISTANCE UNDER THE DEVELOPMENT FUND FOR AFRICA.

    (a) Use of Sustainable Development Assistance To Support Further 
Economic Growth.--It is the sense of the Congress that sustained 
economic growth in sub-Saharan Africa depends in large measure upon the 
development of a receptive environment for trade and investment, and 
that to achieve this objective the United States Agency for 
International Development should continue to support programs which 
help to create this environment. Investments in human resources, 
development, and implementation of free market policies, including 
policies to liberalize agricultural markets and improve food security, 
and the support for the rule of law and democratic governance should 
continue to be encouraged and enhanced on a bilateral and regional 
basis.
    (b) Declarations of Policy.--The Congress makes the following 
declarations:
        (1) The Development Fund for Africa established under chapter 
    10 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2293 
    et seq.) has been an effective tool in providing development 
    assistance to sub-Saharan Africa since 1988.
        (2) The Development Fund for Africa will complement the other 
    provisions of this title and lay a foundation for increased trade 
    and investment opportunities between the United States and sub-
    Saharan Africa.
        (3) Assistance provided through the Development Fund for Africa 
    will continue to support programs and activities that promote the 
    long term economic development of sub-Saharan Africa, such as 
    programs and activities relating to the following:
            (A) Strengthening primary and vocational education systems, 
        especially the acquisition of middle-level technical skills for 
        operating modern private businesses and the introduction of 
        college level business education, including the study of 
        international business, finance, and stock exchanges.
            (B) Strengthening health care systems.
            (C) Supporting democratization, good governance and civil 
        society and conflict resolution efforts.
            (D) Increasing food security by promoting the expansion of 
        agricultural and agriculture-based industrial production and 
        productivity and increasing real incomes for poor individuals.
            (E) Promoting an enabling environment for private sector-
        led growth through sustained economic reform, privatization 
        programs, and market-led economic activities.
            (F) Promoting decentralization and local participation in 
        the development process, especially linking the rural 
        production sectors and the industrial and market centers 
        throughout Africa.
            (G) Increasing the technical and managerial capacity of 
        sub-Saharan African individuals to manage the economy of sub-
        Saharan Africa.
            (H) Ensuring sustainable economic growth through 
        environmental protection.
        (4) The African Development Foundation has a unique 
    congressional mandate to empower the poor to participate fully in 
    development and to increase opportunities for gainful employment, 
    poverty alleviation, and more equitable income distribution in sub-
    Saharan Africa. The African Development Foundation has worked 
    successfully to enhance the role of women as agents of change, 
    strengthen the informal sector with an emphasis on supporting micro 
    and small sized enterprises, indigenous technologies, and 
    mobilizing local financing. The African Development Foundation 
    should develop and implement strategies for promoting participation 
    in the socioeconomic development process of grassroots and informal 
    sector groups such as nongovernmental organizations, cooperatives, 
    artisans, and traders into the programs and initiatives established 
    under this title.
    (c) Additional Authorities.--
        (1) In general.--Section 496(h) of the Foreign Assistance Act 
    of 1961 (22 U.S.C. 2293(h)) is amended--
            (A) by redesignating paragraph (3) as paragraph (4); and
            (B) by inserting after paragraph (2) the following:
        ``(3) Democratization and conflict resolution capabilities.--
    Assistance under this section may also include program assistance--
            ``(A) to promote democratization, good governance, and 
        strong civil societies in sub-Saharan Africa; and
            ``(B) to strengthen conflict resolution capabilities of 
        governmental, intergovernmental, and nongovernmental entities 
        in sub-Saharan Africa.''.
        (2) Conforming amendment.--Section 496(h)(4) of such Act, as 
    amended by paragraph (1), is further amended by striking 
    ``paragraphs (1) and (2)'' in the first sentence and inserting 
    ``paragraphs (1), (2), and (3)''.

SEC. 128. ASSISTANCE FROM UNITED STATES PRIVATE SECTOR TO PREVENT AND 
              REDUCE HIV/AIDS IN SUB-SAHARAN AFRICA.

    It is the sense of the Congress that United States businesses 
should be encouraged to provide assistance to sub-Saharan African 
countries to prevent and reduce the incidence of HIV/AIDS in sub-
Saharan Africa. In providing such assistance, United States businesses 
should be encouraged to consider the establishment of an HIV/AIDS 
Response Fund in order to provide for coordination among such 
businesses in the collection and distribution of the assistance to sub-
Saharan African countries.

SEC. 129. SENSE OF THE CONGRESS RELATING TO HIV/AIDS CRISIS IN SUB-
              SAHARAN AFRICA.

    (a) Findings.--The Congress finds the following:
        (1) Sustained economic development in sub-Saharan Africa 
    depends in large measure upon successful trade with and foreign 
    assistance to the countries of sub-Saharan Africa.
        (2) The HIV/AIDS crisis has reached epidemic proportions in 
    sub-Saharan Africa, where more than 21,000,000 men, women, and 
    children are infected with HIV.
        (3) Eighty-three percent of the estimated 11,700,000 deaths 
    from HIV/AIDS worldwide have been in sub-Saharan Africa.
        (4) The HIV/AIDS crisis in sub-Saharan Africa is weakening the 
    structure of families and societies.
        (5)(A) The HIV/AIDS crisis threatens the future of the 
    workforce in sub-Saharan Africa.
        (B) Studies show that HIV/AIDS in sub-Saharan Africa most 
    severely affects individuals between the ages of 15 and 49--the age 
    group that provides the most support for the economies of sub-
    Saharan African countries.
        (6) Clear evidence demonstrates that HIV/AIDS is destructive to 
    the economies of sub-Saharan African countries.
        (7) Sustained economic development is critical to creating the 
    public and private sector resources in sub-Saharan Africa necessary 
    to fight the HIV/AIDS epidemic.
    (b) Sense of the Congress.--It is the sense of the Congress that--
        (1) addressing the HIV/AIDS crisis in sub-Saharan Africa should 
    be a central component of United States foreign policy with respect 
    to sub-Saharan Africa;
        (2) significant progress needs to be made in preventing and 
    treating HIV/AIDS in sub-Saharan Africa in order to sustain a 
    mutually beneficial trade relationship between the United States 
    and sub-Saharan African countries; and
        (3) the HIV/AIDS crisis in sub-Saharan Africa is a global 
    threat that merits further attention through greatly expanded 
    public, private, and joint public-private efforts, and through 
    appropriate United States legislation.

SEC. 130. STUDY ON IMPROVING AFRICAN AGRICULTURAL PRACTICES.

    (a) In general.--The Secretary of Agriculture, in consultation with 
American Land Grant Colleges and Universities and not-for-profit 
international organizations, is authorized to conduct a 2-year study on 
ways to improve the flow of American farming techniques and practices 
to African farmers. The study shall include an examination of ways of 
improving or utilizing--
        (1) knowledge of insect and sanitation procedures;
        (2) modern farming and soil conservation techniques;
        (3) modern farming equipment (including maintaining the 
    equipment);
        (4) marketing crop yields to prospective purchasers; and
        (5) crop maximization practices.
The Secretary of Agriculture shall submit the study to the Committee on 
Agriculture, Nutrition, and Forestry of the Senate and the Committee on 
Agriculture of the House of Representatives not later than September 
30, 2001.
    (b) Land Grant Colleges and Not-for-Profit Institutions.--In 
conducting the study under subsection (a), the Secretary of Agriculture 
is encouraged to consult with American Land Grant Colleges and not-for-
profit international organizations that have firsthand knowledge of 
current African farming practices.

SEC. 131. SENSE OF THE CONGRESS REGARDING EFFORTS TO COMBAT 
              DESERTIFICATION IN AFRICA AND OTHER COUNTRIES.

    (a) Findings.--The Congress finds that--
        (1) desertification affects approximately one-sixth of the 
    world's population and one-quarter of the total land area;
        (2) over 1,000,000 hectares of Africa are affected by 
    desertification;
        (3) dryland degradation is an underlying cause of recurrent 
    famine in Africa;
        (4) the United Nations Environment Programme estimates that 
    desertification costs the world $42,000,000,000 a year, not 
    including incalculable costs in human suffering; and
        (5) the United States can strengthen its partnerships 
    throughout Africa and other countries affected by desertification, 
    help alleviate social and economic crises caused by misuse of 
    natural resources, and reduce dependence on foreign aid, by taking 
    a leading role to combat desertification.
    (b) Sense of the Congress.--It is the sense of the Congress that 
the United States should expeditiously work with the international 
community, particularly Africa and other countries affected by 
desertification, to--
        (1) strengthen international cooperation to combat 
    desertification;
        (2) promote the development of national and regional strategies 
    to address desertification and increase public awareness of this 
    serious problem and its effects;
        (3) develop and implement national action programs that 
    identify the causes of desertification and measures to address it; 
    and
        (4) recognize the essential role of local governments and 
    nongovernmental organizations in developing and implementing 
    measures to address desertification.

              TITLE II--TRADE BENEFITS FOR CARIBBEAN BASIN
         Subtitle A--Trade Policy for Caribbean Basin Countries

SEC. 201. SHORT TITLE.

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

SEC. 202. FINDINGS AND POLICY.

    (a) Findings.--Congress makes the following findings:
        (1) The Caribbean Basin Economic Recovery Act (in this title 
    referred to 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) In 1998, Hurricane Mitch and Hurricane Georges devastated 
    areas in the Caribbean Basin region, killing more than 10,000 
    people and leaving 3,000,000 homeless.
        (3) The total direct impact of Hurricanes Mitch and Georges on 
    Honduras, Nicaragua, the Dominican Republic, El Salvador, and 
    Guatemala amounts to $4,200,000,000, representing a severe loss to 
    income levels in this underdeveloped region.
        (4) In addition to short term disaster assistance, United 
    States policy toward the region should focus on expanding 
    international trade with the Caribbean Basin region as an enduring 
    solution for successful economic growth and recovery.
        (5) Thirty-four democratically elected leaders agreed at the 
    1994 Summit of the Americas to conclude negotiation of a Free Trade 
    Area of the Americas (in this title referred to as ``FTAA'') by the 
    year 2005.
        (6) The economic security of the countries in the Caribbean 
    Basin will be enhanced by the completion of the FTAA.
        (7) Offering temporary benefits to Caribbean Basin countries 
    will preserve the United States commitment to Caribbean Basin 
    beneficiary countries, promote the growth of free enterprise and 
    economic opportunity in these neighboring countries, and thereby 
    enhance the national security interests of the United States.
        (8) Given the greater propensity of countries located in the 
    Western Hemisphere to use United States components and to purchase 
    United States products compared to other countries, increased trade 
    and economic activity between the United States and countries in 
    the Western Hemisphere will create new jobs in the United States as 
    a result of expanding export opportunities.
    (b) Policy.--It is the policy of the United States--
        (1) to offer Caribbean Basin beneficiary countries willing to 
    prepare to become a party to the FTAA or another free 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) to seek the participation of Caribbean Basin beneficiary 
    countries in the FTAA or another free trade agreement at the 
    earliest possible date, with the goal of achieving full 
    participation in such agreement not later than 2005.

SEC. 203. DEFINITIONS.

    In this title:
        (1) NAFTA.--The term ``NAFTA'' means the North American Free 
    Trade Agreement entered into between the United States, Mexico, and 
    Canada on December 17, 1992.
        (2) NAFTA country.--The term ``NAFTA country'' means any 
    country with respect to which the NAFTA is in force.
        (3) 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).

        Subtitle B--Trade Benefits for Caribbean Basin Countries

SEC. 211. 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) Articles covered.--During the transition period, the 
        preferential treatment described in subparagraph (B) shall 
        apply to the following articles:
                ``(i) Apparel articles assembled in one or more cbtpa 
            beneficiary countries.--Apparel articles assembled in one 
            or more CBTPA beneficiary countries from fabrics wholly 
            formed and cut in the United States, from yarns wholly 
            formed in the United States, (including fabrics not formed 
            from yarns, if such fabrics are classifiable under heading 
            5602 or 5603 of the HTS and are wholly formed and cut 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 embroidered 
                or subjected to stone-washing, enzyme-washing, acid 
                washing, perma-pressing, oven-baking, bleaching, 
                garment-dyeing, screen printing, or other similar 
                processes.

                ``(ii) Apparel articles cut and assembled in one or 
            more cbtpa beneficiary countries.--Apparel articles cut in 
            one or more CBTPA beneficiary countries from fabric wholly 
            formed in the United States from yarns wholly formed in the 
            United States (including fabrics not formed from yarns, if 
            such fabrics are classifiable under heading 5602 or 5603 of 
            the HTS and are wholly formed in the United States), if 
            such articles are assembled in one or more such countries 
            with thread formed in the United States.
                ``(iii) Certain knit apparel articles.--(I) Apparel 
            articles knit to shape (other than socks provided for in 
            heading 6115 of the HTS) in a CBTPA beneficiary country 
            from yarns wholly formed in the United States, and knit 
            apparel articles (other than t-shirts described in 
            subclause (III)) cut and wholly assembled in one or more 
            CBTPA beneficiary countries from fabric formed in one or 
            more CBTPA beneficiary countries or the United States from 
            yarns wholly formed in the United States (including fabrics 
            not formed from yarns, if such fabrics are classifiable 
            under heading 5602 or 5603 of the HTS and are formed in one 
            or more CBTPA beneficiary countries), in an amount not 
            exceeding the amount set forth in subclause (II).
                ``(II) The amount referred to in subclause (I) is--

                    ``(aa) 250,000,000 square meter equivalents during 
                the 1-year period beginning on October 1, 2000, 
                increased by 16 percent, compounded annually, in each 
                succeeding 1-year period through September 30, 2004; 
                and
                    ``(bb) in each 1-year period thereafter through 
                September 30, 2008, the amount in effect for the 1-year 
                period ending on September 30, 2004, or such other 
                amount as may be provided by law.

                ``(III) T-shirts, other than underwear, classifiable 
            under subheadings 6109.10.00 and 6109.90.10 of the HTS, 
            made in one or more CBTPA beneficiary countries from fabric 
            formed in one or more CBTPA beneficiary countries from 
            yarns wholly formed in the United States, in an amount not 
            exceeding the amount set forth in subclause (IV).
                ``(IV) the amount referred to in subclause (III) is--

                    ``(aa) 4,200,000 dozen during the 1-year period 
                beginning on October 1, 2000, increased by 16 percent, 
                compounded annually, in each succeeding 1-year period 
                through September 30, 2004; and
                    ``(bb) in each 1-year period thereafter, the amount 
                in effect for the 1-year period ending on September 30, 
                2004, or such other amount as may be provided by law.

                ``(V) It is the sense of the Congress that the Congress 
            should determine, based on the record of expansion of 
            exports from the United States as a result of the 
            preferential treatment of articles under this clause, the 
            percentage by which the amount provided in subclauses (II) 
            and (IV) should be compounded for the 1-year periods 
            occurring after the 1-year period ending on September 30, 
            2004.
                ``(iv) Certain other apparel articles.--(I) Subject to 
            subclause (II), any apparel article classifiable under 
            subheading 6212.10 of the HTS, if the article is both cut 
            and sewn or otherwise assembled in the United States, or 
            one or more of the CBTPA beneficiary countries, or both.
                ``(II) During the 1-year period beginning on October 1, 
            2001, and during each of the six succeeding 1-year periods, 
            apparel articles described in subclause (I) of a producer 
            or an entity controlling production shall be eligible for 
            preferential treatment under subparagraph (B) only if the 
            aggregate cost of fabric components formed in the United 
            States that are used in the production of all such articles 
            of that producer or entity during the preceding 1-year 
            period is at least 75 percent of the aggregate declared 
            customs value of the fabric contained in all such articles 
            of that producer or entity that are entered during the 
            preceding 1-year period.
                ``(III) The United States Customs Service shall develop 
            and implement methods and procedures to ensure ongoing 
            compliance with the requirement set forth in subclause 
            (II). If the Customs Service finds that a producer or an 
            entity controlling production has not satisfied such 
            requirement in a 1-year period, then apparel articles 
            described in subclause (I) of that producer or entity shall 
            be ineligible for preferential treatment under subparagraph 
            (B) during any succeeding 1-year period until the aggregate 
            cost of fabric components formed in the United States used 
            in the production of such articles of that producer or 
            entity in the preceding 1-year period is at least 85 
            percent of the aggregate declared customs value of the 
            fabric contained in all such articles of that producer or 
            entity that are entered during the preceding 1-year period.
                ``(v) Apparel articles assembled from fabrics or yarn 
            not widely available in commercial quantities.--(I) Apparel 
            articles that are both cut (or knit-to-shape) and sewn or 
            otherwise assembled in one or more CBTPA beneficiary 
            countries, from fabrics or yarn that is not formed in the 
            United States or in one or more CBTPA beneficiary 
            countries, to the extent that apparel articles of such 
            fabrics or yarn would be eligible for preferential 
            treatment, without regard to the source of the fabrics or 
            yarn, under Annex 401 of the NAFTA.
                ``(II) At the request of any interested party, the 
            President is authorized to proclaim additional fabrics and 
            yarn as eligible for preferential treatment under subclause 
            (I) if--

                    ``(aa) the President determines that such fabrics 
                or yarn cannot be supplied by the domestic industry in 
                commercial quantities in a timely manner;
                    ``(bb) the President has obtained advice regarding 
                the proposed action from the appropriate advisory 
                committee established under section 135 of the Trade 
                Act of 1974 (19 U.S.C. 2155) and the United States 
                International Trade Commission;
                    ``(cc) within 60 days after the request, the 
                President has submitted a report to the Committee on 
                Ways and Means of the House of Representatives and the 
                Committee on Finance of the Senate that sets forth the 
                action proposed to be proclaimed and the reasons for 
                such actions, and the advice obtained under division 
                (bb);
                    ``(dd) a period of 60 calendar days, beginning with 
                the first day on which the President has met the 
                requirements of division (cc), has expired; and
                    ``(ee) the President has consulted with such 
                committees regarding the proposed action during the 
                period referred to in division (cc).

                ``(vi) Handloomed, handmade, and folklore articles.--A 
            handloomed, handmade, or folklore article of a CBTPA 
            beneficiary country identified under subparagraph (C) that 
            is certified as such by the competent authority of such 
            beneficiary country.
                ``(vii) Special rules.--

                    ``(I) Exception for findings and trimmings.--(aa) 
                An article otherwise eligible for preferential 
                treatment under this paragraph shall not be ineligible 
                for such treatment because the article contains 
                findings or trimmings of foreign origin, if such 
                findings and trimmings do not exceed 25 percent of the 
                cost of the components of the assembled product. 
                Examples of findings and trimmings are sewing thread, 
                hooks and eyes, snaps, buttons, `bow buds', decorative 
                lace, trim, elastic strips, zippers, including zipper 
                tapes and labels, and other similar products. Elastic 
                strips are considered findings or trimmings only if 
                they are each less than 1 inch in width and are used in 
                the production of brassieres.
                    ``(bb) In the case of an article described in 
                clause (ii) of this subparagraph, sewing thread shall 
                not be treated as findings or trimmings under this 
                subclause.
                    ``(II) Certain interlining.--(aa) An article 
                otherwise eligible for preferential treatment under 
                this paragraph shall not be ineligible for such 
                treatment because the article contains certain 
                interlinings of foreign origin, if the value of such 
                interlinings (and any findings and trimmings) does not 
                exceed 25 percent of the cost of the components of the 
                assembled article.
                    ``(bb) Interlinings eligible for the treatment 
                described in division (aa) include only a chest type 
                plate, `hymo' piece, or `sleeve header', of woven or 
                weft-inserted warp knit construction and of coarse 
                animal hair or man-made filaments.
                    ``(cc) The treatment described in this subclause 
                shall terminate if the President makes a determination 
                that United States manufacturers are producing such 
                interlinings in the United States in commercial 
                quantities.
                    ``(III) De minimis rule.--An article that would 
                otherwise be ineligible for preferential treatment 
                under this paragraph because the article contains 
                fibers or yarns not wholly formed in the United States 
                or in one or more CBTPA beneficiary countries shall not 
                be ineligible for such treatment if the total weight of 
                all such fibers or yarns is not more than 7 percent of 
                the total weight of the good. Notwithstanding the 
                preceding sentence, an apparel article containing 
                elastomeric yarns shall be eligible for preferential 
                treatment under this paragraph only if such yarns are 
                wholly formed in the United States.
                    ``(IV) Special origin rule.--An article otherwise 
                eligible for preferential treatment under clause (i) or 
                (ii) of this subparagraph shall not be ineligible for 
                such treatment because the article contains nylon 
                filament yarn (other than elastomeric yarn) that is 
                classifiable under subheading 5402.10.30, 5402.10.60, 
                5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 
                5402.41.10, 5402.41.90, 5402.51.00, or 5402.61.00 of 
                the HTS duty-free from a country that is a party to an 
                agreement with the United States establishing a free 
                trade area, which entered into force before January 1, 
                1995.

                ``(viii) Textile luggage.--Textile luggage--

                    ``(I) assembled in a CBTPA 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 CBTPA 
                beneficiary country from fabric wholly formed in the 
                United States from yarns wholly formed in the United 
                States.

            ``(B) Preferential treatment.--Except as provided in 
        subparagraph (E), during the transition period, the articles to 
        which this subparagraph applies shall enter the United States 
        free of duty and free of any quantitative restrictions, 
        limitations, or consultation levels.
            ``(C) Handloomed, handmade, and folklore articles.--For 
        purposes of subparagraph (A)(vi), the President shall consult 
        with representatives of the CBTPA beneficiary countries 
        concerned for the purpose of identifying particular textile and 
        apparel goods that are mutually agreed upon as being 
        handloomed, handmade, or folklore goods of a kind described in 
        section 2.3(a), (b), or (c) of the Annex 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 articles from a CBTPA 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 CBTPA 
            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, to the extent 
            consistent with the obligations of the United States under 
            the WTO.
                ``(iii) Transshipment described.--Transshipment within 
            the meaning of this subparagraph has occurred when 
            preferential treatment under subparagraph (B) has been 
            claimed for a textile or apparel article 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 CBTPA 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 CBTPA 
                beneficiary country in question and the country does 
                not agree to consult within the time period specified 
                under section 4.

        ``(3) Transition period treatment of certain other articles 
    originating in beneficiary countries.--
            ``(A) Equivalent tariff treatment.--
                ``(i) In general.--Subject to clause (ii), the tariff 
            treatment accorded at any time during the transition period 
            to any article referred to in any of subparagraphs (B) 
            through (F) of paragraph (1) that is a CBTPA originating 
            good shall be identical to the tariff treatment that is 
            accorded at such time under Annex 302.2 of the NAFTA to an 
            article described in the same 8-digit subheading of the HTS 
            that is a good of Mexico and is imported into the United 
            States.
                ``(ii) Exception.--Clause (i) does not apply to any 
            article accorded duty-free treatment under U.S. Note 2(b) 
            to subchapter II of chapter 98 of the HTS.
            ``(B) Relationship to subsection (h) duty reductions.--If 
        at any time during the transition period the rate of duty that 
        would (but for action taken under subparagraph (A)(i) in regard 
        to such period) 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 for the purposes of implementing such action.
        ``(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 CBTPA 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 under paragraph (2) or 
                    (3).
            ``(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.
            ``(C) Report by ustr on cooperation of other countries 
        concerning circumvention.--The United States Commissioner of 
        Customs shall conduct a study analyzing the extent to which 
        each CBTPA beneficiary country--
                ``(i) has cooperated fully with the United States, 
            consistent with its domestic laws and procedures, in 
            instances of circumvention or alleged circumvention of 
            existing quotas on imports of textile and apparel goods, to 
            establish necessary relevant facts in the places of import, 
            export, and, where applicable, transshipment, including 
            investigation of circumvention practices, exchanges of 
            documents, correspondence, reports, and other relevant 
            information, to the extent such information is available;
                ``(ii) has taken appropriate measures, consistent with 
            its domestic laws and procedures, against exporters and 
            importers involved in instances of false declaration 
            concerning fiber content, quantities, description, 
            classification, or origin of textile and apparel goods; and
                ``(iii) has penalized the individuals and entities 
            involved in any such circumvention, consistent with its 
            domestic laws and procedures, and has worked closely to 
            seek the cooperation of any third country to prevent such 
            circumvention from taking place in that third country.
        The Trade Representative shall submit to Congress, not later 
        than October 1, 2001, a report on the study conducted under 
        this subparagraph.
        ``(5) Definitions and special rules.--For purposes of this 
    subsection--
            ``(A) Annex.--The term `the Annex' means Annex 300-B of the 
        NAFTA.
            ``(B) CBTPA beneficiary country.--The term `CBTPA 
        beneficiary country' means any `beneficiary country', as 
        defined in section 212(a)(1)(A) of this title, which the 
        President designates as a CBTPA beneficiary country, taking 
        into account the criteria contained in subsections (b) and (c) 
        of section 212 and other appropriate criteria, including the 
        following:
                ``(i) Whether the beneficiary country has demonstrated 
            a commitment to--

                    ``(I) undertake its obligations under the WTO, 
                including those agreements listed in section 101(d) of 
                the Uruguay Round Agreements Act, on or ahead of 
                schedule; and
                    ``(II) participate in negotiations toward the 
                completion of the FTAA or another free trade agreement.

                ``(ii) The extent to which the country provides 
            protection of intellectual property rights consistent with 
            or greater than the protection afforded under the Agreement 
            on Trade-Related Aspects of Intellectual Property Rights 
            described in section 101(d)(15) of the Uruguay Round 
            Agreements Act.
                ``(iii) The extent to which the country provides 
            internationally recognized worker rights, including--

                    ``(I) the right of association;
                    ``(II) the right to organize and bargain 
                collectively;
                    ``(III) a prohibition on the use of any form of 
                forced or compulsory labor;
                    ``(IV) a minimum age for the employment of 
                children; and
                    ``(V) acceptable conditions of work with respect to 
                minimum wages, hours of work, and occupational safety 
                and health;

                ``(iv) Whether the country has implemented its 
            commitments to eliminate the worst forms of child labor, as 
            defined in section 507(6) of the Trade Act of 1974.
                ``(v) The extent to which 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.
                ``(vi) The extent to which the country has taken steps 
            to become a party to and implements the Inter-American 
            Convention Against Corruption.
                ``(vii) The extent to which the country--

                    ``(I) applies transparent, nondiscriminatory, and 
                competitive procedures in government procurement 
                equivalent to those contained in the Agreement on 
                Government Procurement described in section 101(d)(17) 
                of the Uruguay Round Agreements Act; and
                    ``(II) contributes to efforts in international fora 
                to develop and implement international rules in 
                transparency in government procurement.

            ``(C) CBTPA originating good.--
                ``(i) In general.--The term `CBTPA 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 
            of the NAFTA with respect to a CBTPA beneficiary country 
            for purposes of this subsection--

                    ``(I) no country other than the United States and a 
                CBTPA 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 CBTPA beneficiary 
                country;
                    ``(III) any reference to a party shall be deemed to 
                refer to a CBTPA beneficiary country or the United 
                States; and
                    ``(IV) any reference to parties shall be deemed to 
                refer to any combination of CBTPA beneficiary countries 
                or to the United States and one or more CBTPA 
                beneficiary countries (or any combination thereof).

            ``(D) Transition period.--The term `transition period' 
        means, with respect to a CBTPA beneficiary country, the period 
        that begins on October 1, 2000, and ends on the earlier of--
                ``(i) September 30, 2008; or
                ``(ii) the date on which the FTAA or another free trade 
            agreement that makes substantial progress in achieving the 
            negotiating objectives set forth in 108(b)(5) of Public Law 
            103-182 (19 U.S.C. 3317(b)(5)) enters into force with 
            respect to the United States and the CBTPA beneficiary 
            country.
            ``(E) CBTPA.--The term `CBTPA' means the United States-
        Caribbean Basin Trade Partnership 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)''; and
            (C) 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 
    CBTPA 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 CBTPA 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.--
        (1) 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, 2001, and every 
    2 years thereafter during the period this title is in effect, the 
    United States Trade Representative 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 CBTPA 
        beneficiary country, as the case may be, under the criteria set 
        forth in section 213(b)(5)(B).
        ``(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).''.
        (2) Section 203(f) of the Andean Trade Preference Act (19 
    U.S.C. 3202(f)) is amended--
            (A) by striking ``Triennial Report'' in the heading and 
        inserting ``Report''; and
            (B) by striking ``On or before'' and all that follows 
        through ``enactment of this title'' and inserting ``Not later 
        than January 31, 2001''.
    (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 and on the economy of the beneficiary countries.
        ``(2) First report.--The first report shall be submitted not 
    later than September 30, 2001.
        ``(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 
    December 31 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. 212. DUTY-FREE TREATMENT FOR CERTAIN BEVERAGES MADE WITH CARIBBEAN 
              RUM.

    Section 213(a) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2703(a)) is amended--
        (1) in paragraph (5), by striking ``chapter'' and inserting 
    ``title''; and
        (2) by adding at the end the following new paragraph:
    ``(6) Notwithstanding paragraph (1), the duty-free treatment 
provided under this title shall apply to liqueurs and spirituous 
beverages produced in the territory of Canada from rum if--
        ``(A) such rum is the growth, product, or manufacture of a 
    beneficiary country or of the Virgin Islands of the United States;
        ``(B) such rum is imported directly from a beneficiary country 
    or the Virgin Islands of the United States into the territory of 
    Canada, and such liqueurs and spirituous beverages are imported 
    directly from the territory of Canada into the customs territory of 
    the United States;
        ``(C) when imported into the customs territory of the United 
    States, such liqueurs and spirituous beverages are classified in 
    subheading 2208.90 or 2208.40 of the HTS; and
        ``(D) such rum accounts for at least 90 percent by volume of 
    the alcoholic content of such liqueurs and spirituous beverages.''.

SEC. 213. MEETINGS OF TRADE MINISTERS AND USTR.

    (a) Schedule of Meetings.--The President shall take the necessary 
steps to convene a meeting with the trade ministers of the CBTPA 
beneficiary countries in order to establish a schedule of regular 
meetings, to commence as soon as is practicable, of the trade ministers 
and the Trade Representative, for the purpose set forth in subsection 
(b).
    (b) Purpose.--The purpose of the meetings scheduled under 
subsection (a) is to reach agreement between the United States and 
CBTPA beneficiary countries on the likely timing and procedures for 
initiating negotiations for CBTPA beneficiary countries to enter into 
mutually advantageous free trade agreements with the United States that 
contain provisions comparable to those in the NAFTA and would make 
substantial progress in achieving the negotiating objectives set forth 
in section 108(b)(5) of Public Law 103-182 (19 U.S.C. 3317(b)(5)).
    (c) Definition.--In this section, the term ``CBTPA beneficiary 
country'' has the meaning given that term in section 213(b)(5)(B) of 
the Caribbean Basin Economic Recovery Act.

                   TITLE III--NORMAL TRADE RELATIONS

SEC. 301. NORMAL TRADE RELATIONS FOR ALBANIA.

    (a) Findings.--Congress makes the following findings:
        (1) Albania has been found to be in full compliance with the 
    freedom of emigration requirements under title IV of the Trade Act 
    of 1974.
        (2) Since its emergence from communism, Albania has made 
    progress toward democratic rule and the creation of a free-market 
    economy.
        (3) Albania has concluded a bilateral investment treaty with 
    the United States.
        (4) Albania has demonstrated a strong desire to build a 
    friendly relationship with the United States and has been very 
    cooperative with NATO and the international community during and 
    after the Kosova crisis.
        (5) The extension of unconditional normal trade relations 
    treatment to the products of Albania will enable the United States 
    to avail itself of all rights under the World Trade Organization 
    with respect to Albania when that country becomes a member of the 
    World Trade Organization.
    (b) Termination of Application of Title IV of the Trade Act of 1974 
to Albania.--
        (1) Presidential determinations and extensions of 
    nondiscriminatory treatment.--Notwithstanding any provision of 
    title IV of the Trade Act of 1974 (19 U.S.C. 2431 et seq.), the 
    President may--
            (A) determine that such title should no longer apply to 
        Albania; and
            (B) after making a determination under subparagraph (A) 
        with respect to Albania, proclaim the extension of 
        nondiscriminatory treatment (normal trade relations treatment) 
        to the products of that country.
        (2) Termination of application of title iv.--On or after the 
    effective date of the extension under paragraph (1)(B) of 
    nondiscriminatory treatment to the products of Albania, title IV of 
    the Trade Act of 1974 shall cease to apply to that country.

SEC. 302. NORMAL TRADE RELATIONS FOR KYRGYZSTAN.

    (a) Findings.--Congress makes the following findings:
        (1) Kyrgyzstan has been found to be in full compliance with the 
    freedom of emigration requirements under title IV of the Trade Act 
    of 1974.
        (2) Since its independence from the Soviet Union in 1991, 
    Kyrgyzstan has made great progress toward democratic rule and 
    toward creating a free-market economic system.
        (3) Kyrgyzstan concluded a bilateral investment treaty with the 
    United States in 1994.
        (4) Kyrgyzstan has demonstrated a strong desire to build a 
    friendly and cooperative relationship with the United States.
        (5) The extension of unconditional normal trade relations 
    treatment to the products of Kyrgyzstan will enable the United 
    States to avail itself of all rights under the World Trade 
    Organization with respect to Kyrgyzstan.
    (b) Termination of Application of Title IV of the Trade Act of 1974 
to Kyrgyzstan.--
        (1) Presidential determinations and extensions of 
    nondiscriminatory treatment.--Notwithstanding any provision of 
    title IV of the Trade Act of 1974 (19 U.S.C. 2431 et seq.), the 
    President may--
            (A) determine that such title should no longer apply to 
        Kyrgyzstan; and
            (B) after making a determination under subparagraph (A) 
        with respect to Kyrgyzstan, proclaim the extension of 
        nondiscriminatory treatment (normal trade relations treatment) 
        to the products of that country.
        (2) Termination of application of title iv.--On or after the 
    effective date of the extension under paragraph (1)(B) of 
    nondiscriminatory treatment to the products of Kyrgyzstan, title IV 
    of the Trade Act of 1974 shall cease to apply to that country.

                    TITLE IV--OTHER TRADE PROVISIONS

SEC. 401. REPORT ON EMPLOYMENT AND TRADE ADJUSTMENT ASSISTANCE.

    (a) In General.--Not later than 9 months after the date of the 
enactment of this section, the Comptroller General of the United States 
shall submit to Congress a report regarding the efficiency and 
effectiveness of Federal and State coordination of employment and 
retraining activities associated with the following programs and 
legislation:
        (1) Trade adjustment assistance (including NAFTA trade 
    adjustment assistance) provided for under title II of the Trade Act 
    of 1974.
        (2) The Job Training Partnership Act.
        (3) The Workforce Investment Act of 1998.
        (4) Unemployment insurance.
    (b) Period Covered.--The report shall cover the activities involved 
in the programs and legislation listed in subsection (a) from January 
1, 1994, to December 31, 1999.
    (c) Data and Recommendations.--The report shall at a minimum 
include specific data and recommendations regarding--
        (1) the compatibility of program requirements related to the 
    employment and retraining of dislocated workers in the United 
    States, with particular emphasis on the trade adjustment assistance 
    programs provided for under title II of the Trade Act of 1974;
        (2) the compatibility of application procedures related to the 
    employment and retraining of dislocated workers in the United 
    States;
        (3) the capacity of the programs in addressing foreign trade 
    and the transfer of production to other countries on workers in the 
    United States measured in terms of loss of employment and wages;
        (4) the capacity of the programs in addressing foreign trade 
    and the transfer of production to other countries on secondary 
    workers in the United States measured in terms of loss of 
    employment and wages;
        (5) how the impact of foreign trade and the transfer of 
    production to other countries would have changed the number of 
    beneficiaries covered under the trade adjustment assistance program 
    if the trade adjustment assistance program covered secondary 
    workers in the United States; and
        (6) the effectiveness of the programs described in subsection 
    (a) in achieving reemployment of United States workers and 
    maintaining wage levels of United States workers who have been 
    dislocated as a result of foreign trade and the transfer of 
    production to other countries.

SEC. 402. TRADE ADJUSTMENT ASSISTANCE.

    (a) Certification of Eligibility for Workers Required for 
Decommissioning or Closure of Facility.--
        (1) In general.--Notwithstanding any other provision of law or 
    any decision by the Secretary of Labor denying certification or 
    eligibility for certification for adjustment assistance under title 
    II of the Trade Act of 1974, a qualified worker described in 
    paragraph (2) shall be certified by the Secretary as eligible to 
    apply for adjustment assistance under such title II.
        (2) Qualified worker.--For purposes of this subsection, a 
    ``qualified worker'' means a worker who--
            (A) was determined to be covered under Trade Adjustment 
        Assistance Certification TA-W-28,438; and
            (B) was necessary for the decommissioning or closure of a 
        nuclear power facility.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 403. RELIQUIDATION OF CERTAIN NUCLEAR FUEL ASSEMBLIES.

    (a) In General.--Notwithstanding section 514 of the Tariff Act of 
1930 (19 U.S.C. 1514) or any other provision of law, upon proper 
request filed with the Secretary of the Treasury not later than 90 days 
after the date of the enactment of this Act, the Secretary shall--
        (1) reliquidate as free of duty the entries listed in 
    subsection (b); and
        (2) refund any duties paid with respect to such entries as 
    shown on Customs Service Collection Receipt Number 527006753.
    (b) Entries.--The entries referred to in subsection (a) are as 
follows:

Entry number

Date of entry

  062-2320014-5
  January 16, 1996

  062-2320085-5
  February 13, 1996

  839-4030989-7
  November 25, 1996

  839-4031053-1
  December 2, 1996

  839-4031591-0
  January 21, 1997.

SEC. 404. REPORTS TO THE FINANCE AND WAYS AND MEANS COMMITTEES.

    (a) Reports Regarding Initiatives To Update the International 
Monetary Fund.--Section 607 of the Foreign Operations, Export 
Financing, and Related Appropriations Act, 1999 (as contained in 
section 101(d) of division A of the Omnibus Consolidated and Emergency 
Supplemental Appropriations Act, 1999) (Public Law 105-277; 112 Stat. 
2681-224), relating to international financial programs and reform, is 
amended--
        (1) by inserting ``Finance,'' after ``Foreign Relations,''; and
        (2) by inserting ``, Ways and Means,'' before ``and Banking and 
    Financial Services''.
    (b) Reports on Financial Stabilization Programs.--Section 1704(b) 
of the International Financial Institutions Act (22 U.S.C. 262r-3(b)) 
is amended to read as follows:
    ``(b) Timing.--Not later than March 15, 1999, and semiannually 
thereafter, the Secretary of the Treasury shall submit to the 
Committees on Banking and Financial Services, Ways and Means, and 
International Relations of the House of Representatives and the 
Committees on Finance, Foreign Relations, and Banking, Housing, and 
Urban Affairs of the Senate a report on the matters described in 
subsection (a).''.
    (c) Annual Report on the State of the International Financial 
System, IMF Reform, and Compliance With IMF Agreements.--Section 
1705(a) of the International Financial Institutions Act (22 U.S.C. 
262r-4(a)) is amended by striking ``Committee on Banking and Financial 
Services of the House of Representatives and the Committee on Foreign 
Relations of the Senate'' and inserting ``Committees on Banking and 
Financial Services and on Ways and Means of the House of 
Representatives and the Committees on Finance and on Foreign Relations 
of the Senate''.
    (d) Audits of the IMF.--Section 1706(a) of the International 
Financial Institutions Act (22 U.S.C. 262r-5(a)) is amended by striking 
``Committee on Banking and Financial Services of the House of 
Representatives and the Committee on Foreign Relations of the Senate'' 
and inserting ``Committees on Banking and Financial Services and on 
Ways and Means of the House of Representatives and the Committees on 
Finance and on Foreign Relations of the Senate''.
    (e) Report on Protection of Borders Against Drug Traffic.--Section 
629 of the Treasury and General Government Appropriations Act, 1999 (as 
contained in section 101(h) of division A of the Omnibus Consolidated 
and Emergency Supplemental Appropriations Act, 1999) (Public Law 105-
277; 112 Stat. 2681-522), relating to general provisions, is amended by 
adding at the end the following new paragraph:
    ``(3) For purposes of paragraph (1), the term `appropriate 
congressional committees' includes the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House of 
Representatives.''.

SEC. 405. CLARIFICATION OF SECTION 334 OF THE URUGUAY ROUND AGREEMENTS 
              ACT.

    (a) In General.--Section 334(b)(2) of the Uruguay Round Agreements 
Act (19 U.S.C. 3592(b)(2)) is amended--
        (1) by redesignating subparagraphs (A) and (B) as clauses (i) 
    and (ii), respectively;
        (2) in the matter preceding clause (i) (as redesignated), by 
    striking ``Notwithstanding paragraph (1)(D)'' and inserting ``(A) 
    Notwithstanding paragraph (1)(D) and except as provided in 
    subparagraphs (B) and (C)''; and
        (3) by adding at the end the following:
        ``(B) Notwithstanding paragraph (1)(C), fabric classified under 
    the HTS as of silk, cotton, man-made fiber, or vegetable fiber 
    shall be considered to originate in, and be the growth, product, or 
    manufacture of, the country, territory, or possession in which the 
    fabric is both dyed and printed when accompanied by two or more of 
    the following finishing operations: bleaching, shrinking, fulling, 
    napping, decating, permanent stiffening, weighting, permanent 
    embossing, or moireing.
        ``(C) Notwithstanding paragraph (1)(D), goods classified under 
    HTS heading 6117.10, 6213.00, 6214.00, 6302.22, 6302.29, 6302.52, 
    6302.53, 6302.59, 6302.92, 6302.93, 6302.99, 6303.92, 6303.99, 
    6304.19, 6304.93, 6304.99, 9404.90.85, or 9404.90.95, except for 
    goods classified under such headings as of cotton or of wool or 
    consisting of fiber blends containing 16 percent or more by weight 
    of cotton, shall be considered to originate in, and be the growth, 
    product, or manufacture of, the country, territory, or possession 
    in which the fabric is both dyed and printed when accompanied by 
    two or more of the following finishing operations: bleaching, 
    shrinking, fulling, napping, decating, permanent stiffening, 
    weighting, permanent embossing, or moireing.''.
    (b) Effective Date.--The amendments made by this section apply to 
goods entered, or withdrawn from warehouse for consumption, on or after 
the date of the enactment of this Act.

SEC. 406. CHIEF AGRICULTURAL NEGOTIATOR.

    Section 141 of the Trade Act of 1974 (19 U.S.C. 2171) is amended--
        (1) by amending subsection (b)(2) to read as follows:
        ``(2) There shall be in the Office three Deputy United States 
    Trade Representatives and one Chief Agricultural Negotiator who 
    shall be appointed by the President, by and with the advice and 
    consent of the Senate. As an exercise of the rulemaking power of 
    the Senate, any nomination of a Deputy United States Trade 
    Representative or the Chief Agricultural Negotiator submitted to 
    the Senate for its advice and consent, and referred to a committee, 
    shall be referred to the Committee on Finance. Each Deputy United 
    States Trade Representative and the Chief Agricultural Negotiator 
    shall hold office at the pleasure of the President and shall have 
    the rank of Ambassador.''; and
        (2) in subsection (c), by adding at the end the following new 
    paragraph:
        ``(5) The principal function of the Chief Agricultural 
    Negotiator shall be to conduct trade negotiations and to enforce 
    trade agreements relating to United States agricultural products 
    and services. The Chief Agricultural Negotiator shall be a vigorous 
    advocate on behalf of United States agricultural interests. The 
    Chief Agricultural Negotiator shall perform such other functions as 
    the United States Trade Representative may direct.''.

SEC. 407. REVISION OF RETALIATION LIST OR OTHER REMEDIAL ACTION.

    Section 306(b)(2) of the Trade Act of 1974 (19 U.S.C. 2416(b)(2)) 
is amended--
        (1) by striking ``If the'' and inserting the following:
            ``(A) Failure to implement recommendation.--If the''; and
        (2) by adding at the end the following:
            ``(B) Revision of retaliation list and action.--
                ``(i) In general.--Except as provided in clause (ii), 
            in the event that the United States initiates a retaliation 
            list or takes any other action described in section 
            301(c)(1)(A) or (B) against the goods of a foreign country 
            or countries because of the failure of such country or 
            countries to implement the recommendation made pursuant to 
            a dispute settlement proceeding under the World Trade 
            Organization, the Trade Representative shall periodically 
            revise the list or action to affect other goods of the 
            country or countries that have failed to implement the 
            recommendation.
                ``(ii) Exception.--The Trade Representative is not 
            required to revise the retaliation list or the action 
            described in clause (i) with respect to a country, if--

                    ``(I) the Trade Representative determines that 
                implementation of a recommendation made pursuant to a 
                dispute settlement proceeding described in clause (i) 
                by the country is imminent; or
                    ``(II) the Trade Representative together with the 
                petitioner involved in the initial investigation under 
                this chapter (or if no petition was filed, the affected 
                United States industry) agree that it is unnecessary to 
                revise the retaliation list.

            ``(C) Schedule for revising list or action.--The Trade 
        Representative shall, 120 days after the date the retaliation 
        list or other section 301(a) action is first taken, and every 
        180 days thereafter, review the list or action taken and 
        revise, in whole or in part, the list or action to affect other 
        goods of the subject country or countries.
            ``(D) Standards for revising list or action.--In revising 
        any list or action against a country or countries under this 
        subsection, the Trade Representative shall act in a manner that 
        is most likely to result in the country or countries 
        implementing the recommendations adopted in the dispute 
        settlement proceeding or in achieving a mutually satisfactory 
        solution to the issue that gave rise to the dispute settlement 
        proceeding. The Trade Representative shall consult with the 
        petitioner, if any, involved in the initial investigation under 
        this chapter.
            ``(E) Retaliation list.--The term `retaliation list' means 
        the list of products of a foreign country or countries that 
        have failed to comply with the report of the panel or Appellate 
        Body of the WTO and with respect to which the Trade 
        Representative is imposing duties above the level that would 
        otherwise be imposed under the Harmonized Tariff Schedule of 
        the United States.
            ``(F) Requirement to include reciprocal goods on 
        retaliation list.--The Trade Representative shall include on 
        the retaliation list, and on any revised lists, reciprocal 
        goods of the industries affected by the failure of the foreign 
        country or countries to implement the recommendation made 
        pursuant to a dispute settlement proceeding under the World 
        Trade Organization, except in cases where existing retaliation 
        and its corresponding preliminary retaliation list do not 
        already meet this requirement.''.

SEC. 408. REPORT ON TRADE ADJUSTMENT ASSISTANCE FOR AGRICULTURAL 
              COMMODITY PRODUCERS.

    (a) In General.--Not later than 4 months after the date of the 
enactment of this Act, the Secretary of Labor, in consultation with the 
Secretary of Agriculture and the Secretary of Commerce, shall submit to 
the Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report that--
        (1) examines the applicability to agricultural commodity 
    producers of trade adjustment assistance programs established under 
    title II of the Trade Act of 1974; and
        (2) sets forth recommendations to improve the operation of 
    those programs as the programs apply to agricultural commodity 
    producers or to establish a new trade adjustment assistance program 
    for agricultural commodity producers.
    (b) Contents.--In preparing the report required by subsection (a), 
the Secretary of Labor shall--
        (1) assess the degree to which the existing trade adjustment 
    assistance programs address the adverse effects on agricultural 
    commodity producers due to price suppression caused by increased 
    imports of like or directly competitive agricultural commodities; 
    and
        (2) examine the effectiveness of the program benefits 
    authorized under subchapter B of chapter 2 and chapter 3 of title 
    II of the Trade Act of 1974 in remedying the adverse effects, 
    including price suppression, caused by increased imports of like or 
    directly competitive agricultural commodities.
    (c) Definitions.--In this section:
        (1) Agricultural commodity.--The term ``agricultural 
    commodity'' means any agricultural commodity, including livestock, 
    fish or harvested seafood in its raw or natural state.
        (2) Agricultural commodity producer.--The term ``agricultural 
    commodity producer'' means any person who is engaged in the 
    production and sale of an agricultural commodity in the United 
    States and who owns or shares the ownership and risk of loss of the 
    agricultural commodity.

SEC. 409. AGRICULTURAL TRADE NEGOTIATING OBJECTIVES AND CONSULTATIONS 
              WITH CONGRESS.

    (a) Findings.--Congress finds that--
        (1) United States agriculture contributes positively to the 
    United States balance of trade and United States agricultural 
    exports support in excess of 1,000,000 United States jobs;
        (2) United States agriculture competes successfully worldwide 
    despite the fact that United States producers are at a competitive 
    disadvantage because of the trade distorting support and subsidy 
    practices of other countries and despite the fact that significant 
    tariff and nontariff barriers exist to United States exports; and
        (3) a successful conclusion of the current World Trade 
    Organization agricultural negotiations is critically important to 
    the United States agricultural sector.
    (b) Objectives.--The agricultural trade negotiating objectives of 
the United States with respect to the current World Trade Organization 
agricultural negotiations include as matters of the highest priority--
        (1) the expeditious elimination of all export subsidies 
    worldwide while maintaining bona fide food aid and preserving 
    United States market development and export credit programs that 
    allow the United States to compete with other foreign export 
    promotion efforts;
        (2) leveling the playing field for United States producers of 
    agricultural products by eliminating blue box subsidies and 
    disciplining domestic supports in a way that forces producers to 
    face world prices on all production in excess of domestic food 
    security needs while allowing the preservation of nontrade 
    distorting programs to support family farms and rural communities;
        (3) the elimination of state trading enterprises or the 
    adoption of rigorous disciplines that ensure operational 
    transparency, competition, and the end of discriminatory pricing 
    practices, including policies supporting cross-subsidization and 
    price undercutting in export markets;
        (4) affirming that the World Trade Organization Agreement on 
    the Application of Sanitary and Phytosanitary Measures applies to 
    new technologies, including biotechnology, and that labeling 
    requirements to allow consumers to make choices regarding 
    biotechnology products or other regulatory requirements may not be 
    used as disguised barriers to trade;
        (5) increasing opportunities for United States exports of 
    agricultural products by reducing tariffs to the same levels that 
    exist in the United States or to lower levels and by eliminating 
    all nontariff barriers, including--
            (A) restrictive or trade distorting practices, including 
        those that adversely impact perishable or cyclical products;
            (B) restrictive rules in the administration of tariff-rate 
        quotas; and
            (C) other barriers to agriculture trade, including 
        unjustified restrictions or commercial requirements affecting 
        new technologies, including biotechnology;
        (6) eliminating government policies that create price-
    depressing surpluses; and
        (7) strengthening dispute settlement procedures to ensure 
    prompt compliance by foreign governments with their World Trade 
    Organization obligations including commitments not to maintain 
    unjustified restrictions on United States exports.
    (c) Consultation With Congressional Committees.--
        (1) Consultation before offer made.--In developing and before 
    submitting an initial or revised negotiating proposal that would 
    reduce United States tariffs on agricultural products or require a 
    change in United States agricultural law, the United States Trade 
    Representative shall consult with the Committee on Agriculture, 
    Nutrition, and Forestry and the Committee on Finance of the Senate 
    and the Committee on Agriculture and the Committee on Ways and 
    Means of the House of Representatives.
        (2) Consultation with congressional trade advisers.--Prior to 
    and during the course of current negotiations on agricultural 
    trade, the United States Trade Representative shall consult closely 
    with the congressional trade advisers.
        (3) Consultation before agreement initialed.--Not less than 48 
    hours before initialing an agreement reached as part of current 
    World Trade Organization agricultural negotiations, the United 
    States Trade Representative shall consult closely with the 
    committees referred to in paragraph (1) regarding--
            (A) the details of the agreement;
            (B) the potential impact of the agreement on United States 
        agricultural producers; and
            (C) any changes in United States law necessary to implement 
        the agreement.
        (4) Disclosure of commitments.--Any agreement or other 
    understanding addressing agricultural trade with a foreign 
    government or governments (whether oral or in writing) that relates 
    to a trade agreement with respect to which Congress must enact 
    implementing legislation and that is not disclosed to Congress 
    before legislation implementing that agreement is introduced in 
    either House of Congress shall not be considered to be part of the 
    agreement approved by Congress and shall have no force and effect 
    under United States law or in any dispute settlement body.
    (d) Sense of the Congress.--It is the sense of the Congress that--
        (1) granting the President trade negotiating authority is 
    essential to the successful conclusion of the new round of World 
    Trade Organization agricultural negotiations;
        (2) reaching a successful agreement on agriculture should be 
    the top priority of United States negotiators; and
        (3) if by the conclusion of the negotiations, the primary 
    agricultural competitors of the United States do not agree to 
    reduce their trade distorting domestic supports and eliminate 
    export subsidies in accordance with the negotiating objectives 
    expressed in this section, the United States should take steps to 
    increase the leverage of United States negotiators and level the 
    playing field for United States producers.

SEC. 410. ENTRY PROCEDURES FOR FOREIGN TRADE ZONE OPERATIONS.

    (a) In General.--Section 484 of the Tariff Act of 1930 (19 U.S.C. 
1484) is amended by adding at the end the following new subsection:
    ``(i) Special Rule For Foreign Trade Zone Operations.--
        ``(1) In general.--Notwithstanding any other provision of law 
    and except as provided in paragraph (3), all merchandise (including 
    merchandise of different classes, types, and categories), withdrawn 
    from a foreign trade zone during any 7-day period, shall, at the 
    option of the operator or user of the zone, be the subject of a 
    single estimated entry or release filed on or before the first day 
    of the 7-day period in which the merchandise is to be withdrawn 
    from the zone. The estimated entry or release shall be treated as a 
    single entry and a single release of merchandise for purposes of 
    section 13031(a)(9)(A) of the Consolidated Omnibus Budget 
    Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)(A)) and all fee 
    exclusions and limitations of such section 13031 shall apply, 
    including the maximum and minimum fee amounts provided for under 
    subsection (b)(8)(A)(i) of such section. The entry summary for the 
    estimated entry or release shall cover only the merchandise 
    actually withdrawn from the foreign trade zone during the 7-day 
    period.
        ``(2) Other requirements.--The Secretary of the Treasury may 
    require that the operator or user of the zone--
            ``(A) use an electronic data interchange approved by the 
        Customs Service--
                ``(i) to file the entries described in paragraph (1); 
            and
                ``(ii) to pay the applicable duties, fees, and taxes 
            with respect to the entries; and
            ``(B) satisfy the Customs Service that accounting, 
        transportation, and other controls over the merchandise are 
        adequate to protect the revenue and meet the requirements of 
        other Federal agencies.
        ``(3) Exception.--The provisions of paragraph (1) shall not 
    apply to merchandise the entry of which is prohibited by law or 
    merchandise for which the filing of an entry summary is required 
    before the merchandise is released from customs custody.
        ``(4) Foreign trade zone; zone.--In this subsection, the terms 
    `foreign trade zone' and `zone' mean a zone established pursuant to 
    the Act of June 18, 1934, commonly known as the Foreign Trade Zones 
    Act (19 U.S.C. 81a et seq.).''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date that is 60 days after the date of the enactment of 
this Act.

SEC. 411. GOODS MADE WITH FORCED OR INDENTURED CHILD LABOR.

    (a) In General.--Section 307 of the Tariff Act of 1930 (19 U.S.C. 
1307) is amended by adding at the end the following new sentence: ``For 
purposes of this section, the term `forced labor or/and indentured 
labor' includes forced or indentured child labor.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 412. WORST FORMS OF CHILD LABOR.

    (a) In General.--Section 502(b)(2) of the Trade Act of 1974 (19 
U.S.C. 2462(b)(2)) is amended--
        (1) by inserting after subparagraph (G) the following new 
    subparagraph:
            ``(H) Such country has not implemented its commitments to 
        eliminate the worst forms of child labor.''; and
        (2) in the flush paragraph at the end, by striking ``and (G)'' 
    and inserting ``(G), and (H) (to the extent described in section 
    507(6)(D))''.
    (b) Definition of Worst Forms Of Child Labor.--Section 507 of the 
Trade Act of 1974 (19 U.S.C. 2467) is amended by adding at the end the 
following new paragraph:
        ``(6) Worst forms of child labor.--The term `worst forms of 
    child labor' means--
            ``(A) all forms of slavery or practices similar to slavery, 
        such as the sale or trafficking of children, debt bondage and 
        serfdom, or forced or compulsory labor, including forced or 
        compulsory recruitment of children for use in armed conflict;
            ``(B) the use, procuring, or offering of a child for 
        prostitution, for the production of pornography or for 
        pornographic purposes;
            ``(C) the use, procuring, or offering of a child for 
        illicit activities in particular for the production and 
        trafficking of drugs; and
            ``(D) work which, by its nature or the circumstances in 
        which it is carried out, is likely to harm the health, safety, 
        or morals of children.
    The work referred to in subparagraph (D) shall be determined by the 
    laws, regulations, or competent authority of the beneficiary 
    developing country involved.''.
    (c) Annual Report.--Section 504 of the Trade Act of 1974 (19 U.S.C. 
2464) is amended by inserting ``, including the findings of the 
Secretary of Labor with respect to the beneficiary country's 
implementation of its international commitments to eliminate the worst 
forms of child labor'' before the end period.

               TITLE V--IMPORTS OF CERTAIN WOOL ARTICLES

SEC. 501. TEMPORARY DUTY REDUCTIONS.

    (a) Certain Worsted Wool Fabrics With Average Fiber Diameters 
Greater Than 18.5 Micron.--
        (1) 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:

``           9902.51.11   Fabrics, of      19.3%        No change      No change      On or before
                           worsted wool,                                               12/31/2003
                           with average
                           fiber
                           diameters
                           greater than
                           18.5 micron,
                           all the
                           foregoing
                           certified by
                           the importer
                           as suitable
                           for use in
                           making suits,
                           suit-type
                           jackets, or
                           trousers
                           (provided for
                           in subheading
                           5111.11.70,
                           5111.19.60,
                           5112.11.20, or
                           5112.19.90)...
 

        (2) Staged rate reductions.--Any staged rate reduction of a 
    rate of duty set forth in subheading 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 paragraph 
    (1).
    (b) Certain Worsted Wool Fabrics With Average Fiber Diameters of 
18.5 Micron or Less.--
        (1) 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:

``           9902.51.12   Fabrics, of      6%           No change      No change      On or before
                           worsted wool,                                               12/31/2003
                           with average
                           fiber
                           diameters of
                           18.5 micron or
                           less, all the
                           foregoing
                           certified by
                           the importer
                           as suitable
                           for use in
                           making suits,
                           suit-type
                           jackets, or
                           trousers
                           (provided for
                           in subheading
                           5111.11.70,
                           5111.19.60,
                           5112.11.20, or
                           5112.19.90)...
 

        (2) Equalization with canadian duty rates.--The President is 
    authorized to proclaim a reduction in the rate of duty applicable 
    to imports of worsted wool fabrics classified under subheading 
    9902.51.12 of the Harmonized Tariff Schedule of the United States, 
    as added by paragraph (1), that is necessary to equalize such rate 
    of duty with the most favored nation rate of duty applicable to 
    imports of worsted wool fabrics of the kind described in such 
    subheading imported into Canada.
    (c) Definitions.--The U.S. Notes to subchapter II of chapter 99 of 
the Harmonized Tariff Schedule of the United States are amended by 
adding at the end the following:
    ``13. For purposes of headings 9902.51.11 and 9902.51.12, the term 
`suit' has the meaning given such term under note 3(a) of chapter 62 
for purposes of headings 6203 and 6204.
    ``14. For purposes of headings 9902.51.11 and 9902.51.12, the term 
`making' means cut and sewn in the United States.''.
    (d) Limitation on Quantity of Imports.--The U.S. Notes to 
subchapter II of chapter 99 of the Harmonized Tariff Schedule of the 
United States, as amended by subsection (c), are further amended by 
adding at the end the following:
    ``15. The aggregate quantity of worsted wool fabrics entered under 
heading 9902.51.11 from January 1 to December 31 of each year, 
inclusive, shall be limited to 2,500,000 square meter equivalents, or 
such other quantity proclaimed by the President pursuant to section 
504(b)(3) of the Trade and Development Act of 2000.
    ``16. The aggregate quantity of worsted wool fabrics entered under 
subheading 9902.51.12 from January 1 to December 31 of each year, 
inclusive, shall be limited to 1,500,000 square meter equivalents, or 
such other quantity proclaimed by the President pursuant to section 
504(b)(3) of the Trade and Development Act of 2000.''.
    (e) Allocation of Tariff-Rate Quotas.--In implementing the 
limitation on the quantity of imports of worsted wool fabrics under 
headings 9902.51.11 and 9902.51.12 of the Harmonized Tariff Schedule of 
the United States, as required by U.S. Notes 15 and 16 of subchapter II 
of chapter 99 of such Schedule, respectively, for the entry, or 
withdrawal from warehouse for consumption, the President, consistent 
with United States international obligations, shall take such action as 
determined appropriate by the President to ensure that such fabrics are 
fairly allocated to persons (including firms, corporations, or other 
legal entities) who cut and sew men's and boys' worsted wool suits and 
suit-like jackets and trousers in the United States and who apply for 
an allocation based on the amount of such suits cut and sewn during the 
prior calendar year.
    (f) Effective Date.--The amendments made by this section apply with 
respect to goods entered, or withdrawn from warehouse for consumption, 
on or after January 1, 2001.

SEC. 502. TEMPORARY DUTY SUSPENSIONS.

    (a) Wool Yarn With Average Fiber Diameters of 18.5 Micron or 
Less.--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:

``           9902.51.13   Yarn, of combed  Free         No change      No change      On or before
                           wool, not put                                               12/31/2003
                           up for retail
                           sale,
                           containing 85
                           percent or
                           more by weight
                           of wool,
                           formed with
                           wool fibers
                           having
                           diameters of
                           18.5 micron or
                           less (provided
                           for in
                           subheading
                           5107.10.00)...
 

    (b) Wool Fiber and Wool Top With Average Diameters of 18.5 Micron 
or Less.--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:

``           9902.51.14   Wool fiber,      Free         No change      No change      On or before
                           waste,                                                      12/31/2003
                           garnetted
                           stock, combed
                           wool, or wool
                           top, having
                           average fiber
                           diameters of
                           18.5 micron or
                           less (provided
                           for in
                           subheading
                           5101.11,
                           5101.19,
                           5101.21,
                           5101.29,
                           5101.30,
                           5103.10,
                           5103.20,
                           5104.00,
                           5105.21, or
                           5105.29)......
 

    (c) Effective Date.--The amendments made by this section apply with 
respect to goods entered, or withdrawn from warehouse for consumption, 
on or after January 1, 2001.

SEC. 503. SEPARATE TARIFF LINE TREATMENT FOR WOOL YARN AND MEN'S OR 
              BOYS' SUITS AND SUIT-TYPE JACKETS AND TROUSERS OF WORSTED 
              WOOL FABRIC.

    (a) Separate Tariff Line Treatment.--The President shall proclaim 
8-digit tariff categories, without changes in existing duty rates, in 
chapters 51 and 62 of the Harmonized Tariff Schedule of the United 
States in order to provide separate tariff treatment for--
        (1) wool yarn made of wool fiber with an average fiber diameter 
    of 18.5 micron or less, and wool fabrics made from yarns with an 
    average fiber diameter of 18.5 micron or less; and
        (2) men's or boys' suits, suit-type jackets, and trousers of 
    worsted wool fabric, made of wool yarn having an average diameter 
    of 18.5 micron or less.
    (b) Conforming Changes.--The President is authorized to make 
conforming changes in headings 9902.51.11, 9902.51.12, 9902.51.13, and 
9902.51.14 of the Harmonized Tariff Schedule of the United States to 
take into account the new permanent tariff categories proclaimed under 
subsection (a).

SEC. 504. MONITORING OF MARKET CONDITIONS AND AUTHORITY TO MODIFY 
              TARIFF REDUCTIONS.

    (a) Monitoring of Market Conditions.--Beginning on the date of the 
enactment of this Act, the President shall monitor market conditions in 
the United States, including domestic demand, domestic supply, and 
increases in domestic production, of worsted wool fabrics and their 
components in the market for--
        (1) men's or boys' worsted wool suits, suit-type jackets, and 
    trousers;
        (2) worsted wool fabric and yarn used in the manufacture of 
    such suits, jackets, and trousers; and
        (3) wool used in the production of such fabrics and yarn.
    (b) Authority to Modify Limitation on Quantity of Worsted Wool 
Fabrics Subject to Tariff Reduction.--
        (1) In general.--The President shall, on an annual basis, 
    consider requests made by United States manufacturers of apparel 
    products made of worsted wool fabrics described in subsection (a) 
    to modify the limitation on the quantity of imports of worsted wool 
    fabrics under headings 9902.51.11 and 9902.51.12 of the Harmonized 
    Tariff Schedule of the United States, as required by U.S. Notes 15 
    and 16 of subchapter II of chapter 99 of such Schedule, 
    respectively.
        (2) Consideration of certain market conditions.--In determining 
    whether to modify the limitation on the quantity of imports of 
    worsted wool fabrics described in paragraph (1), the President 
    shall consider the following United States market conditions:
            (A) Increases or decreases in sales of the domestically-
        produced worsted wool fabrics described in subsection (a).
            (B) Increases or decreases in domestic production of such 
        fabrics.
            (C) Increases or decreases in domestic production and 
        consumption of the apparel items described in subsection (a).
            (D) The ability of domestic producers of worsted wool 
        fabrics described in subsection (a) to meet the needs of 
        domestic manufacturers of the apparel items described in 
        subsection (a) in terms of quantity and ability to meet market 
        demands for the apparel items.
            (E) Evidence that domestic manufacturers of worsted wool 
        fabrics have lost sales due to the temporary duty reductions on 
        certain worsted wool fabrics under headings 9902.51.11 and 
        9902.51.12 of the Harmonized Tariff Schedule of the United 
        States (as added by subsections (a) and (b) of section 501).
            (F) Evidence that domestic manufacturers of apparel items 
        described in subsection (a) have lost sales due to the 
        inability to purchase adequate supplies of worsted wool fabrics 
        on a cost competitive basis.
            (G) Price per square meter of imports and domestic sales of 
        worsted wool fabrics.
        (3) Modification of limitation on quantity of fabrics.--
            (A) In general.--If the President determines that the 
        limitation on the quantity of imports of worsted wool fabrics 
        under headings 9902.51.11 and 9902.51.12 of the Harmonized 
        Tariff Schedule of the United States should be modified, the 
        President shall proclaim such changes to U.S. Note 15 or 16 to 
        subchapter II of chapter 99 of such Schedule (as added by 
        section 501(d)), as the President determines to be appropriate.
            (B) Additional requirement.--In any calendar year, any 
        modification of the limitation on the quantity of imports of 
        worsted wool fabrics under headings 9902.51.11 and 9902.51.12 
        of the Harmonized Tariff Schedule of the United States shall 
        not exceed--
                (i) 1,000,000 square meter equivalents for worsted wool 
            fabrics under heading 9902.51.11; and
                (ii) 1,000,000 square meter equivalents for worsted 
            wool fabrics under heading 9902.51.12.
    (c) Implementation.--The President shall issue regulations 
necessary to implement the provisions of this section.

SEC. 505. REFUND OF DUTIES PAID ON IMPORTS OF CERTAIN WOOL ARTICLES.

    (a) Worsted Wool Fabrics.--In each of the calendar years 2000, 
2001, and 2002, a manufacturer of men's or boys' suits, suit-type 
jackets, or trousers (not a broker or other individual acting on behalf 
of the manufacturer to process the import) of imported worsted wool 
fabrics of the kind described in heading 9902.51.11 or 9902.51.12 of 
the Harmonized Tariff Schedule of the United States shall be eligible 
for a refund of duties paid on entries of such fabrics in each such 
calendar year in an amount equal to one-third of the amount of duties 
paid by the importer on such worsted wool fabrics (without regard to 
micron level) imported in calendar year 1999.
    (b) Wool Yarn.--In each of the calendar years 2000, 2001, and 2002, 
a manufacturer of worsted wool fabrics who imports wool yarn of the 
kind described in heading 9902.51.13 of the Harmonized Tariff Schedule 
of the United States shall be eligible for a refund of duties paid on 
entries of such wool yarn in each such calendar year in an amount equal 
to one-third of the amount of duties paid by the manufacturer on such 
wool yarn (without regard to micron level) imported in calendar year 
1999.
    (c) Wool Fiber and Wool Top.--In each of the calendar years 2000, 
2001, and 2002, a manufacturer of wool yarn or wool fabric who imports 
wool fiber or wool top of the kind described in heading 9902.51.14 of 
the Harmonized Tariff Schedule of the United States shall be eligible 
for a refund of duties paid on entries of such wool fiber in each such 
calendar year in an amount equal to one-third of the amount of duties 
paid by the manufacturer on such wool fiber (without regard to micron 
level) imported in calendar year 1999.
    (d) Proper Identification and Appropriate Claim.--Any person 
applying for a rebate under this section shall properly identify and 
make appropriate claim to the United States Customs Service for each 
entry involved.

SEC. 506. WOOL RESEARCH, DEVELOPMENT, AND PROMOTION TRUST FUND.

    (a) Establishment.--There is hereby established within the Treasury 
of the United States a trust fund to be known as the Wool Research, 
Development, and Promotion Trust Fund (hereafter in this section 
referred to as the ``Trust Fund''), consisting of such amounts as may 
be transferred to the Trust Fund under subsection (b)(1) and any 
amounts as may be credited to the Trust Fund under subsection (c)(2).
    (b) Transfer of Amounts.--
        (1) In general.--The Secretary of the Treasury shall transfer 
    to the Trust Fund out of the general fund of the Treasury of the 
    United States amounts determined by the Secretary of the Treasury 
    to be equivalent to the amounts received into such general fund 
    that are attributable to the duty received on articles under 
    chapters 51 and 52 of the Harmonized Tariff Schedule of the United 
    States, subject to the limitation in paragraph (2).
        (2) Limitation.--The Secretary shall not transfer more than 
    $2,250,000 to the Trust Fund in any fiscal year.
        (3) Transfers based on estimates.--The amounts required to be 
    transferred under paragraph (1) shall be transferred at least 
    quarterly from the general fund of the Treasury of the United 
    States to the Trust Fund on the basis of estimates made by the 
    Secretary of the Treasury of the amounts referred to in paragraph 
    (1) that are received into the Treasury. Proper adjustments shall 
    be made in the amounts subsequently transferred to the extent prior 
    estimates were in excess of, or less than, the amounts required to 
    be transferred.
    (c) Investment of Trust Fund.--
        (1) In general.--It shall be the duty of the Secretary of the 
    Treasury to invest such portion of the Trust Fund as is not, in the 
    Secretary's judgment, required to meet current withdrawals. Such 
    investments may be made only in interest-bearing obligations of the 
    United States or in obligations guaranteed as to both principal and 
    interest by the United States. For such purpose, such obligations 
    may be acquired on original issue at the issue price or by purchase 
    of outstanding obligations at the market price. Any obligation 
    acquired by the Trust Fund may be sold by the Secretary of the 
    Treasury at the market price.
        (2) Interest and proceeds from sale or redemption of 
    obligations.--The interest on, and the proceeds from the sale or 
    redemption of, any obligations held in the Trust Fund shall be 
    credited to and form a part of the Trust Fund.
    (d) Availability of Amounts from Trust Fund.--From amounts 
available in the Trust Fund (including any amounts not obligated in 
previous fiscal years), the Secretary of Agriculture is authorized to 
provide grants to a nationally-recognized council established for the 
development of the United States wool market for the following 
purposes:
        (1) Assist United States wool producers to improve the quality 
    of wool produced in the United States, including to improve wool 
    production methods.
        (2) Disseminate information on improvements described in 
    paragraph (1) to United States wool producers generally.
        (3) Assist United States wool producers in the development and 
    promotion of the wool market.
    (e) Reports to Congress.--The Secretary of the Treasury, in 
consultation with the Secretary of Agriculture, shall prepare and 
submit to Congress an annual report on the financial condition and the 
results of the operations of the Trust Fund, including a description of 
the use of amounts of grants provided under subsection (d), during the 
preceding fiscal year and on its expected condition and operations 
during the next fiscal year.
    (f) Sunset Provision.--Effective January 1, 2004, the Trust Fund 
shall be abolished and all amounts in the Trust Fund on such date shall 
be transferred to the general fund of the Treasury of the United 
States.

                      TITLE VI--REVENUE PROVISIONS

SEC. 601. APPLICATION OF DENIAL OF FOREIGN TAX CREDIT REGARDING TRADE 
              AND INVESTMENT WITH RESPECT TO CERTAIN FOREIGN COUNTRIES.

    (a) In General.--Section 901(j) of the Internal Revenue Code of 
1986 (relating to denial of foreign tax credit, etc., regarding trade 
and investment with respect to certain foreign countries) is amended by 
adding at the end the following new paragraph:
        ``(5) Waiver of denial.--
            ``(A) In general.--Paragraph (1) shall not apply with 
        respect to taxes paid or accrued to a country if the 
        President--
                ``(i) determines that a waiver of the application of 
            such paragraph is in the national interest of the United 
            States and will expand trade and investment opportunities 
            for United States companies in such country; and
                ``(ii) reports such waiver under subparagraph (B).
            ``(B) Report.--Not less than 30 days before the date on 
        which a waiver is granted under this paragraph, the President 
        shall report to Congress--
                ``(i) the intention to grant such waiver; and
                ``(ii) the reason for the determination under 
            subparagraph (A)(i).''.
    (b) Effective Date.--The amendment made by this section shall apply 
on or after February 1, 2001.

SEC. 602. ACCELERATION OF COVER OVER PAYMENTS TO PUERTO RICO AND VIRGIN 
              ISLANDS.

    (a) Initial Payment.--Section 512(b) of the Ticket to Work and Work 
Incentives Improvement Act of 1999 is amended--
        (1) by striking ``October 1, 2000,'' in the matter preceding 
    paragraph (1) and inserting ``the first day of the month within 
    which the date of the enactment of the Trade and Development Act of 
    2000 occurs,''; and
        (2) by striking paragraph (2) and inserting the following new 
    paragraph:
        ``(2) Second transfer of incremental increase in cover over 
    attributable to periods before resumption of regular payments.--The 
    Secretary of the Treasury shall transfer on the first payment date 
    after the date of the enactment of the Trade and Development Act of 
    2000 an amount equal to the excess of--
            ``(A) the amount of such increase otherwise required to be 
        covered over after June 30, 1999, and before the first day of 
        the month within which such date of enactment occurs, over
            ``(B) the amount of the transfer described in paragraph 
        (1).''.
    (b) Clarification of Disposition of Taxes to Virgin Islands.--So 
much of paragraph (3) of section 7652(b) of the Internal Revenue Code 
of 1986 (relating to Virgin Islands) as precedes subparagraph (B) 
thereof is amended to read as follows:
        ``(3) Disposition of internal revenue collections.--The 
    Secretary shall determine the amount of all taxes imposed by, and 
    collected under the internal revenue laws of the United States on 
    articles produced in the Virgin Islands and transported to the 
    United States. The amount so determined less 1 percent and less the 
    estimated amount of refunds or credits shall be subject to 
    disposition as follows:
            ``(A) The payment of an estimated amount shall be made to 
        the government of the Virgin Islands before the commencement of 
        each fiscal year as set forth in section 4(c)(2) of the Act 
        entitled `An Act to authorize appropriations for certain 
        insular areas of the United States, and for other purposes', 
        approved August 18, 1978 (48 U.S.C. 1645), as in effect on the 
        date of the enactment of the Trade and Development Act of 2000. 
        The payment so made shall constitute a separate fund in the 
        treasury of the Virgin Islands and may be expended as the 
        legislature may determine.''.
    (c) Resolution of Statutory Conflict.--Section 7652 of the Internal 
Revenue Code of 1986 (relating to shipments to the United States) is 
amended by adding at the end the following new subsection:
    ``(h) Manner of Cover Over of Tax Must Be Derived from This 
Title.--No amount shall be covered into the treasury of Puerto Rico or 
the Virgin Islands with respect to taxes for which cover over is 
provided under this section unless made in the manner specified in this 
section without regard to--
        ``(1) any provision of law which is not contained in this title 
    or in a revenue Act; and
        ``(2) whether such provision of law is a subsequently enacted 
    provision or directly or indirectly seeks to waive the application 
    of this subsection.''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to transfers or payments made after the date of the 
enactment of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.