Special rules for countries on the priority watch list of the United States Trade Representative

(a)

In general

Section 182 of the Trade Act of 1974 (19 U.S.C. 2242) is amended by striking subsection (g) and inserting the following:

(g)

Special rules for foreign countries on the priority watch list

(1)

Action plans

(A)

In general

Not later than 90 days after the date on which the Trade Representative submits the National Trade Estimate under section 181(b), the Trade Representative shall, in consultation with the officers described in subsection (b)(2)(A), develop an action plan described in subparagraph (C) with respect to each foreign country described in subparagraph (B). (B)

Foreign country described

The Trade Representative shall develop an action plan pursuant to subparagraph (A) with respect to each foreign country that— (i)the Trade Representative has identified for placement on the priority watch list; and (ii)has remained on such list for at least 1 year. (C)

Action plan described

An action plan developed pursuant to subparagraph (A) shall contain the benchmarks described in subparagraph (D) and be designed to assist the foreign country to— (i)achieve— (I)adequate and effective protection of intellectual property rights; and (II)fair and equitable market access for United States persons that rely upon intellectual property protection; or (ii)make significant progress toward achieving the goals described in clause (i). (D)

Benchmarks described

The benchmarks contained in an action plan developed pursuant to subparagraph (A) are such legislative, institutional, enforcement, or other actions as the Trade Representative determines to be necessary for the foreign country to achieve the goals described in clause (i) or (ii) of subparagraph (C). (2)

Failure to meet action plan benchmarks

(A)

In general

If, 1 year after the date on which an action plan is developed under paragraph (1)(A), the President, in consultation with the Trade Representative, determines that the foreign country to which the action plan applies has not substantially complied with the benchmarks described in paragraph (1)(D), the President may take one or more of the actions described in subparagraph (B) with respect to the foreign country. (B)

Presidential action described

The President may take the following actions pursuant to subparagraph (A): (i)

Government procurement

Suspend, restrict, or prohibit new or renewed procurement by the Federal Government of goods or services from the foreign country, unless— (I)the foreign country is a party to the Agreement on Government Procurement referred to in section 101(d)(17) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(17)) or any other international agreement relating to government procurement to which the United States is also a party; and (II)such suspension, restriction, or prohibition would violate any such agreement. (ii)

Overseas Private Investment Corporation financing

Suspend, restrict, or prohibit the approval of new financing (including loans, guarantees, other credits, insurance, and reinsurance) by the Overseas Private Investment Corporation with respect to a project located in the foreign country or in which an entity of the foreign country participates. (iii)

Export-Import Bank financing

Suspend, restrict, or prohibit the approval of new financing (including loans, guarantees, other credits, insurance, and reinsurance) by the Export-Import Bank of the United States in connection with the export of any good or service to the foreign country or an entity of the foreign country. (iv)

Multilateral development bank financing

Instruct the United States Executive Director of each multilateral development bank (as defined in section 1307 of the International Financial Institutions Act (22 U.S.C. 262m–7)) to oppose the approval of any new financing (including loans, guarantees, other credits, insurance, and reinsurance) by the multilateral development bank to the government of the foreign country or with respect to a project located in the foreign country or in which an entity of the foreign country participates. (v)

Trade and Development Agency

Suspend, restrict, or prohibit the provision of assistance by the United States Trade and Development Agency in connection with a project located in the foreign country or in which an entity of the foreign country participates. (vi)

Preferential trade programs

Suspend, limit, or withdraw any preferential treatment for which the foreign country qualifies under the Generalized System of Preferences under title V of the Trade Act of 1974 (19 U.S.C. 2461 et seq.), the Caribbean Basin Economic Recovery Act (19 U.S.C. 2701 et seq.), the Andean Trade Preference Act (19 U.S.C. 3201 et seq.), or the African Growth and Opportunity Act (19 U.S.C. 3701 et seq.). (C)

Restoration of benefits

The President shall revoke any actions taken with respect to a foreign country under subparagraph (B) on the date on which the President, in consultation with the Trade Representative, determines and certifies to Congress that the foreign country has substantially complied with the benchmarks described in paragraph (1)(D). (3)

Priority watch list defined

For purposes of this subsection, the term priority watch list means the priority watch list established by the Trade Representative. (h)

Annual report

Not later than 30 days after the date on which the Trade Representative submits the National Trade Estimate under section 181(b), the Trade Representative shall transmit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report on actions taken under this section during the 12 months preceding such report, and the reasons for such actions, including— (1)any foreign countries identified under subsection (a); (2)a description of progress made in achieving improved intellectual property protection and market access for persons relying on intellectual property rights; and (3)a description of the action plans developed under subsection (g) and any actions taken by foreign countries under such plans.

(b)

Authorization of appropriations

(1)

In general

There are authorized to be appropriated to the Office of the United States Trade Representative such sums as may be necessary to provide assistance to any developing country to which an action plan applies under section 182(g) of the Trade Act of 1974, as amended by subsection (a), to facilitate the efforts of the developing country to comply with the benchmarks contained in the action plan. Such assistance may include capacity building, activities designed to increase awareness of intellectual property rights, and training for officials responsible for enforcing intellectual property rights in the developing country. (2)

Developing country defined

For purposes of this subsection, the term developing country means a country classified by the World Bank as having a low-income or lower-middle-income economy. (c)

Savings

Nothing in this section shall be construed as limiting the authority of the President or the United States Trade Representative to develop action plans other than action plans described in section 182(g) of the Trade Act of 1974, as amended by subsection (a), or to take any action otherwise authorized by law in response to the failure of a foreign country to provide adequate and effective protection and enforcement of intellectual property rights.