[Congressional Record Volume 142, Number 141 (Thursday, October 3, 1996)]
[Senate]
[Page S12349]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        FAIR TRADE PRACTICES ACT

 Mr. SPECTER. Mr. President, on Monday, September 30, 1996, I 
introduced S. 2165, the Fair Trade Practices Act of 1996. I ask that 
the full text of the bill be printed in the Record.
  The bill is as follows:

                                S. 2165

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Fair Trade Practices Act of 
     1996''.

     SEC. 2. REPORT BY THE PRESIDENT; SANCTIONS.

       (a) Report.--
       (1) In general.--Not later than 6 months after the date of 
     the enactment of this Act, and annually thereafter, the 
     President shall submit a report to the Congress that--
       (A) identifies foreign persons and concerns that engage in 
     foreign corrupt trade practices and foreign countries that do 
     not have in effect or do not enforce laws that are similar to 
     the Foreign Corrupt Practices Act of 1977; and
       (B) contains information regarding--
       (i) existing corrupt trade practices of foreign persons and 
     concerns; and
       (ii) efforts by the governments of foreign countries to 
     stop corrupt trade practices by private persons and 
     government officials of those countries through enactment and 
     enforcement of laws similar to the Foreign Corrupt Practices 
     Act of 1977.
       (2) Definition of corrupt trade practice.--For purposes of 
     this section, the term ``corrupt trade practice'' means a 
     practice that would violate the prohibition described in 
     section 104 of the Foreign Corrupt Practices Act of 1977 if 
     engaged in by a domestic concern.
       (b) Sanctions.--
       (1) In general.--If the President determines that a country 
     identified in subsection (a)(1)(A) is not making a good faith 
     effort to enact or enforce the laws described in subsection 
     (a)(1)(B)(ii), the President is authorized and directed to 
     impose the sanctions described in paragraph (2).
       (2) Sanctions described.--
       (a) Reduction in foreign aid.--Fifty percent of the 
     assistance made available under part I of the Foreign 
     Assistance Act of 1961 and allocated each fiscal year 
     pursuant to section 653 of such Act for a country shall be 
     withheld from obligation and expenditure for any fiscal year 
     in which a determination has been made under paragraph (1) 
     with respect to the country.
       (B) Multilateral development bank assistance.--The United 
     States Government shall oppose, in accordance with section 
     701 of the International Financial Institutions Act (22 
     U.S.C. 262d), the extension of any loan or financial or 
     technical assistance by international financial institutions 
     to any country described in paragraph (1).
       (c) Duration of Sanctions.--Any sanction imposed against a 
     country under subsection (b)92) shall remain in effect until 
     such time as the President certifies to the Congress that 
     such country has enacted and is enforcing the laws described 
     in subsection (a)(1)(B)(ii).
       (d) Waiver.--Any sanctions described in subsection (b) may 
     be delayed or waived upon certification of the President to 
     the Congress that it is in the national interest to do so.

     SEC. 3. SANCTIONS AGAINST PERSONS AND BUSINESS ENTITIES.

       (a) Imposition of Sanctions on Foreign Persons and Concerns 
     Engaging in Certain Corrupt Business Practices.--The 
     President shall impose the sanctions described in subsection 
     (b), to the fullest extent consistent with international 
     obligations, if the President certifies to the Congress 
     that--
       (1) a foreign person or concern has engaged in the conduct 
     described in section 104 of the Foreign Corrupt Practices Act 
     of 1977, and such conduct has placed a United States concern 
     at a competitive disadvantage,
       (2) the President has consulted with the foreign country 
     having primary jurisdiction over such conduct in an effort to 
     get the government of that country to impose sanctions 
     against such foreign person or concern,
       (3) a period of 90 days has elapsed since the President 
     first consulted with the foreign country, and
       (4) the country has not taken action against such person or 
     concern.

     The 90-day period referred to in the preceding sentence may 
     be extended for an additional 90 days if the President 
     determines sufficient progress has been made in consultation 
     with the foreign country to justify such an extension.
       (b) Sanctions.--
       (1) In general.--The sanctions to be imposed pursuant to 
     subsection (a) are as follows:
       (A) Procurement sanction.--The United States Government 
     shall not procure, or enter into any contract for the 
     procurement of, any goods or services from any foreign person 
     or concern that engages in the unlawful conduct described in 
     subsection (a)(1).
       (B) License ban.--The United States Government shall not 
     issue any license or other authority to conduct business in 
     the United States to any foreign person or concern that 
     engages in the unlawful conduct described in subsection 
     (a)(1).
       (2) Waiver.--Any penalties or sanctions imposed under this 
     section may be delayed or waived upon certification of the 
     President to Congress that it is in the national interest to 
     do so.
       (c) Definitions.--For purposes of this section--
       (1) Foreign concern.--The term ``foreign concern'' means 
     any corporation, partnership, association, joint stock 
     company, business trust, unincorporated organization, or sole 
     proprietorship which has its principal place of business in a 
     country other than the United States, or which is organized 
     under the laws of a country other than the United States.
       (2) Foreign person.--The term ``foreign person'' means any 
     individual who is a citizen or national of a country other 
     than the United States.

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