[Congressional Record Volume 146, Number 54 (Thursday, May 4, 2000)]
[House]
[Pages H2514-H2552]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    CONFERENCE REPORT ON H.R. 434, TRADE AND DEVELOPMENT ACT OF 2000

  Mr. ROYCE submitted the following conference report and statement on 
the bill (H.R. 434) to authorize a new trade and investment policy for 
sub-Sahara Africa:

                  Conference Report (H. Rept. 106-606)

       The committee on conference on the disagreeing votes of the 
     two Houses on the amendments of the Senate to the bill (H.R. 
     434), to authorize a new trade and investment policy for sub-
     Sahara Africa, having met, after full and free conference, 
     have agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate to the text of the bill and agree to 
     the same with an amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     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.--

   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 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.

[[Page H2515]]

Sec. 214. Duty-free treatment for certain beverages made with Caribbean 
              rum.
Sec. 215. 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

[[Page H2516]]

     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 
     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 1 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 1 or more 
     beneficiary sub-Saharan African countries from fabrics wholly 
     formed and cut in the United States, from yarns wholly formed 
     in the United States, that are--
       (A) entered under subheading 9802.00.80 of the Harmonized 
     Tariff Schedule of the United States; or
       (B) entered under chapter 61 or 62 of the Harmonized Tariff 
     Schedule of the United States, if, after such assembly, the 
     articles would have qualified for entry under subheading 
     9802.00.80 of the Harmonized Tariff Schedule of the United 
     States but for the fact that the articles were 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 1 or more 
     beneficiary sub-Saharan African countries from fabric wholly 
     formed in the United States from yarns wholly formed in the 
     United States, if such articles are assembled in 1 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 1 or more 
     beneficiary sub-Saharan African countries from fabric wholly 
     formed in 1 or more beneficiary sub-Saharan African countries 
     from yarn originating either in the United States or 1 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 7 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

[[Page H2517]]

     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 1 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 1 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 1 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 1 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 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 1 
     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.--

[[Page H2518]]

       (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 4 
     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 1 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 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.

[[Page H2519]]

       (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 Congress.--It is the sense of 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.--1 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 the 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 the 
     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 Congress.--It is the sense of 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 U.S. 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 8 countries. By early 1997, that 
     presence had been reduced by half to 7 professionals in only 
     4 countries.
       (3) Since 1997, the Department of Commerce has slowly begun 
     to increase the presence of the Commercial Service in sub-
     Saharan Africa, adding 5 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 U.S. 
     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

[[Page H2520]]

     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 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) 83 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

[[Page H2521]]

     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 a cbtpa beneficiary 
     country.--Apparel articles assembled in a CBTPA beneficiary 
     country from fabrics wholly formed and cut in the United 
     States, from yarns wholly formed in the United States, that 
     are--

       ``(I) entered under subheading 9802.00.80 of the HTS; or
       ``(II) entered under chapter 61 or 62 of the HTS, if, after 
     such assembly, the articles would have qualified for entry 
     under subheading 9802.00.80 of the HTS but for the fact that 
     the articles were 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 a CBTPA 
     beneficiary country from fabric wholly formed in the United 
     States from yarns wholly formed in the United States, if such 
     articles are assembled in such country with thread formed in 
     the United States.
       ``(iii) 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 1 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, 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 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 occuring aftr 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 1 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 6 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 fibers, fabric, 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 1 or more CBTPA beneficiary 
     countries, from fibers, fabric, or yarn that is not formed in 
     the United States or in 1 or more CBTPA beneficiary 
     countries, to the extent that such fibers, fabric, or yarn 
     would be eligible for preferential treatment, without regard 
     to the source of the fibers, fabric, or yarn, under Annex 401 
     of the NAFTA.

[[Page H2522]]

       ``(II) At the request of any interested party, the 
     President is authorized to proclaim additional fibers, 
     fabric, and yarn as eligible for preferential treatment under 
     subclause (I) if--

       ``(aa) the President determines that such fibers, fabric, 
     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 1 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 entered 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.

       ``(vii) 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.

[[Page H2523]]

       ``(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 1 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.

[[Page H2524]]

     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. 214. 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. 215. 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 
     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 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 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:

Date of entry
January 16, 1996.......................................................
February 13, 1996......................................................
November 25, 1996......................................................
December 2, 1996.......................................................
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

[[Page H2525]]

     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 2 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 2 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 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 
     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--

[[Page H2526]]

       (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 Congress.--It is the sense of 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 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 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)(A), (B), and (C))''.
       (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:

[[Page H2527]]



``     9902.51.11      Fabrics, of         19.3%        No change         No change         On or before 12/
                        worsted wool,                                                        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
                        subheadings
                        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 12/
                        worsted wool,                                                        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
                        subheadings
                        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 12/
                        wool, not put up                                                     31/2003
                        for retail sale,
                        containing 85
                        percent or more
                        by weight of
                        wool, of 64's and
                        linen worsted
                        wool count wool
                        yarn 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, waste,  Free         No change         No change         On or before 12/
                        garnetted stock,                                                     31/2003
                        combed wool, or
                        wool top, having
                        average fiber
                        diameters of 18.5
                        micron or less
                        (provided for in
                        subheadings
                        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.

[[Page H2528]]

       (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--
       (A) 1,000,000 square meter equivalents for worsted wool 
     fabrics under heading 9902.51.11; and
       (B) 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 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 
     (hereinafter 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.

[[Page H2529]]

     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 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 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 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 enactment of this Act.
       And the Senate agree to the same.
       That the House recede from its disagreement to the 
     amendment of the Senate to the title of the bill and agree to 
     the same.
     From the Committee on International Relations, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committed to conference:
     Benjamin A. Gilman,
     Edward R. Royce,
     Sam Gejdenson,
     From the Committee on Ways and Means, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:
     Bill Archer,
     Phil Crane,
     Charles B. Rangel,
     As additional conferees, for consideration of the House bill 
     and the Senate amendment, and modifications committed to 
     conference:
     Amo Houghton,
     Joe Hoeffel,
                                Managers on the Part of the House.

     W.V. Roth, Jr.,
     Chuck Grassley,
     Trent Lott,
     Daniel P. Moynihan,
     Max Baucus,
     Joe Biden,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendments of the Senate to the bill (H.R. 434), to authorize 
     a new trade and investment policy for sub-Sahara Africa, 
     submit the following joint statement to the House and the 
     Senate in explanation of the effect of the action agreed upon 
     by the managers and recommended in the accompanying 
     conference report:
       The Senate amendment to the text of the bill struck all of 
     the House bill after the enacting clause and inserted a 
     substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clerical 
     changes.

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

            Subtitle A--Trade Policy for Sub-Saharan Africa


                         Sec. 101. Short Title

     Present law
       No provision.
     House bill
       Section 1 of the House bill states that this Act may be 
     cited as the ``African Growth and Opportunity Act.''
     Senate amendment
       Section 101 of the Senate amendment states that this title 
     may be cited as the ``African Growth and Opportunity Act.''
     Conference agreement
       The conference agreement provides that title I of the bill 
     may be referred to as the African Growth and Opportunity Act.


                           sec. 102. findings

     Present law
       No provision.
     House bill
       In section 2 of the House bill, Congress finds that it is 
     in the mutual economic interest of the United States and 
     countries of sub-Saharan Africa to promote stable and 
     sustainable economic growth and development in sub-Saharan 
     Africa and that sustained economic growth in sub-Saharan 
     Africa depends in large measure upon the development of a 
     receptive environment for trade and investment. To that end, 
     the United States seeks to facilitate market-led economic 
     growth in, and thereby the social and economic development 
     of, countries in sub-Saharan Africa. In particular, the 
     United States seeks to assist sub-Saharan African countries, 
     and the private sector in those countries, to achieve 
     economic self-reliance by:
       (1) strengthening and expanding the private sector in sub-
     Saharan Africa, especially women owned businesses;
       (2) encouraging increased trade and investment between the 
     U.S. and sub-Saharan Africa;
       (3) reducing tariff and nontariff barriers and other trade 
     obstacles;
       (4) expanding U.S. assistance to sub-Saharan Africa's 
     regional integration efforts;
       (5) negotiating free trade areas;
       (6) establishing a United States-Sub-Saharan Africa Trade 
     and Investment Partnership;
       (7) focusing on countries committed to accountable 
     government, economic reform, and the eradication of poverty;
       (8) establishing a United States-Sub Saharan Africa 
     Economic Cooperation Forum; and
       (9) continuing to support development assistance for 
     countries in sub-Saharan Africa attempting to build civil 
     societies.
     Senate amendment
       In section 102 of the Senate amendment, Congress finds 
     that:
       (1) it is in the mutual interest of the United States and 
     the countries of sub-Saharan Africa to promote stable and 
     sustainable economic growth and development in sub-Saharan 
     Africa;
       (2) the 48 countries of sub-Saharan Africa form a region 
     richly endowed with both natural and human resources;
       (3) sub-Saharan Africa represents a region of enormous 
     economic potential and of enduring political significance to 
     the United States;
       (4) the region has experienced a rise in both economic 
     development and political freedom as countries in sub-Saharan 
     Africa have taken steps toward liberalizing their economies 
     and encouraged broader participation in the political 
     process;
       (5) the countries of sub-Saharan Africa have made progress 
     toward regional economic integration that can have positive 
     benefits for the region;
       (6) despite those gains, the per capita income in sub-
     Saharan Africa averages less than $500 annually;
       (7) U.S. foreign direct investment in the region has fallen 
     in recent years and the sub-Saharan African region receives 
     only minor inflows of direct investment from around the 
     world;
       (8) trade between the United States and sub-Saharan Africa 
     remains, apart from the import of oil, an insignificant part 
     of total U.S. trade;
       (9) trade and investment, as the American experience has 
     shown, can represent powerful tools both for economic 
     development and for building a stable political environment 
     in which political freedom can flourish;
       (10) increased trade and investment flows have the greatest 
     impact in an economic environment in which trading partners 
     eliminate barriers to trade and capital flows and encourage 
     the development of a vibrant private sector that offers 
     individual African citizens the freedom to expand their 
     economic opportunities and provide for their families;
       (11) offering the countries of sub-Saharan Africa enhanced 
     trade preferences will encourage both higher levels of trade 
     and direct investment in support of the positive economic and 
     political developments under way throughout the region; and
       (12) encouraging the reciprocal reduction of trade and 
     investment barriers in Africa will enhance the benefits of 
     trade and investment for the region as well as enhance 
     commercial and political ties between the United States and 
     sub-Saharan Africa.

[[Page H2530]]

     Conference agreement
       The House recedes to the Senate except to delete certain 
     findings related to the decline in foreign direct investment 
     in sub-Saharan Africa and the low levels of U.S. trade with 
     sub-Saharan Africa. In addition, the conference agreement 
     clarifies the findings related to the political and economic 
     development.


                     Sec. 103. Statement of Policy

     Present law
       No provision.
     House bill
       In section 3 of the House bill, Congress supports economic 
     self-reliance for sub-Saharan African countries, particularly 
     those committed to economic and political reform; market 
     incentives and private sector growth; the eradication of 
     poverty; and the importance of women to economic growth and 
     development.
     Senate amendment
       Section 103 of the Senate amendment states the support of 
     the Congress for:
       (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 U.S. trade;
       (3) expanding U.S. 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 countries in sub-Saharan Africa;
       (5) focusing on countries committed to accountable 
     government, economic reform, and the eradication of poverty;
       (6) strengthening and expanding the private sector in sub-
     Saharan Africa;
       (7) supporting the development of civil societies and 
     political freedom in sub-Saharan Africa; and
       (8) establishing a United States-Sub-Saharan African 
     Economic Cooperation Forum.
       In section 717 of the Senate amendment, Congress makes the 
     following:
       (1) Corruption and bribery of public officials is a major 
     problem in many African countries and represents a serious 
     threat to the development of a functioning domestic private 
     sector, to United States business and trade interests, and to 
     prospects for democracy and good governance in African 
     countries.
       (2) Of the 17 countries in sub-Saharan Africa rated by the 
     international watchdog group, Transparency International, as 
     part of the 1998 Corruption Perception Index, 13 ranked in 
     the bottom half.
       (3) The Organization for Economic Cooperation and 
     Development (OECD) Convention on Combating Bribery of Foreign 
     Public Officials in International Business Transactions, 
     which has been signed by all 29 members of the OECD plus 
     Argentina, Brazil, Bulgaria, Chile, and the Slovak Republic 
     and which entered into force on February 15, 1999, represents 
     a significant step in the elimination of bribery and 
     corruption in international commerce.
       (4) As a party to the OECD Convention on Combating Bribery 
     of Foreign Public Officials in International Business 
     Transactions, the United States should encourage the highest 
     standards possible with respect to bribery and corruption.
       Section 717 of the Senate amendment expresses the sense of 
     Congress that the United States should encourage at every 
     opportunity the accession of sub-Saharan African countries, 
     as defined in section 104, to the OECD Convention on 
     Combating Bribery of Foreign Public Officials in 
     International Business Transactions.
     Conference agreement
       The House recedes to the Senate with the addition of 
     language from the House bill related to the importance of 
     small businesses and women owned enterprises in strengthening 
     and expanding the private sector in sub-Saharan Africa. In 
     addition, the conference agreement includes a new policy 
     statement, based on section 717 of the Senate bill, 
     expressing Congressional support for the accession of 
     countries in sub-Saharan Africa to the Convention on 
     Combating Bribery of Foreign Public Officials in 
     International Business Transactions of the Organization for 
Economic Cooperation and Development.


                   Sec. 104. Eligibility Requirements

     Present law
       Title V of the Trade Act of 1974 grants authority to the 
     President under the Generalized System of Preferences (GSP) 
     program to provide duty-free treatment on imports of eligible 
     articles from beneficiary developing countries (BDC), which 
     meet specific eligibility criteria.
     House bill
       Section 4 of the House bill states that a sub-Saharan 
     African country shall be eligible to participate in programs, 
     projects, or activities, or receive assistance or other 
     benefits under this Act if the President determines that the 
     country does not engage in gross violations of 
     internationally recognized human rights and has established, 
     or is making continual progress toward establishing, a market 
     economy, such as the establishment and enforcement of 
     appropriate policies relating to:
       (1) promoting free movement of goods and services between 
     the United States and sub-Saharan Africa and among countries 
     in sub-Saharan Africa;
       (2) promoting the expansion of the production base and the 
     transformation of commodities and nontraditional products for 
     export through joint venture projects between African and 
     foreign investors;
       (3) trade issues, such as the protection of intellectual 
     property rights, improvements in standards, testing, labeling 
     and certification, and government procurement;
       (4) the protection of property rights, such as protection 
     against expropriation and a functioning and fair judicial 
     system;
       (5) the 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;
       (6) appropriate fiscal systems, such as reducing high 
     import and corporate taxes, controlling government 
     consumption, participation in bilateral investment treaties, 
     and the harmonization of such treaties to avoid double 
     taxation;
       (7) foreign investment issues, such as the provision of 
     national treatment for foreign investors, removing 
     restrictions on investment, and other measures to create an 
     environment conducive to domestic and foreign investment;
       (8) supporting the growth of regional markets within a free 
     trade area framework;
       (9) governance issues, such as eliminating government 
     corruption, minimizing government intervention in the market 
     such as price controls and subsidies, and streamlining the 
     business license process;
       (10) supporting the growth of the private sector, in 
     particular by promoting the emergence of a new generation of 
     African entrepreneurs;
       (11) encouraging the private ownership of government-
     controlled economic enterprises through divestiture programs; 
     and
       (12) observing the rule of law, including equal protection 
     under the law and the right to due process and a fair trial.
       In determining whether a sub-Saharan African country is 
     eligible under this section, the President shall take into 
     account the following factors:
       (1) an expression by a country of its desire to be an 
     eligible country;
       (2) the extent to which a country has made substantial 
     progress toward reducing tariff levels, binding its tariffs 
     in the World Trade Organization (WTO) and assuming meaningful 
     binding obligations in other sectors of trade, and 
     eliminating nontariff barriers to trade;
       (3) whether such country, if not already a member of the 
     WTO, is actively pursuing membership in that organization;
       (4) the extent to which such country has a recognizable 
     commitment to reducing poverty, increasing the availability 
     of health care and educational opportunities, the expansion 
     of physical infrastructure in a manner designed to maximize 
     accessibility, increased access to market and credit 
     facilities for small farmers and producers, and improved 
     economic opportunities for women as entrepreneurs and 
     employees, and promoting and enabling the formation of 
     capital to support the establishment and operation of micro-
     enterprises;
       (5) whether or not such country engages in activities that 
     undermine U.S. national security or foreign policy interests.
       The President shall monitor and review the progress of sub-
     Saharan African countries in order to determine their current 
     or potential eligibility to participate in this Act. Such 
     determinations shall be based on quantitative factors to the 
     fullest extent possible and shall be included in the annual 
     report requested by section 15 of this Act.
       A sub-Saharan African country that has not made continual 
     progress in meeting the requirements with which it is not in 
     compliance shall be ineligible to participate in programs, 
     projects, or activities, or receive assistance or other 
     benefits, under this Act.
     Senate amendment
       Section 111 of the Senate amendment amends title V of the 
     Trade Act of 1974 by inserting after section 506 a new 
     section 506A on the ``Designation of sub-Saharan African 
     countries for certain benefits.''
       Notwithstanding any other provision of law, the President 
     is authorized to designate a sub-Saharan African country 
     eligible for the enhanced GSP benefits, if the President 
     determines that the country:
       (A) has established, or is making continual progress toward 
     establishing:
       (i) a market-based economy, where private property rights 
     are protected and the principles of an open, rules-based 
     trading system are observed;
       (ii) a democratic society, where the rule of law, political 
     freedom, participatory democracy, and the right to due 
     process and a fair trial are observed;
       (iii) an open trading system through the elimination of 
     barriers to United States trade and investment and the 
     resolution of bilateral trade and investment disputes;
       (iv) economic policies to reduce poverty, increase the 
     availability of health care and educational opportunities, 
     expand physical infrastructure, and promote the establishment 
     of private enterprise; and
       (v) a system to combat corruption and bribery, such as 
     signing the Convention on Combating Bribery of Foreign Public 
     Officials in International Business Transactions.
       (B) does not engage in gross violations of internationally 
     recognized human rights or

[[Page H2531]]

     provide support for acts of international terrorism and 
     cooperates in international efforts to eliminate human rights 
     violations and terrorist activities; and
       (C) subject to the authority granted to the President under 
     the GSP program, otherwise satisfies the GSP eligibility 
     criteria.
       The President shall monitor and review the progress of each 
     sub-Saharan African country in meeting these eligibility 
     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. The 
     President shall include the reasons for the determinations in 
     the annual report required by section 115 of this title.
       If the President determines that a beneficiary sub-Saharan 
     African country is not making continual progress in meeting 
     the eligibility requirements, the President shall terminate 
     the designation of that country as a beneficiary sub-Saharan 
     African country for purposes of this section, effective 
     January 1 of the year following the year in which such 
     determination is made.
     Conference agreement
       The conference agreement authorizes the President to 
     designate a sub-Saharan African country that meets the 
     eligibility criteria as eligible for the economic development 
     related provisions in subtitle C. The eligibility criteria as 
     in effect on the date of enactment apply to the trade 
     benefits through an amendment to the Trade Act of 1974 
     included in subtitle B.
       The eligibility criteria as contained in the conference 
     report reflect the Senate provisions, with the addition of 
     criteria from the House bill on the protection of 
     internationally recognized worker rights and the prohibition 
     on the designation of countries as eligible under this Act 
     that engage in activities that undermine U.S. national 
     security or foreign policy interests. In addition, the 
     conference agreement incorporates elements from the House 
     bill on the provision of national treatment and measures to 
     create an environment conducive to domestic and foreign 
     investment; minimizing government interference in the economy 
     through price controls, subsidies, and government ownership 
     of economic assets; the protection of intellectual property; 
     and the importance of micro-credit to the formation of 
     capital markets.
       The section also stipulates that the President shall 
     terminate the eligibility for preferential treatment under 
     this Act for any sub-Saharan African country that is making 
     continual progress in meeting the eligibility requirements.
       The eligibility criteria are designed to identify sub-
     Saharan countries that are creating a climate conducive to 
     greater levels of trade and investment, and with which the 
     U.S. can build a growing economic partnership. While this 
     section is designed to afford flexibility in this 
     identification, and while the conferees have no target number 
     of participants, it is clear that several sub-Saharan African 
     countries unfortunately have in place policies that would not 
     qualify them from accessing the benefits of the bill. These 
     are sub-Saharan African countries that discourage trade and 
     investment. The conferees note that the eligibility criteria 
     are similar to those USAID uses to allocate development 
     assistance among African countries.
       The conferees urge the President to make determinations 
     regarding country eligibility as soon as practicable.


     sec. 105. united states-sub-saharan africa trade and economic 
                           cooperation forum

     Present law
       No provision.
     House bill
       Section 5 of the House bill requires the President to 
     convene annual high-level meetings between appropriate 
     officials of the U.S. government and the governments of sub-
     Saharan African countries in order to foster closer economic 
     ties. Not later than 12 months after enactment, the section 
     requires the President, after consulting with Congress and 
     the governments concerned, shall establish a United States-
     Sub-Saharan Africa Trade and Economic Cooperation Forum.
       In creating the Forum, the President shall:
       (1) direct the Secretaries of Commerce, the Treasury, 
     State, and the United States Trade Representative (USTR) to 
     host the first annual meeting with their counterparts from 
     eligible sub-Saharan African countries, the Secretary General 
     of the Organization of African Unity, and government 
     officials from other appropriate countries in Africa to 
     discuss expanding trade and investment relations between the 
     United States and sub-Saharan Africa and the implementation 
     of this Act;
       (2) in consultation with Congress, encourage U.S. non-
     governmental organizations (NGOs) and representatives of the 
     private sector to host annual meetings with their respective 
     counterparts from sub-Saharan Africa in conjunction with the 
     annual meetings of the Forum; and
       (3) to the extent practicable, meet with the heads of 
     government of eligible sub-Saharan African countries no less 
     than once every 2 years. The first meeting should take place 
     not later than 12 months after enactment.
       In order to assist in carrying out the purposes of the 
     Forum, the United States Information Agency shall disseminate 
     regularly, through multiple media, economic information in 
     support of the free market economic reforms described in this 
     Act.
       The provision authorizes such sums as may be necessary to 
     carry out this section. None of the funds authorized under 
     this section may be used to create or support any NGO for the 
     purpose of expanding or facilitating trade between the United 
     States and sub-Saharan Africa.
     Senate amendment
       Section 113 of the Senate amendment requires the President 
     to convene annual meetings between senior officials of the 
     U.S. 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. Not 
     later than 12 months after the date of enactment, the 
     President, after consulting with the officials of interested 
     sub-Saharan African governments, shall establish a United 
     States-Sub-Saharan African Trade and Economic Cooperation 
     Forum.
       In creating the Forum, the President shall:
       (1) direct the Secretaries of Commerce, the Treasury, 
     State, and the USTR to invite their counterparts from 
     interested sub-Saharan African governments and 
     representatives of appropriate regional organizations to 
     participate in the first annual meeting to discuss expanding 
     trade and investment relations between the United States and 
     sub-Saharan Africa;
       (2) in consultation with Congress, invite U.S. NGOs and 
     private sector representatives to host meetings with their 
     respective counterparts from sub-Saharan Africa in 
     conjunction with meetings of the Forum to discuss expanding 
     trade and investment relations between the United States and 
     sub-Saharan Africa;
       (3) as soon as practicable after enactment, meet with the 
     heads of the governments of interested sub-Saharan African 
     countries for the purpose of discussing the issues described 
     in paragraph 1.
       In selecting issues of common interest to the United 
     States-Sub-Saharan African Trade and Economic Cooperation 
     Forum, section 706 of the Senate amendment requires the 
     President to instruct the U.S. 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 human and social development in each 
     country.
     Conference agreement
       In order to expand U.S. trade and investment relations with 
     sub-Saharan Africa and achieve the goals of the Act, the 
     conferees believe that it is important to foster a regular 
     dialogue between U.S. government officials and their 
     counterparts from sub-Saharan African countries. Therefore, 
     the legislation establishes a yearly forum at the Ministerial 
     level to facilitate these discussions. The conferees also 
     believe that it would help to promote the goals of this Act 
     if the President, to the extent practicable, met with the 
     heads of state of sub-Saharan African governments not less 
     than once every two years.
       With respect to the countries eligible to participate in 
     the Forum and the heads of state meeting to discuss expanding 
     trade and investment relations between the United States and 
     sub-Saharan Africa and the implementation of this title, the 
     Senate recedes to the House with a modification to permit 
     participation by countries that the President determines are 
     taking substantial positive steps towards meeting the 
     eligibility requirements set forth in section 104 of the Act 
     (as well as countries that are found eligible under section 
     104). The conferees expect the Administration to interpret 
     this provision narrowly to allow as Forum participants only 
     those countries that are undertaking substantial, positive 
     reforms, although they may not satisfy all of the eligibility 
     requirements. In addition, the conference agreement directs 
     the Administration to invite to the Forum appropriate 
     representatives of sub-Saharan African regional 
     organizations, and government officials from other 
     appropriate countries in sub-Saharan Africa.
       In addition, the conference agreement requires the 
     President to encourage NGOs and representatives of the 
     private sector to host annual meetings with their respective 
     counterparts from sub-Saharan Africa in conjunction with the 
     annual meetings of the Forum. The conferees observe that 
     there is no precedent of using taxpayer funds to facilitate 
     such meetings in conjunction with other multilateral fora and 
     do not intend that taxpayer funds should be used in this 
     instance.
       The conference agreement updates the reference to the 
     United States Information Agency from the House bill to the 
     United States Information Service.
       The conference agreement also includes the language from 
     section 706 of the Senate amendment requiring the President 
     to direct the U.S. delegates at the Forum to promote a review 
     by the Forum on the HIV/AIDS epidemic in sub-Saharan Africa 
     and the effect of the HIV/AIDS epidemic on the economic 
     development of each country in sub-Saharan Africa.


                    Sec. 106. Reporting Requirement

     Present law
       Section 134(b) of the Uruguay Round Agreements Act requires 
     the President to submit five annual reports to Congress on 
     his ``Comprehensive Trade and Development Policy for 
     Countries in Africa.'' The President's fifth and final report 
     was submitted in January 2000.
     House bill
       Section 15 of the House bill requires the President to 
     submit to Congress, not later

[[Page H2532]]

     than 1 year after enactment and for 6 years thereafter, a 
     comprehensive report on the trade and investment policy of 
     the United States for sub-Saharan Africa, and on the 
     implementation of this Act. The last report required by 
     section 134(b) of the Uruguay Round Agreements Act shall be 
     consolidated and submitted with the first report required by 
     this section.
     Senate amendment
       Section 115 of the Senate amendment requires the President 
     to submit a report to Congress on the implementation of this 
     title not later than 1 year after the date of enactment of 
     this Act, and annually thereafter for 4 years.
     Conference agreement
       The conference agreement reflects House language requiring 
     annual Presidential reports for 8 years on the trade and 
     investment policy of the United States toward sub-Saharan 
     Africa and on the implementation of this title, but strikes 
     the language on the consolidation of the final report 
     required by the Uruguay Round Agreements Act. This report was 
     submitted to Congress in January 2000.


                  Sec. 107. Sub-Saharan Africa Defined

     Present law
       No provision.
     House bill
       Section 16 of the House bill defines the terms `sub-Saharan 
     Africa', `sub-Saharan African country', `country in sub-
     Saharan Africa', and `countries in sub-Saharan Africa' for 
     the purposes of this Act as referring to the following or any 
     successor political entities:
       Republic of Angola (Angola), Republic of Botswana 
     (Botswana), Republic of Burundi (Burundi), Republic of Cape 
     Verde (Cape Verde), Republic of Chad (Chad), Democratic 
     Republic of Congo, Republic of the Congo (Congo), Republic of 
     Djibouti (Djibouti), State of Eritrea (Eritrea), Gabonese 
     Republic (Gabon), Republic of Ghana (Ghana), Republic of 
     Guinea-Bissau (Guinea-Bissau), Kingdom of Lesotho (Lesotho), 
     Republic of Madagascar (Madagascar), Republic of Mali (Mali), 
     Republic of Mauritius (Mauritius), Republic of Namibia 
     (Namibia), Federal Republic of Nigeria (Nigeria), Democratic 
     Republic of Sao Tome and Principe (Sao Tome and Principe), 
     Republic of Sierra Leone (Sierra Leone), Somalia, Kingdom of 
     Swaziland (Swaziland), Republic of Togo (Togo), Republic of 
     Zimbabwe (Zimbabwe), Republic of Benin (Benin), Burkina Faso 
     (Burkina), Republic of Cameroon (Cameroon), Central African 
     Republic, Federal Islamic Republic of the Comoros (Comoros), 
     Republic of Cote d'Ivoire (Cote d'Ivoire), Republic of 
     Equatorial Guinea (Equatorial Guinea), Ethiopia, Republic of 
     the Gambia (Gambia), Republic of Guinea (Guinea), Republic of 
     Kenya (Kenya), Republic of Liberia (Liberia), Republic of 
     Malawi (Malawi), Islamic Republic of Mauritania (Mauritania), 
     Republic of Mozambique (Mozambique), Republic of Niger 
     (Niger), Republic of Rwanda (Rwanda), Republic of Senegal 
     (Senegal), Republic of Seychelles (Seychelles), Republic of 
     South Africa (South Africa), Republic of Sudan (Sudan), 
     United Republic of Tanzania (Tanzania), Republic of Uganda 
     (Uganda), Republic of Zambia (Zambia).
     Senate amendment
       Section 104 of the Senate amendment is identical to the 
     House bill provision except for the exclusion of the language 
     applying the definition to any successor political entities.
     Conference agreement
       The conference agreement includes the language from the 
     House bill permitting the designation of successor political 
     entities of the countries listed for benefits under this 
     title. In addition, the conference agreement arranges the 
     list of countries in alphabetical order.

                      Subtitle B--Trade Provisions


               Sec. 111. Eligibility for Certain Benefits

     Present law
       Title V of the Trade Act of 1974, as amended, grants 
     authority to the President to provide duty-free treatment on 
     imports of eligible articles from beneficiary developing 
     countries (BDC). Under section 503(a)(1), the President may 
     not designate any article as GSP eligible within the 
     following categories:
       (1) textiles and apparel articles which were not eligible 
     articles for purposes of this title on January 1, 1994;
       (2) watches, except watches entered after June 30, 1989 
     that the President determines will not cause material injury 
     to watch or watch band, strap, or bracelet manufacturing and 
     assembly operations in the United States or U.S. insular 
     possessions;
       (3) import-sensitive electronic articles;
       (4) import-sensitive steel articles;
       (5) footwear, handbags, luggage, flat goods, work gloves, 
     and leather wearing apparel which were not GSP eligible 
     articles on January 1, 1995;
       (6) import-sensitive semimanufactured and manufactured 
     glass products; and,
       (7) any other articles the President determines to be 
     import-sensitive in the context of GSP.
       Under section 502(a)(2), the President is authorized to 
     designate any article that is the growth, product, or 
     manufacture of a least developed developing country (LDDC) as 
     an eligible article with respect to imports from LDDCs, if 
     the President determines such article is not import-sensitive 
     in the context of imports from LDDCs. This authority does not 
     apply to statutorily exempt articles listed under paragraphs 
     (1), (2) , and (5) above.
       Under section 503(b)(3), no quantity of an agricultural 
     product subject to a tariff-rate quota that exceeds the in-
     quota quantity is eligible for duty-free treatment.
       Under section 503(c)(2)(D), whenever the President 
     determines that exports by any BDC to the United States of a 
     GSP eligible article (1) exceed a dollar limit of $75 million 
     a year (a number which was set in 1996 and is indexed to 
     increase by $5 million annually), or (2) equal or exceed a 50 
     percent share of the total value of U.S. imports of the 
     article, then, not later than July 1 of the next year, such 
     country is not treated as a BDC with respect to such article.
       Under section 503(c)(2)(A), GSP duty-free treatment applies 
     to any eligible article which is the growth, product or 
     manufacture of a BDC if: (1) that article is imported 
     directly from a BDC into the U.S. customs territory; and, (2) 
     the sum of (a) the cost or value of the materials produced in 
     the BDC or member countries in an association which is 
     treated as one BDC, plus (b) the direct costs of processing 
     operations performed in such BDC or member countries is not 
     less than 35 percent of the value of the article.
       Under section 505, no duty-free treatment shall remain in 
     effect after September 30, 2001.
     House bill
       In order to receive extended and enhanced GSP benefits 
     under the House bill, sub-Saharan African countries must meet 
     all of the criteria in current law regarding designation of 
     beneficiary developing countries and also the eligibility 
     requirements set forth in section 4 of H.R. 434. The existing 
     statutory GSP designation criteria include internationally 
     recognized worker rights, intellectual property rights, 
     compensation for property expropriation, and market access. 
     Section 8(a) of the House bill amends section 503(a)(1) of 
     the Trade Act of 1974 to authorize the President to grant 
     duty-free GSP treatment for products from eligible African 
     GSP beneficiary countries that are currently excluded from 
     the GSP program, if, after receiving advice from the 
     International Trade Commission, he determines that imports of 
     these products are not import sensitive in the context of 
     imports from sub-Saharan African countries. Opportunities for 
     public comment would be provided in making this 
     determination.
       The House bill does not change the rule of origin 
     requirements under current law for GSP duty-free treatment on 
     any currently eligible or any additional products, including 
     textiles and apparel.
       With respect to the second required test of value content, 
     section 8(b) of the House bill amends section 503(a)(2) of 
     the Trade Act of 1974 to allow up to 15 percent of the total 
     value of the article from U.S.-made materials to count toward 
     the 35 percent local value requirement for duty-free entry 
     under the GSP program. In order to encourage regional 
     economic integration in Africa, the bill provides that the 
     minimum 35 percent local value content may be cumulated in 
     any eligible sub-Saharan African country.
       Section 8(c) amends section 503(c)(2)(D) of the Trade Act 
     of 1974 to stipulate that the competitive need limits do not 
     apply to imports from eligible countries in sub-Saharan 
     Africa.
       Section 8(d) amends section 505 of the Trade Act of 1974 to 
     extend the GSP program until June 30, 2009, for eligible 
     countries in sub-Saharan Africa.
       Section 8(f) establishes July 1, 1999 as the effective date 
     for the amendments made to the GSP program for sub-Saharan 
     Africa.
     Senate amendment
       Section 111 of the Senate amendment creates a new section 
     506A in the Trade Act of 1974, authorizing the President to 
     provide duty-free treatment for imports from beneficiary sub-
     Saharan African countries of any item, other than textiles or 
     apparel products or textile luggage, that is designated as 
     import sensitive under section 503(b)(1) of title V of the 
     Trade Act of 1974. A beneficiary sub-Saharan African country 
     is defined as those that meet the eligibility criteria under 
     GSP and the criteria added under the new section 506A of the 
     Trade Act of 1974. The general rules of origin governing 
     duty-free entry under the GSP program would continue to 
     apply, except that, in determining whether products are 
     eligible for the enhanced benefits of the bill, up to 15 
     percent of the appraised value of the article at the time of 
     importation may be derived from materials produced in the 
     United States. In addition, under the new section 506A, the 
     value of materials produced in any beneficiary sub-Saharan 
     African country may be applied in determining whether the 
     product meets the applicable rules of origin for purposes of 
     determining the eligibility of an article to receive the 
     duty-free treatment provided by this section. Section 111 
     also amends section 503(c)(2)(D) to waive permanently the 
     competitive need limits that would otherwise apply to 
     beneficiary sub-Saharan African countries.
       The new section 506A established by section 111 of the 
     Senate amendment also requires the President to monitor, and 
     report annually to Congress, on the progress the sub-Saharan 
     African countries have made in meeting the three categories 
     of eligibility criteria set forth. The new section 506A 
     requires the President to terminate the designation of a 
     country as a beneficiary sub-Saharan African country if that 
     country is

[[Page H2533]]

     not making continual progress in meeting the eligibility 
     requirements. Any such termination would be effective on 
     January 1 of the year following the year in which the 
     determination is made that the eligibility criteria are no 
     longer met.
       Section 111 of the Senate amendment sets as a termination 
     date for the duty-free treatment provided by this title as 
     September 30, 2006. It further includes a clerical amendment 
     to the table of contents in title V of the Trade Act of 1974 
     and sets the effective date for this title as October 1, 
     1999.
     Conference agreement
       The House recedes to the Senate on the creation of a new 
     section 506A in the Trade Act of 1974 for the ``Designation 
     of Sub-Saharan African Countries for Certain Benefits.'' The 
     provision incorporates the eligibility requirements in 
     section 107 as in effect on the date of enactment, as well as 
     the eligibility requirements in the GSP program, for 
     countries to receive the enhanced trade benefits under 
     subtitle B.


          Sec. 112. Treatment of Certain Textiles and Apparel

     Present law
       At present, textile and apparel articles are ineligible for 
     duty-free treatment under the GSP program. Normal trade 
     relations tariff rates apply to imports of textile and 
     apparel articles into the United States from sub-Saharan 
     Africa. Currently, only two countries in sub-Saharan Africa, 
     Kenya and Mauritius, are subject to quantitative restrictions 
     on the levels of textile and apparel articles that they can 
     export to the United States.
     House bill
       Section 4 of the House bill provides duty-free treatment 
     under the GSP program to textile and apparel articles from 
     eligible sub-Saharan African countries. Textile and apparel 
     products eligible for duty-free and quota-free treatment must 
     be substantially transformed in sub-Saharan Africa as 
     determined by the ``Breaux-Cardin'' rules of origin enacted 
     into law in 1994 (section 334 of P.L. 103 465). The rule of 
     origin remains that articles must be the growth, product, or 
     manufacture of an eligible country and also contain a minimum 
     35 percent local value. As under present law, processes such 
     as simple combining, packaging, or dilution would not 
     constitute substantial transformation to qualify an article 
     for trade benefits under this program. The article must also 
     be directly imported from a beneficiary country.
       Section 7(b) of the House bill expresses the sense of 
     Congress that:
       (1) It would be to the mutual benefit of the countries in 
     sub-Saharan Africa and the United States to ensure that the 
     commitments of the World Trade Organization are faithfully 
     implemented in each of the member countries;
       (2) Reform of trade policies in sub-Saharan Africa with the 
     objective of removing structural impediments to trade can 
     assist the countries of the region in achieving greater 
     diversification of textile and apparel export commodities and 
     products and export markets; and
       (3) The President should support textile and apparel trade 
     reform in sub-Saharan Africa by providing technical 
     assistance and encouraging business-to-business contacts with 
     the region.
       Section 7(c)(1) provides that, pursuant to the WTO 
     Agreement on Textiles and Clothing, the United States shall 
     eliminate the existing quotas on textile and apparel exports 
     to the United States from Kenya and Mauritius within 30 days 
     after these countries adopt an efficient visa system to guard 
     against unlawful transshipment of textile and apparel goods 
     and the use of counterfeit documents. The provision requires 
     the Customs Service to provide technical assistance to Kenya 
     and Mauritius in the development and implementation of visa 
     systems.
       Section 7(c)(2) requires the President to continue the 
     existing no quota policy for other countries in sub-Saharan 
     Africa.
       Section 7(d)(1) states that the President should ensure 
     that any sub-Saharan African country that intends to export 
     textile and apparel goods to the United States: 1) has in 
     place an effective visa system to guard against unlawful 
     transshipment of textile and apparel goods and the use of 
     counterfeit documents; and 2) will cooperate fully with the 
     United States to address and take action necessary to prevent 
     circumvention, as provided in Article 5 of the WTO Agreement 
     on Textiles and Clothing.
     Senate amendment
       Section 112 of the Senate amendment provides beneficiary 
     sub-Saharan African countries (as designated under the new 
     section 506A of the Trade Act of 1974 created by the Senate 
     amendment) with duty-free and quota-free access to the U.S. 
     market for certain textiles and apparel products. In order to 
     receive these benefits, a beneficiary sub-Saharan African 
     country must (1) adopt an effective and efficient visa system 
     to guard against unlawful transshipment of textile and 
     apparel products and the use of counterfeit documents; and 
     (2) enact legislation or regulations that would permit the 
     U.S. Customs Service to investigate thoroughly allegations of 
     transshipment through such country. Section 112 directs the 
     U.S. Customs Service to provide technical assistance to the 
     beneficiary sub-Saharan African countries in complying with 
     these two requirements.
       The benefits under section 112 of the Senate amendment are 
     available only for the following textile and apparel 
     products:
       (1) Apparel articles assembled in beneficiary sub-Saharan 
     African countries from fabrics wholly formed and cut in the 
     United States, from yarns wholly formed in the United States;
       (2) Apparel articles cut and assembled in beneficiary sub-
     Saharan African countries from fabric wholly formed in the 
     United States from yarns wholly formed in the United States, 
     and assembled with thread formed in the United States; and
       (3) Handloomed, handmade and folklore articles, that have 
     been certified as such by the competent authority in the 
     beneficiary sub-Saharan African country.
       The Senate intends that this new program of textile and 
     apparel benefits will be administered in a manner consistent 
     with the regulations that apply under the ``Special Access 
     Program'' for textile and apparel articles from Caribbean and 
     Andean Trade Preference Act countries, as described in 63 
     Fed. Reg. 16474-16476 (April 3, 1998). Thus, the requirement 
     that products must be assembled from fabric formed in the 
     United States applies to all textile components of the 
     assembled products, including linings and pocketing, subject 
     to the exceptions that currently apply under the ``Special 
     Access Program.''
       Section 112 also includes a safeguard measure, authorizing 
     the President to impose appropriate remedies, including 
     restrictions on or the removal of quota-free and duty-free 
     treatment, in the event that imports of textile and apparel 
     articles from a beneficiary sub-Saharan African country are 
     being imported in such increased quantities as to cause 
     serious damage, or actual threat of such damage, under the 
     WTO Agreement on Textile and Clothing.
     Conference agreement
       The conference agreement provides preferential treatment to 
     certain apparel articles imported from beneficiary sub-
     Saharan countries meeting the transhipment requirements set 
     forth in section 113.
       Duty-free and quota-free treatment is provided for the 
     following apparel articles:
       (1) 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;
       (2) apparel articles cut and assembled or knit-to-shape in 
     one or more beneficiary sub-Saharan African countries from 
     fabrics or yarns wholly formed and cut in the United States, 
     from yarns wholly formed in the United States and assembled 
     with thread formed in the United States;
       (3) knit-to-shape sweaters made from cashmere and fine 
     merino wool;
       (4) apparel articles wholly assembled in one or more 
     beneficiary sub-Saharan countries from fabrics not available 
     in commercial quantities in the United States (e.g., those 
     fabrics and yarns identified in Annex 401 of the NAFTA, which 
     include fine count cotton knitted fabrics for certain 
     apparel, linen, silk, cotton velveteen, fine wale corduroy, 
     Harris Tweed, certain woven fabrics made with animal hairs, 
     certain lightweight, high thread count poly-cotton woven 
     fabrics, and certain lightweight, high thread count 
     broadwoven fabrics used in the production of men's and boy's 
     shirts); and
       (5) certified handloomed, handmade and folklore articles.
       Certain other apparel articles would be free of duties and 
     of quantitative restrictions up to a specified level of 
     imports. The cap on preferential treatment is 1.5% of total 
     U.S. apparel imports (in square meter equivalents) for the 
     first year of the bill, growing in equal increments in each 
     of the seven succeeding one-year periods, to a maximum of 
     3.5% of U.S. apparel imports in the last year of the bill. 
     The following apparel articles are eligible for preferential 
     treatment under this cap:
       (1) for the first four years of the bill, apparel articles 
     wholly assembled in one or more lesser developed beneficiary 
     sub-Saharan African countries (defined as beneficiary sub-
     Saharan African countries with a 1998 per capita GNP of less 
     than $1500), without regard to the origin of the fabric; and
       (2) apparel articles wholly assembled in one or more 
     beneficiary sub-Saharan African countries from fabric wholly 
     formed in one or more beneficiary countries from yarn 
     originating either in the United States or in one or more 
     beneficiary sub-Saharan African countries (the country of 
     origin of the yarn is to be determined by the rules of origin 
     set forth in section 334 of the Uruguay Round Agreements 
     Act).
       The conferees intend that the Secretary of Commerce shall 
     determine and publish in the Federal Register in a timely 
     manner on an annual basis the level of apparel imports (in 
     square meter equivalents) eligible for duty-free treatment 
     under the cap described above for each one year period. The 
     conferees recognize that special program indicators will be 
     necessary to identify apparel articles qualifying for duty-
     free treatment under the cap. In addition, in order to 
     evaluate the trade liberalizing benefits provided under 
     section 112 of the bill, the conferees encourage special 
     program indicators to be created for all apparel articles 
     covered by the bill.
       The bill also provides that import relief in the form of a 
     tariff snapback shall be provided if the Secretary determines 
     that an article qualifying for duty-free treatment under the 
     cap from a single beneficiary sub-Saharan African country is 
     being imported in such increased quantities and under such 
     conditions as to cause ``serious damage, or threat thereof'' 
     to the domestic industry

[[Page H2534]]

     producing the like or directly competitive article. The 
     conference agreement directs the Secretary of Commerce to 
     conduct inquiries under this section. Under authority 
     delegated by Executive Order 11651, the Committee for the 
     Implementation of Textile Agreements currently supervises the 
     implementation of U.S. bilateral textile and apparel 
     agreements, including making determinations of market 
     disruption due to textile and apparel imports.
       Under the bill, the Secretary of Commerce will initiate an 
     inquiry to determine whether import relief is warranted if 
     there has been a surge in imports under the cap from a single 
     beneficiary sub-Saharan African country based on import data. 
     The Secretary of Commerce shall initiate an inquiry upon 
     written request by an interested party, when such request is 
     supported by sufficient evidence. The conferees intend the 
     inquiry into whether import relief is warranted to be open 
     and transparent. Key elements for ensuring an open and 
     transparent process include notice of initiation, opportunity 
     for a hearing open to interested parties (if requested), 
     opportunity for written submissions and responses, and a 
     written, published determination setting forth the reasoning 
     that justifies the determination. The conferees intend the 
     Secretary of Commerce to consider all relevant information 
     received from interested parties. Furthermore, the conferees 
     intend that when the Secretary of Commerce relies on 
     information that is not publicly available, that information 
     should be, to the extent practicable, corroborated with 
     reasonably available information.
       For purposes of this section, 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.
       The conference agreement also authorizes the President to 
     proclaim duty-free and quota-free treatment for fabrics and 
     yarns not available in the United States, in addition to 
     those fabrics and yarns already listed in Annex 401 of the 
     NAFTA. Any interested party may request the President to 
     consider such treatment for additional fabrics and yarns. The 
     requesting party will bear the burden of demonstrating that a 
     change is warranted by providing sufficient evidence. The 
     President must make a determination within 60 calendar days 
     of receiving a request from an interested party.
       The Senate recedes to the House on the elimination of 
     existing quotas on textile and apparel articles imported into 
     the United States from Kenya and Mauritius.
       With regards to findings and trimmings, the conference 
     agreement states that an article eligible for preferential 
     treatment under section 112 of the bill 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 article. For most apparel 
     imports, findings and trimmings include sewing thread, hooks 
     and eyes, snaps, buttons, ``bow buds'', decorative lace trim, 
     elastic strips, and zippers, including zipper tapes, labels, 
     and certain elastic strips. However, for apparel articles cut 
     and 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, sewing 
     thread is not included in the findings or trimmings 
     exception.
       The conference agreement also provides that certain 
     interlinings are eligible for treatment as findings and 
     trimmings. The treatment of interlinings above shall 
     be terminated if the President determines that U.S. 
     manufacturers are providing such interlinings in the 
     United States in commercial quantities.
       The conference agreement further provides that an article 
     otherwise eligible for preferential treatment under section 
     112 shall not be ineligible for such treatment because the 
     article contains fibers or yarns not wholly formed in the 
     United States or 1 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.


              Sec. 113. Protections Against Transshipment

     Present law
       The Tariff Act of 1930, as amended, provides for civil 
     monetary penalties for unlawful transshipment. These include 
     penalties under section 1592 for up to a maximum of the 
     domestic value of the imported merchandise or eight times the 
     loss of revenue, as well as denial of entry, redelivery or 
     liquidated damages for failure to redeliver the merchandise 
     determined to be inaccurately represented. In addition, an 
     importer may be liable for criminal penalties, including 
     imprisonment for up to five years, under section 1001 of 
     title 18 of the United States Code for making false 
     statements on import documentation.
     House bill
       Section 7(c)(1) provides that, pursuant to the WTO 
     Agreement on Textiles and Clothing, the United States shall 
     eliminate the existing quotas on textile and apparel exports 
     to the United States from Kenya and Mauritius within 30 days 
     after these countries adopt an efficient visa system to guard 
     against unlawful transshipment of textile and apparel goods 
     and the use of counterfeit documents. The provision requires 
     the Customs Service to provide technical assistance to Kenya 
     and Mauritius in the development and implementation of visa 
     systems.
       Section 7(c)(2) requires the President to: (1) continue the 
     existing no quota policy for other countries in sub-Saharan 
     Africa; and (2) submit a report to Congress by March 31 of 
     each year concerning the growth in textiles and apparel 
     exports to the United States from countries in sub-Saharan 
     Africa in order to protect United States consumers, workers, 
     and textile manufacturers from economic injury due to the no 
     quota policy.
       Section 7(d)(1) states that the President should ensure 
     that any sub-Saharan African country that intends to export 
     textile and apparel goods to the United States: (1) has in 
     place an effective visa system to guard against unlawful 
     transshipment of textile and apparel goods and the use of 
     counterfeit documents; and (2) will cooperate fully with the 
     United States to address and take action necessary to prevent 
     circumvention, as provided in Article 5 of the WTO Agreement 
     on Textiles and Clothing.
       Section 7(d)(2) requires the President to impose penalties 
     by denying an exporter, or any of its successors, duty-free 
     treatment under this section for textile and apparel articles 
     for a period of two years if the President determines, based 
     on sufficient evidence, that the exporter has willfully 
     falsified information regarding the country of origin, 
     manufacture, processing, or assembly of a textile or apparel 
     article for which duty-free treatment under the GSP program 
     is claimed.
       Section 7(d)(3) underscores that all provisions of the 
     laws, regulations, and procedures of the United States 
     relating to the denial of entry of articles or penalties 
     against individuals or entities for engaging in illegal 
     transshipment, fraud, or other violations of the customs laws 
     shall apply to imports from sub-Saharan countries.
       In order to facilitate close monitoring by the 
     Administration and expanded oversight by the Committee, 
     section 7(d)(4) requires that the Customs Service submit to 
     the Congress, by not later than March 31 of each year, a 
     report on the effectiveness of visa systems required of Kenya 
     and Mauritius and other countries that intend to export 
     textiles and apparel products to the United States, and on 
     measures taken by countries in sub-Saharan Africa to prevent 
     circumvention as described in Article 5 of the WTO Agreement 
     on Textiles and Clothing.
     Senate amendment
       Section 112(a) of the Senate amendment provides that the 
     preferential treatment accorded to imports of textiles and 
     apparel shall only be extended to beneficiary sub-Saharan 
     African countries that adopt an efficient visa system to 
     guard against transshipment and the use of counterfeit 
     documents, and enact legislation or promulgate regulations to 
     permit transshipment investigations by the U.S. Customs 
     Service.
       Section 112(d) directs the Customs Service to provide 
     technical assistance to the beneficiary sub-Saharan African 
     countries for the implementation of these requirements.
       Section 112 of the Senate amendment also provides that if 
     an exporter is found to have engaged in transshipment with 
     respect to textile or apparel products from a beneficiary 
     sub-Saharan African country, the President must deny all 
     benefits under section 112 and 111 to such exporter, any 
     successor of such exporter, and any other entity owned or 
     operated by the principal of the exporter for a period of 
     five years.
     Conference agreement
       The conference agreement includes provisions from both the 
     House and Senate bills, as well as several additional 
     elements intended to prevent the transshipment of textile and 
     apparel articles from sub-Saharan Africa.
       Section 113(a) sets forth the following requirements that 
     beneficiary sub-Saharan countries must satisfy before 
     preferential tariff treatment is extended to the covered 
     textile and apparel articles pursuant to section 112(a):
       The country has adopted an effective visa system, domestic 
     laws, and enforcement procedures to prevent unlawful 
     transshipment of the covered articles and the use of 
     counterfeit documents relating to the entry of the articles 
     into the United States. An effective visa system should 
     require documentation supporting the country of origin such 
     as production records, information relating to the place of 
     production, the number and identification of the types of 
     machinery used in the production, the number of employees 
     employed in production, and certification from both the 
     manufacturer and exporter. The conferees also expect that 
     countries adopt and implement domestic laws and procedures 
     consistent with Article 5 of the WTO Agreement on Textiles 
     and Clothing, which obligates countries to establish the 
     necessary legal provisions and/or administrative procedures 
     to address and take action against circumvention.

[[Page H2535]]

       The country has adopted legislation or regulations to 
     permit verification of information by the U.S. Customs 
     Service. Such laws or regulations should be clear and 
     unambiguous.
       The country agrees to report on a timely basis export and 
     import information requested by U.S. Customs. This 
     requirement is not intended to unnecessarily burden 
     beneficiary countries and specifically requires that the 
     requested information be consistent with the manner in which 
     the country keeps those records.
       The country cooperates fully with the Customs Service to 
     prevent circumvention and transshipment as provided in 
     Article 5 of the Agreement on Textiles and Clothing. Article 
     5 of that Agreement establishes that cooperation will 
     include: (1) investigation of circumvention practices; (2) 
     exchange of documents, correspondence, reports, and other 
     relevant information to the extent available; and (3) 
     facilitation of plant visits and contacts. The conferees also 
     intend cooperation and action to include the following: 
     suspending or denying export visas to manufacturers/exporters 
     suspected of transshipping; sharing trade data with the U.S. 
     Customs Service (including import data relating to textile 
     and apparel); performing factory visits in order to verify 
     production (including verification of the commodity produced, 
     the quota category and volume); providing information to U.S. 
     Customs on actions taken by the country relating to 
     production verification, the identity of factories and/or 
     companies suspected of illegal transshipment, further 
     investigation or administrative action, the names of open and 
     producing factories and the types of goods produced, and the 
     names of closed factories; and executing a memorandum of 
     understanding with the United States establishing the 
     commitment of the beneficiary sub-Saharan country to self-
     policing and sharing enforcement results (including border 
     searches, results of factory verification visits, and 
     administrative penalties assessed against factories and 
     exporters). The United States fully expects that beneficiary 
     sub-Saharan countries will take action against circumvention 
     and implement the cooperation principles in Article 5 of the 
     Agreement, including denial of entry into the beneficiary 
     sub-Saharan country of merchandise suspected of 
     transshipment. The United States will vigorously enforce its 
     rights to deny entry and/or adjust quota charges to reflect 
     the true origin of the transshipped goods.
       The country agrees to report on a timely basis, at the 
     request of the Customs Service, documentation establishing 
     the country of origin of covered articles.
       Section 113(b)(1) also requires that importers comply with 
     requirements similar in all material respects to the 
     requirements regarding Certificates of Origin contained in 
     Article 502.1 of the North American Free Trade Agreement 
     (NAFTA) for a similar importation from Mexico, and section 
     113(b)(2) sets forth the exceptions where a certificate of 
     origin is not required.
       The conferees believe that transshipment is a serious 
     violation of U.S. laws and undermines the benefits that would 
     otherwise accrue to the beneficiary sub-Saharan African 
     countries. Section 113(b)(3) of the conference agreement 
     incorporates the penalty provisions from the Senate amendment 
     denying for a period of five years all benefits provided 
     under section 112 of this bill to the exporter, any successor 
     of such exporter, and any other entity owned or operated by 
     the principal of the exporter if the President determines, 
     based on sufficient evidence, that an exporter has engaged in 
     transshipment as defined in paragraph 4 of this section.
       Section 113(b)(4) incorporates the definition of 
     transshipment from the Senate amendment. Transshipment is 
     defined to have occurred when preferential treatment for a 
     textile or apparel product 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. 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.
       Section 113(b)(5) incorporates the House provision 
     requiring the U.S. Customs Service to monitor and report to 
     Congress (on an annual basis beginning no later than March 
     31) on the effectiveness of the visa systems and measures 
     taken to deter circumvention as described in the Article 5 of 
     the Agreement on Textiles and Clothing.
       The conferees also believe that it is important for the 
     U.S. Customs Service to make available technical assistance 
     in preventing transshipment to interested sub-Saharan African 
     countries. Section 113(c) directs U.S. Customs Service to 
     provide technical assistance to beneficiary sub-Saharan 
     countries for the implementation of an effective visa system 
     and domestic laws. Section 113(c) also requires the Customs 
     Service to provide assistance in training sub-Saharan African 
     officials in anti-transshipment enforcement and to the extent 
     feasible, assist such countries in developing and adopting an 
     electronic visa system (ELVIS). The conferees expect that the 
     U.S. Customs Service will provide model laws, regulations, 
     and enforcement procedures and training seminars to 
     beneficiary sub-Saharan countries requesting such assistance.
       Finally, the conferees believe that it is critical to 
     provide the Customs Service with additional resources in 
     order to provide technical assistance to sub-Saharan 
     countries as well as for increased transshipment enforcement. 
     Section 113(d) of the conference agreement authorizes 
     $5,894,913.00 for this purpose. The conferees expect the U.S. 
     Customs Service to utilize these resources as follows:
       hiring of import specialists to be assigned to selected 
     U.S. ports, strategically placed teams, and the Headquarters 
     textile program, to administer the program and provide 
     oversight;
       hiring of inspectors and investigators (Special Agents) to 
     be assigned to selected ports, and to Headquarters textiles 
     program to coordinate and ensure implementation of Textile 
     Production Verification Team results;
       hiring of international trade specialists to be assigned at 
     Headquarters to work on illegal textile transshipment policy 
     issues, and to the Strategic Trade Center in New York to work 
     on targeting and risk assessment for illegal transshipment;
       increased office space for additional personnel in Hong 
     Kong;
       hiring of auditors for internal control and document 
     reviews to audit importers to ensure that they are not 
     engaging in textile and apparel transshipment;
       additional travel funds to be used for deployment of 
     additional textile production verification teams (``jump 
     teams'') to sub-Saharan countries as required under the bill 
     and as warranted, based on U.S. Customs risk analysis of 
     suspected illegal textile transshipment;
       internal training for Customs personnel; and
       training of foreign counterparts in risk management 
     analytical techniques and for teaching factory inspection 
     techniques, including training in effective border 
     examination, factory inspection techniques, audit reviews 
     skills, and model laws and regulations; and for outreach to 
     the U.S. Importing Community for voluntary compliance 
     programs and troubleshooting.
       The U.S. Customs Service has estimated that its current 
     enforcement against textile and apparel transshipment from 
     sub-Saharan Africa has resulted in over 90% compliance. The 
     conferees believe that the additional resources of 
     $5,594,913.00, used as described above, will enable the U.S. 
     Customs Service to continue, and even increase, this 
     compliance rate after passage of this bill because the U.S. 
     Customs Service will have more resources to continually 
     review, expand, and modify its current practice of 
     transshipment enforcement. The current practices include the 
     use of jump-teams, informants, collection of production 
     information, monitoring and analyzing imports trends, and the 
     use of lists designating persons and companies found to be 
     engaged in transshipping (``592A,'' ``592B,'' and the 
     Administrative List containing the names of convicted foreign 
     factories and foreign factories that have had administrative 
     penalties assessed against them). The U.S. Customs Service 
     will also use information available from private sector 
     groups that monitor trade production activities in assessing 
     risk factors and enforcing transshipment.


                         Sec. 114. Termination

     Present law
       The Generalized System of Preferences (GSP) program is 
     authorized through September 30, 2001.
     House bill
       Section 8 of the House bill establishes the effective dates 
     of the GSP program and the amendments made by this Act as 
     July 1, 1999 through June 30, 2009 for eligible countries in 
     sub-Saharan Africa.
     Senate amendment
       Section 111 of the Senate amendment extends the regular GSP 
     program for countries in sub-Saharan Africa through September 
     30, 2006 and establishes October 1, 1999, as the effective 
     date for the enhanced GSP benefits set forth in this section 
     with an expiration date of September 30, 2006.
     Conference agreement
       The Conference agreement creates a new section 506C in the 
     Trade Act of 1974 extending the regular GSP and enhanced 
     duty-free treatment provided to beneficiary sub-Saharan 
     African countries through September 30, 2008.


                     Sec. 115. Clerical Amendments

     Present law
       Title V of the Trade Act of 1974 authorizes the President 
     to extend duty-free treatment to eligible imports from 
     beneficiary developing countries in accordance with the 
     provisions of the title. The table of contents for the Trade 
     Act of 1974 lists the sections contained in each title.
     House bill
       No provision.
     Senate amendment
       Section 111 of the Senate amendment amends the table of 
     contents for title V of the Trade Act of 1974 by inserting 
     after the item relating to section 505 the following new 
     items:
       506A. Designation of sub-Saharan African countries for 
     certain benefits.
       506B. Termination of benefits for sub-Saharan African 
     countries.
     Conference agreement
       The House recedes to the Senate. The conference agreement 
     also adds a listing for ``Protections against transshipment'' 
     as a new section 506B in the table of contents and 
     redesignating the section on ``Termination of benefits for 
     sub-Saharan African countries'' as a new section 506C.


   sec. 116. free trade agreements with sub-saharan african countries

     Present law
       No provision.

[[Page H2536]]

     House bill
       In section 6 of the House bill, Congress declares that a 
     United States-Sub-Saharan Africa Free Trade Area should be 
     established, or free trade agreements entered into, to serve 
     as the catalyst for increasing trade between the United 
     States and sub-Saharan Africa, and increasing private sector 
     development in sub-Saharan Africa.
       To this end, section 6 requires 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 
     develop a plan for entering into one or more trade agreements 
     with eligible sub-Saharan African countries in order to 
     establish a United States-Sub-Saharan Africa Free Trade Area. 
     The plan shall include the following:
       (1) the specific objectives of the United States with 
     respect to the establishment of the free trade area and a 
     suggested timetable;
       (2) the benefits to both the United States and sub-Saharan 
     Africa with respect to the free trade area;
       (3) a mutually agreed-upon timetable for establishing a 
     free trade area;
       (4) the implications for and the role of regional and sub-
     regional organizations in sub-Saharan Africa;
       (5) subject matter anticipated to be covered and U.S. laws, 
     programs, and policies, as well as the laws of participating 
     eligible African countries and existing economic cooperation 
     and trade agreements that may be affected; and
       (6) procedures to ensure adequate consultation with 
     Congress and the private sector during the negotiations, 
     consultation with the Congress regarding all matters relating 
     to implementing of the agreement(s), approval by the Congress 
     of the agreement(s), and adequate consultations with the 
     relevant African governments and African regional and 
     subregional intergovernmental organizations during the 
     negotiations of the agreement(s).
       Not later than 12 months after the date of enactment, the 
     President shall prepare and transmit to Congress a report on 
     the plan developed.
     Senate amendment
       Section 114 of the Senate amendment requires the President 
     to examine the feasibility of negotiating a free trade 
     agreement (or agreements) with interested sub-Saharan African 
     countries.
       Not later than 12 months after the date of enactment of 
     this Act, the President shall submit a report to the Senate 
     Finance Committee and the House Ways and Means Committee 
     regarding the feasibility of negotiating such agreement (or 
     agreements). If the President determines that the negotiation 
     of any such free trade agreement is feasible, the President 
     shall provide a detailed plan for such negotiation that 
     outlines the objectives, timing, any potential benefits to 
     the United States and sub-Saharan Africa, and the likely 
     economic impact of any such agreement.
     Conference agreement
       By eliminating the barriers that currently exist to 
     developing stronger, mutually beneficial trade and investment 
     relations between the United States and sub-Saharan Africa, 
     the conferees believe that the negotiation of one or more 
     free trade agreements would serve an important catalyst in 
     the economic development of sub-Saharan Africa.
       The Senate recedes to the House, with a modification to 
     state that the negotiation of free trade agreements, rather 
     than the establishment of a Free Trade Area, with interested 
     countries in sub-Saharan Africa, is an important catalyst for 
     increasing trade between the United States and sub-Saharan 
     Africa and increasing private sector development in sub-
     Saharan Africa.
       Consistent with this policy objective, the conference 
     agreement requires the President to prepare and transmit to 
     Congress a plan for the purpose of negotiating and entering 
     into one or more trade agreements with interested eligible 
     sub-Saharan African countries. The plan shall include the 
     specific objectives of the United States with respect to 
     the negotiations and a suggested timetable, the benefits 
     to both the United States and the relevant sub-Saharan 
     African countries, a mutually agreed upon timetable for 
     the President's report should also include procedures to 
     ensure adequate consultation with Congress and the private 
     sector during the negotiations, consultation with Congress 
     regarding all matters relating to implementation of the 
     free trade agreements, approval by Congress of the 
     agreements, and adequate consultation with the relevant 
     African governments and regional and sub-regional 
     intergovernmental organizations during the negotiations.
       The conference agreement also clarifies that the 
     President's report should include procedures to ensure 
     adequate consultation with Congress and the private sector 
     during the negotiations, consultation with Congress regarding 
     all matters relating to implementation of free trade 
     agreements, approval by Congress of the agreements, and 
     adequate consultation with the relevant African governments, 
     and regional and sub-regional intergovernmental organizations 
     during the negotiations.


  Sec. 117. Assistant United States Trade Representative for African 
                                Affairs

     Present law
       Section 141 of the Trade Act of 1974 established within the 
     Executive Office of the President the office of the United 
     States Trade Representative (USTR). The President is directed 
     to appoint a person to head the office and to serve as USTR.
     House bill
       Section 13 of the House bill expresses the sense of 
     Congress that the position of Assistant United States Trade 
     Representative (AUSTR) for African Affairs is integral to the 
     U.S. commitment to increasing U.S.-sub-Saharan African trade 
     and investment.
       The provision requires the President to maintain a position 
     of AUSTR for African Affairs within the Office of USTR to 
     direct and coordinate interagency activities on U.S.-Africa 
     trade policy and investment matters and serve as: (1) a 
     primary point of contact in the executive branch for persons 
     engaged in trade between the U.S. and sub-Saharan Africa; and 
     (2) the chief advisor to the USTR on issues of trade with 
     Africa.
       The President shall ensure that the AUSTR for African 
     Affairs has adequate funding and staff to carry out the 
     duties described in this section.
     Senate amendment
       No provision.
     Conference agreement
       The Senate recedes to the House with a modification. The 
     modification expresses the Sense of Congress that the 
     position of AUSTR should be maintained and is integral to 
     strengthening U.S.-sub-Saharan African trade and economic 
     relations.
       The conferees note that since the Office on African 
     American Affairs was created in 1998, the United States has 
     signed several significant trade agreements with sub-Saharan 
     Africa, including a Bilateral Trade and Investment Treaty 
     with Mozambique, and Trade and Investment Framework 
     Agreements with South Africa and Ghana.
       The conference agreement reflects the conferees' opinion 
     that the AUSTR for African Affairs should: (1) act as a 
     senior negotiator with sub-Saharan African countries; (2) 
     take a lead role in designating participants in the U.S.-sub-
     Saharan African Economic and Cooperation Forum; (3) take a 
     lead role in designating sub-Saharan African countries as 
     beneficiary countries; and (4) take a lead role in 
     administering and implementing the trade provisions of this 
     Act.

            Subtitle C--Economic Development Related Issues


Sec. 121. Sense of Congress Regarding Comprehensive Debt Relief for the 
                       World's Poorest Countries

     Present law
       In FY2000, Congress supported U.S.-led efforts to enhance 
     the Heavily Indebted Poor Countries (HIPC) Initiative by 
     funding roughly one-third of the direct costs to the United 
     States, as well as authorizing the use of IMF internal 
     resources, including earnings on investments of profits of 
     sales of IMF gold, for HIPC debt relief (Consolidated 
     Appropriations Act for FY 2000 H.R. 3194; P.L. 106-113).
     House bill
       Section 9 of the House bill expresses the sense of the 
     Congress that the Secretary of the Treasury should instruct 
     the United States Executive Directors of the International 
     Bank for Reconstruction and Development, the International 
     Monetary Fund, and the African Development Bank to use the 
     voice and votes of the Executive Directors to encourage 
     vigorously their respective institutions to develop enhanced 
     mechanisms which further the following goals in eligible 
     countries in sub-Saharan Africa:
       (1) Strengthening and expanding the private sector, 
     especially among women-owned businesses.
       (2) Reducing tariffs, nontariff barriers, and other trade 
     obstacles, and increasing economic integration.
       (3) Supporting countries committed to accountable 
     government, economic reform, the eradication of poverty, and 
     the building of civil societies.
       (4) Supporting deep debt reduction at the earliest possible 
     date with the greatest amount of relief for eligible poorest 
     countries under the ``Heavily Indebted Poor Countries'' 
     (HIPC) debt initiative.
       It is the sense of the Congress that relief provided to 
     countries in sub-Saharan Africa that qualify for the HIPC 
     debt initiative should be made primarily through grants 
     rather than through extended-term debt, and that interim 
     relief or interim financing should be provided for eligible 
     countries that establish a strong record of macroeconomic 
     reform.
     Senate amendment
       In Section 714 of the Senate amendment, 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 HIPC Initiative, a 
     commitment

[[Page H2537]]

     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.
       (6) Recently, the President requested Congress to provide 
     additional resources for bilateral debt forgiveness and 
     additional United States contributions to the HIPC Trust 
     Fund.
       Section 714 expresses the sense of 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.
     Conference agreement
       The House recedes to the Senate with minor technical 
     modifications.


                 Sec. 122. Executive Branch Initiatives

     Present law
       No provision.
     House bill
       In section 10 of the House bill 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 Act.
       Section 10 provides that 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 WTO 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 participation in future 
     negotiations in the WTO 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.
     Senate amendment
       No provision.
     Conference agreement
       The Senate recedes to the House.


     Sec. 123. Overseas Private Investment Corporation Initiatives

     Present law
       Title IV of Part I of the Foreign Assistance Act of 1961, 
     as amended, (Public Law 87-195) established the Overseas 
     Private Investment Corporation (OPIC), a Board of Directors 
     for the Corporation, consisting of 15 members, and authorized 
     the corporation to create equity funds.
     House bill
       Section 11 of the House bill expresses the sense of the 
     Congress that OPIC should use its current authorities to 
     initiate an equity fund or 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. The provision specifies how each fund should be 
     structured, capitalized and implemented.
       Section 12 of the bill amends Section 233 of the Foreign 
     Assistance Act of 1961 to direct the OPIC Board to form an 
     advisory committee to develop and implement policies, 
     programs and financial instruments with respect to sub-
     Saharan Africa. It directs the advisory committee to 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. And it also 
     provides for the termination of the committee four years 
     after the date of enactment and for a report on the steps 
     that the Board has taken to implement the committee's 
     recommendations six months after the date of enactment and 
     annually thereafter for the next four years.
     Senate bill
       No provision.
     Conference agreement
       The Senate recedes to the House with a slightly modified 
     provision changing the name of the advisory committee to the 
     investment advisory council. In addition, the conference 
     agreement specifies that the OPIC Board shall take 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 
     programs and policies for sub-Saharan Africa.


                Sec. 124. Export-Import Bank Initiatives

     Present law
       The Export-Import Bank is advised by a sub-Saharan Africa 
     Advisory Committee (SAAC) on the expansion of its activities 
     in sub-Saharan Africa.
     House bill
       Section 12(b) of the House bill would establish a SAAC for 
     the Bank.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement strikes section 12(b) of the House 
     bill in its entirety, since an advisory committee was created 
     previously by the Export-Import Bank Reauthorization Act of 
     1997 (P.L. 105-121). Instead, the conference agreement 
     expresses the sense of Congress that the Export-Import Bank 
     should continue to take measures to promote the expansion of 
     the Bank's commitments in sub-Saharan Africa. The conference 
     provision also commends the SAAC for aiding the Bank in 
     doubling the number of sub-Saharan African countries in which 
     the Bank is open, and by increasing by tenfold the Bank's 
     support for sales to sub-Saharan Africa from fiscal year 1998 
     to fiscal year 1999.


Sec. 125. Expansion of the United States and Foreign Commercial Service 
                         in Sub-Saharan Africa

     Present law
       No provision.
     House bill
       Section 14 of the House bill would make a number of 
     findings regarding the Service's presence in sub-Saharan 
     Africa and direct the Service to expand its presence in that 
     region. It also would require the Service to identify new 
     market opportunities and barriers thereto, and to make 
     efforts to facilitate U.S. entry into those markets, with an 
     annual report on such efforts to Congress.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement adopts a modified version of the 
     House provision that directs the International Trade 
     Administration (ITA), rather than the Service, to carry out 
     the market entry and barrier identifications and make those 
     identifications publicly available. The ITA, which already 
     undertakes trade-related research efforts, is better suited 
     to carrying out this initiative.


  Sec. 126. Donation of Air Traffic Control Equipment to Eligible Sub-
                       Saharan African Countries

     Present law
       No provision.
     House bill
       Section 16 of the House bill expresses the sense of the 
     Congress that, to the extent appropriate, the U.S. Government 
     should make every effort to donate to governments of sub-
     Saharan African countries (determined to be eligible under 
     section 4 of this Act) air traffic control equipment that is 
     no longer in use, including appropriate related reimbursable 
     technical assistance.
     Senate amendment
       No provision.
     Conference agreement
       The Senate recedes to the House.


 Sec. 127. Additional Authorities and Increased Flexibility to Provide 
            Assistance under the Development Fund for Africa

     Present law
       Section 496 of Chapter 10 of the Foreign Assistance Act of 
     1961 established the Development Fund for Africa (DFA) to 
     promote the participation of Africans in long term 
     sustainable development. Title V of the International 
     Security and Cooperation Act of 

[[Page H2538]]

     1981 established the African Development Foundation (ADF) 
     in order to provide assistance aimed at promoting economic 
     opportunities and community development in Africa.
     House bill
       Section 17 of the House bill expresses the sense of 
     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.
       In section 17 of the House bill, Congress makes the 
     following declarations:
       (1) The DFA 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 DFA will complement the other provisions of this 
     Act 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 ADF 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 ADF 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 
     ADF 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 Act.
       In addition, section 17 of the House bill amends section 
     496(h) of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2293(h)) by:
       (A) redesignating paragraph (3) as paragraph (4); and
       (B) 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.
       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).
     Senate amendment
       No provision.
     Conference agreement
       The Senate recedes to the House.


 Sec. 128. Assistance from United States Private Sector to Prevent and 
                 Reduce HIV/AIDS in Sub-Saharan Africa

     Present law
       No provision.
     House bill
       Section 18 of the House bill expresses the sense of 
     Congress that U.S. 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, U.S. 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.
     Senate amendment
       No provision.
     Conference agreement
       The Senate recedes to the House.


  Sec. 129. Sense of the Congress Relating to HIV/AIDS Crisis in Sub-
                             Saharan Africa

     Present law
       No provision.
     House bill
       In section 19 of the House bill, Congress finds that:
       (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) 83 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 the 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.
       Section 19 of the House bill expresses the sense of 
     Congress that:
       (1) addressing the HIV/AIDS crisis in sub-Saharan Africa 
     should be a central component of U.S. 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 U.S. legislation.
     Senate amendment
       No provision.
     Conference agreement
       The Senate recedes to the House.


      Sec. 130. Study on Improving African Agricultural Practices

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Section 716 of the Senate amendment authorizes the USDA, in 
     consultation with the American Land Grant Colleges and 
     Universities and not-for-profit international organization, 
     to conduct a two-year study on ways to improve the flow of 
     American farming techniques and practices to African farmers. 
     The study conducted by the USDA 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 study shall be submitted 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.
       The USDA is encouraged to consult with American Land Grant 
     Colleges and not-for-profit international organizations that 
     have firsthand knowledge of current African farming 
     practices.
       There is authorized to be appropriated $2,000,000 to 
     conduct the study.
     Conference agreement
       The House recedes to the Senate, with a modification to 
     delete the authorization of funds.


      sec. 131. sense of the congress regarding efforts to combat 
             desertification in african and other countries

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       In section 718 of the Senate amendment, Congress finds 
     that:
       (1) desertification affects approximately one-sixth of the 
     world's population and one-quarter of total land area;
       (2) over 1,000,000 hectacres of Africa are affected by 
     desertification;
       (3) dryland degradation is an underlying cause of recurrent 
     famine in Africa;

[[Page H2539]]

       (4) the United Nations Environmental 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 partnership 
     throughout Africa and other nations affected by 
     desertification, help alleviate social economic crises caused 
     by misuse of natural resources, and reduce dependence on 
     foreign aid, by taking a leading role to combat 
     desertification.
       Section 718 of the Senate amendment expresses of the sense 
     of the Senate that the United States should expeditiously 
     work with the international community, particularly Africa 
     and other nations 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.
     Conference agreement
       The House recedes to the Senate with a technical 
     modification to express the sense of the Congress instead of 
     the sense of the Senate.

              TITLE II--TRADE BENEFITS FOR CARIBBEAN BASIN

         SUBTITLE A--TRADE POLICY FOR CARIBBEAN BASIN COUNTRIES


                         Sec. 201. Short Title

     Present law
       No provision.
     House bill
       No provision, but Section 1 of H.R. 984, as approved by the 
     Committee on Ways and Means, provides that the subtitle may 
     be cited as the Caribbean and Central America Relief and 
     Economic Stabilization Act (CCARES).
     Senate amendment
       Section 201 of the Senate bill provides that the subtitle 
     may be cited as the Caribbean Basin Trade Enhancement Act 
     (CBTEA)
     Conference agreement
       The Title of the Act is the Caribbean Basin Trade 
     Partnership Act.


                     Sec. 202. Findings and Policy

     Present law
       The Caribbean Basin Initiative (CBI) program was 
     established by the Caribbean Basin Economic Recovery Act 
     (CBERA), which was enacted on August 5, 1983. This 
     legislation authorized the President to grant duty-free 
     treatment to imports of eligible articles from designated 
     Caribbean countries. The basic purpose of the CBI program, as 
     originally proposed by President Ronald Reagan, was to 
     respond to an economic crisis in the Caribbean by encouraging 
     industrial development primarily through preferential access 
     to the U.S. market. The goal was to promote political and 
     social stability in a strategically important region. CBI 
     trade benefits were made permanent in 1990.
     House bill
       No provision, however Section 2 of H.R. 984, as approved by 
     the Committee on Ways and Means makes Congressional findings 
     relating to the damage caused to the Caribbean Basin region 
     by Hurricanes Mitch and George and states that United States 
     assistance to the region should focus on, in addition to the 
     short-term disaster assistance, long-term solutions for a 
     successful economic recovery of Central America and the 
     Caribbean. Finally the findings state that the Caribbean 
     Basin Economic Recovery Act has represented a permanent and 
     successful commitment by the United States to encourage the 
     development of strong democratic governments and revitalized 
     economies in neighboring countries in the Caribbean Basin.
       Section 102 of H.R. 984, as approved by the Committee on 
     Ways and Means, states that it is, therefore, the policy of 
     the United States to: (1) offer Caribbean Basin beneficiary 
     countries tariff and quota treatment equivalent to that 
     accorded to products of NAFTA countries, and to seek the 
     accession of these partnership countries to NAFTA or a free 
     trade agreement comparable to NAFTA at the earliest possible 
     date, with the goal of achieving full NAFTA participation by 
     all Caribbean countries by January 1, 2005; and (2) assure 
     that the domestic textile and apparel industry remains 
     competitive in the global marketplace by encouraging the 
     formation and expansion of ``partnerships'' between the 
     textile and apparel industry of the United States and the 
     textile and apparel industry of various countries located in 
     the Western Hemisphere.
     Senate amendment
       The Senate bill contains similar Congressional findings.
       Section 202(b) of the Senate bill states that it is the 
     policy of the United States to: (1) offer Caribbean Basin 
     beneficiary countries willing to prepare to become a party to 
     the FTAA or a comparable trade agreement, tariff treatment 
     essentially equivalent to that accorded to products of NAFTA 
     countries for certain products not currently eligible for 
     duty-free treatment under the CBERA; and (2) seek the 
     participation of Caribbean Basin beneficiary countries in the 
     FTAA or a trade agreement comparable to the FTAA at the 
     earliest possible date, with the goal of achieving full 
     participation in such an agreement not later than 2005.
     Conference agreement
       The findings contained in section 2 of the conference 
     agreement set out the underlying rationale for expansion of 
     the CBI program. This section describes the conferees' 
     agreement that the U.S. response to the devastation caused by 
     Hurricanes Mitch and Georges should include, in addition to 
     short-term disaster assistance, a long-term mechanism to 
     promote economic recovery in Central America and the 
     Caribbean. Based on the successful record of the Caribbean 
     Basin Initiative, the Conferees believe that economic 
     recovery will be achieved most effectively by enhancing 
     the region's opportunities to expand its international 
     trade with important trading partners such as the United 
     States.
       The success of the CBI program indicates that increasing 
     international trade with the CBI region will also promote the 
     growth of United States exports, decrease illegal 
     immigration, and improve regional cooperation in efforts to 
     fight drug trafficking. Finally, the conferees intend that 
     this bill foster increased opportunities for U.S. companies 
     in the textile and apparel sector to expand co-production 
     arrangements with countries in the CBI region, thereby 
     sustaining and preserving manufacturing operations in the 
     United States that would otherwise be relocated to the Far 
     East.


                         Sec. 203. Definitions

       Section 3 defines several terms used in the bill.

        Subtitle B--Trade Benefits for Caribbean Basin Countries


Sec. 211. Temporary Provisions to Provide Additional Trade Benefits to 
                     Certain Beneficiary Countries

     Present law
       Under the CBERA, imports from CBI beneficiary countries, 
     except for certain products that are statutorily excluded, 
     are granted duty-free treatment, subject to specific 
     eligibility requirements. Statutorily excluded articles are 
     ineligible for duty-free treatment under the CBI. These 
     excluded products are: textile and apparel articles that are 
     subject to textile agreements, canned tuna, petroleum and 
     petroleum products, footwear, handbags, luggage, flat goods, 
     work gloves, and leather-wearing apparel. Also excluded are 
     certain watches and watch products.
       Under NAFTA, imports of these products from Mexico 
     (excluded from CBI and listed above) receive either declining 
     tariff or duty-free and quota-free treatment. Chapter Four of 
     NAFTA establishes rules of origin for identifying goods that 
     are to be treated as ``originating in the territories of 
     NAFTA parties'' and are therefore eligible for preferential 
     treatment accorded to originating goods under NAFTA, 
     including reduced duties and duty-free and quota-free 
     treatment.
     House bill
       No provision, however section 104 of the H.R. 984 amends 
     section 213(b) of the CBERA to provide tariff and quota 
     treatment on imports from CBI beneficiary countries of 
     excluded articles that is identical to tariff and quota 
     treatment accorded like articles imported from Mexico under 
     NAFTA during a temporary period ending on the date that 
     either NAFTA accession or a reciprocal free trade agreement 
     enters into force with the partnership country, or on the 
     fifth anniversary of the temporary treatment, whichever is 
     earlier.
       Section 104 of the bill provides that NAFTA tariff and 
     quota treatment would apply to CBI articles that meet NAFTA 
     rules of origin (treating the United States and CBI 
     beneficiary countries as ``parties'' under the agreement for 
     this purpose). Customs procedures applicable to exporters 
     under NAFTA also must be met for partnership countries to 
     qualify for parity treatment. Imports of articles currently 
     excluded under CBI, which do not meet the conditions of NAFTA 
     parity, would continue to be excluded from the CBI program.
     Senate amendment
       The Senate bill applies NAFTA tariff treatment to all 
     excluded products, with the exception of textiles and apparel 
     which are treated separately as described below.
     Conference agreement
       NAFTA tariff treatment applies to goods excluded from CBI, 
     except to textiles and apparel. More specifically, for 
     imports of canned tuna, petroleum and petroleum products, 
     footwear, handbags, luggage, flat goods, work gloves, and 
     leather-wearing apparel, the conference agreement provides an 
     immediate reduction in tariffs equal to the preference 
     Mexican products enjoy under NAFTA. The applicable duty paid 
     by importers on such goods would be equal to the duty 
     applicable to the same goods if entered from Mexico. In order 
     for their products to qualify for the preferences afforded 
     under this Act, whether applied to textiles and apparel or 
     other products, the beneficiary country must comply with 
     customs procedures equivalent to those required under the 
     NAFTA.

[[Page H2540]]

 Treatment of Textile and Apparel Imports from Caribbean Countries and 
                                 Mexico


              a. GAL Program and ``807'' Tariff Treatment

     Present law
       The ``Special Access Program for Textiles,'' established by 
     regulation in February 1986, provides flexible Guaranteed 
     Access Levels (GALs) to the United States market for textile 
     or apparel and ``made up'' textile product categories (not 
     fabric, yarn, or other textile products) assembled in CBI 
     countries from fabrics wholly formed and cut in the United 
     States, under bilateral agreements. GALs (also known as 
     ``807A'') are separate limits from (and usually significantly 
     higher than) standard quota levels, and are generally 
     increased upon request of the exporting country.
       Imports under item 9802.00.80 of the U.S. Harmonized Tariff 
     Schedule (HTS) (previously item 807), which are assembled 
     abroad from U.S.-fabricated components, including apparel 
     assembled in Caribbean countries from fabric cut in the 
     United States, are assessed duty only on the value-added 
     abroad. Under NAFTA, Mexico receives duty-free and quota-free 
     treatment on articles assembled from U.S.-formed and cut 
     fabric.
       Certain textile and apparel articles from major supplying 
     CBI countries are subject to import quotas under bilateral 
     agreements negotiated on a product-category basis under 
     authority of section 204 of the Agricultural Act of 1956 and 
     in accordance with the Uruguay Round Agreement on Textiles 
     and Clothing. Articles under quota may be assembled from U.S. 
     and/or foreign components.
     House bill
       No provision, but under section 104 of H.R. 984, as 
     approved by the Committee on Ways and Means, imports of 
     textile and apparel articles from CBI partnership countries 
     that meet NAFTA rules of origin would receive tariff 
     treatment equivalent to such goods originating in Mexico and 
     would enter quota-free. Under H.R. 984, there would be no 
     change in the treatment of non-originating textile products 
     currently subject to import quotas under bilateral and 
     multilateral textile agreements.
       Section 104 of H.R. 984 eliminates import restraint levels 
     and duties on textile and apparel articles: 1) assembled in a 
     partnership country from fabrics wholly formed and cut in the 
     United States from yarns formed in the United States; 2) cut 
     and assembled in a partnership country from fabrics wholly 
     formed in the United States, from yarns wholly formed in the 
     United States; 3) knit-to-shape in a partnership country from 
     yarns wholly formed in the United States; or 4) made in a 
     partnership country from fabric knit in a partnership country 
     from yarn wholly formed in the United States. Hand-made, 
     hand-loomed and folklore articles of the region also qualify 
     for duty-free and quota-free treatment.
     Senate amendment
       The Senate bill provides no preferential treatment for 
     textile products, with the exception of certain hand-made, 
     hand-loomed and folklore articles and certain textile 
     luggage. With respect to apparel products, duty-free, quota-
     free treatment applies to those products listed below. 
     Section 101 of the Senate bill would extend immediate duty-
     free and quota-free treatment to the following apparel 
     products:
       (1) apparel articles assembled in an eligible CBI 
     beneficiary country from U.S. fabrics wholly formed from U.S. 
     yarns and cut in the United States that would enter the 
     United States under Harmonized Tariff Schedule (HTS) item 
     number 9802.00.80 (a provision that otherwise allows an 
     importer to pay duty solely on the value-added abroad when 
     U.S. components are shipped abroad for assembly and re-
     imported into the United States);
       (2) apparel articles entered under chapters 61 and 62 of 
     the HTS where they would have qualified for HTS 9802.00.80 
     treatment but for the fact that the articles were subjected 
     to certain types of washing and finishing;
       (3) apparel articles cut and assembled in the eligible CBI 
     country from U.S. fabric formed from U.S. yarn and sewn in 
     the Caribbean with U.S. thread;
       (4) handloomed, handmade and folklore articles originating 
     in the CBI beneficiary country;
       (5) textile luggage assembled in an eligible CBI 
     beneficiary country from U.S. fabrics wholly formed from U.S. 
     yarns and cut in the United States that would enter the 
     United States under Harmonized Tariff Schedule (HTS) item 
     number 9802.00.80; and
       (6) textile luggage cut and assembled in the eligible CBI 
     country from U.S. fabric formed from U.S. yarn and sewn in 
     the Caribbean with U.S. thread.
       The Senate intends that this new program of textile and 
     apparel benefits will be administered in a manner consistent 
     with the regulations that apply under the ``Special Access 
     Program'' for textile and apparel articles from Caribbean and 
     Andean Trade Preference Act countries, as described in 63 
     Fed. Reg. 16474-16476 (April 3, 1998). Thus, the requirement 
     that products must be assembled from fabric formed in the 
     United States applies to all textile components of the 
     assembled products, including linings and pocketing, 
     subject to the exceptions that currently apply under the 
     ``Special Access Program.''
     Conference agreement
       The House recedes with an amendment that provides duty-
     free, quota-free treatment to the following apparel products:
       (1) apparel articles assembled in a CBTPA country from 
     fabrics wholly formed and cut in the United States, from 
     yarns wholly formed in the United States that are (I) entered 
     under subheading 9802.00.80 of the HTS or (II) entered under 
     chapter 61 or 62 of the HTS, if, after such assembly, the 
     articles would have qualified for entry under subheading 
     9802.00.80 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 in a CBTPA beneficiary country 
     from fabric wholly formed in the United States from yarns 
     wholly formed in the United States, if such articles are 
     assembled in such country with thread formed in the United 
     States;
       (3) certain 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 certain T-
     shirts, as described below) 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, in an amount not to 
     exceed 250 million square meter equivalents (SMEs) during the 
     1-year period beginning on October 1, 2000. That amount will 
     increase by 16 percent, compounded annually, in each 
     succeeding 1-year period through September 30, 2004. In each 
     1-year period thereafter through September 30, 2008, the 
     amount will be the amount that was in effect for the 1-year 
     period ending on September 30, 2004, or such other amount as 
     may be provided by law. For T-shirts, other then underwear T-
     shirts, the amount eligible for duty-free, quota-free 
     treatment is 4.2 million dozen during the 1-year period 
     beginning on October 1, 2000. That amount will be increased 
     by 16 percent, compounded annually, in each succeeding 1-year 
     period through September 30, 2004 and thereafter will be the 
     amount in effect for the period ending on September 30, 2004, 
     or such other amount as may be provided by law. The 
     conference agreement provides that it is the sense of 
     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 
     provision, the percentage by which the amounts referred to 
     above with respect to knit-to-shape articles and T-shirts 
     should be compounded for the one-year periods occurring after 
     the period ending on September 30, 2004;
       (4) certain brassieres, subject to the requirements set 
     forth in the Act;
       (5) certain articles assembled from fibers, yarns or fabric 
     not widely available in commercial quantities, with reference 
     to the relevant provisions of the NAFTA; the conference 
     agreement also authorizes the President to extend duty-free 
     and quota-free treatment to certain other fibers, fabrics and 
     yarns. Any interested party may submit to the President a 
     request for extension of benefits to fibers, fabrics and 
     yarns not available. The requesting party will bear the 
     burden of demonstrating that a change is warranted by 
     providing sufficient evidence. The President must make a 
     determination within 60 calendar days of receiving a request 
     from an interested party;
       (6) certain handloomed, handmade and folklore articles; and
       (7) certain textile luggage, as described in the 
     legislation.
       The conference agreement establishes certain special rules:
       (1) Findings and trimmings.--Articles otherwise eligible 
     for preferential treatment 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. However, sewing thread shall not be 
     treated as a finding or trimming for purposes of apparel 
     articles cut in a CBTPA beneficiary country from fabric 
     wholly formed in the United States from yarns wholly formed 
     in the United States, where preferential treatment is 
     contingent upon assembly with thread formed in the United 
     States
       (2) Interlinings.--Articles otherwise eligible for 
     preferential treatment shall not be ineligible for such 
     treatment because the articles contain certain interlinings, 
     as described in the legislation, 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 articles. This rule will not apply if the 
     President determines that United States manufacturers are 
     producing such interlinings in the United States in 
     commercial quantities;
       (3) De Minimis.--An article otherwise ineligible for 
     preferential treatment because the article contains fibers or 
     yarns not wholly formed in the United States or in 1 or more 
     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. 
     However, in order for an apparel article containing 
     elastomeric yarns to be eligible for preferential treatment, 
     such yarns must be wholly formed in the United States.
       The conferees agree that offering trade benefits to CBI 
     countries for certain apparel

[[Page H2541]]

     products would be a valuable mechanism to promote long-term 
     economic growth by enhancing the region's opportunities to 
     expand trade with the United States. At the same time, the 
     conferees believe these provisions would promote growth of 
     U.S. exports and the use of U.S. fabric, yarn and cotton.
       (4) Special Origin Rule.--An article otherwise eligible for 
     preferential treatment shall not be ineligible for such 
     treatment because the article contains nylon filament yarn 
     (other than elastomeric yarn), if entered under certain 
     tariff headings 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. The 
     House position would have encompassed these articles. The 
     Senate rule of origin would have precluded eligibility. The 
     Senate recedes.


                   b. Trade Preference Levels (TPLs)

     Present law
       Appendix 6(B) of NAFTA provides a limited exception to 
     NAFTA rules of origin for textile and apparel goods. The 
     exception takes the form of Tariff Preference Levels (TPLs), 
     under which specific quantities of goods from each NAFTA 
     country that do not meet NAFTA ``yarn-forward'' rules of 
     origin will nonetheless be accorded NAFTA preferential tariff 
     rates. Imports of such goods that exceed these quantities 
     will be subject to Normal Trade Relations (NTR) duty rates. 
     Under NAFTA, TPLs are available for three broad categories of 
     products: (1) cotton or man-made apparel; (2) wool apparel; 
     and, (3) goods entered under subheading 9802.00.80 of the 
     HTS.
     House bill
       No provision. But Section 104(2)(B)(i) of H.R. 984, as 
     passed by the Committee on Ways and Means authorizes USTR to 
     establish TPLs for Caribbean textile and apparel products 
     which are similar to those established for Mexican textile 
     and apparel products in NAFTA. After consulting with the 
     domestic industry and other interested parties, USTR is 
     authorized to establish TPLs in the following categories at 
     specified levels: not more than 45,000,000 square meter 
     equivalents of cotton or man-made fiber apparel; not more 
     1,500,000 square meter equivalents of wool apparel; and, not 
     more than 25,000,000 square meter equivalents of goods 
     entered under subheading 9802.00.80 of the HTS.
     Senate amendment
       No provision.
     Conference agreement
       No provision.


        2. Effective Date and Termination of Temporary Treatment

     Present law
       CBI trade benefits were made permanent in 1990.
     House bill
       No provision, however under section 104, of H.R. 984 a 
     temporary transitional period would begin upon date of 
     enactment and end on the date that either NAFTA accession or 
     a reciprocal free trade agreement enters into force with the 
     partnership country, or on December 31, 2004, whichever is 
     earlier.
     Senate amendment
       The Senate bill establishes a temporary transitional period 
     of 51 months beginning on October 1, 2000, and ending on 
     December 31, 2004.
     Conference agreement
       The Conference agreement establishes a transition period 
     that begins on October 1, 2000 and ends on the earlier of 
     September 30, 2008, or the date on which the Free Trade Area 
     of the Americas or another free trade agreement as described 
     in the legislation enters into force with respect to the 
     United States and the CBTPA beneficiary country.


                        3. Designation Criteria

     Present law
       In determining whether to designate any country as a CBI 
     beneficiary country, the President must take into account 7 
     mandatory and 11 discretionary criteria, which are listed in 
     section 212 of the CBERA:
       (1) whether the country is a Communist country;
       (2) whether the country has nationalized, expropriated, or 
     otherwise seized ownership or control of U.S. property 
     (including intellectual property), unless he determines that 
     prompt, adequate, and effective compensation has been or is 
     being made, or good faith negotiations to provide such 
     compensation are in progress, or the country is otherwise 
     taking steps to discharge its international obligations, or a 
     dispute over compensation has been submitted to arbitration;
       (3) whether the country fails to act in good faith in 
     recognizing as binding or in enforcing arbitral awards in 
     favor of U.S. citizens;
       (4) whether the country affords ``reverse'' preferences to 
     developed countries and whether such treatment has or is 
     likely to have a significant adverse effect on U.S. commerce;
       (5) whether a government-owned entity in the country 
     engages in the broadcast of copyrighted material belonging to 
     U.S. copyright owners without their express consent or the 
     country fails to work toward the provision of adequate and 
     effective intellectual property rights;
       (6) whether the country is a signatory to an agreement 
     regarding the extradition of U.S. citizens;
       (7) whether the country has or is taking steps to afford 
     internationally recognized worker rights to workers in the 
     country;
       (8) an expression by the country of its desire to be 
     designated;
       (9) the economic conditions in the country, its living 
     standards, and any other appropriate economic factors;
       (10) the extent to which the country has assured the United 
     States it will provide equitable and reasonable access to its 
     markets and basic commodity resources;
       (11) the degree to which the country follows accepted rules 
     of international trade under the World Trade Organization;
       (12) the degree to which the country uses export subsidies 
     or imposes export performance or local content requirements 
     which distort international trade;
       (13) the degree to which the trade policies of the country 
     are contributing to the revitalization of the region;
       (14) the degree to which the country is undertaking self-
     help measures to protect its own economic development;
       (15) the extent to which the country provides under its law 
     adequate and effective means for foreign nationals to secure, 
     exercise, and enforce exclusive intellectual property rights;
       (16) the extent to which the country prohibits its 
     nationals from engaging in the broadcast of copyrighted 
     material belonging to U.S. copyright owners without their 
     express consent; and
       (17) the extent to which the country is prepared to 
     cooperate with the United States in the administration of the 
     Act.
       Under the CBERA, the President is prohibited from 
     designating a country a beneficiary country if any of 
     criteria (1)-(7) apply to that country, subject to waiver, if 
     the President determines that country designation will be in 
     the U.S. national economic or security interest. The waiver 
     does not apply to criteria (4) and (6). Criteria (8)-(18) are 
     discretionary. Under the CBERA, criteria on (7) is included 
     as both mandatory and discretionary.
     House bill
       No provision, however H.R. 984, as approved by the 
     Committee on Ways and Means, makes no change in country 
     designation criteria established in the CBERA.
     Senate amendment
       Under the Senate bill, eligibility for the new trade 
     benefits is left to the discretion of the President, but the 
     proposal would provide specific guidance as to the criteria 
     the President should apply in making that determination. The 
     starting point under the Senate bill is compliance with the 
     eligibility criteria set out in the original CBERA. The 
     Senate bill would add certain trade-related criteria, such as 
     the extent to which the beneficiary country fully implements 
     the various Uruguay Round agreements, whether the beneficiary 
     country affords adequate intellectual property protection and 
     protection to U.S. investors, and the extent to which the 
     country applies internationally accepted rules on 
     government procurement and customs valuation.
       This section of the Senate bill also adds other criteria 
     that reflect important U.S. initiatives. They include, among 
     others, the extent to which the country has become a party to 
     and implements the Inter-American Convention Against 
     Corruption, is or becomes a party to a convention regarding 
     the extradition of its nationals, satisfies the criteria for 
     counter-narcotics certification under section 490 of the 
     Foreign Assistance Act of 1961, and provides internationally 
     recognized worker rights.
     Conference agreement
       The conference agreement provides that the President, in 
     designating a country as eligible for the enhanced CBTPA 
     benefits, shall take into account the existing eligibility 
     criteria established under CBERA, as well as other 
     appropriate criteria, including whether a country has 
     demonstrated a commitment to undertake its WTO obligations 
     and participate in negotiations toward the completion of the 
     FTAA or comparable trade agreement, the extent to which the 
     country provides intellectual property protection consistent 
     with or greater than that afforded under the Agreement on 
     Trade-Related Aspects of Intellectual Property Rights, the 
     extent to which the country provides internationally 
     recognized worker rights, whether the country has implemented 
     its commitments to eliminate the worst forms of child labor, 
     the extent to which a country has taken steps to become a 
     party to and implement the Inter-American Convention Against 
     Corruption, and the extent to which the country applies 
     transparent, nondiscriminatory and competitive procedures in 
     government procurement equivalent to those included in the 
     WTO Agreement on Government Procurement and otherwise 
     contributes to efforts in international fora to develop and 
     implement international rules in transparency in government 
     procurement.
       In evaluating a potential beneficiary's compliance with its 
     WTO obligations, the conferees expect the President to take 
     account of the extent to which the country follows the rules 
     on customs valuation set forth in the WTO Customs Valuation 
     Agreement. With respect to intellectual property protection, 
     it is the intention of the conferees that the President will 
     also take into account the extent to which potential 
     beneficiary countries are providing or taking steps to 
     provide protection of intellectual property rights comparable 
     to the protections provided to the United States in bilateral 
     intellectual property agreements.

[[Page H2542]]

       In evaluating a potential beneficiary's performance with 
     respect to the existing eligibility criteria under CBERA, the 
     conferees expect that the President will take into account, 
     in evaluating a potential beneficiary's performance with 
     respect to subsections (b)(2) and (c)(5) of section 212 of 
     CBERA, the extent that beneficiary countries are providing or 
     taking steps to provide protection of investment and 
     investors comparable to the protection provided to the United 
     States in bilateral investment treaties. And with respect to 
     evaluating a potential beneficiary's performance with respect 
     to subsection (c)(3) of CBERA relating to market access, the 
     conferees intend that the President shall take into account 
     the extent to which the country provides the United States 
     and other WTO members nondiscriminatory, equitable, and 
     reasonable market access with respect to the products that 
     will receive the enhanced benefits provided under the CBTPA.


                     4. General Review of Countries

     Present law
       Section 212(f) of the CBERA requires the President to 
     submit to the Congress every three years a complete report 
     regarding the operation of the CBI program, including the 
     results of a general review of beneficiary countries.
     House bill
       No provision, however section 104 of H.R. 984 amends 
     section 212(f) of the CBERA to provide that the next review 
     take place one year after the effective date of H.R. 984 and 
     subsequent reviews occur at three year intervals thereafter. 
     The bill requires the President to report to Congress on a 
     triennial basis regarding the benefits accorded under the 
     terms of H.R. 984. The review will be based on the 18 
     eligibility criteria listed in section 212 of the CBERA, as 
     further interpreted by the bill. These criteria address such 
     issues as intellectual property protection, investment 
     protection, market access, worker rights, cooperation in 
     administering the program, and the degree to which the 
     country follows accepted rules of international trade 
     provided for under the World Trade Organization. The 
     President may determine, based on the review, whether to 
     withdraw, suspend, or limit new parity benefits. Existing 
     authority in the CBERA would continue to withdraw, suspend, 
     or limit current benefits at any time based on the criteria 
     under existing laws.
     Senate amendment
       No provision.
     Conference Agreement
       No provision.


                             5. Safeguards

     Present law
       The import relief procedures and authorities under sections 
     201-204 of the Trade Act of 1974 apply to imports from CBI 
     beneficiary countries, as they do to imports from other 
     countries. If CBI imports cause serious injury, or threat of 
     such injury, to the domestic industry producing a like or 
     directly competitive article, section 213(e) of the CBERA 
     authorizes the President to suspend CBI duty-free treatment 
     and proclaim a rate of duty or other relief measures.
       Under NAFTA, the United States may invoke a special 
     safeguard provision at any time during the tariff phase-out 
     period if a NAFTA-origin textile or apparel good is being 
     imported in such increased quantities and under such 
     conditions as to cause ``serious damage, or actual threat 
     thereof,'' to a domestic industry producing a like or 
     directly competitive good. The President is authorized to 
     either suspend further duty reductions or increase the rate 
     of duty to the NTR rate for up to three years. The NAFTA also 
     provides for a ``quantitative restriction'' safeguard, which 
     the United States or Mexico may invoke against ``non-
     originating'' textile or apparel goods, using the standard of 
     ``serious damage, or actual threat thereof.''
     House bill
       Under H.R. 984, normal safeguard authorities under CBERA 
     would apply to imports of all products except textiles and 
     apparel. The NAFTA equivalent safeguard authorities would 
     apply to imports of textile and apparel products from CBI 
     countries, except that, under the bill, the United States, if 
     it applied a safeguard action, would not be obligated to 
     provide equivalent trade liberalizing compensation to the 
     exporting country.
     Senate amendment
       Identical provision except that the Senate bill does not 
     contain provide a ``quantitative restriction'' safeguard.
     Conference agreement
       Senate provision.


                6. Termination or Withdrawal of Benefits

     Present law
       The President may withdraw or suspend designation of any 
     beneficiary country or withdraw, suspend, or limit the 
     application of duty-free treatment to any article from any 
     country if he determines that, as a result of changed 
     circumstances, the country is not meeting criteria set forth 
     in the statute for beneficiary country designation. The 
     President must publish at least 30-days advance notice of the 
     proposed action. The U.S. Trade Representative shall accept 
     written public comments and hold a public hearing on the 
     proposed action.
     House bill
       No provision. But under H.R. 984, all country designation 
     criteria apply as under the CBERA. The President may 
     withdraw, suspend, or limit the application of duty-free or 
     preferential quota treatment to any article if he determines 
     the country or the product, based on changed circumstances, 
     should be barred from eligibility. The bill makes no change 
     in the President's authority to withdraw, suspend, or limit 
     current benefits under the CBERA at any time.
     Senate amendment
       The Senate bill provides that the President may withdraw or 
     suspend the designation of a CBERA beneficiary country or 
     withdraw, suspend, or limit duty-free treatment if, as a 
     result of changed circumstances, the country no longer 
     satisfies the mandatory eligibility criteria or fails 
     adequately to meet one or more of the discriminatory 
     criteria.
       The Senate bill also provides that the President may 
     withdraw or suspend the designation of CBTEA beneficiary 
     country or CBTEA benefits if the President determines that, 
     as result of changed circumstances, the country's performance 
     is not satisfactory under the CBTEA eligibility criteria.
     Conference agreement
       The Conference Agreement merges the House and Senate 
     provisions. The Conferees believes that it is appropriate to 
     retain broad authority for the President to withdraw, 
     suspend, or limit benefits under the CBERA and to provide 
     similar authority for the President with respect to the new 
     trade benefits under the bill.


         d. customs procedures and penalties for transshipment

     Present law
       Under the NAFTA, Parties to the Agreement must observe 
     Customs procedures and documentation requirements, which are 
     established in Chapter 5 of NAFTA. Requirements regarding 
     Certificates of Origin for imports receiving preferential 
     tariffs are detailed in Article 502.1 of NAFTA.
     House bill
       No provision, but H.R. 984, as approved by the Committee on 
     Ways and Means, requires the Secretary of the Treasury to 
     prescribe regulations that require, as a condition of entry, 
     that any importer of record claiming preferential tariff 
     treatment for textile and apparel products under the bill 
     must comply with requirements similar in all material 
     respects to the requirements regarding Certificates of Origin 
     contained in Article 502.1 of NAFTA, for a similar 
     importation from Mexico. In addition, if an exporter is 
     determined under the laws of the United States to have 
     engaged in illegal transshipment of textile or apparel 
     products from a partnership country, then the President shall 
     deny all benefits under the bill to such exporter, and to any 
     successors of such exporter, for a period of 2 years.
       No provision. H.R. 984 requires the Commissioner of Customs 
     to conduct a study analyzing the extent to which each 
     partnership country has: 1) cooperated with the United States 
     in instances of circumvention or alleged circumvention of 
     existing quotas on imports of textile and apparel products; 
     and 2) has taken appropriate measures consistent with its 
     laws and domestic procedures to prevent transshipment and 
     circumvention from taking place.
     Senate amendment
       The Senate bill provides that if the President determines 
     that an exporter has engaged in transshipment with respect to 
     textile and apparel products from a beneficiary country, the 
     President shall deny all enhanced benefits to such exporter 
     and any successor for a period of 2 years. In cases where the 
     President has requested a beneficiary country to take action 
     to prevent transshipment and the country has failed to do so, 
     the President shall reduce the quantities of textile and 
     apparel articles that may be imported into the U.S. from that 
     country by three times the quantity of articles transshipped.
     Conference agreement
       The Conference Agreement merges the House and Senate 
     provisions, but clarifies that the President may only 
     ``triple-charge'' quotas to the extent that such action is 
     consistent with WTO rules. The conferees believe these 
     transshipment provisions will address concerns that 
     increasing trade with the Caribbean Basin region could result 
     in illegal transshipment of textile and apparel products 
     through the region.

  F. DUTY-FREE TREATMENT FOR CERTAIN BEVERAGES MADE WITH CARIBBEAN RUM

     Present law
       Rum and beverages made with rum are eligible for duty-free 
     entry into the United States both under the CBI program and 
     NAFTA, provided that they meet the CBI or NAFTA rules of 
     origin and other requirements. When Caribbean rum is 
     processed in Canada into a rum beverage and the beverage is 
     exported from Canada into the United States, it is not 
     eligible for duty-free treatment under either the CBI or 
     NAFTA. Specifically, the beverage is ineligible for duty-free 
     treatment under CBI, because it is not shipped directly from 
     a beneficiary country to the United States as the CBI rules 
     require. The beverage does not qualify for NAFTA duty-free 
     treatment, because the processing in Canada is not sufficient 
     to qualify it as a NAFTA ``originating good.''
     House bill
       No provision, however section 106 of H.R. 984, as approved 
     by the Committee on Ways

[[Page H2543]]

     and Means, amends the CBERA to accord duty-free treatment to 
     certain beverages imported from Canada if: 1) the rum is the 
     growth, product, or manufacture of a beneficiary country or 
     the U.S. Virgin Islands; 2) the rum is imported directly into 
     Canada, and the beverages made from it are imported directly 
     from Canada into the United States; and 3) the rum accounts 
     for at least 90 percent by volume of the alcoholic content of 
     the beverages. This provision would ensure that certain rum 
     beverages that originate in the CBI, but which are processed 
     in Canada, are not denied duty-free treatment under the 
     CBERA.
     Senate amendment
       No provision.
     Conference agreement
       Adopt provisions from H.R. 984.

            G. MEETING OF CARIBBEAN TRADE MINISTERS AND USTR

     Present law
       No provision.
     House bill
       No provision, however section 107 of H.R. 984, as approved 
     by the Committee on Ways and Means directs the President to 
     convene a meeting with the trade ministers of CBI partnership 
     countries in order to establish a schedule of regular 
     meetings, to commence as soon as practicable, of the trade 
     ministers and USTR. The purpose of the meetings is to advance 
     consultations between the United States and partnership 
     countries concerning the likely timing and procedures for 
     initiating negotiations for partnership countries to: (1) 
     accede to NAFTA; or (2) enter into comprehensive, mutually 
     advantageous trade agreements with the United States that 
     contain comparable provisions to NAFTA, and would make 
     substantial progress in achieving the negotiation objectives 
     listed in Section 108(b)(5) of Public Law 103-182. This 
     provision is intended to encourage the United States Trade 
     Representative to expand efforts to increase trade with 
     countries in the Caribbean Basin region.
     Senate amendment
       No provision.
     Conference agreement
       Adopt provision of H.R. 984, with minor amendments.

                   TITLE III--NORMAL TRADE RELATIONS


         Sec. 301. Permanent Normal Trade Relations for Albania

     Present law
       Albania's trade status is currently governed by title IV of 
     the Trade Act of 1974, as amended by the Customs and Trade 
     Act of 1990 (title IV). Section 402 of title IV (also known 
     as the Jackson-Vanik amendment) sets forth requirements 
     relating to freedom of emigration, which must be met or 
     waived by the President in order for the President to grant 
     nondiscriminatory normal trade relations (NTR) status to non-
     market economy countries. Title IV also requires that a trade 
     agreement remain in force between the United States and a 
     non-market economy country receiving NTR status and sets 
     forth minimum provisions which must be included in such 
     agreement.
       Albania, which was first granted NTR status in 1992, was 
     found to be in full compliance with the Jackson-Vanik freedom 
     of emigration requirements on December 5, 1997. Since then, 
     NTR has been granted to Albania subject to semiannual review 
     and disapproval by a Joint Resolution of Congress.
     House bill
       No provision.
     Senate amendment
       Section 701 of the Senate amendment authorizes the 
     President to determine that title IV should no longer apply 
     to Albania and to proclaim permanent normal trade relations 
     (PNTR) for Albania. Application of title IV shall terminate 
     with respect to Albania on the effective date of the 
     President's extension of PNTR.
     Conference agreement
       The House recedes to the Senate.
       The conferees note that Albania has concluded a bilateral 
     investment treaty with the United States and been very 
     cooperative with NATO and the international community during 
     and after the Kosova crisis. Albania is also currently 
     negotiating to join the World Trade Organization.


      Sec. 302. Permanent Normal Trading Relations for Kyrgyzstan

     Present law
       Kyrgyzstan's NTR status is currently governed by title IV 
     of the Trade Act of 1974, as amended by the Customs and Trade 
     Act of 1990 (title IV). Section 402 of title IV (also known 
     as the Jackson-Vanik amendment) sets forth requirements 
     relating to freedom of emigration, which must be met or 
     waived by the President in order for the President to grant 
     nondiscriminatory normal trade relations (NTR) status to non-
     market economy countries. Title IV also requires that a trade 
     agreement remain in force between the United States and a 
     non-market-economy country receiving NTR status and sets 
     forth minimum provisions which must be included in such 
     agreement.
       Kyrgyzstan, which was granted NTR in 1992, was found to be 
     in full compliance with the Jackson-Vanik freedom of 
     emigration requirements on December 5, 1997. Since then, NTR 
     has been granted to Kyrgyzstan subject to semiannual review, 
     and disapproval by a Joint Resolution of Congress.
       Kyrgyzstan joined the World Trade Organization (WTO) on 
     December 20, 1998, and the United States was forced to invoke 
     Article XIII of the Agreement Establishing the World Trade 
     Organization, which allows the United States to withhold 
     application of the WTO Agreements with respect to Kyrgyzstan 
     until the United States extends it permanent normal trade 
     relations status.
     House bill
       No provision.
     Senate amendment
       Section 702 of the Senate amendment authorizes the 
     President to determine that title IV should no longer apply 
     to Kyrgyzstan and to proclaim PNTR for Kyrgyzstan. 
     Application of title IV shall terminate with respect to 
     Kyrgyzstan on the effective date of the President's extension 
     of PNTR.
     Conference agreement
       The House recedes to the Senate.
       The conferees recognize that title IV of the Trade Act of 
     1974 has promoted the right to emigrate. Since the 
     dissolution of the Soviet Union, minority groups have secured 
     the return of communal properties confiscated during the 
     Soviet period, thereby facilitating the reemergence of 
     communal organizations and participation in domestic affairs. 
     Based upon the report on compliance with title IV, the 
     conferees conclude that Kyrgyzstan is in compliance with the 
     emigration provisions of title IV and should be graduated 
     from title IV, thereby permitting the extension of permanent 
     normal trade relations to Kyrgyzstan.
       With respect to national minorities, the conferees note 
     that the member states of the Organization for Security and 
     Cooperation in Europe (OSCE), including the former USSR and 
     its successor states, have committed to ``adopt, where 
     necessary, special measures for the purpose of ensuring to 
     persons belonging to national minorities full equality . . . 
     individually as well as in community with other members of 
     their group.''
       The conferees note that Kyrgyzstan is the first former 
     Soviet state to be graduated from Jackson-Vanik and expect 
     that the graduation of other successor states to the former 
     Soviet Union will be contingent upon a thorough public 
     assessment of their laws and policies regarding emigration.

                    TITLE IV--OTHER TRADE PROVISIONS


                 Sec. 401. Report on Employment and TAA

     Present law
       Title II of the Trade Act of 1974, as amended, authorizes 
     three trade adjustment assistance (TAA) programs for the 
     purpose of providing assistance to individual workers and 
     firms that are adversely affected by import competition. 
     Those programs are: the general TAA program for workers, 
     which provides training and income support for workers 
     adversely affected by import competition; the TAA program for 
     firms, which provides technical assistance to qualifying 
     firms; and the North American Free Trade Agreement Act 
     (NAFTA) transitional adjustment assistance program which 
     provides training and income support for workers who may be 
     adversely impacted by imports from or production shifts to 
     Canada and/or Mexico.
     House bill
       No provision.
     Senate amendment
       Section 703 of the Senate amendment requires GAO to submit 
     a report to Congress within 9 months after the date of 
     enactment offering specific data and recommendations 
     concerning the effectiveness and efficiency of inter-agency 
     and federal-state coordination of a number of worker training 
     programs, including the general TAA program for workers, the 
     NAFTA Transitional Adjustment Assistance program, the 
     Workforce Investment Act of 1998 and the federal unemployment 
     insurance program. GAO would be required to examine the 
     compatibility of the existing worker retraining/compensation 
     programs, the effects of foreign trade and shifts in 
     production on workers in the United States and the impact 
     that the trade effects and production shifts have had on 
     ``secondary'' workers, i.e., those whose jobs are affected 
     indirectly by import competition because their customers were 
     adversely affected by imports or production shifts. The 
     amendment responds to the concern that there are conflicting 
     requirements in the worker retraining programs, including 
     eligibility requirements and the benefits available. It also 
     aims at establishing an objective assessment of the impact of 
     imports and production shifts on job loss in the United 
     States.
     Conference agreement
       The House recedes to the Senate.


                 sec. 402. trade adjustment assistance

     Present law
       Title II of the Trade Act of 1974, as amended, authorizes 
     three trade adjustment assistance (TAA) programs for the 
     purpose of providing assistance to individual workers and 
     firms that are adversely affected by import competition. 
     Those programs are: the general TAA program for workers, 
     which provides training and income support for workers 
     adversely affected by import competition; the TAA program for 
     firms, which provides technical assistance to qualifying 
     firms; and the North American Free Trade Agreement Act 
     (NAFTA) transitional adjustment assistance program which 
     provides training and income support for workers who may be 
     adversely impacted by imports from

[[Page H2544]]

     or production shifts to Canada and/or Mexico. Under the 
     general TAA program for workers, a worker must be certified 
     by the Secretary of Labor as eligible for benefits before 
     applying for the assistance. A worker is not eligible for 
     benefits, however, if they have applied for such assistance 
     after the expiration of the 2-year period beginning with the 
     worker's initial certification for benefits by the Secretary 
     of Labor.
     House bill
       No provision.
     Senate amendment
       Section 704 of the Senate amendment provides that a group 
     of workers who will lose their jobs at a nuclear power plant 
     in Oregon that is closing would be eligible for TAA benefits, 
     notwithstanding the fact that their original eligibility for 
     TAA benefits, as determined by the Labor Department, expired 
     more than two years ago. In 1993, the Department of Labor 
     certified workers at a nuclear power plant near Portland, 
     Oregon, as eligible for TAA benefits as a result of increased 
     competition from imports of electricity from British 
     Columbia. The plant was slated to be shut down and has been 
     going through the decommissioning process since that time. 
     Because of the length of time it takes to decommission a 
     nuclear power plant, a number of workers kept their jobs for 
     several years and would otherwise be ineligible for TAA 
     benefits because of the expiration of the initial 
     certification. This provision would reinstate their 
     eligibility for TAA.
     Conference agreement
       The House recedes to the Senate.


       sec. 403. reliquidation of certain nuclear fuel assemblies

     Present law
       Nuclear fuel rods containing fuel elements are classifiable 
     under Harmonized Tariff System (HTS) subheading 8401.30.00, 
     which provides for ``fuel elements (cartridges), non-
     irradiated, and parts thereof.'' Prior to the adoption of the 
     HTS in 1989, these fuel elements were classifiable in a 
     separate duty free provision under the Tariff Schedules of 
     the United States Annotated (TSUSA).
     House bill
       No provision.
     Senate amendment
       Section 708 authorizes the Secretary of the Treasury, upon 
     a proper request filed no later than 90 days after the 
     enactment of the Act, to reliquidate as free of duty five 
     identified entries of nuclear fuel assemblies, and refund 
     duties paid on each identified entry, including duties paid 
     on October 4, 1994, referenced in Customs Service Collection 
     Receipt Number 527006753.
     Conference agreement
       The House recedes to the Senate, with an amendment to 
     correct a date of entry.


     Sec. 404. reports to the finance and ways and means committees

     Present law
       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) (112 Stat. 
     2681-224) directs the Administration to report to certain 
     Congressional Committees on various issues. Among these were 
     a certification by the Treasury Secretary and the Chairman of 
     the Federal Reserve Board that the International Monetary 
     Fund is requiring borrowers to liberalize restrictions on 
     trade in goods and services, consistent with the terms of 
     all international trade agreements of which the borrowing 
     country is a signatory. The Secretary of the Treasury is 
     also directed to periodically report on the progress of 
     efforts to reform the architecture of the international 
     monetary system, with a focus on minimizing disruptions in 
     patterns of trade.
       Section 1704(b) of the International Financial Institutions 
     Act (22 U.S.C. 262r-3(b)) requires the Secretary of the 
     Treasury to report to certain Congressional Committees 
     semiannually on financial stabilization programs led by the 
     IMF in connection with financing from the Exchange 
     Stabilization Fund. The reports are to include a description 
     of the degree to which recipient countries are ensuring that 
     no government subsidies or tax privileges will be provided to 
     bail out individual corporations, particularly in the 
     semiconductor, steel, and paper industries. Also, the report 
     is to include a description of the trade policies of the 
     countries involved, including any unfair trade practices or 
     adverse effects of the trade policies on the U.S.
       Section 1705(a) of the International Financial Institutions 
     Act (22 U.S.C. 262r-5(a)) requires the Secretary of the 
     Treasury to report to certain Congressional committees 
     annually on the state of the international financial system.
       Section 1706(a) of the International Financial Institutions 
     Act (22 U.S.C. 262r-5(a)) requires the Comptroller General to 
     report to certain Congressional committees on the trade 
     policies of IMF borrower countries.
       Section 629 of the Treasury and General Government 
     Appropriations Act, 1999 requires the Administration to 
     report to certain Congressional committees on the protection 
     of United States borders against drug traffic.
       Although each of these reports is required to address 
     international trade issues, none are specifically directed to 
     the Senate Finance or House Ways and Means Committees.
     House bill
       No provision.
     Senate amendment
       Sec. 710 of the Senate amendment includes the Finance and 
     Ways and Means Committees among those Congressional 
     Committees receiving the certifications and reports on 
     international trade and international economic issues which 
     are otherwise mandated by section 607 of the Foreign 
     Operations, Export Financing, and Related Appropriations Act, 
     1999 (Pub. L. 105-277; 112 Stat. 2681-224); section 1704(b) 
     of the International Financial Institutions Act (22 U.S.C. 
     262r-3(b)); section 1705(a) of the International Financial 
     Institutions Act (22 U.S.C. 262r-5(a)); section 1706(a) of 
     the International Financial Institutions Act (22 U.S.C. 262r-
     5(a)); section 629 of the Treasury and General Government 
     Appropriations Act, 1999.
     Conference agreement
       The House recedes to the Senate.


sec. 405. clarification of section 334 of the uruguay round agreements 
                                  act

     Present law
       Section 334 of the Uruguay Round Agreements Act (URAA) 
     (P.L. 103-465) (1994), commonly referred to as the Breaux-
     Cardin rules of origin for textile and apparel, directed the 
     Secretary of the Treasury to prescribe rules for determining 
     the origin of textile and apparel products. Under those new 
     rules, fabrics and certain products (such as scarves and 
     handkerchiefs) derive their origin in the country where the 
     fabric is woven or knitted (notwithstanding any further 
     processing such as dyeing and printing). In addition, the 
     country of origin of any other textile or apparel product is 
     the country in which the textile or apparel product is wholly 
     assembled. Under the multicountry rule, origin is conferred 
     in the country in which the most important assembly or 
     manufacturing process occurs, or if origin cannot be 
     determined in this manner, origin is conferred in the last 
     country in which important assembly or manufacturing occurs.
     House bill
       No provision.
     Senate amendment
       Section 711 would reinstate the rules of origin that 
     existed prior to URAA for certain products. Specifically, the 
     amendment would confer origin as the country in which dyeing, 
     printing, and two or more finishing operations were done on 
     fabrics classified under the HTS as of silk, cotton, man-
     made, and vegetable fibers. This rule would also apply to 
     various products classified in 18 identified HTS subheadings 
     (mostly flat products) except for goods made from cotton, 
     wool, or fiber blends containing 16 percent or more of 
     cotton.
     Conference agreement
       The House recedes to the Senate.
       Prior to the Breaux-Cardin enactment, the rules of origin 
     permitted the processes of dyeing and printing to confer 
     origin when accompanied by two or more finishing operations 
     for certain products. Under the new regulations prescribed by 
     the Secretary of the Treasury, certain fabrics, silk 
     handkerchiefs and scarves were considered to originate where 
     the base fabric was knit and woven, notwithstanding any 
     further processing.
       In May 1997, the European Union (EU) requested 
     consultations in the World Trade Organization (WTO) with the 
     United States, charging that the changes to the rules of 
     origin made by URAA violated United States obligations under 
     a number of agreements: the Agreement on Textiles and 
     Clothing, the Agreement on Rules of Origin, the Agreement on 
     Technical Barriers to Trade, and the General Agreement on 
     Tariffs and Trade. A number of countries requested third-
     party participation in the dispute. A ``process-verbal'' was 
     concluded between the two countries in July 1997, which was 
     later amended. Formal consultations were held in January 
     1999.
       In August 1999, the United States and the EU agreed to 
     settle the dispute. A second ``process-verbal'' concluded 
     between the two countries obligates the U.S. Administration 
     to submit legislation which, as described above, amends the 
     rule-of-origin requirements in section 334 of the URAA in 
     order to allow dyeing, printing, and two or more finishing 
     operations to confer origin on certain fabrics and goods. In 
     particular, this dyeing and printing rule would apply to 
     fabrics classified under the Harmonized Tariff Schedule (HTS) 
     as silk, cotton, man-made, and vegetable fibers. The rule 
     would also apply to the various products classified in 18 
     specific subheadings of the HTS listed in the bill, except 
     for goods made from cotton, wool, or fiber blends containing 
     16 percent or more of cotton.


                sec. 406. chief agricultural negotiator

     Present law
       Currently, a special Trade Negotiator with the rank of 
     Ambassador serves as the Chief Negotiator for agricultural 
     trade in the Office of the United States Trade 
     Representative. The position is not established in statute.
     House bill
       No provision.
     Senate amendment
       Section 712 amends section 141 of the Trade Act of 1974 
     ((19 U.S.C.) 2171) to establish in

[[Page H2545]]

     statute within the Office of the United States Trade 
     Representative a Chief Agricultural Negotiator with the rank 
     of Ambassador 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.
       The principal function of the Chief Agricultural Negotiator 
     shall be to conduct trade negotiations, enforce trade 
     agreements relating to United States agricultural products 
     and service, and be a vigorous advocate on behalf of United 
     States agricultural interests.
     Conference agreement
       The House recedes to the Senate.


    sec. 407. revision of retaliation list or other remedial action

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Section 713 of the Senate amendment amends the Trade Act of 
     1974 to require the United States Trade Representative (USTR) 
     to make periodic revisions of retaliation lists 120 days from 
     the date the retaliation list is made and every 180 days 
     thereafter. The purpose of this provision is to facilitate 
     efforts by the USTR to enforce the rights of the United 
     States in instances where another World Trade Organization 
     (WTO) member fails to comply with the results of a dispute 
     settlement proceeding.
     Conference agreement
       The House recedes to the Senate. The conferees added 
     language that requires the USTR to include on any retaliation 
     list reciprocal goods of the industries affected by the 
     failure of the World Trade Organization member to implement 
     the decision of the WTO. This new provision does not apply 
     when the preliminary or initial retaliation list does not 
     include any reciprocal goods of the industries affected.
       The conferees are of the view that compliance with dispute 
     settlement panel and Appellate Body decisions is essential to 
     the successful operation of the WTO. This objective has been 
     threatened by non-compliance in some recent cases brought by 
     the United States--particularly in disputes with the European 
     Union involving beef and bananas.
       It is the view of the Conferees that this provision affirms 
     authority already available to the U.S. Trade Representative 
     under the Trade Act of 1974. It is further the view of the 
     conferees that this provision is consistent with the United 
     States international obligations under the Dispute Settlement 
     Understanding of the WTO, and that the USTR would retain 
     ample discretion and authority to ensure that retaliation 
     implemented by the United States remained within the levels 
     authorized by the WTO. As the provision makes clear, actions 
     taken by the USTR are intended to be structured carefully and 
     to effectuate substantial changes that will maximize the 
     likelihood of compliance by the losing member. The Ways and 
     Means and Finance Committees will monitor those actions to 
     ensure that changes are made consistent with that intention.
       With regard to pending cases in which the United States has 
     taken retaliatory measures, and in which the initial 
     timetable for action laid out in the provision has already 
     passed, the conferees expect that the USTR will undertake the 
     initial action required by the provision no later than 30 
     days after the enactment of the law, and will undertake any 
     subsequently required action every 180 days thereafter. It is 
     also the sense of the conferees that USTR should vigorously 
     defend the authority granted under the statute with its 
     trading partners.

      Sec. 408. Report on TAA for Agricultural Commodity Producers

     Present law
       Title II of the Trade Act of 1974, as amended, authorizes 
     three trade adjustment assistance (TAA) programs for the 
     purpose of providing assistance to individual workers and 
     firms that are adversely affected by import competition. 
     Those programs are: the general TAA program for workers, 
     which provides training and income support for workers 
     adversely affected by import competition; the TAA program for 
     firms, which provides technical assistance to qualifying 
     firms; and the North American Free Trade Agreement Act 
     (NAFTA) transitional adjustment assistance program which 
     provides training and income support for workers who may be 
     adversely impacted by imports from or production shifts to 
     Canada and/or Mexico.
     House bill
       No provision.
     Senate amendment
       Section 715 of the Senate amendment requires that the 
     Secretary of Labor, not later than 4 months after enactment 
     of the provision and in consultation with the Secretary of 
     Agriculture and 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 
     examines the applicability to farmers of trade adjustment 
     assistance programs under title II of the Trade Act of 1974. 
     The report will also set forth recommendations to improve the 
     operation of those programs as they apply to farmers or to 
     establish a new trade adjustment assistance program for 
     farmers.
     Conference agreement
       The House recedes to the Senate.


  sec. 409 agriculture trade negotiating objectives and consultations 
                             with congress

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Section 723 of the Senate amendment consists of three 
     sections. The first section lists findings of the Congress. 
     The second section contains the specific agricultural 
     negotiating objectives of the United States for the World 
     Trade Organization's agriculture negotiations mandated by the 
     Uruguay Round. The third section mandates consultations with 
     Congress at specific points during the negotiations.
     Conference Agreement
       The House recedes to the Senate.


      Sec. 410. Entry Procedures for Foreign Trade Zone Operations

     Present law
       Section 484 of the Tariff Act of 1930 (19 U.S.C. 1484) sets 
     forth the procedures for the entry of merchandise imported 
     into the United States. Under section 484, the Customs 
     Service has permitted a limited weekly entry procedure for 
     foreign trade zones (FTZ) since May 12, 1986 (as authorized 
     by T.D. 86-16, 51 Fed. Reg. 5040). This procedure has been 
     limited to merchandise which is manufactured or changed into 
     its final form just prior to its transfer from the zone. 
     Section 637 of the Customs Modernization Act (included as 
     title VI of the North American Free Trade Agreement 
     Implementation Act, Pub. L. 103-182, 107 Stat. 2057) provided 
     the Customs Service with additional statutory support for the 
     weekly entry procedure.
     House bill
       No provision.
     Senate amendment
       Sec. 302 of the Senate amendment amends Section 484 of the 
     Tariff Act of 1930 (19 U.S.C. 1484) to allow merchandise 
     withdrawn from a foreign-trade zone during a week (i.e., any 
     7 calendar day period) to be the subject of a single entry, 
     at the option of the zone operator or user. Such an entry is 
     treated under the new provision as a single entry or release 
     of merchandise for purposes of assessment of the merchandise 
     processing fee of 19 U.S.C. 8c(a)(9)(A) and thus may not be 
     assessed such fee in excess of the fee limitations provided 
     for under 19 U.S.C. 58c(b)(8)(A)(i). All other pertinent 
     exceptions and exclusions from the merchandise processing fee 
     would also apply, as appropriate. The amendment establishes a 
     new section 19 U.S.C. 1484(a)(3). The provision is self 
     executing and accordingly does not require the issuance of 
     implementing regulations by the Secretary of the Treasury in 
     order for it to go into effect.
       The net effect of the provision is to require Customs to 
     expand the weekly entry system (which currently is only 
     available to certain manufactured goods) to permit FTZ 
     operators and users to use a weekly entry system, under 
     certain limitations, if they so choose. This expanded 
     procedure allows for goods stored in a FTZ for the purpose of 
     warehouse and distribution to be removed from the zone under 
     a weekly Customs entry process. This provision would also 
     mean that the merchandise processing fee (MPF) that Customs 
     collects would be collected on the basis of that single 
     weekly entry at the same rate applicable to any other single 
     entry of such merchandise into the Customs territory of the 
     United States.
     Conference agreement
       The House recedes to the Senate.
       While the Customs Service issued proposed regulations to 
     expand the weekly entry system (62 Fed. Reg. 12129 (March 14, 
     1997) consistent with Congress' intent as set out in the 
     Customs Modernization Act, those regulations were never 
     finalized. The conferees intend the new provision to remedy 
     that failure by requiring such treatment as a matter of law.
       The new provision is not intended to qualify, limit or 
     restrict any foreign-trade zone weekly entry procedures now 
     in effect. Rather, it is intended to broaden the availability 
     of weekly entry procedures to all zones, including general 
     purpose zones and special purpose subzones, and to all zone 
     operations and processes authorized by law. Consistent with 
     the Foreign Trade Zones Act, the new procedure is available 
     for merchandise of every description, except such as is 
     prohibited by law, regardless of whether such merchandise is 
     of the same class, type or category or of different classes, 
     types, and categories.
       The conferees are mindful of the revenue impact of this 
     expanded procedure, but the conferees also believe that, 
     consistent with the notion of a user fee, the MPF is not a 
     revenue raiser for Customs expenses, but instead is intended 
     to cover the cost of the service U.S. Customs provides.
       The conferees also believe that the Customs Service pilot 
     procedure to expand the weekly entry filing procedures to 
     activities other than manufacturing operations is consistent 
     with Congress' intent relating to

[[Page H2546]]

     periodic entry for weekly entries for merchandise from 
     general purpose foreign trade zones, as set out in the Mod 
     Act. Section 637 of the Mod Act, which amended 19 U.S.C. 
     1484 concerning the entry of merchandise generally, among 
     other things, provides further statutory support for the 
     weekly entry procedure. Part 1, page 136 of the Ways and 
     Means NAFTA Implementation Act Report (103-361) reflects 
     the intent of Congress. The report states, ``in developing 
     the regulations for periodic entry, the Committee intends 
     that Customs will allow for weekly and monthly entries for 
     merchandise shipments from general purpose foreign trade 
     zones and subzones.''


       Sec. 411. Goods Made With Forced or Indentured Child Labor

     Present law
       Section 307 of the Tariff Act of 1930 prohibits the 
     importation of articles made by convict labor or/and forced 
     labor or/and indentured labor under penal sanctions.
     House bill
       No provision.
     Senate amendment
       Section 707 of the Senate bill amends section 307 of the 
     Tariff Act of 1930 to clarify that the ban on articles made 
     with forced or/and indentured labor includes those articles 
     made with forced or/and indentured child labor.
     Conference agreement
       The House recedes to Senate.


                  Sec. 412. Worst Forms of Child Labor

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Section 722 provides that no benefits under the Act (with 
     respect to the provisions covering sub-Saharan Africa, CBI, 
     or GSP) shall be granted to countries that fail to meet and 
     effectively enforce the standards established by ILO 
     Convention No. 182 on the Worst Forms of Child Labor.
     Conference agreement
       The conference agreement adds a new eligibility criterion 
     to the Generalized System of Preferences so that the 
     President shall not designate a country for benefits if it 
     has not implemented its obligations to eliminate the worst 
     forms of child labor. The conference agreement adopts the GSP 
     program's standard for purposes of the eligibility criteria 
     applicable to the additional trade benefits extended to 
     African beneficiary countries. The conferees intend that the 
     GSP standard, including the provision with respect to 
     implementation of obligations to eliminate the worst forms of 
     child labor, apply to eligibility for those additional 
     benefits.
       The conferees note the tremendous progress on the 
     elimination of the worst forms of child labor accomplished in 
     the International Labor Organization through the unanimous 
     approval of ILO Convention No. 182. The conferees believe 
     that the practices described in the Convention, as agreed by 
     all ILO members, represent heinous activities that should not 
     be tolerated. For this reason the conferees are willing for 
     the first time to include an eligibility criterion relating 
     to whether a country has implemented its obligations to 
     eliminate the worst forms of child labor. The conferees 
     recognize that the convention represents the international 
     standard on the worst forms of child labor and have 
     accordingly defined the worst forms of child labor using the 
     definition in ILO Convention No. 182.
       It is the expectation of the conferees that the 
     beneficiaries of the Africa, CBI and GSP programs will join 
     the United States in ratifying ILO Convention No. 182 as soon 
     as possible and promptly come into compliance with the 
     procedural requirements of that convention including the 
     submission to the ILO of the National Action Plans required 
     by the convention, the designation of a competent authority 
     responsible for the implementation of the convention and the 
     submission of annual reports to the ILO identifying steps 
     taken to implement the provisions of the convention.
       In determining whether a country is complying with the 
     terms of section 502(b)(2)(G) with respect to GSP (and 
     related provisions with respect to benefits for sub-Saharan 
     Africa), the conferees intend that the President consider (1) 
     whether the country has adequate laws and regulations 
     proscribing the worst forms of child labor; (2) whether the 
     country has adequate laws and regulations for the 
     implementation and enforcement of such measures; (3) whether 
     the country has established formal institutional mechanisms 
     to investigate and address complaints relating to allegations 
     of the worst forms of child labor; (4) whether social 
     programs exist in the country to prevent the engagement of 
     children in the worst forms of child labor, and to assist 
     with the removal of children engaged in the worst forms of 
     child labor; (5) whether the country has a comprehensive 
     policy for the elimination of the worst forms of child labor; 
     and (6) whether the country is making continual progress 
     toward eliminating the worst forms of child labor.
       The conferees intend that the phrase ``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'' be 
     defined as provided in Article II of Recommendation No. 190, 
     which accompanies ILO Convention No. 182. Accordingly, work 
     that is ``likely to harm the health, safety or morals of 
     children'' includes work that exposes children to physical, 
     psychological, or sexual abuse; work underground, under 
     water, at dangerous heights or in confined spaces; work with 
     dangerous machinery, equipment or tools, or work under 
     circumstances which involve the manual handling or transport 
     of heavy loads; work in an unhealthy environment that exposes 
     children to hazardous substances, agents or processes, or to 
     temperatures, noise levels, or vibrations damaging to their 
     health; and work under particularly difficult conditions such 
     as for long hours, during the night or under conditions where 
     children are unreasonably confined to the premises of the 
     employer.
       The conferees further intend that the phrase ``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'' be interpreted in a manner consistent with the 
     intent of Article 4 of ILO Convention No. 182, which states 
     that such work shall be determined by national laws or 
     regulations or by the competent authority in the country 
     involved. In addition, the conferees intend that the phrase 
     generally not apply to situations in which children work for 
     their parents on bona fide family farms or holdings.
       The conferees expect that the Secretary of Labor, in 
     preparing the report required under section 504, will invite 
     public comment to assist in the preparation of his or her 
     findings to be incorporated in each annual report. The 
     conferees expect that the President, in making determinations 
     under section 504(d) with respect to the withdrawal, 
     suspension or limitation of benefits, will take into account 
     the findings of the Secretary of Labor.

               TITLE V--IMPORTS OF CERTAIN WOOL ARTICLES

     Present law
       Under current law, worsted wool fabric imported into the 
     United States is subject to tariffs of 29.4 percent, whereas 
     apparel articles made from such fabric, such as men's suits, 
     may be imported at a tariff rate of 19.3 percent. By applying 
     a higher tariff to the input product, the tariff schedule 
     provides an incentive for the importation of the more-labor 
     intensive and higher-value-added apparel item. That inversion 
     has been compounded by the reduction of tariffs applicable to 
     men's wool suits under U.S. free trade agreements, with the 
     effect that U.S. suit-makers face a still more considerable 
     competitive disadvantage relative to imports of suits from 
     Canada and Mexico because the difference in tariffs 
     applicable to worsted wool fabric relative to the zero rate 
     of duty paid on imports of suits is the full 19.3 percent of 
     the tariff applicable to fabric imported by such 
     manufacturers.
     House bill
       No provision.
     Senate amendment
       Section 721 of the Senate amendment expresses the sense of 
     the Senate that United States trade policy should, taking 
     into account the conditions among U.S. producers, place a 
     priority on the elimination of tariff inversions that 
     undermine the competitiveness of United States consuming 
     industries.
     Conference agreement
       The conferees agree to reduce tariffs on worsted wool 
     fabric intended for use in the manufacture of men's suits, 
     suit-type jackets, and trousers in order to limit the tariff 
     inversion U.S. suit-makers face in the purchase of such 
     fabric. For worsted wool fabric containing greater than or 
     equal to 85 percent wool intended for use in the suit market 
     made from fiber averaging 18.5 micron or less in diameter, 
     the applicable tariff would be reduced from the current U.S. 
     rate on such fabric to a level equivalent to the current 
     Canadian ``most favored nation'' (``MFN'') rate applicable to 
     imports of such fabric, to a quantity equaling 1.5 million 
     square meter equivalents each year. For worsted wool fabric 
     of the type used in the manufacture of men's suits made from 
     fiber greater than 18.5 micron, the applicable tariff would 
     be reduced from the current U.S. rate on such fabric to the 
     current U.S. rate on worsted wool suit-type jackets, up to a 
     quantity equaling 2.5 million square meter equivalents each 
     year. The conference agreement suspends the current U.S. 
     tariff on worsted wool yarn containing greater than or 
     equal to 85 percent wool of average fiber diameter of 18.5 
     micron or finer and on wool fiber and wool top made from 
     wool fiber of an average diameter of 18.5 micron and finer 
     from the current U.S. normal trade relations (NTR) rate to 
     zero.
       The conference agreement also authorizes the President to 
     grant additional tariff relief on wool fabric of up to 1 
     million square meter equivalents per year for worsted wool 
     fabric from fiber of 18.5 micron and finer and up to 1 
     million square meter equivalents per year for worsted wool 
     fabric from fiber greater than 18.5 micron. Expanding the 
     quantity of fabric to which the tariff reductions would apply 
     would depend each year on the President's determination with 
     respect to then-current market conditions in the United 
     States markets for suits, fabric, yarn and fiber. In 
     particular, the President should focus on growth in 
     production and the relative competitiveness and health of 
     both the suit-making and fabric manufacturing industries in 
     the United States.
       Under the conference agreement, the President is obliged to 
     monitor market conditions

[[Page H2547]]

     in the United States and, toward that end, establish 
     statistical suffixes in the Harmonized Tariff Schedule 
     sufficient for the collection of certain data on imports of 
     worsted wool fabric and apparel. The President has residual 
     authority to reduce the applicable tariffs on imports of 
     worsted wool fabric in order to take into account any staged 
     reductions in the U.S. tariff rate applicable to worsted wool 
     suits and the Canadian tariff rate applicable to worsted wool 
     fabric that serve as benchmark rates under the conference 
     report.
       The conference report requires the President or his or her 
     designee to allocate the available tariff relief on worsted 
     wool fabric among manufacturers of the apparel items 
     identified in the agreement based on historical production. 
     The same principle would apply to the President's allocation 
     of other tariff relief provided under these provisions of the 
     conference agreement.
       The conference agreement also provides for the refund of 
     certain duties in each of three succeeding years on imports 
     of worsted wool fabric used in men's and boys' suits, suit-
     type jackets and trousers, worsted wool yarn, wool fiber and 
     wool top. In each instance, a U.S. manufacturer of a 
     downstream product would be eligible for a refund of duties 
     currently paid on certain inputs up to an amount that is one-
     third of the duties actually paid by such importing U.S. 
     manufacturer on such items in calendar year 1999. In the case 
     of worsted wool fabric, for example, a U.S. suit-maker would 
     be eligible to claim a refund during calendar year 2000 for 
     one-third of the duties paid on such fabric during calendar 
     year 1999. The same refund schedule applies to a fabric-
     maker's importation of wool yarn, wool fiber, and wool top.
       The conference agreement creates a fund for research and 
     market development for American wool-growers that would 
     assist in disseminating information that would help the 
     industry improve the quality of the fiber provided and its 
     production methods. The conference report sets aside duties 
     collected under the HTS chapter relating to the products 
     covered by these provisions--wool fiber and top and worsted 
     wool yarn and fabric up to an amount of $2.25 million per 
     year in each fiscal year from 2000-2003. It is the intent of 
     the conferees that the United States Department of 
     Agriculture shall designate an experienced cooperator such as 
     the American Wool Council as the trust fund's representative 
     for the purposes of this provision.
       The conferees direct the President to determine what 
     mechanisms are available under the North American Free Trade 
     Agreement (NAFTA), the World Trade Organization and U.S. 
     domestic law to alleviate the serious injury to the U.S. wool 
     suit and fabric industries as a result of the Canadian wool 
     tariff preference level under the NAFTA. The President shall 
     recommend that the U.S. Trade Representative undertake the 
     appropriate steps necessary to help remedy the adverse effect 
     on this sector's competitiveness, and shall report his 
     recommendations to the Committee on Ways and Means of the 
     House of Representatives and the Senate Committee on Finance 
     by January 1, 2001.

                      TITLE VI--REVENUE PROVISIONS

A. Limitation on the Use of Non-Accrual Experience Method of Accounting


(sec. 21 of the House bill, sec. 504 of the Senate amendment, and sec. 
                            448 of the Code)

     Present law
       An accrual method taxpayer generally must recognize income 
     when all the events have occurred that fix the right to 
     receive the income and the amount of the income can be 
     determined with reasonable accuracy. An accrual method 
     taxpayer may deduct the amount of any receivable that was 
     previously included in income that becomes worthless during 
     the year.
       Accrual method taxpayers are not required to include in 
     income amounts to be received for the performance of services 
     which, on the basis of experience, will not be collected (the 
     ``non-accrual experience method''). The availability of this 
     method is conditioned on the taxpayer not charging interest 
     or a penalty for failure to timely pay the amount charged. 
     The Secretary of the Treasury has published temporary 
     regulations \1\ requiring the use of a formula comparing 
     receivables not collected to total receivables earned during 
     the testing period in determining the portion of the amount 
     which, on the basis of experience, will not be collected. The 
     temporary regulations provide that no other method or formula 
     may be used by a taxpayer in determining the uncollectible 
     amounts under this subsection.
---------------------------------------------------------------------------
     \1\ Treas. Reg. sec. 1.448-2T.
---------------------------------------------------------------------------
       A cash method taxpayer is not required to include an amount 
     in income until it is received. A taxpayer generally may not 
     use the cash method if purchase, production, or sale of 
     merchandise is an income producing factor. Such taxpayers 
     generally are required to keep inventories and use an accrual 
     method of accounting. In addition, corporations (and 
     partnerships with corporate partners) generally may not use 
     the cash method of accounting if their average annual gross 
     receipts exceed $5 million. An exception to this $5 million 
     rule is provided for qualified personal service corporations. 
     A qualified personal service corporation is a corporation (1) 
     substantially all of whose activities involve the performance 
     of services in the fields of health, law, engineering, 
     architecture, accounting, actuarial science, performing arts 
     or consulting and (2) substantially all of the stock of which 
     is owned by current or former employees performing such 
     services, their estates or heirs. Qualified personal service 
     corporations are allowed to use the cash method without 
     regard to whether their average annual gross receipts exceed 
     $5 million.
     House bill
       The House bill provides that the non-accrual experience 
     method will be available only for amounts to be received for 
     the performance of qualified personal services. Amounts to be 
     received for the performance of all other services will be 
     subject to the general rule regarding inclusion in income. 
     Qualified personal services are personal services in the 
     fields of health, law, engineering, architecture, accounting, 
     actuarial science, performing arts or consulting. As under 
     present law, the availability of the method is conditioned on 
     the taxpayer not charging interest or a penalty for failure 
     to timely pay the amount.
       Effective date.--The provision of the House bill is 
     effective for taxable years ending after the date of 
     enactment. Any change in the taxpayer's method of accounting 
     necessitated as a result of the proposal will be treated as a 
     voluntary change initiated by the taxpayer with the consent 
     of the Secretary of the Treasury. Any required section 481(a) 
     adjustment is to be taken into account over a period not to 
     exceed four years under principles consistent with those in 
     Rev. Proc. 99-49.\2\
---------------------------------------------------------------------------
     \2\ 1999-52 I.R.B. 725.
---------------------------------------------------------------------------
     Senate amendment
       The Senate amendment is the same as the House bill.
     Conference agreement
       The conference agreement does not include the House bill or 
     the Senate amendment provision.

B. Add Certain Vaccines Against Streptococcus Pneumoniae to the List of 
                            Taxable Vaccines


    (sec. 22 of the house bill and secs. 4131 and 4132 of the code)

     Present law
       A manufacturer's excise tax is imposed at the rate of 75 
     cents per dose (sec. 4131) on the following vaccines 
     recommended for routine administration to children: 
     diphtheria, pertussis, tetanus, measles, mumps, rubella, 
     polio, HIB (haemophilus influenza type B), hepatitis B, 
     varicella (chicken pox), and rotavirus gastroenteritis. In 
     addition, the Ticket to Work and Work Incentives Improvement 
     Act of 1999 (Pub. L. No. 106-170, December 17, 1999) added 
     any conjugate vaccine against streptococcus pneumoniae to the 
     list of taxable vaccines. The tax applied to any vaccine that 
     is a combination of vaccine components equals 75 cents times 
     the number of components in the combined vaccine.
       Amounts equal to net revenues from this excise tax are 
     deposited in the Vaccine Injury Compensation Trust Fund 
     (``Vaccine Trust Fund'') to finance compensation awards under 
     the Federal Vaccine Injury Compensation Program for 
     individuals who suffer certain injuries following 
     administration of the taxable vaccines. This program provides 
     a substitute Federal, ``no fault'' insurance system for the 
     State-law tort and private liability insurance systems 
     otherwise applicable to vaccine manufacturers and physicians. 
     All persons immunized after September 30, 1988, with covered 
     vaccines must pursue compensation under this Federal program 
     before bringing civil tort actions under State law.
     House bill
       The House bill would add any conjugate vaccine against 
     streptococcus pneumoniae to the list of taxable vaccines.
     Senate amendment
       No provision.
     Conference agreement
       No provision. However, the provision was enacted in the 
     Ticket to Work and Work Incentives Improvement Act of 1999.

C. Modification of Installment Method and Repeal of Installment Method 
                      for Accrual Method Taxpayers


 (sec. 501 of the Senate Amendment and secs. 453 and 453a of the code)

     Present law
       The installment method of accounting allows a taxpayer to 
     defer the recognition of income from the disposition of 
     certain property until payment is received. Sales to 
     customers in the ordinary course of business are not eligible 
     for the installment method, except for sales of property that 
     is used or produced in the trade or business of farming and 
     sales of timeshares and residential lots if an election to 
     pay interest under section 453(1)(2)(B)) is made. The Ticket 
     to Work and Work Incentives Improvement Act of 1999 prohibits 
     the use of the installment method for a transaction that 
     would otherwise be required to be reported using the accrual 
     method of accounting, effective for dispositions occurring on 
     or after December 17, 1999.
       A pledge rule provides that if an installment obligation is 
     pledged as security for any indebtedness, the net proceeds 
     \3\ of such indebtedness are treated as a payment on the

[[Page H2548]]

     obligation, triggering the recognition of income. Actual 
     payments received on the installment obligation subsequent to 
     the receipt of the loan proceeds are not taken into account 
     until such subsequent payments exceed the loan proceeds that 
     were treated as payments. The pledge rule does not apply to 
     sales of property used or produced in the trade or business 
     of farming, to sales of timeshares and residential lots where 
     the taxpayer elects to pay interest under section 
     453(1)(2)(B), or to dispositions where the sales price does 
     not exceed $150,000. The Ticket to Work and Work Incentives 
     Improvement Act of 1999 provides that the right to satisfy a 
     loan with an installment obligation will be treated as a 
     pledge of the installment obligation, effective for 
     dispositions occurring on or after December 17, 1999.
---------------------------------------------------------------------------
     \1\ The net proceeds equal the gross loan proceeds less the 
     direct expenses of obtaining the loan.
---------------------------------------------------------------------------
     House bill
       No provision.
     Senate amendment
       The Senate amendment contains provisions prohibiting the 
     use of the installment method for a transaction that would 
     otherwise be required to be reported using the accrual method 
     of accounting and expanding the pledge rule.
     Conference agreement
       No provision. The provisions in the Senate amendment were 
     enacted in the Ticket to Work and Work Incentives Improvement 
     Act of 1999.

    D. Impose Limitation on Prefunding of Certain Employee Benefits


 (sec. 502 of the senate amendment and secs. 419a and 4976 of the code)

     Present law
       Under present law, contributions to a welfare benefit fund 
     generally are deductible when paid, but only to the extent 
     permitted under the rules of sections 419 and 419A. The 
     amount of an employer's deduction in any year for 
     contributions to a welfare benefit fund cannot exceed the 
     fund's qualified cost for the year minus the fund's after-tax 
     income for the year. With certain exceptions, the term 
     qualified cost means the sum of (1) the amount that would be 
     deductible for benefits provided during the year if the 
     employer paid them directly and was on the cash method of 
     accounting, and (2) within limits, the amount of any account 
     consisting of assets set aside for the payment of disability 
     benefits, medical benefits, supplemental unemployment 
     compensation or severance pay benefits, or life insurance 
     benefits. The account limit for a qualified asset account for 
     a taxable year is generally the amount reasonably and 
     actuarially necessary to fund claims incurred but unpaid (as 
     of the close of the taxable year) for benefits with respect 
     to which the account is maintained and the administrative 
     costs incurred with respect to those claims. Specific 
     additional reserves are allowed for future provisions of 
     post-retirement medical and life insurance benefits.
       The deduction limits of sections 419 and 419A for 
     contributions to welfare benefit funds do not apply in the 
     case of certain 10-or-more employer plans. A plan is a 10-or-
     more employer plan if (1) more than one employer contributes 
     to it, and (2) no employer is normally required to contribute 
     more than 10 percent of the total contributions contributed 
     under the plan by all employers. The exception is not 
     available if the plan maintains experience-rating 
     arrangements with respect to individual employers.
       If any portion of a welfare benefit fund reverts to the 
     benefit of an employer, an excise tax equal to 100 percent of 
     the reversion is imposed on the employer.
     House bill
       No provision.
     Senate amendment.
       The Senate amendment limits the present-law exception to 
     the deduction limit for 10-or-more employer plans to plans 
     that provide only medical benefits, disability benefits, and 
     qualifying group-term life insurance benefits to plan 
     beneficiaries. The legislative history provides that it is 
     intended that a plan will not be treated as failing to 
     provide only medical benefits, disability benefits, and 
     qualifying group-term life insurance benefits to plan 
     beneficiaries merely because the plan provides certain de 
     minimis ancillary benefits addition to medical, disability, 
     and qualifying group-term life insurance benefits (e.g., 
     accidental death and dismemberment insurance, group-term life 
     insurance coverage for dependents and directors, business 
     travel insurance, and 24-hour accident insurance). Such 
     ancillary benefits are considered de minimis only if the 
     total premiums for all such insurance coverages for the year 
     do not exceed 2 percent of the total contributions to the 
     plan for the year for all employers. Of course, any benefits 
     provided are includable in income unless expressly excluded 
     under a specific provision under the Code.
       The legislative history also provides that, for purposes of 
     this provision, qualifying group-term life insurance benefits 
     do not include any arrangements that permit a plan 
     beneficiary to directly or indirectly access all or part of 
     the account value of any life insurance contract, whether 
     through a policy loan, a partial or complete surrender of the 
     policy, or otherwise. The legislative history provides that 
     it is intended that qualifying group-term life insurance 
     benefits do not include any arrangement whereby a plan 
     beneficiary may receive a policy without a stated account 
     value that has the potential to give rise to an account value 
     whether the exchange of such policy for another policy that 
     would have an account value or otherwise.
       Under the Senate amendment, the 10-or-more employer plan 
     exception is no longer available with respect to plans that 
     provide supplemental unemployment compensation, severance 
     pay, or life insurance (other than qualifying group-term life 
     insurance) benefits. Thus, the generally applicable deduction 
     limits (sections 419 and 419A) apply to plans providing these 
     benefits.
       In addition, if any portion of a welfare benefit fund 
     attributable to contributions that are deductible pursuant to 
     the 10-or-more employer exception (and earnings thereon) is 
     used for a purpose other than for providing medical benefits, 
     disability benefits, or qualifying group-term life insurance 
     benefits to plan beneficiaries such portion is treated as 
     reverting to the benefit of the employers maintaining the 
     fund and is subject to the imposition of the 100-percent 
     excise tax.\4\ Thus, for example, cash payments to employees 
     upon termination of the fund, and loans or other 
     distributions to the employee or employer, would be treated 
     as giving rise to a reversion that is subject to the excise 
     tax.
---------------------------------------------------------------------------
     \4\ For purposes of the provision, medical benefits, 
     disability benefits, and qualifying group-term life insurance 
     benefits include de minimis ancillary benefits as described 
     above.
---------------------------------------------------------------------------
       The legislative history indicates that no inference is 
     intended with respect to the validity of any 10-or-more 
     employer arrangement under the provisions of present law.
       Effective date.--The Senate amendment is effective with 
     respect to contributions paid or accrued on or after June 9, 
     1999, in taxable years ending after such date.
     Conference agreement
       No provision.

     E. Treatment of Gain From Constructive Ownership Transactions


      (sec. 503 of the senate amendment and sec. 1260 of the code)

     Present law
       The maximum individual income tax rate on ordinary income 
     and short-term capital gain is 39.6 percent, while the 
     maximum individual income tax rate on long-term capital gain 
     generally is 20 percent. Long-term capital gain means gain 
     from the sale or exchange of a capital asset held more than 
     one year. For this purpose, gain from the termination of a 
     right with respect to property which would be a capital asset 
     in the hands of the taxpayer is treated as capital gain.\5\
---------------------------------------------------------------------------
     \5\ Section 1234A, as amended by the Taxpayer Relief Act of 
     1997.
---------------------------------------------------------------------------
       A pass-thru entity (such as a partnership) generally is not 
     subject to Federal income tax. Rather, each owner includes 
     its share of a pass-thru entity's income, gain, loss, 
     deduction or credit in its taxable income. Generally, the 
     character of the item is determined at the entity level and 
     flows through to the owners.
       Investors may enter into forward contracts, notional 
     principal contracts, and other similar arrangements with 
     respect to property that provides the investor with the same 
     or similar economic benefits as owning the property directly 
     but with potentially different tax consequences as to the 
     character and timing of any gain. The Ticket to Work and Work 
     Incentives Improvement Act of 1999 limits the amount of long-
     term capital gain a taxpayer can recognize from certain 
     ``constructive ownership transactions;'' any excess gain is 
     treated as ordinary income.
     House bill
       No provision.
     Senate amendment
       The Senate amendment provision limits the amount of long-
     term capital gain a taxpayer can recognize from certain 
     constructive ownership transactions with respect to certain 
     financial assets. This provision was enacted in the Ticket to 
     Work and Work Incentives Improvement Act of 1999.
     Conference agreement
       No provision. However, the provision was enacted in the 
     Ticket to Work and Work Incentives Improvement Act of 1999.

F. Require Consistent Treatment and Provide Basis Allocation Rules for 
     Transfer of Intangibles in Certain Nonrecognition Transactions


  (sec. 505 of the senate amendment and secs. 351 and 721 of the code)

     Present law
       Generally, no gain or loss is recognized if one or more 
     persons transfer property to a corporation solely in exchange 
     for stock in the corporation and, immediately after the 
     exchange such person or persons are in control of the 
     corporation. Similarly, no gain or loss is recognized in the 
     case of a contribution of property in exchange for a 
     partnership interest. Neither the Internal Revenue Code nor 
     the regulations provide the meaning of the requirement that a 
     person ``transfer property'' in exchange for stock (or a 
     partnership interest). The Internal Revenue Service 
     interprets the requirement consistent with the ``sale or 
     other disposition of property'' language in the context of a 
     taxable disposition of property. See, e.g., Rev. Rul. 69-156, 
     1969-1 C.B. 101. Thus, a transfer of less than ``all 
     substantial rights'' to use property will not qualify as a 
     tax-free exchange and stock received will be treated as 
     payments for the use of property rather than

[[Page H2549]]

     for the property itself. These amounts are characterized as 
     ordinary income. However, the Claims Court has rejected the 
     Service's position and held that the transfer of a 
     nonexclusive license to use a patent (or any transfer of 
     ``something of value'') could be a ``transfer'' of 
     ``property'' for purposes of the nonrecognition provision. 
     See E.I. DuPont de Nemours & Co. v. U.S., 471 F.2d 1211 (Ct. 
     Cl. 1973).
     House bill
       No provision.
     Senate amendment
       The Senate amendment treats a transfer of an interest in 
     intangible property constituting less than all of the 
     substantial rights of the transferor in the property as a 
     transfer of property for purposes of the nonrecognition 
     provisions regarding transfers of property to controlled 
     corporations and partnerships. In the case of a transfer of 
     less than all of the substantial rights, the transferor is 
     required to allocate the basis of the intangible between the 
     retained rights and the transferred rights based upon their 
     respective fair market values.
       No inference is intended as to the treatment of these or 
     similar transactions prior to the effective date.
       Effective date.--The provision is effective for transfers 
     on or after the date of enactment.
     Conference agreement
       No provision.

  G. Increase Elective Withholding Rate for Nonperiodic Distributions 
                    From Deferred Compensation Plans


      (sec. 506 of the Senate amendment and sec. 3405 of the Code)

     Present law
       Present law provides that income tax withholding is 
     required on designated distributions from employer deferred 
     compensation plans (whether or not such plans are tax 
     qualified), individual retirement arrangements (``IRAs''), 
     and commercial annuities unless the payee elects not to have 
     withholding apply. A designated distribution does not include 
     any payment (1) that is wages, (2) the portion of which it is 
     reasonable to believe is not includible in gross income, (3) 
     that is subject to withholding of tax on nonresident aliens 
     and foreign corporations (or would be subject to such 
     withholding but for a tax treaty), or (4) that is a dividend 
     paid on certain employer securities (as defined in sec. 
     404(k)(2)).
       Tax is generally withheld on the taxable portion of any 
     periodic payment as if the payment is wages to the payee. A 
     periodic payment is a designated distribution that is an 
     annuity or similar periodic payment.
       In the case of a nonperiodic distribution, tax generally is 
     withheld at a flat 10-percent rate unless the payee makes an 
     election not to have withholding apply. A nonperiodic 
     distribution is any distribution that is not a periodic 
     distribution. Under current administrative rules, an 
     individual receiving an nonperiodic distribution can 
     designate an amount to be withheld in addition to the 10-
     percent otherwise required to be withheld.
       Under present law, in the case of a nonperiodic 
     distribution that is an eligible rollover distribution, tax 
     is withheld at a 20-percent rate unless the payee elects to 
     have the distribution rolled directly over to an eligible 
     retirement plan (i.e., an IRA, a qualified plan (sec. 401(a)) 
     that is a defined contribution plan permitting direct 
     deposits of rollover contributions, or a qualified annuity 
     plan (sec. 403(a)). In general, an eligible rollover 
     distribution includes any distribution to an employee of all 
     or any portion of the balance to the credit of the employee 
     in a qualified plan or qualified annuity plan. An eligible 
     rollover distribution does not include any distribution that 
     is part of a series of substantially equal periodic payments 
     made (1) for the life (or life expectancy) of the employee or 
     for the joint lives (or joint life expectancies) of the 
     employee and the employee's designated beneficiary, or (2) 
     over a specified period of 10 years or more. An eligible 
     rollover distribution also does not include any distribution 
     required under the minimum distribution rules of section 
     401(a)(9), hardship distributions from section 401(k) plans, 
     or the portion of a distribution that is not includible in 
     income. The payee of an eligible rollover distribution can 
     only elect not to have withholding apply by making the direct 
     rollover election.
     House bill

  H. Provisions Relating to Real Estate Investment Trusts (``REITS'')


 (secs. 610-622 of the Senate amendment and secs. 852, 856, and 857 of 
                               the Code)

     Present law
       In general, a real estate investment trust (``REIT'') is an 
     entity that receives most of its income from passive real 
     estate related investments and that receives pass-through 
     treatment for income that is distributed to shareholders. If 
     an electing entity meets the qualifications for REIT status, 
     the portion of its income that is distributed to the 
     investors each year generally is taxed to the investors 
     without being subjected to tax at the REIT level.
       A REIT must satisfy a number of tests on a year-by-year 
     basis that relate to the entity's: (1) organizational 
     structure; (2) source of income; (3) nature of assets; and 
     (4) distribution of income.
       Under the organizational structure test, except for the 
     first taxable year for which an entity elects to be a REIT, 
     the beneficial ownership of the entity must be held by 100 or 
     more persons. Generally, no more than 50 percent of the value 
     of the REIT's stock can be owned by five or fewer individuals 
     during the last half of the taxable year. Certain attribution 
     rules apply in making this determination. No similar rule 
     applies to corporate ownership of a REIT.
     House bill
       No provision.
     Senate amendment
       The Senate amendment contains a number of provisions 
     relating to REITS. These include a provision generally 
     limiting the level of investment a REIT can have in another 
     entity to 10 percent of value (or vote), except in the case 
     of taxable REIT subsidiaries, for which specific rules are 
     provided. The provisions also permit REITs to own and operate 
     health care facilities under certain circumstances, modify 
     the definition of independent contractor and of real estate 
     rental income, modify the earnings and profits rules for 
     REITs and for regulated investment companies (``RICS''), and 
     modify the estimated tax rules for investors in certain 
     closely held REITs.
       The Senate amendment also imposes an additional requirement 
     for REIT qualification that makes certain controlled entities 
     ineligible for REIT status and imposes a number of related 
     rules. Under that provision, except for the first taxable 
     year for which an entity elects to be a REIT, no one person 
     can own stock of a REIT possessing 50 percent or more of the 
     combined voting power of all classes of voting stock or 50 
     percent or more of the  total value of shares of all classes 
     of stock of the REIT. For purposes of determining a 
     person's stock ownership, rules similar to attribution 
     rules for REIT qualification under present law apply 
     (secs. 856(d)(5) and 856(h)(3)). the provision does not 
     apply to ownership by a REIT of 50 percent or more of the 
     stock (vote or value) of another REIT.
       An exception applies for a limited period to certain 
     ``incubator REIT''. An incubator REIT is a corporation that 
     elects to be treated as an incubator REIT and that meets all 
     the following other requirements. (1) it has only voting 
     common stock outstanding, (2) not more than 50 percent of the 
     corporation's real estate assets consist of mortgages, (3) 
     from not later than the beginning of the last half of the 
     second taxable year, at least 10 percent of the corporation's 
     capital is provided by lenders or equity investors who are 
     unrelated to the corporation's largest shareholder, (4), the 
     corporation must annually increase the value of real estate 
     assets by at least 10 percent, (5) the directors of the 
     corporation must adopt a resolution setting forth an intent 
     to engage in a going public transaction, and (6) no 
     predecessor entity (including any entity from which the 
     electing incubator REIT acquired assets in a transaction in 
     which gain or loss was not recognized in whole or in part) 
     had elected incubator REIT status.
       The new ownership requirement does not apply to an electing 
     incubator REIT until the end of the REIT's third taxable 
     year; and can be extended for an additional two taxable years 
     if the REIT so elects. However, a REIT cannot elect the 
     additional two-year extension unless the REIT agrees that if 
     it does not engage in a going public transaction by the end 
     of the extended eligibility period, it shall pay Federal 
     income taxes for the two years of the extended period as if 
     it had not made an incubator REIT election and had ceased to 
     qualify as a REIT for those two taxable years. In such case, 
     the corporation shall file appropriate amended returns within 
     3 months of the close of the extended eligibility period. 
     Interest would be payable, but no substantial underpayment 
     penalties would apply except in cases where there is a 
     finding that incubator REIT status was elected for a 
     principal purpose other than as part of a reasonable plan to 
     engage in a going public transaction. Notification of 
     shareholders and any other person whose tax position would 
     reasonably be expected to be affected is also required.
       If an electing incubator REIT does not elect to extend its 
     initial 2-year extended eligibility period and has not 
     engaged in a going public transaction by the end of such 
     period, it must satisfy the new control requirements as of 
     the beginning of its fourth taxable year (i.e., immediately 
     after the close of the last taxable year of the two-year 
     initial extension period) or it will be required to notify 
     its shareholderss and other persons that may be affected by 
     its tax status, and pay Federal income tax as a corporation 
     that has ceased to qualify as a REIT at that time.
       If the Secretary of the Treasury determines that an 
     incubator REIT election was filed for a principal purpose 
     other than as part of a reasonable plan to undertake a going 
     public transaction, an excise tax of $20,000 is imposed on 
     each of the corporation's directors for each taxable year for 
     which the election was in effect.
       For purposes of determining whether a corporation has met 
     the requirement that it annually increase the value of its 
     real estate assets by 10 percent, the following rules shall 
     apply. First, values shall be based on cost and properly 
     capitalizable expenditures with no adjustment for 
     depreciation. Second, the test shall be applied by comparing 
     the value of assets at the end of the first taxable year with 
     those at the end of the second taxable year and by similar 
     successive taxable year comparisons during the eligibility 
     period.

[[Page H2550]]

     Third, if a corporation fails the 10 percent comparison tests 
     for one taxable year, it may remedy the failure by increasing 
     the value of real estate assets by 25 percent in the 
     following taxable year, provided it meets all the other 
     eligibility period requirements in that following taxable 
     year.
       A going public transaction is defined as either (1) a 
     public offering of shares of stock of the incubator REIT, (2) 
     a transaction, or series of transactions, that result in the 
     incubator REIT stock being regularly traded on an established 
     securities market (as defined in section 897) and being held 
     by shareholders unrelated to persons who held such stock 
     before it began to be so regularly traded, or (3) any 
     transaction resulting in ownership of the REIT by 200 or more 
     persons (excluding the largest single shareholder) who in the 
     aggregate own least 50 percent of the stock of the REIT. 
     Attribution rules apply in determining ownership of stock.
       Effective date.--Under the Senate amendment, the provision 
     denying REIT status to certain controlled entities is 
     effective for taxable years ending after July 14, 1999. Any 
     entity that elects (or has elected) REIT status for a taxable 
     year including July 14, 1999, and which is both a controlled 
     entity and has significant business assets or activities on 
     such date, will not be subject to the proposal. Under this 
     rule, a controlled entity with significant business assets or 
     activities on July 14, 1999, can be grandfathered even if it 
     makes its first REIT election after that date with its return 
     for the taxable year including that date.
       For purposes of the transition rules, the significant 
     business assets or activities in place on July 14, 1999, must 
     be real estate assets and activities of a type that would be 
     qualified real estate assets and would produce qualified real 
     estate related income for a REIT.
     Conference agreement
       No provision. However, the Senate amendment provisions, 
     except for the provision what would have denied REIT status 
     to certain controlled entities, were enacted in the ticket to 
     Work and Work Incentives Improvement Act of 1999.

        I. Modification of Individual Estimated Tax Safe Harbor


      (sec. 623 of the Senate amendment and sec. 6654 of the Code)

     Present law
       Under present law, an individual taxpayer generally is 
     subject to an addition to tax for any underpayment of 
     estimated tax. An individual generally does not have an 
     underpayment of estimated tax if he or she makes timely 
     estimated tax payments at least equal to: (1) 90 percent of 
     the tax shown on the current year's return of (2) 100 percent 
     of the prior year's tax. For taxpayers with a prior year's 
     AGI above $195,000,\6\ however the rule that allows payment 
     of 100 percent of prior year's tax is modified. Those 
     taxpayers with AGI above $150,000 generally must make 
     estimated payments based on either (1) 90 percent of the tax 
     shown on the current year's return or (2) 110 percent of the 
     prior year's tax.
---------------------------------------------------------------------------
     \6\ The threshold is $75,000 for married taxpayers filing 
     separately.
---------------------------------------------------------------------------
       For taxpayers with a prior year's AGI above $150,000, the 
     prior year's tax safe harbor is modified for estimated tax 
     payments made for taxable years 2000 and 2002. For such 
     taxpayers making estimated tax payments based on prior year's 
     tax payments must be made based on 108.6 percent of prior 
     year's tax for taxable year 2000 \7\ and 112 percent of prior 
     year's tax for taxable year 2002.
---------------------------------------------------------------------------
     \7\ This percentage was enacted in sec. 531 of P.L. 106-170, 
     the Ticket to Work and Work Incentives Improvement Act of 
     1999 (December 17, 1999).
---------------------------------------------------------------------------
     House bill
       No provision.
     Senate amendment
       The Senate amendment further modifies the safe harbor rule 
     by providing that taxpayers with prior year's AGI above 
     $150,000 who make estimated tax payments based on prior 
     year's tax must do so based on 106.5 percent of prior year's 
     tax for estimated tax payments made for taxable year 2000. 
     Taxpayers with prior year's AGI above $150,000 who made 
     estimated tax payments based on prior year's tax must do so 
     based on 106 percent of prior year's tax for estimated tax 
     payments made for taxable year 2001. All other years remain 
     as under present law.
       Effective date.--The provision is effective for estimated 
     payments made for taxable year beginning after December 31, 
     1999.
     Conference agreement
       No provision.

          J. Provide Waiver From Denial of Foreign Tax Credits


     (sec. 724 of the Senate amendment and sec. 901(j) of the Code)

     Present law
       In general, U.S. persons may credit foreign taxes against 
     U.S. tax on foreign-source income. The amount of foreign tax 
     credits that can be claimed in a year is subject to a 
     limitation that prevents taxpayers from using foreign tax 
     credits to offset U.S. tax on U.S.-source income. Separate 
     limitations are applied to specific categories of income.
       Pursuant to special rules applicable to taxes paid to 
     certain foreign countries, no foreign tax credit is allowed 
     for income, war profits, or excess profits taxed paid, 
     accrued, or deemed paid to a country which satisfies 
     specified criteria, to the extent that the taxes are with 
     respect to income attributable to a period during which such 
     criteria were satisfied (sec. 901(j)). Section 901(j) applies 
     with respect to any foreign country: (1) the government of 
     which the United States does not recognize, unless such 
     government is otherwise eligible to purchase defense articles 
     or services under the Arms Export Control Act, (2) with 
     respect to which the United States has severed diplomatic 
     relations, (3) with respect to which the United States has 
     not severed diplomatic relations but does not conduct such 
     relations, or (4) which the Secretary of State has, pursuant 
     to section 6(j) of the Export Administration Act of 1979, as 
     amended, designated as a foreign country which repeatedly 
     provides support for acts of international terrorisms (a 
     ``section 901(j) foreign country''). The denial of credits 
     applies to any foreign country during the period beginning on 
     the later of January 1, 1987, or six months after such 
     country becomes a section 901(j) country, and ending on the 
     date the Secretary of State certifies to the Secretary of the 
     Treasury that such country is no longer a section 901(j) 
     country.
       Taxes treated as noncreditable under section 901(j) 
     generally are permitted to be deducted notwithstanding the 
     fact that the taxpayer elects use of the foreign tax credit 
     for the taxable year with respect to other taxes. In 
     addition, income for which foreign tax credits are denied 
     generally cannot be sheltered from U.S. tax by other 
     creditable foreign taxes.
       Under the rules of subpart F, U.S. 10-percent shareholders 
     of a controlled foreign corporation (``CFC'') are required to 
     include in income currently certain types of income of the 
     CFC, whether or not such income is actually distributed 
     currently to the shareholders (referred to as ``subpart F 
     income''). Subpart F income includes income derived from any 
     foreign country during a period in which the taxes imposed by 
     that country are denied eligibility for the foreign tax 
     credit under section 901(j).\8\
---------------------------------------------------------------------------
     \8\ Sec. 952(a)(5).
---------------------------------------------------------------------------
     House bill
       No provision.
     Senate amendment
       The Senate amendment provides that section 901(j) no longer 
     applies with respect to a foreign country if: (1) the 
     President determines that a waiver of the application of 
     section 901(j) to such foreign country is in the national 
     interest of the United States and will expand trade 
     opportunities for U.S. companies in such foreign country, and 
     (2) the President reports to the Congress, not less than 30 
     days before the waiver is granted, the intention to grant 
     such a waiver and the reason for such waiver.
       Effective date.--The provision is effective on or after 
     February 1, 2001.
     Conference agreement
       The conference agreement follows the Senate amendment.

K. Accelerate Rum Excise Tax Coverover Payments to Puerto Rico and the 
                          U.S. Virgin Islands


      (sec. 221 of the senate amendment and sec. 7652 of the code)

     Present law
       A $13.50 per proof gallon \9\ excise tax is imposed on 
     distilled spirits produced in or imported (or brought) into 
     the United States. The excise tax does not apply to distilled 
     spirits that are exported from the United States or to 
     distilled spirits that are consumed in U.S. possessions 
     (e.g., Puerto Rico and the Virgin Islands).
---------------------------------------------------------------------------
     \9\ A proof gallon is a liquid gallon consisting of 50 
     percent alcohol.
---------------------------------------------------------------------------
       The Code provides for coverover (payment) of $13.25 per 
     proof gallon of the excise tax imposed on rum imported (or 
     brought) into the United States (without regard to the 
     country of origin) to Puerto Rico and the Virgin Islands 
     during the period July 1, 1999 through December 31, 2001. 
     Effective on January 1, 2002, the coverover rate is scheduled 
     to return to its permanent level of $10.50 per proof gallon. 
     The maximum amount attributable to the increased coverover 
     rate over the permanent rate of $10.50 per proof gallon that 
     can be paid to Puerto Rico and the Virgin Islands before 
     October 1, 2000 is $20 million. Payment of this amount was 
     made on January 3, 2000.\10\ any remaining amounts 
     attributable to the increased coverover rate are to be paid 
     on October 1, 2000.
---------------------------------------------------------------------------
     \10\ The Department of the Interior, which administers the 
     coverover payments for rum imported into the United States 
     from the U.S. Virgin Islands, erroneously authorized full 
     payment to the Virgin Islands of the increased coverover rate 
     on that rum notwithstanding the statutory limit on these 
     transfers for periods before October 1, 2000. The Bureau of 
     Alcohol, Tobacco, and Firearms, which administers the 
     coverover payments for the Virgin Islands' portion of tax 
     collected on rum imported from other countries, complied with 
     the statutory limit.
---------------------------------------------------------------------------
       Amounts covered over to Puerto Rico and the Virgin Islands 
     are deposited into the treasuries of the two possessions for 
     use as those possessions determine.
     House bill
       No provision, but H.R. 984, as reported by the Committee on 
     Ways and Means, would have provided an increase in the 
     coverover amount to $13.50 per proof gallon for the period 
     June 30, 1999, and before October 1, 1999. (The conference 
     report on the Ticket to Work and Work Incentives Improvement 
     Act of 1999 (Pub. L. No. 106-170, December 17, 1999) 
     subsequently increased the coverover rate from $10.50 per 
     proof gallon to $13.25 per proof gallon, and enacted the $20 
     million limit on transfer of the increased amount before 
     October 1, 2000. The conference report

[[Page H2551]]

     further indicated that the special payment rule would be 
     reviewed during consideration of H.R. 434.)
     Senate amendment
       The Senate amendment is the same as the Ways and Means 
     Committee-reported provisions of H.R. 984.
     Conference agreement
       The conference agreement provides that unpaid amounts 
     attributable to the increase in the coverover rate to $13.25 
     per proof gallon for the period from July 1, 1999 through the 
     last day of the month prior to the date of enactment will be 
     paid on the first monthly payment date following the date of 
     enactment.\11\ With respect to amounts attributable to the 
     period beginning with the month of the conference agreement's 
     enactment, payments will be based on the full $13.25 per 
     proof gallon rate.
---------------------------------------------------------------------------
     \11\ Thus, this provision of the conference agreement applies 
     only to payments to Puerto Rico and to payments of the Virgin 
     Islands' portion of tax on rum imported from other countries 
     because the Interior Department erroneously has already paid 
     in full amounts attributable to rum imported from the Virgin 
     Islands.
---------------------------------------------------------------------------
       The conference agreement further includes two 
     clarifications to the rules governing coverover payments. 
     First, clarification is provided that payments to the Virgin 
     Islands with respect to rum imported from that possession are 
     to be made annually in advance (based on estimates) as is the 
     current administrative practice. Second, the conference 
     agreement clarifies that the Internal Revenue Code provisions 
     governing coverover payments are the exclusive authorize 
     authority for making those payments.
       Effective date.--The provision is effective on the date of 
     enactment.


   trade provisions not included in either the house or senate bill--
      access to hiv/aids pharmaceuticals and medical technologies

     Present law
       The Special 301 provisions of the Trade Act of 1974 require 
     the President to identify, within 30 days after submission of 
     the annual National Trade Estimates report to Congress, those 
     foreign countries that deny adequate and effective protection 
     of intellectual property rights or fair and equitable market 
     access to U.S. persons that rely upon intellectual property 
     protection, and those countries determined by USTR to be 
     ``priority foreign countries.'' The President is to identify 
     as priority countries only those that have the most onerous 
     or egregious acts, policies, or practices with the greatest 
     adverse impact on the relevant U.S. products, and that are 
     not entering into good faith negotiations or making 
     significant progress in bilateral or multilateral 
     negotiations to provide adequate and effective intellectual 
     property rights protection.
     House bill
       No provision.
     Senate amendment
       Section 116 of the Senate bill seeks to address the issue 
     of access to HIV/AIDS pharmaceuticals and medical 
     technologies in the beneficiary countries of sub-Saharan 
     Africa. In subsection (a), Congress finds that since the 
     onset of the worldwide HIV/AIDS epidemic, approximately 
     34,000,000 people living in sub-Saharan Africa have been 
     infected with the disease. Of those infected, approximately 
     11,500,000 have died, representing 83 percent of the total 
     HIV/AIDS-related deaths worldwide. Subsection (b) expresses 
     the sense of Congress that:
       It is in the interest of the United States to take all 
     necessary steps to prevent further spread of infectious 
     disease, particularly HIV/AIDS;
       There is critical need for effective incentives to develop 
     new pharmaceuticals, vaccines, and therapies to combat the 
     HIV/AIDS crisis, especially effective global standards for 
     protecting pharmaceutical and medical innovation;
       The overriding priority for responding to the crisis on 
     HIV/AIDS in sub-Saharan Africa should be the development of 
     the infrastructure necessary to deliver adequate health care 
     services, and of public education to prevent transmission and 
     infection, rather than legal standards issues;
       Individual countries should have the ability to determine 
     the availability of pharmaceuticals and health care for their 
     citizens in general, and particularly with respect to the 
     HIV/AIDS epidemic.
       Subsection (c) prohibits the Administration from seeking, 
     through negotiation or otherwise, the revocation or revision 
     of any intellectual property or competition law or policy 
     that regulates HIV/AIDS pharmaceuticals or medical 
     technologies of a beneficiary sub-Saharan African country if 
     the law or policy promotes access to HIV/AIDS pharmaceuticals 
     or medical technologies and the law or policy of the country 
     provides adequate and effective intellectual property 
     protection consistent with the Agreement on Trade-Related 
     Aspects of Intellectual Property Rights referred to in 
     section 101(d)(15) of the Uruguay Round Agreements Act.
     Conference agreement
       The Senate recedes to the House.


                      trade adjustment assistance

     Present law
       Title II of the Trade Act of 1974, as amended, authorizes 
     three trade adjustment assistance (TAA) programs for the 
     purpose of providing assistance to individual workers and 
     firms that are adversely affected by import competition. 
     Those programs are: (1) the general TAA program for workers, 
     which provides training and income support for workers 
     adversely affected by import competition; (2) the TAA program 
     for firms, which provides technical assistance to qualifying 
     firms; and (3) the North American Free Trade Agreement 
     (NAFTA) Transitional Adjustment Assistance (NAFTA-TAA) 
     program for workers (established by the North American Free 
     Trade Agreement Implementation Act of 1993), which provides 
     training and income support for workers adversely affected by 
     imports from or production shifts to Canada and/or Mexico.
       The authorizations for all three programs expire on 
     September 30, 2001. At the time of the passage of the Senate 
     bill, the authorization for these programs had expired on 
     June 30, 1999.
     House bill
       No provision.
     Senate amendment
       Section 401 of the Senate bill reauthorizes each of the 
     three TAA programs through September 30, 2001. It also caps 
     the amount of money appropriated for any fiscal year from 
     October 1, 1998 to September 30, 2001 at $30,000,000.
       Section 402 of the Senate bill requires the Secretary of 
     Labor to certify as eligible for benefits under the general 
     TAA program workers in textile and apparel firms who lose 
     their jobs as a result of either (1) a decrease in the firm's 
     sales or production; or (2) a firm's plant or facility 
     closure or relocation.
     Conference agreement
       The Senate recedes to the House.


                Trade Adjustment Assistance for Farmers

     Present law
       Title II of the Trade Act of 1974, as amended, authorizes 
     three trade adjustment assistance (TAA) programs for the 
     purpose of providing assistance to individual workers and 
     firms that are adversely affected by import competition. 
     Those programs are: the general TAA program for workers, 
     which provides training and income support for workers 
     adversely affected by import competition; the TAA program for 
     firms, which provides technical assistance to qualifying 
     firms; and the North American Free Trade Agreement Act 
     (NAFTA) transitional adjustment assistance program which 
     provides training and income support for workers who may be 
     adversely impacted by imports from or production shifts to 
     Canada and/or Mexico.
     House bill
       No provision.
     Senate amendment
       The Trade Adjustment Assistance for Farmers provision would 
     create a new TAA program for farmers as Chapter 6 of title II 
     of the Trade Act of 1974. Under this new program, farmers 
     would be eligible for cash assistance when commodity prices 
     drop by more than 20 percent below the average for the 
     previous five year period and imports contributed importantly 
     to this price drop. When a commodity meets these criteria, 
     individual farmers would be eligible to receive cash 
     assistance equal to half the difference between the actual 
     national average price for the year and 80 percent of the 
     average price in the previous five years (the price trigger 
     level), provided that the farmer's income had declined from 
     the previous year. This assistance was capped at $10,000 per 
     farmer. The program is authorized at $100 million annually 
     and is to be administered by the Department of Agriculture.


                         Report on Debt Relief

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Section 705 of the Senate amendment requires the President 
     to submit a report to Congress on the President's 
     recommendations for: bilateral debt relief for sub-Saharan 
     African countries; new loan, credit and guarantee programs 
     for these countries; and the President's assessment of how 
     debt relief will affect the ability of each country to 
     participate fully in the international trading system.
     Conference agreement
       The Senate recedes to the House. Section 714 of the Senate 
     bill, expressing Congress' support for comprehensive debt 
     relief for the world's poorest countries, is included in 
     Title I of the conference agreement.


 Sense of Senate Regarding Fair Access to Japanese Telecommunications 
                        Facilities and Services

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Section 709 of the Senate amendment expresses the Sense of 
     the Senate that the Administration should pursue efforts to 
     open the Japanese telecommunications market, particularly to 
     internet services. This provision notes that despite several 
     bilateral agreements with Japan regarding its 
     telecommunications market, the Senate remains concerned about 
     Japan's excessive regulation and anti-competitive activity in 
     the telecommunications sector. The provision urges the 
     Administration to continue to pursue aggressively further 
     market opening

[[Page H2552]]

     with Japan as part of the multilateral negotiations that were 
     to be launched at the WTO Ministerial in Seattle (November 
     30-December 3).
     Conference agreement
       The Senate recedes to the House.


                       report on wto ministerial

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Section 709 of the Senate amendment expresses the Sense of 
     Congress on the importance of the new round of international 
     trade negotiations that was to be launched at the World Trade 
     Organization (WTO) Ministerial Conference in Seattle, 
     Washington from November 30 to December 3, 1999. Subsection 
     (b) requires that the United States Trade Representative 
     shall submit a report to Congress regarding any discussions 
     on the Agreement on Implementation of Article VI of the 
     General Agreement on Tariffs and Trade 1994 (the Antidumping 
     Agreement) and the Agreement on Subsidies and Countervailing 
     Measures during the Seattle Ministerial Conference.
     Conference agreement
       The Senate recedes to the House.


                      marking of imported jewelry

     Present law
       Section 304 of the Tariff Act of 1930 (19 U.S.C. Sec. 1304) 
     requires that all articles of foreign origin imported into 
     the United States ``shall be marked in a conspicuous place as 
     legibly, indelibly and permanently as the nature of the 
     article (or container) will permit a manner to indicate to 
     the ultimate purchaser in the United States the English name 
     of the country of origin of the article.'' The provision 
     authorizes several exceptions to this standard including 
     where ``such article is incapable of being marked'' and 
     ``such article cannot be marked prior to shipment to the 
     United States, except at an expense economically prohibitive 
     of its importation.'' 19 U.S.C. Sec. 1304(3)(A), (C). Part 
     134, Customs Regulations (19 C.F.R. part 134), implements the 
     country of origin marking requirements and exceptions of 19 
     U.S.C. 1304.
       The Customs Service has not implemented any specific 
     regulation with respect to costume jewelry. In practice, 
     however, the Customs Service has interpreted the statute and 
     its exceptions to permit articles of costume jewelry to be 
     marked with a hang tag, applied tag, or similar labeling 
     where the article is incapable of being marked in a more 
     permanent manner or where it is economically prohibitive to 
     indelibly mark the article.
     House bill
       No provision.
     Senate amendment
       Section 720 of the Senate bill directs the U.S. Department 
     of Treasury to implement regulations, consistent with the 
     existing statutory framework, with respect to the marking of 
     costume jewelry of foreign origin within one year of the date 
     of enactment of this bill. These regulations are intended to 
     clarify the existing statutory standard and are to be modeled 
     after the Customs Service's regulation with respect to Native 
     American jewelry, codified in 19 C.F.R. Sec. 134.43(c).
       The U.S. jewelry industry continues to report, however, 
     that hang tags and labels on imported costume jewelry that 
     are in place upon entry into the United States often 
     disappear or are removed prior to the jewelry's display or 
     sale. When country-of-origin markings do not appear on 
     imported jewelry or other items offered to the consumer, it 
     constitutes a violation of federal marking law and prevents 
     purchasers from being informed about the origin of such 
     products.
     Conference agreement
       The Senate recedes to the House.


               Unreasonable Acts, Policies and Practices.

     Present law
       Sections 301-310 of the Trade Act of 1974 provides 
     authority to the United States Trade Representative to 
     enforce U.S. rights under international trade agreements. 
     Section 301(a) authorizes the Trade Representative to take 
     action to enforce such rights if the Trade Representative 
     determines that an act, policy, or practice of a foreign 
     country is unreasonable or discriminatory and burdens or 
     restricts United States commerce. Section 301(d)(3)(B)(i) 
     defines unreasonable acts, policies, and practices to include 
     acts which deny fair and equitable market opportunities, 
     including the toleration by a foreign government of 
     systematic anticompetitive activities by enterprises in the 
     foreign country that have the effect of restricting access of 
     U.S. goods or services in that foreign market or a third 
     country market.
     House bill
       No provision.
     Senate amendment
       Section 725 of the Senate amendment adds language to 
     section 301(d)(3)(B)(i) to define unreasonable acts, 
     policies, and practices which deny fair and equitable market 
     opportunities as including predatory pricing, discriminatory 
     pricing, or pricing below the cost of production if such 
     acts, policies or practices are inconsistent with commercial 
     practices. This provision also deletes the existing reference 
     to systematic anticompetitive activities.
     Conference agreement
       The House recedes to the Senate.

     From the Committee on International Relations, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committed to conference:
     Benjamin A. Gilman,
     Edward R. Royce,
     Sam Gejdenson,
     From the Committee on Ways and Means, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:
     Bill Archer,
     Phil Crane,
     Charles B. Rangel,
     As additional conferees, for consideration of the House bill 
     and the Senate amendment, and modifications committed to 
     conference:
     Amo Houghton,
     Joe Hoeffel,
                                Managers on the Part of the House.

     W.V. Roth, Jr.,
     Chuck Grassley,
     Trent Lott,
     Daniel P. Moynihan,
     Max Baucus,
     Joe Biden,
     Managers on the Part of the Senate.

                          ____________________