[Federal Register Volume 64, Number 64 (Monday, April 5, 1999)]
[Presidential Documents]
[Pages 16333-16335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8433]


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                         Presidential Documents 
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  Federal Register / Vol. 64, No. 64 / Monday, April 5, 1999 / 
Presidential Documents  

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 Title 3--
 The President

[[Page 16333]]

                Executive Order 13116 of March 31, 1999

                
Identification of Trade Expansion Priorities and 
                Discriminatory Procurement Practices

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, including title III of the Act of March 3, 
                1993, as amended (41 U.S.C. 10d), sections 141 and 301-
                310 of the Trade Act of 1974, as amended (the Act) (19 
                U.S.C. 2171, 2411-2420), title III of the Trade 
                Agreements Act of 1979, as amended (19 U.S.C. 2511-
                2518), and section 301 of title 3, United States Code, 
                and to ensure that the trade policies of the United 
                States advance, to the greatest extent possible, the 
                export of the products and services of the United 
                States and that trade policy resources are used 
                efficiently, it is hereby ordered as follows:

                Part I: Identification of Trade Expansion Priorities

                Section 1. Identification and Annual Report. (a) Within 
                30 days of the submission of the National Trade 
                Estimate Report required by section 181(b) of the Act 
                (19 U.S.C. 2241(b)) for 1999, 2000, and 2001, the 
                United States Trade Representative (Trade 
                Representative) shall review United States trade 
                expansion priorities and identify priority foreign 
                country practices, the elimination of which is likely 
                to have the most significant potential to increase 
                United States exports, either directly or through the 
                establishment of a beneficial precedent. The Trade 
                Representative shall submit to the Committee on Finance 
                of the Senate and the Committee on Ways and Means of 
                the House of Representatives, and shall publish in the 
                Federal Register, a report on the priority foreign 
                country practices identified.

                    (b) In identifying priority foreign country 
                practices under paragraph (a) of this section, the 
                Trade Representative shall take into account all 
                relevant factors, including:

 
 
 
(1)  the major barriers and trade distorting practices described in the National Trade Estimate Report;
(2)  the trade agreements to which a foreign country is a party and its compliance with those agreements;
(3)  the medium-term and long-term implications of foreign government procurement plans; and
(4)  the international competitive position and export potential of United States products and services.
 

                    (c) The Trade Representative may include in the 
                report, if appropriate, a description of the foreign 
                country practices that may in the future warrant 
                identification as priority foreign country practices. 
                The Trade Representative also may include a statement 
                about other foreign country practices that were not 
                identified because they are already being addressed by 
                provisions of United States trade law, existing 
                bilateral trade agreements, or in trade negotiations 
                with other countries and progress is being made toward 
                their elimination.

                Sec. 2. Resolution. Upon submission of the report 
                required by paragraph (a) of section 1 of this part, 
                the Trade Representative shall, with respect to any 
                priority foreign country practice identified therein, 
                engage the country concerned for the purpose of seeking 
                a satisfactory resolution, for example, by obtaining 
                compliance with a trade agreement or the elimination of 
                the practice as quickly as possible, or, if this is not 
                feasible, by providing for compensatory trade benefits.

[[Page 16334]]

                Sec. 3. Initiation of Investigations. Within 90 days of 
                the submission of the report required by paragraph (a) 
                of section 1 of this part, the Trade Representative 
                shall initiate under section 302(b)(1) of the Act (19 
                U.S.C. 2412(b)(1)) investigations with respect to all 
                of the priority foreign country practices identified, 
                unless during the 90-day period the Trade 
                Representative determines that a satisfactory 
                resolution of the matter to be investigated has been 
                achieved.

                Part II: Identification of Discriminatory Government 
                Procurement Practices

                Section 1. Identification and Annual Report. (a) Within 
                30 days of the submission of the National Trade 
                Estimate Report for 1999, 2000, and 2001, the Trade 
                Representative shall submit to the Committees on 
                Finance and on Governmental Affairs of the Senate and 
                the Committees on Ways and Means and Government Reform 
                and Oversight of the House of Representatives, and 
                shall publish in the Federal Register, a report on the 
                extent to which foreign countries discriminate against 
                U.S. products or services in making government 
                procurements.

                    (b) In the report, the Trade Representative shall 
                identify countries that:

 
 
 
(1)  are not in compliance with their obligations under the World Trade Organization Agreement on Government
      Procurement (the GPA), Chapter 10 of the North American Free Trade Agreement (NAFTA), or other agreements
      relating to government procurement (procurement agreements) to which that country and the United States
      are parties; or
(2)  maintain, in government procurement, a significant and persistent pattern or practice of discrimination
      against U.S. products or services that results in identifiable harm to U.S. businesses and whose products
      or services are acquired in significant amounts by the United States Government.
 

                Sec. 2. Considerations in Making Identifications. In 
                making the identifications required by section 1 of 
                this part, the Trade Representative shall: (a) consider 
                the requirements of the GPA, NAFTA, or other 
                procurement agreements, government procurement 
                practices, and the effects of such practices on U.S. 
                businesses as a basis for evaluating whether the 
                procurement practices of foreign governments do not 
                provide fair market opportunities for U.S. products or 
                services;

                    (b) take into account, among other factors, whether 
                and to what extent countries that are parties to the 
                GPA, NAFTA, or other procurement agreements, and other 
                countries described in section 1 of this part:

 
 
 
(1)  use sole-sourcing or otherwise noncompetitive procedures for procurement that could have been conducted
      using competitive procedures;
(2)  conduct what normally would have been one procurement as two or more procurements, to decrease the
      anticipated contract values below the value threshold of the GPA, NAFTA, or other procurement agreements,
      or to make the procurement less attractive to U.S. businesses;
(3)  announce procurement opportunities with inadequate time intervals for U.S. businesses to submit bids; and
(4)  use specifications in such a way as to limit the ability of U.S. suppliers to participate in procurements;
      and
 

                    (c) consider information included in the National 
                Trade Estimate Report, and any other additional 
                criteria deemed appropriate, including, to the extent 
                such information is available, the failure to apply 
                transparent and competitive procedures or maintain and 
                enforce effective prohibitions on bribery and other 
                corrupt practices in connection with government 
                procurement.

                Sec. 3. Impact of Noncompliance and Denial of 
                Comparable Treatment. The Trade Representative shall 
                take into account, in identifying countries in the 
                annual report and in any action required by this part, 
                the relative impact of any noncompliance with the GPA, 
                NAFTA, or other procurement agreements, or of other 
                discrimination on U.S. commerce, and the extent

[[Page 16335]]

                to which such noncompliance or discrimination has 
                impeded the ability of U.S. suppliers to participate in 
                procurements on terms comparable to those available to 
                suppliers of the country in question when seeking to 
                sell goods or services to the United States Government.

                Sec. 4. Resolution. Upon submission of the report 
                required by section 1 of this part, the Trade 
                Representative shall engage any country identified 
                therein for the purpose of seeking a satisfactory 
                resolution, for example, by obtaining compliance with 
                the GPA, NAFTA, or other procurement agreements or the 
                elimination of the discriminatory procurement practices 
                as quickly as possible, or, if this is not feasible, by 
                providing for compensatory trade benefits.

                Sec. 5. Initiation of Investigations. (a) Within 90 
                days of the submission of the report required by 
                section 1 of this part, the Trade Representative shall 
                initiate under section 302(b)(1) of the Act (19 U.S.C. 
                2412(b)(1)) investigations with respect to any practice 
                that:

 
 
 
(1)  was the basis for the identification of a country under section 1; and
(2)  is not at that time the subject of any other investigation or action under title III, chapter 1, of the
      Act,
 

                unless during the 90-day period the Trade 
                Representative determines that a satisfactory 
                resolution of the matter to be investigated has been 
                achieved.

                    (b) For investigations initiated under paragraph 
                (a) of this section (other than an investigation 
                involving the GPA or NAFTA), the Trade Representative 
                shall apply the time limits and procedures in section 
                304(a)(3) of the Act (19 U.S.C. 2414(a)(3)). The time 
                limits in subsection 304(a)(3)(B) of the Act (19 U.S.C. 
                2414(a)(3)(B)) shall apply if the Trade Representative 
                determines that:

 
 
 
(1)  complex or complicated issues are involved in the investigation that require additional time;
(2)  the foreign country involved in the investigation is making substantial progress in drafting or
      implementing legislative or administrative measures that will end the discriminatory procurement practice;
      or
(3)  such foreign country is undertaking enforcement measures to end the discriminatory procurement practice.
 

                Part III: Direction

                Section 1. Presidential Direction. The authorities 
                delegated pursuant to this order shall be exercised 
                subject to any subsequent direction by the President in 
                a particular matter.

                Sec. 2. Consultations and Advice. In developing the 
                annual reports required by part I and part II of this 
                order, the Trade Representative shall consult with 
                executive agencies and seek information and advice from 
                U.S. businesses in the United States and in the 
                countries involved in the practices under 
                consideration.

                    (Presidential Sig.)

                THE WHITE HOUSE,

                    March 31, 1999.

[FR Doc. 99-8433
Filed 4-2-99; 8:45 am]
Billing code 3195-01-P