Fair Trade Practices Act of 1996

Summary: Fair Trade Practices Act of 1996 - Directs the President to report annually to the Congress the identities of:  (1) foreign persons and concerns that engage in certain foreign corrupt trade practices; and (2) foreign countries that do not have in effect or do not enforce laws similar to the Foreign Corrupt Practices Act of 1977. 
Authorizes the President to impose specified sanctions upon countries that are not making a good faith effort to enact or enforce such laws.

SECTION 1. SHORT TITLE.

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

SEC. 2. REPORT BY THE PRESIDENT; SANCTIONS.

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

SEC. 3. SANCTIONS AGAINST PERSONS AND BUSINESS ENTITIES.

    (a) Imposition of Sanctions on Foreign Persons and Concerns 
Engaging in Certain Corrupt Business Practices.--The President shall 
impose the sanctions described in subsection (b), to the fullest extent 
consistent with international obligations, if the President certifies 
to the Congress that--
            (1) a foreign person or concern has engaged in the conduct 
        described in section 104(h) of the Foreign Corrupt Practices 
        Act of 1977, and such conduct has placed a United States 
        concern at a competitive disadvantage,
            (2) the President has consulted with the foreign country 
        having primary jurisdiction over such conduct in an effort to 
        get the government of that country to impose sanctions against 
        such foreign person or concern,
            (3) a period of 90 days has elapsed since the President 
        first consulted with the foreign country, and
            (4) the country has not taken action against such person or 
        concern.
The 90-day period referred to in the preceding sentence may be extended 
for an additional 90 days if the President determines sufficient 
progress has been made in consultation with the foreign country to 
justify such an extension.
    (b) Sanctions.--
            (1) In general.--The sanctions to be imposed pursuant to 
        subsection (a) are as follows:
                    (A) Procurement sanction.--The United States 
                Government shall not procure, or enter into any 
                contract for the procurement of, any goods or services 
                from any foreign person or concern that engages in the 
                unlawful conduct described in subsection (a)(1).
                    (B) License ban.--The United States Government 
                shall not issue any license or other authority to 
                conduct business in the United States to any foreign 
                person or concern that engages in the unlawful conduct 
                described in subsection (a)(1).
            (2) Waiver.--Any penalties or sanctions imposed under this 
        section may be delayed or waived upon certification of the 
        President to Congress that it is in the national interest to do 
        so.
    (c) Definitions.--For purposes of this section--
            (1) Foreign concern.--The term ``foreign concern'' means 
        any corporation, partnership, association, joint stock company, 
        business trust, unincorporated organization, or sole 
        proprietorship which has its principal place of business in a 
        country other than the United States, or which is organized 
        under the laws of a country other than the United States.
            (2) Foreign person.--The term ``foreign person'' means any 
        individual who is a citizen or national of a country other than 
        the United States.