SECTION 1. FINDINGS.

    The Congress finds that--
            (1) free trade agreements improve the income and prosperity 
        of the citizens of participating countries because open markets 
        increase competition, eliminate inefficiencies, and result in 
        lower costs to manufacturers and consumers;
            (2) continued economic growth, and the resulting economic 
        and political stability, within the countries of the Pacific 
        Rim is of vital strategic and economic interest to the United 
        States;
            (3) bilateral disputes between the United States and 
        Pacific Rim countries could be more effectively resolved in the 
        context of mutually agreed-upon disciplines and dispute 
        settlement mechanisms rather than issue-by-issue confrontations 
        under section 301 of the Trade Act of 1974 or other trade 
        remedy laws; and
            (4) free trade agreements between the United States and 
        Pacific Rim countries, whose economies are becoming 
        increasingly interdependent, will provide a foundation for 
        enhanced cooperation and will ensure mutually beneficial 
        economic and political relations.

SEC. 2. PRENEGOTIATION CONSULTATIONS AND CONSIDERATIONS.

    (a) Preliminary Consultations.--Within 60 days after the date of 
the enactment of this Act, the President shall initiate preliminary 
consultations with the government of each eligible Pacific Rim country 
to determine the feasibility and desirability of negotiating the 
elimination of tariffs and nontariff barriers (including barriers to 
investment, trade in services, and protection of intellectual property 
rights) in the context of a bilateral free trade agreement. If the 
preliminary consultations indicate that the establishment of a free 
trade area between the United States and the eligible country is 
feasible and desirable, the President shall request a meeting at the 
ministerial level with the government of that country to consider the 
conditions under which formal negotiations regarding a free trade 
agreement could be commenced.
    (b) Ministerial Meeting Recommendations.--At each ministerial 
meeting convened pursuant to subsection (a), the President shall 
recommend the establishment of a council comprised of appropriate 
public and private sector officials from the respective countries. The 
functions of the council are--
            (1) to review and analyze the aspects of the existing 
        bilateral relationship as they relate to the negotiation of a 
        free trade agreement, including--
                    (A) trade and investment practices and impediments,
                    (B) differences in customs laws and procedures,
                    (C) the harmonization of trade statistics and other 
                economic data, and
                    (D) the status of bilateral disputes and exchange 
                of information on disputed practices; and
            (2) within one year after establishment, to issue a report 
        on the overall bilateral relationship and the prospects for a 
        successful negotiation of a free trade agreement that addresses 
        the possible benefits and adverse effects of concluding a free 
        trade agreement and examines which dispute settlement 
        mechanisms would be appropriate to effectively resolve 
        bilateral trade problems.
    (c) Considerations.--Before entering into formal negotiations under 
section 1102 of the Omnibus Trade and Competitiveness Act of 1988 with 
an eligible Pacific Rim country, the President shall consider whether 
that country--
            (1) is a member of, or applicant to, the General Agreement 
        on Tariffs and Trade;
            (2) has pursued substantive trade liberalization and 
        undertaken structural economic reforms in order to achieve an 
        economy governed by market forces and international trade 
        disciplines;
            (3) is an active participant in the Uruguay Round of 
        multilateral trade negotiations under the auspices of the GATT, 
        has demonstrated a commitment to the success of these 
        negotiations, and has pursued goals and objectives consistent 
        with those of the United States; and
            (4) is a country whose bilateral relationship with the 
        United States will be enhanced by eliminating substantially all 
        tariff and nontariff barriers and structural impediments and 
        will benefit from improved dispute settlement mechanisms.
    (d) Extension of ``Fast Track'' Procedures With Respect to 
Agreements Entered Into With Eligible Pacific Rim Countries.--
            (1) Notwithstanding the provisions of section 1102(c)(1) of 
        the Omnibus Trade and Competitiveness Act of 1988 relating to 
        the expiration of the authority contained in such section on 
        June 1, 1993, the President may enter into bilateral trade 
        agreements with eligible Pacific Rim countries under such 
        section.
            (2) Notwithstanding the provisions of section 1103(b)(1)(A) 
        of the Omnibus Trade and Competitiveness Act of 1988 relating 
        to the expiration of the authority contained in such section on 
        June 1, 1991, and subject to section 1103(c) of such Act, the 
        provisions of section 151 of the Trade Act of 1974 shall apply 
        to any agreement entered into with an eligible Pacific Rim 
        country.
    (e) Waiver of Negotiation Request by Eligible Pacific Rim 
Countries.--Section 1102(c)(3)(B) of the Omnibus Trade and 
Competitiveness Act of 1988 (19 U.S.C. 2902(c)(3)(B)) does not apply to 
trade agreements referred to in subsection (a).

SEC. 3. ADDITIONAL NEGOTIATING OBJECTIVES.

    In addition to the negotiating objectives set forth in section 1101 
of the Omnibus Trade and Competitiveness Act of 1988, the President 
shall seek to achieve, in negotiations with an eligible Pacific Rim 
country to establish a free trade area, substantial progress in--
            (1) improving the bilateral relationship between the United 
        States and that country by promoting mutual economic benefits 
        through trade expansion, greater economic efficiency, enhanced 
        competition, and common rules governing trade practices;
            (2) removing, to the greatest extent possible, formal and 
        informal barriers to trade between the parties, particularly in 
        agricultural products and manufactured components in an effort 
        to reduce government subsidies and injurious dumping practices;
            (3) providing effective mechanisms for the development of 
        rules in nontraditional areas such as services, trade-related 
        investment, and the protection of intellectual property rights;
            (4) encouraging United States firms to take greater 
        advantage of opportunities in Pacific Rim country markets and 
        to better understand how to compete effectively in those 
        markets; and
            (5) improving market access in the respective countries as 
        a means of stabilizing the bilateral balance of trade.

SEC. 4. ELIGIBLE PACIFIC RIM COUNTRIES.

    As used in this Act, the term ``eligible Pacific Rim country'' 
means Indonesia, Malaysia, the Philippines, Singapore, Thailand, 
Brunei, Australia, New Zealand, Taiwan, South Korea, Japan, or Hong 
Kong.
Directs the President to initiate consultations with each Pacific Rim country (Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Australia, New Zealand, Taiwan, South Korea, Japan, or Hong Kong) to determine the feasibility of negotiating the elimination of tariffs and nontariff barriers, including barriers to investment, trade in services, and protection of intellectual property rights, through a bilateral free trade agreement. 
Requires the President, at each ministerial meeting convened for such consultations, to recommend establishment of a council to review and report on the existing bilateral relationship and the prospects for negotiating a free trade agreement. 
Authorizes the President to enter into such agreements after expiration on June 1, 1993, of "fast track" authority which provides procedures for their congressional passage under the Omnibus Trade and Competitiveness Act of 1988 and the Trade Act of 1974. 
Requires the President to achieve specified negotiating objectives with each country, including:  (1) improving bilateral relationships through trade expansion and greater economic efficiency; (2) removing trade barriers, particularly in agricultural products and manufactured components in an effort to reduce government subsidies and injurious dumping practices; (3) providing mechanisms for the development of rules in nontraditional areas such as services, trade-related investment, and the protection of intellectual property rights; (4) encouraging U.S. firms to take greater advantage of opportunities in Pacific Rim countries and to compete more effectively there; and (5) improving market access in such countries.
To encourage the establishment of free trade areas between the United States and certain Pacific Rim countries.