Fair Market Access Act of 1994

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Market Access Act of 1994''.

SEC. 2. REPORTS ON ACCESS TO JAPANESE MARKETS.

    (a) Initial Report.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary shall submit to the 
        Congress a report assessing the access to the Japanese market 
        of goods and services produced or originating in the United 
        States in each sector specifically identified in the Framework 
        Agreement.
            (2) Contents of report.--The Secretary shall include in the 
        report under paragraph (1) the following:
                    (A) An assessment of the market access 
                opportunities that would be available in the Japanese 
                market for goods and services in each sector referred 
                to in paragraph (1) in the absence of barriers to 
                achieving access to such market in both the public and 
                private sectors in Japan. In making such assessment, 
                the Secretary shall consider the competitive position 
                of such goods and services in similarly developed 
                markets in other countries. Such assessment shall 
                specify the time periods within which such market 
                access opportunities should reasonably be expected to 
                be obtained.
                    (B) Objective criteria for measuring the extent to 
                which those market access opportunities described in 
                subparagraph (A) have been obtained. The development of 
                such objective criteria may include the use of interim 
                objective criteria to measure results on a periodic 
                basis, as appropriate.
    (b) Subsequent Annual Reports.--
            (1) In general.--Not later than the date which is 1 year 
        after the last day of the 90-day period referred to in 
        subsection (a)(1), and annually thereafter, the Secretary shall 
        submit to the Congress a report containing the following:
                    (A) An assessment of the market access 
                opportunities that would be available in the Japanese 
                market, for goods and services produced or originating 
                in the United States in those sectors selected by the 
                Secretary, in the absence of the barriers to achieving 
                access to such market in both the public and private 
                sectors in Japan. In making such assessment, the 
                Secretary shall consider the competitive position of 
                such goods and services in similarly developed markets 
                in other countries. Such assessment shall specify the 
                time periods within which such market access 
                opportunities should reasonably be expected to be 
                obtained.
                    (B) Objective criteria for measuring the extent to 
                which those market access opportunities described in 
                subparagraph (A) have been obtained. The development of 
                such objective criteria may include the use of interim 
                criteria described in subsection (a)(2)(B).
                    (C) An assessment of whether, and to what extent, 
                Japan has materially complied with--
                            (i) agreements and understandings reached 
                        between the United States and Japan pursuant to 
                        section 3, and
                            (ii) existing trade agreements between the 
                        United States and Japan.
                Such assessment shall include specific information on 
                the extent to which United States suppliers have 
                achieved additional access to the Japanese market and 
                the extent to which Japan has complied with other 
                commitments under such agreements and understandings.
                    (D) An assessment of the effect of the agreements 
                and understandings described in subparagraph (C) on the 
                access to the Japanese markets of goods and services 
                produced or originating in the United States.
            (2) Selection of sectors.--In selecting sectors that are to 
        be the subject of a report under paragraph (1), the Secretary 
        shall give priority to those sectors--
                    (A) in which access to the Japanese market is 
                likely to have significant potential to increase 
                exports of United States goods and services;
                    (B) in which access to the Japanese market will 
                result in significant employment benefits for producers 
                of United States goods and services; or
                    (C) which represent critical technologies, 
                including those identified by the National Critical 
                Technologies Panel under section 603 of the National 
                Science and Technology Policy, Organization, and 
                Priorities Act of 1976 (42 U.S.C. 6683).
        The Secretary shall include an assessment under paragraph (1) 
        of any sector for which the Trade Representative requests such 
        assessment be made. In preparing any such request, the Trade 
        Representative shall give priority to those barriers identified 
        in the reports required by section 181(b) of the Trade Act of 
        1974.
            (3) Information on access by foreign suppliers.--The 
        Secretary shall consult with the governments of foreign 
        countries concerning access to the Japanese market of goods and 
        services produced or originating in those countries. At the 
        request of the government of any such country, the Secretary 
        may include in the reports required by paragraph (1) 
        information, with respect to that country, on such access.

SEC. 3. NEGOTIATIONS TO ACHIEVE MARKET ACCESS.

    (a) Negotiating Authority.--The President is authorized to enter 
into agreements or other understandings with the Government of Japan 
for the purpose of obtaining the market access opportunities described 
in the reports of the Secretary under section 2.
    (b) Determination of Priority of Negotiations.--Upon the submission 
by the Secretary of each report under section 2, the Trade 
Representative shall determine--
            (1) for which sectors identified in the report the Trade 
        Representative will pursue negotiations, during the 6-month 
        period following submission of the report, for the purpose of 
        concluding agreements or other understandings described in 
        subsection (a), and the time frame for pursuing negotiations on 
        any other sector identified in the report; and
            (2) for which sectors identified in any previous report of 
        the Secretary under section 2 the Trade Representative will 
        pursue negotiations, during the 6-month period described in 
        paragraph (1), in cases in which--
                    (A) negotiations were not previously pursued by the 
                Trade Representative, or
                    (B) negotiations that were pursued by the Trade 
                Representative did not result in the conclusion of an 
                agreement or understanding described in subsection (a) 
                during the preceding 6-month period, but are expected 
                to result in such an agreement or understanding during 
                the 6-month period described in paragraph (1).
For purposes of this Act, negotiations by the Trade Representative with 
respect to a particular sector shall be for a period of not more than 
12 months.
    (c) Semiannual Reports.--At the end of the 6-month period beginning 
on the date on which the Secretary's first report is submitted under 
subsection (a)(1), and every 6 months thereafter, the Trade 
Representative shall submit to the Congress a report containing the 
following:
            (1) With respect to each sector on which negotiations 
        described in subsection (b) were pursued during that 6-month 
        period--
                    (A) a determination of whether such negotiations 
                have resulted in the conclusion of an agreement or 
                understanding intended to obtain the market access 
                opportunities described in the most recent applicable 
                report of the Secretary, and if not--
                            (i) whether such negotiations are 
                        continuing because they are expected to result 
                        in such an agreement or understanding during 
                        the succeeding 6-month period; or
                            (ii) whether such negotiations have 
                        terminated; and
                    (B) in the case of a positive determination made 
                under subparagraph (A)(i) in the preceding report 
                submitted under this subsection, a determination of 
                whether the continuing negotiations have resulted in 
                the conclusion of an agreement or understanding 
                described in subparagraph (A) during that 6-month 
                period.
            (2) With respect to each sector on which negotiations 
        described in subsection (b) were not pursued during that 6-
        month period, a determination of when such negotiations will be 
        pursued.

SEC. 4. MONITORING OF AGREEMENTS AND UNDERSTANDINGS.

    (a) In General.--For the purpose of making the assessments required 
by section 2(b)(1)(C), the Secretary shall monitor the compliance with 
each agreement or understanding reached between the United States and 
Japan pursuant to section 3, and with each existing trade agreement 
between the United States and Japan. In making each such assessment, 
the Secretary shall describe--
            (1) the extent to which market access for the sector 
        covered by the agreement or understanding has been achieved; 
        and
            (2) the bilateral trade relationship with Japan in that 
        sector.
In the case of agreements or understandings reached pursuant to section 
3, the description under paragraph (1) shall be done on the basis of 
the objective criteria set forth in the applicable report under section 
2(a)(2)(B) or 2(b)(1)(B).
    (b) Treatment of Agreements and Understandings.--Any agreement or 
understanding reached pursuant to negotiations conducted under this 
Act, and each existing trade agreement between the United States and 
Japan, shall be considered to be a trade agreement for purposes of 
section 301 of the Trade Act of 1974.

SEC. 5. TRIGGERING OF SECTION 301 ACTIONS.

    (a) Determinations by Trade Representative.--
            (1) Failure to conclude agreements.--In any case in which 
        the Trade Representative determines under section 
        3(c)(1)(A)(ii) or (B) that negotiations have not resulted in 
        the conclusion of an agreement or understanding described in 
        section 3(a), each barrier to access to the Japanese market 
        that was the subject of such negotiations shall, for purposes 
        of title III of the Trade Act of 1974, be considered to be an 
        act, policy, or practice determined under section 304 of that 
        Act to be an act, policy or practice that is unreasonable and 
        discriminatory and burdens or restricts United States commerce. 
        The Trade Representative shall determine what action to take 
        under section 301(b) of that Act in response to such act, 
        policy, or practice.
            (2) Noncompliance with agreements or understandings.--In 
        any case in which the Secretary determines, in a report 
        submitted under section 2(b)(1), that Japan is not in material 
        compliance with--
                    (A) any agreement or understanding concluded 
                pursuant to negotiations conducted under section 3, or
                    (B) any existing trade agreement between the United 
                States and Japan,
        the Trade Representative shall determine what action to take 
        under section 301(a) of the Trade Act of 1974. For purposes of 
        section 301 of that Act, a determination of noncompliance 
        described in the preceding sentence shall be treated as a 
        determination made under section 304 of that Act.

SEC. 6. DEFINITIONS.

    As used in this Act:
            (1) Existing trade agreement between the united states and 
        japan.--The term ``existing trade agreement between the United 
        States and Japan'' means any trade agreement that was entered 
        into between the United States and Japan before the date of the 
        enactment of this Act and is in effect on such date. Such term 
        includes--
                    (A) the Arrangement Between the Government of Japan 
                and the Government of the United States of America 
                Concerning Trade in Semiconductor Products, signed in 
                1986;
                    (B) the Arrangement Between the Government of Japan 
                and the Government of the United States of America 
                Concerning Trade in Semiconductor Products, signed in 
                1991;
                    (C) the United States-Japan Wood Products 
                Agreement, signed on June 5, 1990;
                    (D) Measures Related to Japanese Public Sector 
                Procurements of Computer Products and Services, signed 
                on January 10, 1992;
                    (E) the Tokyo Declaration on the U.S.-Japan Global 
                Partnership, signed on January 9, 1992; and
                    (F) the Cellular Telephone and Third-Party Radio 
                Agreement, signed in 1989.
            (2) Framework agreement.--The term ``Framework Agreement'' 
        means the Japan-United States Framework for a New Economic 
        Partnership, signed on July 10, 1993.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (4) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade Representative.

Summary: Fair Market Access Act of 1994 - Directs the Secretary of Commerce to report annually to the Congress an assessment of the access to the Japanese market of goods and services produced or originating in the United States in each sector specifically identified in the Japan-United States Framework for a New Economic Partnership signed on July 10, 1993 . Specifies contents of such access assessments. Authorizes the President to enter into agreements or other understandings with Japan for the purpose of obtaining the market access opportunities described in such assessments. Requires the United States Trade Representative (USTR) to determine for which sectors identified in each assessment to pursue negotiations in order to conclude such agreements or understandings. Directs the Secretary to monitor compliance with each agreement or understanding between the United States and Japan reached under this Act, as well as with existing trade agreements between both countries. Deems an unreasonable and discriminatory act, policy, or practice burdening or restricting US commerce each barrier to access to the Japanese market that is the subject of negotiations under this Act which fail to conclude an agreement or understanding. Requires the USTR to determine what Super 301 sanction to impose in response to such acts, policies, or practices, as well as in instances of material noncompliance with new or existing agreements or understandings.