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[106th Congress Public Law 200]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ200.106]

[[Page 114 STAT. 251]]

Public Law 106-200
106th Congress

                                 An Act

 
 To authorize a new trade and investment policy for sub-Saharan Africa, 
expand trade benefits to the countries in the Caribbean Basin, renew the 
generalized system of preferences, and reauthorize the trade adjustment 
       assistance programs. <<NOTE: May 18, 2000 -  [H.R. 434]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Trade and Development Act 
of 2000.>> assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short <<NOTE: 19 USC 3701 note.>> Title.--This Act may be cited 
as the ``Trade and Development Act of 2000''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

   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 the 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.

[[Page 114 STAT. 252]]

              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.
Sec. 212. Duty-free treatment for certain beverages made with Caribbean 
           rum.
Sec. 213. 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 <<NOTE: African Growth and Opportunity Act.>> I--EXTENSION OF 
CERTAIN TRADE BENEFITS TO SUB-SAHARAN AFRICA

             Subtitle A--Trade Policy for Sub-Saharan Africa

SEC. <<NOTE: 19 USC 3701 note.>> 101. SHORT TITLE.

    This title may be cited as the ``African Growth and Opportunity 
Act''.

SEC. <<NOTE: 19 USC 3701.>> 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;

[[Page 114 STAT. 253]]

            (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. <<NOTE: 19 USC 3702.>> 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

[[Page 114 STAT. 254]]

            (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. <<NOTE: President. 19 USC 3703.>> 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).

[[Page 114 STAT. 255]]

SEC. <<NOTE: President. 19 USC 3704.>> 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) <<NOTE: Deadline.>> 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 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). <<NOTE: Deadline.>> 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.

[[Page 114 STAT. 256]]

    (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. <<NOTE: President. Deadline. 19 USC 3705.>> 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. <<NOTE: 19 USC 3706.>> 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).

[[Page 114 STAT. 257]]

            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. <<NOTE: 19 USC 2466a.>> 506A. DESIGNATION OF SUB-SAHARAN AFRICAN 
            COUNTRIES FOR CERTAIN BENEFITS.

    ``(a) <<NOTE: President.>> 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 the 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.--

[[Page 114 STAT. 258]]

            ``(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 one 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. <<NOTE: 19 USC 3721.>> 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 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, (including fabrics not formed from yarns, if 
        such fabrics are classifiable under heading

[[Page 114 STAT. 259]]

        5602 or 5603 of the Harmonized Tariff Schedule of the United 
        States and are wholly formed and cut 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 one or more 
        beneficiary sub-Saharan African countries from fabric wholly 
        formed in the United States from yarns wholly formed in the 
        United States, (including fabrics not formed from yarns, if such 
        fabrics are classifiable under heading 5602 or 5603 of the 
        Harmonized Tariff Schedule of the United States and are wholly 
        formed in the United States) if such articles are assembled in 
        one 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 one or more 
        beneficiary sub-Saharan African countries from fabric wholly 
        formed in one or more beneficiary sub-Saharan African countries 
        from yarn originating either in the United States or one or more 
        beneficiary sub-Saharan African countries (including fabrics not 
        formed from yarns, if such fabrics are classifiable under 
        heading 5602 or 5603 of the Harmonized Tariff Schedule of the 
        United States and are wholly formed and cut in one 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 seven 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 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

[[Page 114 STAT. 260]]

                      in one 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) <<NOTE: Deadline.>> 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. <<NOTE: Federal 
                                Register, publication.>> Notice of 
                                initiation of an inquiry shall be 
                                published in the Federal Register.

[[Page 114 STAT. 261]]

                                    (II) Participation by interested 
                                parties.--The Secretary of Commerce 
                                shall establish procedures to ensure 
                                participation in the inquiry by 
                                interested parties.
                                    (III) <<NOTE: Federal Register, 
                                publication.>> 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 one 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 one 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 
                one 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 apparel articles of 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.

[[Page 114 STAT. 262]]

                    (B) <<NOTE: President.>> 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) <<NOTE: Deadline. Reports.>> 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. <<NOTE: President.>> 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) <<NOTE: President. Deadlines.>> 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

[[Page 114 STAT. 263]]

                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 one 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 ) <<NOTE: Termination date.>> Effective Date.--This section takes 
effect on October 1, 2000, and shall remain in effect through September 
30, 2008.

SEC. <<NOTE: 19 USC 3722.>> 113. PROTECTIONS AGAINST TRANSSHIPMENT.

    (a) Preferential Treatment Conditioned on Enforcement Measures.--

[[Page 114 STAT. 264]]

            (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) <<NOTE: President.>> 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

[[Page 114 STAT. 265]]

                                    (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) <<NOTE: Deadline.>> 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;

[[Page 114 STAT. 266]]

            (2) send production verification teams to at least four 
        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. <<NOTE: 19 USC 2466b.>> 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. <<NOTE: 19 USC 3723.>> 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) <<NOTE: President.>> 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 one 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

[[Page 114 STAT. 267]]

                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) <<NOTE: Deadline. President.>> 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. <<NOTE: 19 USC 3724.>> 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. <<NOTE: 19 USC 3731.>> 121. SENSE OF THE 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.
            (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.

[[Page 114 STAT. 268]]

            (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 the Congress.--It is the sense of the 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. <<NOTE: 19 USC 3732.>> 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

[[Page 114 STAT. 269]]

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. <<NOTE: 19 USC 3733.>> 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.--One 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.--

[[Page 114 STAT. 270]]

            (1) Investment advisory council.--Section 233 of the Foreign 
        Assistance Act of 1961 is <<NOTE: 22 USC 2193.>> 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. <<NOTE: Termination date.>> The investment advisory council 
shall terminate 4 years after the date of the enactment of this 
subsection.''.
            (2) <<NOTE: Deadline.>> Reports to 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 
        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. <<NOTE: 19 USC 3734.>> 124. EXPORT-IMPORT BANK INITIATIVES.

    (a) Sense of the Congress.--It is the sense of the 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. <<NOTE: 19 USC 3735.>> 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 United States 
        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 eight countries. By early 1997, that presence had 
        been reduced by half to seven professionals in only four 
        countries.

[[Page 114 STAT. 271]]

            (3) Since 1997, the Department of Commerce has slowly begun 
        to increase the presence of the Commercial Service in sub-
        Saharan Africa, adding five 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 United States 
        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) <<NOTE: Deadline.>> 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 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) <<NOTE: Public information.>> 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 the enactment of this 
        Act.

SEC. <<NOTE: 19 USC 3736.>> 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

[[Page 114 STAT. 272]]

be eligible under section 104 air traffic control equipment that is no 
longer in use, including appropriate related reimbursable technical 
assistance.

SEC. <<NOTE: 19 USC 3737.>> 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.

[[Page 114 STAT. 273]]

                    (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. <<NOTE: 19 USC 3738.>> 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. <<NOTE: 19 USC 3739.>> 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.

[[Page 114 STAT. 274]]

            (3) Eighty-three 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. <<NOTE: 19 USC 3740.>> 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 <<NOTE: Deadline.>> 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. <<NOTE: 19 USC 3741.>> 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;

[[Page 114 STAT. 275]]

            (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 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 <<NOTE: United States- Caribbean Basin Trade Partnership 
Act.>> II--TRADE BENEFITS FOR CARIBBEAN BASIN

         Subtitle A--Trade Policy for Caribbean Basin Countries

SEC. <<NOTE: 19 USC 2701 note.>> 201. SHORT TITLE.

    This title may be cited as the ``United States-Caribbean Basin Trade 
Partnership Act''.

SEC. <<NOTE: 19 USC 2701 note.>> 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

[[Page 114 STAT. 276]]

        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. <<NOTE: 19 USC 2701 note.>> 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--

[[Page 114 STAT. 277]]

                    ``(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 one or 
                      more cbtpa beneficiary countries.--Apparel 
                      articles assembled in one or more CBTPA 
                      beneficiary countries from fabrics wholly formed 
                      and cut in the United States, from yarns wholly 
                      formed in the United States, (including fabrics 
                      not formed from yarns, if such fabrics are 
                      classifiable under heading 5602 or 5603 of the HTS 
                      and are wholly formed and cut 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 one or more CBTPA beneficiary 
                      countries from fabric wholly formed in the United 
                      States from yarns wholly formed in the United 
                      States (including fabrics not formed from yarns, 
                      if such fabrics are classifiable under heading 
                      5602 or 5603 of the HTS and are wholly formed in 
                      the United States), if such articles are assembled 
                      in one or more such countries 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,

[[Page 114 STAT. 278]]

                      and knit apparel articles (other than t-shirts 
                      described in subclause (III)) 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 
                      (including fabrics not formed from yarns, if such 
                      fabrics are classifiable under heading 5602 or 
                      5603 of the HTS and are formed in one or more 
                      CBTPA beneficiary countries), 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 the 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 occurring 
                      after 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 one 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 six 
                      succeeding 1-year periods, apparel articles 
                      described in subclause (I) of a producer or an 
                      entity controlling production shall

[[Page 114 STAT. 279]]

                      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 fabrics 
                      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 one or more CBTPA beneficiary 
                      countries, from fabrics or yarn that is not formed 
                      in the United States or in one or more CBTPA 
                      beneficiary countries, to the extent that apparel 
                      articles of such fabrics or yarn would be eligible 
                      for preferential treatment, without regard to the 
                      source of the fabrics or yarn, under Annex 401 of 
                      the NAFTA.
                          ``(II) At the request of any interested party, 
                      the President is authorized to proclaim additional 
                      fabrics and yarn as eligible for preferential 
                      treatment under subclause (I) if--
                                    ``(aa) the President determines that 
                                such fabrics 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) <<NOTE: Deadline. Reports.>> withi
                                n 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);

[[Page 114 STAT. 280]]

                                    ``(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 one or more CBTPA 
                                beneficiary countries shall not be 
                                ineligible for such treatment if the 
                                total weight of all such fibers or yarns 
                                is

[[Page 114 STAT. 281]]

                                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 
                                classifiable 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.
                          ``(viii) 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) <<NOTE: President.>> 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

[[Page 114 STAT. 282]]

                      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.

[[Page 114 STAT. 283]]

                          ``(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) <<NOTE: President.>> 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.
                    ``(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--

[[Page 114 STAT. 284]]

                          ``(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 <<NOTE: Deadline. Reports.>> 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;

[[Page 114 STAT. 285]]

                                    ``(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 
                                one 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

[[Page 114 STAT. 286]]

                          ``(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) <<NOTE: Deadline.>> 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) <<NOTE: Federal Register, publication.>> 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).''.

[[Page 114 STAT. 287]]

            (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) <<NOTE: Deadline.>> 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. 2702(a)(1)) is amended by 
        adding at the end the following new subparagraphs:

[[Page 114 STAT. 288]]

                    ``(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. 212. 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. <<NOTE: 19 USC 2701 note.>> 213. MEETINGS OF TRADE MINISTERS AND 
            USTR.

    (a) <<NOTE: President.>> 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. <<NOTE: 19 USC 2434 note.>> 301. NORMAL TRADE RELATIONS FOR 
            ALBANIA.

    (a) Findings.--Congress makes the following findings:

[[Page 114 STAT. 289]]

            (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. <<NOTE: 19 USC 2434 note.>> 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--

[[Page 114 STAT. 290]]

                    (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) <<NOTE: Deadline.>> In General.--Not later than 9 months after 
the date of the 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

[[Page 114 STAT. 291]]

        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 the enactment of this Act.

SEC. 403. RELIQUIDATION OF CERTAIN NUCLEAR FUEL ASSEMBLIES.

    (a) <<NOTE: Deadline.>> 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 the 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:

Entry number              Date of entry

    062-2320014-5.........January 16, 1996

    062-2320085-5.........February 13, 1996

    839-4030989-7.........November 25, 1996

    839-4031053-1.........December 2, 1996

    839-4031591-0.........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 Supplemental 
Appropriations Act, 1999) (Public Law 105-277; 112 Stat. 2681-
224), <<NOTE: 22 USC 262r note.>> 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''.

[[Page 114 STAT. 292]]

    (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) <<NOTE: Deadline.>> 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 two or more of the following finishing 
        operations: bleaching,

[[Page 114 STAT. 293]]

        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 two or more of the following 
        finishing operations: bleaching, shrinking, fulling, napping, 
        decating, permanent stiffening, weighting, permanent embossing, 
        or moireing.''.

    (b) <<NOTE: Applicability. 19 USC 3592 note.>> Effective Date.--The 
amendments made by this section apply to goods entered, or withdrawn 
from warehouse for consumption, on or after the date of the 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) <<NOTE: President.>> 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

[[Page 114 STAT. 294]]

                      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) <<NOTE: Deadline.>> 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) <<NOTE: Deadline.>> In General.--Not later than 4 months after 
the date of the enactment of this Act, the Secretary of Labor, in 
consultation

[[Page 114 STAT. 295]]

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. <<NOTE: 7 USC 1736r note.>> 409. AGRICULTURAL TRADE NEGOTIATING 
            OBJECTIVES AND CONSULTATIONS WITH CONGRESS.

    (a) Findings.--Congress finds that--
            (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;

[[Page 114 STAT. 296]]

            (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

[[Page 114 STAT. 297]]

                    (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 the Congress.--It is the sense of the 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

[[Page 114 STAT. 298]]

                          ``(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) <<NOTE: 19 USC 1484 note.>> Effective Date.--The amendment made 
by this section shall take effect on the date that is 60 days after the 
date of the 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) <<NOTE: 19 USC 1307 note.>> Effective Date.--The amendment made 
by this section shall take effect on the date of the 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)(D))''.

    (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.

[[Page 114 STAT. 299]]

        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:

``     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
                        subheading
                        5111.11.70,
                        5111.19.60,
                        5112.11.20, or
                        5112.19.90)......
 

            (2) <<NOTE: Applicability.>> 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
                        subheading
                        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

[[Page 114 STAT. 300]]

        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) <<NOTE: President.>> 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 ) <<NOTE: Applicability.>> 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, formed with
                        wool fibers
                        having diameters
                        of 18.5 micron or
                        less (provided
                        for in subheading
                        5107.10.00)......
 

[[Page 114 STAT. 301]]

    (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
                        subheading
                        5101.11, 5101.19,
                        5101.21, 5101.29,
                        5101.30, 5103.10,
                        5103.20, 5104.00,
                        5105.21, or
                        5105.29).........
 

    (c) <<NOTE: Applicability.>> 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. <<NOTE: President.>> 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.

    (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) <<NOTE: President. Effective date.>> 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

[[Page 114 STAT. 302]]

        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--
                          (i) 1,000,000 square meter equivalents for 
                      worsted wool fabrics under heading 9902.51.11; and
                          (ii) 1,000,000 square meter equivalents for 
                      worsted wool fabrics under heading 9902.51.12.

    (c) <<NOTE: Regulations.>> Implementation.--The President shall 
issue regulations necessary to implement the provisions of this section.

[[Page 114 STAT. 303]]

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 to the United States Customs Service for each 
entry involved.

SEC. <<NOTE: 7 USC 7101 note.>> 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 (hereafter 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.

[[Page 114 STAT. 304]]

            (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 ) <<NOTE: Effective date.>> 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.

[[Page 114 STAT. 305]]

                      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 <<NOTE: 26 USC 901.>> (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) <<NOTE: Deadline.>> 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) <<NOTE: Deadline. 26 USC 901 note.>> Effective Date.--The 
amendment made by this section shall apply on or after February 1, 2001.

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 <<NOTE: 26 USC 7652 note.>> 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 the 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 the 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 <<NOTE: 26 USC 7652.>> (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

[[Page 114 STAT. 306]]

        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 the 
                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 <<NOTE: 26 USC 7652.>> (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) <<NOTE: Applicability. 26 USC 7652 note.>> Effective Date.--The 
amendments made by this section shall apply with respect to transfers or 
payments made after the date of the enactment of this Act.

    Approved May 18, 2000.

LEGISLATIVE HISTORY--H.R. 434 (S. 1387):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 106-19, Pt. 1 (Comm. on International Relations) 
and, Pt. 2 (Comm. on Ways and Means), and 106-606 (Comm. of Conference).
SENATE REPORTS: No. 106-112 accompanying S. 1387 (Comm. on Finance).
CONGRESSIONAL RECORD:
                                                        Vol. 145 (1999):
                                    July 16, considered and passed 
                                        House.
                                    Oct. 27-29, Nov. 1-3, considered and 
                                        passed Senate, amended.
                                                        Vol. 146 (2000):
                                    May 4, House agreed to conference 
                                        report.
                                    May 10, 11, Senate considered and 
                                        agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000):
            May 18, Presidential remarks.

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