PUBLIC LAW 106–200—MAY 18, 2000 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.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT 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 subSaharan 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.

19 USC 3701

note.

Trade and

Development Act

of 2000.

May 18, 2000

[H.R. 434]

114 STAT. 252 PUBLIC LAW 106–200—MAY 18, 2000

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 I—EXTENSION OF CERTAIN

TRADE BENEFITS TO SUB-SAHARAN

AFRICA

Subtitle A—Trade Policy for Sub-Saharan

Africa

SEC. 101. SHORT TITLE.

This title may be cited as the ‘‘African Growth and Opportunity

Act’’.

SEC. 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;

19 USC 3701.

19 USC 3701

note.

African Growth

and Opportunity

Act.

PUBLIC LAW 106–200—MAY 18, 2000 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. 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 subSaharan 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

19 USC 3702.

114 STAT. 254 PUBLIC LAW 106–200—MAY 18, 2000

(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. 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).

President.

19 USC 3703.

PUBLIC LAW 106–200—MAY 18, 2000 114 STAT. 255

SEC. 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 subSaharan African countries in order to foster close economic ties

between the United States and sub-Saharan Africa.

(b) 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 subSaharan 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). 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.

Deadline.

Deadline.

President.

19 USC 3704.

114 STAT. 256 PUBLIC LAW 106–200—MAY 18, 2000

(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. 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. 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 Coˆte d’Ivoire (Coˆte 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).

19 USC 3706.

President.

Deadline.

19 USC 3705.

PUBLIC LAW 106–200—MAY 18, 2000 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. 506A. DESIGNATION OF SUB-SAHARAN AFRICAN COUNTRIES FOR

CERTAIN BENEFITS.

‘‘(a) 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.—

President.

19 USC 2466a.

114 STAT. 258 PUBLIC LAW 106–200—MAY 18, 2000

‘‘(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 leastdeveloped beneficiary developing country or any beneficiary

sub-Saharan African country.’’.

SEC. 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 SUBSAHARAN 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

19 USC 3721.

PUBLIC LAW 106–200—MAY 18, 2000 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, enzymewashing, 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

114 STAT. 260 PUBLIC LAW 106–200—MAY 18, 2000

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) 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. Notice of initiation of an inquiry shall be

published in the Federal Register.

Federal Register,

publication.

Deadline

PUBLIC LAW 106–200—MAY 18, 2000 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) 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.

Federal Register,

publication.

114 STAT. 262 PUBLIC LAW 106–200—MAY 18, 2000

(B) 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) 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. 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) 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

President.

Deadlines.

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President.

PUBLIC LAW 106–200—MAY 18, 2000 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 ) EFFECTIVE DATE.—This section takes effect on October 1,

2000, and shall remain in effect through September 30, 2008.

SEC. 113. PROTECTIONS AGAINST TRANSSHIPMENT.

(a) PREFERENTIAL TREATMENT CONDITIONED ON ENFORCEMENT

MEASURES.—

19 USC 3722.

Termination

date.

114 STAT. 264 PUBLIC LAW 106–200—MAY 18, 2000

(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) 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

President.

PUBLIC LAW 106–200—MAY 18, 2000 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) 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;

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114 STAT. 266 PUBLIC LAW 106–200—MAY 18, 2000

(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. 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. 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) IN GENERAL.—The President, taking into account the

provisions of the treaty establishing the African Economic

Community and the willingness of the governments of subSaharan 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

President.

19 USC 3723.

19 USC 2466b.

PUBLIC LAW 106–200—MAY 18, 2000 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) 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. 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. 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.

19 USC 3731.

19 USC 3724.

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President.

114 STAT. 268 PUBLIC LAW 106–200—MAY 18, 2000

(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. 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

19 USC 3732.

PUBLIC LAW 106–200—MAY 18, 2000 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. 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.—

19 USC 3733.

114 STAT. 270 PUBLIC LAW 106–200—MAY 18, 2000

(1) INVESTMENT ADVISORY COUNCIL.—Section 233 of the

Foreign Assistance Act of 1961 is 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 subSaharan 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. The investment advisory council

shall terminate 4 years after the date of the enactment of this

subsection.’’.

(2) 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. 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 subSaharan 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. 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.

19 USC 3735.

19 USC 3734.

Deadline.

Termination

date.

22 USC 2193.

PUBLIC LAW 106–200—MAY 18, 2000 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) 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 subSaharan 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) 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. 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

19 USC 3736.

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information.

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114 STAT. 272 PUBLIC LAW 106–200—MAY 18, 2000

be eligible under section 104 air traffic control equipment that

is no longer in use, including appropriate related reimbursable

technical assistance.

SEC. 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.

19 USC 3737.

PUBLIC LAW 106–200—MAY 18, 2000 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. 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. 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.

19 USC 3739.

19 USC 3738.

114 STAT. 274 PUBLIC LAW 106–200—MAY 18, 2000

(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. 130. STUDY ON IMPROVING AFRICAN AGRICULTURAL PRACTICES.

(a) IN GENERAL.—The Secretary of Agriculture, in consultation

with American Land Grant Colleges and Universities and notfor-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 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. 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;

19 USC 3741.

Deadline.

19 USC 3740.

PUBLIC LAW 106–200—MAY 18, 2000 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 II—TRADE BENEFITS FOR

CARIBBEAN BASIN

Subtitle A—Trade Policy for Caribbean

Basin Countries

SEC. 201. SHORT TITLE.

This title may be cited as the ‘‘United States-Caribbean Basin

Trade Partnership Act’’.

SEC. 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

19 USC 2701

note.

19 USC 2701

note.

United StatesCaribbean Basin

Trades

Partnership Act.

114 STAT. 276 PUBLIC LAW 106–200—MAY 18, 2000

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. 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—

19 USC 2701

note.

PUBLIC LAW 106–200—MAY 18, 2000 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 stonewashing, enzyme-washing, acid washing, permapressing, 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,

114 STAT. 278 PUBLIC LAW 106–200—MAY 18, 2000

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

PUBLIC LAW 106–200—MAY 18, 2000 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 knitto-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) within 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);

Deadline.

Reports.

114 STAT. 280 PUBLIC LAW 106–200—MAY 18, 2000

‘‘(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

PUBLIC LAW 106–200—MAY 18, 2000 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) 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

President.

114 STAT. 282 PUBLIC LAW 106–200—MAY 18, 2000

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.

PUBLIC LAW 106–200—MAY 18, 2000 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) 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—

President.

114 STAT. 284 PUBLIC LAW 106–200—MAY 18, 2000

‘‘(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 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;

Deadline.

Reports.

PUBLIC LAW 106–200—MAY 18, 2000 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 InterAmerican 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

114 STAT. 286 PUBLIC LAW 106–200—MAY 18, 2000

‘‘(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) 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) 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).’’.

Federal Register,

publication.

Deadline.

PUBLIC LAW 106–200—MAY 18, 2000 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) 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:

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114 STAT. 288 PUBLIC LAW 106–200—MAY 18, 2000

‘‘(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. 213. MEETINGS OF TRADE MINISTERS AND USTR.

(a) 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. 301. NORMAL TRADE RELATIONS FOR ALBANIA.

(a) FINDINGS.—Congress makes the following findings:

19 USC 2434

note.

President.

19 USC 2701

note.

PUBLIC LAW 106–200—MAY 18, 2000 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. 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—

19 USC 2434

note.

114 STAT. 290 PUBLIC LAW 106–200—MAY 18, 2000

(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) 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

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PUBLIC LAW 106–200—MAY 18, 2000 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) 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), 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’’.

22 USC 262r

note.

Deadline.

114 STAT. 292 PUBLIC LAW 106–200—MAY 18, 2000

(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) 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,

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PUBLIC LAW 106–200—MAY 18, 2000 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) 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) 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

President.

Applicability.

19 USC 3592

note.

114 STAT. 294 PUBLIC LAW 106–200—MAY 18, 2000

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) 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) IN GENERAL.—Not later than 4 months after the date of

the enactment of this Act, the Secretary of Labor, in consultation

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PUBLIC LAW 106–200—MAY 18, 2000 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. 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;

7 USC 1736r

note.

114 STAT. 296 PUBLIC LAW 106–200—MAY 18, 2000

(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 tariffrate 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 pricedepressing 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

PUBLIC LAW 106–200—MAY 18, 2000 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

114 STAT. 298 PUBLIC LAW 106–200—MAY 18, 2000

‘‘(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) 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) 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.

19 USC 1307

note.

19 USC 1484

note.

PUBLIC LAW 106–200—MAY 18, 2000 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 worsted wool,

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) 19.3% No change No change On or before

12/31/2003 ’’.

(2) 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 worsted wool,

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) 6% No change No change On or before

12/31/2003 ’’.

(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

Applicability.

114 STAT. 300 PUBLIC LAW 106–200—MAY 18, 2000

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) 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 ) 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 wool, not

put up 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) ....................... Free No change No change On or before

12/31/2003 ’’.

Applicability.

President.

PUBLIC LAW 106–200—MAY 18, 2000 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,

garnetted stock, 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) ........ Free No change No change On or before

12/31/2003 ’’.

(c) 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. 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) 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

President.

Effective date.

President.

Applicability.

114 STAT. 302 PUBLIC LAW 106–200—MAY 18, 2000

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 domesticallyproduced 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) IMPLEMENTATION.—The President shall issue regulations

necessary to implement the provisions of this section.

Regulations.

PUBLIC LAW 106–200—MAY 18, 2000 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 onethird 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. 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.

7 USC 7101 note.

114 STAT. 304 PUBLIC LAW 106–200—MAY 18, 2000

(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 interestbearing 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 ) 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.

Effective date.

PUBLIC LAW 106–200—MAY 18, 2000 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 (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) 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) 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 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 (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

26 USC 7652.

26 USC 7652

note.

Deadline.

26 USC 901 note.

Deadline.

26 USC 901.

114 STAT. 306 PUBLIC LAW 106–200—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.

Æ

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 (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) 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.

Applicability.

26 USC 7652

note.

26 USC 7652.