I

103D CONGRESS

1ST SESSION H. R. 3625

To renew and improve the operation of title V of the Trade Act of 1974

(relating to the Generalized System of Preferences).

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 22, 1993

Mr. BROWN of California introduced the following bill; which was referred to

the Committee on Ways and Means

A BILL

To renew and improve the operation of title V of the

Trade Act of 1974 (relating to the Generalized System

of Preferences).

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘GSP Renewal and

5 Reform Act of 1993’’.

6 SEC. 2. AUTHORITY TO EXTEND PREFERENCES.

7 Section 501 of the Trade Act of 1974 (19 U.S.C.

8 2461) is amended—

9 (1) by striking out the matter preceding para10 graph (1) and inserting the following:
2

•HR 3625 IH

1 ‘‘The United States Trade Representative may pro2 vide duty-free treatment for any eligible article from any

3 beneficiary developing country in accordance with the pro4 visions of this title. In designating any such articles, the

5 Trade Representative shall have due regard for—’’;

6 (2) by amending paragraph (1)—

7 (A) by inserting ‘‘sustainable’’ before ‘‘eco8 nomic development’’, and

9 (B) by adding ‘‘and improvement of living

10 standards of their peoples’’ before the period;

11 and

12 (3) by inserting ‘‘, including United States

13 workers,’’ after ‘‘United States producers’’ in para14 graph (3).

15 SEC. 3. BENEFICIARY DEVELOPING COUNTRIES.

16 Section 502 of the Trade Act of 1974 (19 U.S.C.

17 2462) is amended as follows:

18 (1) Subsection (a) is amended to read as fol19 lows:

20 ‘‘(a) DESIGNATION BY PRESIDENT.—The President

21 may only issue an Executive order or Presidential procla22 mation designating a country as a beneficiary developing

23 country for purposes of this title after the Trade Rep24 resentative has certified to the President in writing that

25 such country meets all of the requirements for beneficiary
3

•HR 3625 IH

1 developing country status provided for in subsections (b)

2 and (c). Before the President designates any country as

3 a beneficiary developing country for purposes of this title,

4 the President shall—

5 ‘‘(1) notify the Congress of the intention to

6 make such a designation; and

7 ‘‘(2) submit to the Congress a copy of the cer8 tification of the Trade Representative.’’.

9 (2) Subsection (b) is amended—

10 (A) by inserting after ‘‘(b)’’ the following

11 ‘‘COUNTRIES INELIGIBLE FOR DESIGNATION.—

12 ’’;

13 (B) by striking out ‘‘Union of Soviet So14 cialist Republics’’ and inserting ‘‘Common15 wealth of Independent States member states’’;

16 (C) by inserting ‘‘, in violation of inter17 national law,’’ after ‘‘has’’ in each of subpara18 graphs (A), (B), and (C) of paragraph (4);

19 (D) by striking out ‘‘and’’ at the end of

20 paragraph (6);

21 (E) by striking out paragraph (7) and in22 serting the following:

23 ‘‘(7) during any period in which a free trade

24 area agreement is in force between such country and

25 the United States; except that this paragraph shall
4

•HR 3625 IH

1 not apply until the 2nd anniversary of the date of

2 the enactment of this paragraph in the case of any

3 country with respect to which there is in force, on

4 such date of enactment, a free trade area agreement

5 between it and the United States;

6 ‘‘(8) if such country fails to comply with inter7 nationally recognized worker rights; and

8 ‘‘(9) if such country has not adopted laws to

9 provide effective natural resource protection and to

10 achieve effective pollution abatement and control

11 standards to protect the air, water, and land or has

12 adopted such laws but is not enforcing them.’’.

13 (F) by inserting before the period at the

14 end of the last sentence of each subsection the

15 following: ‘‘; except that such designation shall

16 not prevent any country’s removal from eligi17 bility under section 504 at any time after 1

18 year after the date of the President’s designa19 tion of the country as a beneficiary developing

20 country.

21 (3) Subsection (c) is amended—

22 (A) by inserting ‘‘FACTORS REQUIRED FOR

23 DESIGNATION AS A BENEFICIARY DEVELOPING

24 COUNTRY.—’’ after ‘‘(c)’’; and
5

•HR 3625 IH

1 (B) by amending paragraph (7) to read as

2 follows and adding paragraph (8):

3 ‘‘(7) whether or not such country is in compli4 ance with internationally recognized worker rights;

5 and

6 ‘‘(8) whether or not such country has adopted

7 and is enforcing laws to provide effective natural re8 source protection and to achieve effective pollution

9 abatement and control standards to protect the air,

10 water, and land.’’.

11 (4) Subsections (d) and (e) are repealed.

12 (5) The following new subsection is added after

13 subsection (c):

14 ‘‘(d) DEFINITIONS.—For purposes of this title—

15 ‘‘(1) The term ‘Trade Representative’ means

16 the United States Trade Representative.

17 ‘‘(2) The term ‘country’ means any foreign

18 country, any overseas dependent territory or posses19 sion of a foreign country, or the Trust Territory of

20 the Pacific Islands, and includes any designated ex21 port processing zone or any other subdivision within

22 that country. In the case of an association of coun23 tries which is a free trade area or customs union, or

24 which is contributing to comprehensive regional eco25 nomic integration among its members through ap-
6

•HR 3625 IH

1 propriate means, including, but not limited to, the

2 reduction of duties, the President may by Executive

3 order or Presidential proclamation provide that all

4 members of such association other than members

5 which are barred from designation under subsection

6 (b) shall be treated as 1 country for purposes of this

7 title.

8 ‘‘(3) The term ‘beneficiary developing country’

9 means any country with respect to which there is in

10 effect an Executive order or Presidential proclama11 tion by the President of the United States designat12 ing country as a beneficiary developing country for

13 purposes of this title.

14 ‘‘(4) The term ‘internationally recognized work15 er rights’ includes—

16 ‘‘(A) the right of association;

17 ‘‘(B) the right to organize and bargain col18 lectively;

19 ‘‘(C) a prohibition on the use of any form

20 of forced or compulsory labor;

21 ‘‘(D) a prohibition on discrimination based

22 on race, sex, or religion in hiring, compensation,

23 promotion or any other term or condition of

24 employment;
7

•HR 3625 IH

1 ‘‘(E) provision for occupational safety and

2 health for all workers; and

3 ‘‘(F) acceptable minimum standards with

4 respect to wages, hours of work, and the age at

5 which children may be employed.

6 In determining whether a country has complied with

7 internationally recognized worker rights, the Trade

8 Representative shall—

9 ‘‘(i) require a country to comply with each

10 of the factors listed in subparagraphs (A)

11 through (F) and shall also apply recognized

12 international standards, including provisions

13 applicable to workers in international human

14 rights instruments and International Labor Or15 ganization Conventions;

16 ‘‘(ii) take into account the laws and regula17 tions of a country, as well as the implementa18 tion and enforcement of those laws and regula19 tions, in determining whether each of the fac20 tors has been complied with; and

21 ‘‘(iii) take into account the findings of

22 human rights commissions and courts, the an23 nual Human Rights Report of the Department

24 of State, reports of nongovernmental organiza25 tions, the application of worker rights provi-
8

•HR 3625 IH

1 sions of other United States laws, worker rights

2 provisions in voluntary codes of conduct or

3 other agreements affecting workers, employers

4 and governments, worker rights provisions in

5 collective bargaining agreements between

6 transnational employers and groups of workers,

7 and the opinions of scholars in the fields of

8 labor law, comparative labor law, and inter9 national labor law and human rights law.

10 With respect to the factor set forth in subparagraph

11 (F), once a country has established acceptable mini12 mum standards, which may take into account the

13 country’s level of economic development, the country

14 must continue to make progress and improve the

15 minimums, commensurate, with its economic devel16 opment. With respect to all of the other factors, the

17 country must be in complete compliance with inter18 national standards, regardless of its level of eco19 nomic development.

20 ‘‘(5) The term ‘interested persons’ includes, but

21 is not limited to, domestic firms and workers, rep22 resentatives of workers, both domestic and foreign,

23 representatives of consumer interests, and represent24 atives of any group that has an interest in promot25 ing respect for internationally recognized worker
9

•HR 3625 IH

1 rights, without regard to any showing of an eco2 nomic or other injury.’’.

3 SEC. 4. ELIGIBLE ARTICLES.

4 Section 503 of the Trade Act of 1974 (19 U.S.C.

5 2163) is amended as follows:

6 (1) Subsection (a) is amended—

7 (A) by inserting ‘‘LISTS OF ARTICLES TO

8 BE CONSIDERED FOR DESIGNATION.—’’ after

9 ‘‘(a)’’,

10 (B) by striking out ‘‘President’’ each place

11 it appears and inserting ‘‘Trade Representa12 tive’’,

13 (C) by striking out ‘‘he’’ and inserting

14 ‘‘the Trade Representative’’, and

15 (D) by striking out ‘‘Executive order or

16 Presidential proclamation’’ and inserting ‘‘pub17 lishing a list of such articles in the Federal

18 Register’’.

19 (2) Subsection (b) is amended—

20 (A) by inserting ‘‘DUTY FREE TREAT21 MENT FOR ELIGIBLE ARTICLES.—’’ after

22 ‘‘(b)’’, and

23 (B) by striking out ‘‘Secretary of the

24 Treasury, after consultation with the United
10

•HR 3625 IH

1 States Trade Representative,’’ and inserting

2 ‘‘Trade Representative’’.

3 (3) Subsection (c) is amended—

4 (A) by inserting ‘‘ARTICLES NOT ELIGI5 BLE FOR DESIGNATION AS ELIGIBLE ARTI6 CLES.—’’ after ‘‘(c)’’, and

7 (B) by adding at the end the following new

8 paragraph:

9 ‘‘(3) No article shall be an eligible article for purposes

10 of this title from any country where such article has been

11 made under conditions that violate internationally recog12 nized worker rights.’’.

13 SEC. 5. LIMITATIONS ON PREFERENTIAL TREATMENT.

14 Section 504 of the Trade Act of 1974 (19 U.S.C.

15 2164) is amended as follows:

16 (1) Subsections (a) and (b) are amended to

17 read as follows:

18 ‘‘(a) WITHDRAWAL, SUSPENSION, OR LIMITATION OF

19 DUTY-FREE TREATMENT OF ELIGIBLE ARTICLES.—The

20 Trade Representative may withdraw, suspend, or limit the

21 application of the duty-free treatment accorded under sec22 tion 501 with respect to any article generally or with re23 spect to exports of any article from a particular country

24 or countries; except that no rate of duty may be estab25 lished in respect of any article pursuant to this section
11

•HR 3625 IH

1 other than the rate which would apply but for this title.

2 In taking any action under this subsection, the Trade Rep3 resentative shall consider the factors set forth in sections

4 501, 502(c), and 503, and must withdraw or suspend

5 duty-free treatment for any article that no longer meets

6 the requirements of section 503(b) and (c).

7 ‘‘(b) WITHDRAWAL OR SUSPENSION OF DESIGNA8 TION AS BENEFICIARY DEVELOPING COUNTRY.—The des9 ignation of a country as a beneficiary developing country

10 under this title shall be withdrawn or suspended if, after

11 any investigation initiated under subsection (c), a decision

12 is issued that the country is no longer in complete compli13 ance with the prerequisites contained in section 502(b) for

14 designation as a beneficiary developing country. Such

15 country shall cease to be a beneficiary developing country

16 on the day on which the Trade Representative issues the

17 decision under subsection (c). The Trade Representative

18 shall promptly publish the text of any such decision in the

19 Federal Register and shall submit a copy of the decision

20 to the Congress. Within 30 days after the date of publica21 tion of the decision under the preceding sentence, the

22 President shall issue an Executive order or Presidential

23 proclamation revoking the designation of such country

24 under section 502.’’.
12

•HR 3625 IH

1 (2) Subsections (c), (d), (e), and (f) are redesig2 nated as subsections (d), (e), (f), and (g), respec3 tively.

4 (3) The following new subsection is added after

5 subsection (b):

6 ‘‘(c) PETITIONS; INVESTIGATIONS; JUDICIAL RE7 VIEW.—

8 ‘‘(1) PETITIONS.—

9 ‘‘(A) Any interested person may at any

10 time file a petition with the Trade Representa11 tive requesting that action be taken under sub12 section (a) or (b) and setting forth the allega13 tions in support of the request. Petitions alleg14 ing the failure to comply with internationally

15 recognized worker rights may seek—

16 ‘‘(i) the removal of articles from the

17 list of eligible articles with respect to one

18 or more countries or industry or industries

19 within a country or countries under sub20 section (a);

21 ‘‘(ii) the withdrawal of the designation

22 as a beneficiary developing country of one

23 or more countries under subsection (b); or

24 ‘‘(iii) action under both clauses (i)

25 and (ii).
13

•HR 3625 IH

1 ‘‘(B) The Trade Representative shall re2 view the allegations in any petition filed under

3 subsection (a) and, not later than 45 days after

4 the date on which the Trade Representative re5 ceives the petition, shall initiate an investigation

6 unless the petition is dismissed under para7 graph (C).

8 ‘‘(C) The Trade Representative may deter9 mine not to initiate an investigation with re10 spect to a petition only upon issuing a finding

11 that the petition is frivolous. This finding shall

12 be made without regard to whether similar alle13 gations were made in a previously reviewed pe14 tition and shall focus exclusively on whether the

15 facts alleged in a petition, if true, would fail to

16 establish a prima facie case for noncompliance

17 with this Act. Only if the facts alleged in a peti18 tion, if true, fail to make out a prima facie

19 case, or if a petition contains only conclusory

20 allegations with no allegation of supporting

21 facts, shall a petition be dismissed as frivolous.

22 If the Trade Representative does find a petition

23 to be frivolous, the Trade Representative shall

24 issue a written decision indicating the specific

25 reasons therefor and shall publish notice of the
14

•HR 3625 IH

1 determination, together with a summary of such

2 reasons, in the Federal Register. A copy of the

3 decision shall be sent to the petitioner and shall

4 be made available for public review.

5 ‘‘(D) The Trade Representative may con6 stitute one or more special committees to review

7 petitions under investigation and make written

8 recommendations with respect to each petition.

9 The written recommendations shall be available

10 to the public. The members of the special com11 mittees may be drawn from other agencies with12 in the executive branch, and each member shall

13 have the necessary expertise relevant to the is14 sues raised in any petitions to be considered.

15 The Trade Representative, any Deputy Trade

16 Representative, or other designee of the Trade

17 Representative shall be the chair of any special

18 committee constituted under this section. Any

19 special committee that reviews a petition con20 taining allegations of worker rights violations

21 shall include at least one member designated by

22 the Deputy Undersecretary for International

23 Labor Affairs of the Department of Labor, and

24 at least one member designated by the Assist25 ant Secretary of State for Human Rights.
15

•HR 3625 IH

1 ‘‘(E)(i) The investigation of a petition con2 ducted under this subsection shall commence

3 with the Trade Representative publishing a

4 summary of the petition in the Federal Reg5 ister, along with a request for any person to

6 submit information relevant to the petition. Fol7 lowing publication, the Trade Representative

8 shall conduct an independent investigation and

9 gather information from all available sources.

10 As part of the review process, the Trade Rep11 resentative shall, as soon as practicable, and in

12 no event later than 90 days following the filing

13 of the petition, provide opportunity for the pres14 entation of information concerning the issues,

15 including a public hearing if requested in the

16 petition.

17 ‘‘(ii) With respect to any petition alleging

18 a violation of internationally recognized worker

19 rights, the Trade Representative shall consult

20 with the Secretary of Labor as to whether such

21 violations have occurred or are occurring. The

22 Secretary of Labor shall provide the Trade Rep23 resentative with a written recommendation re24 garding the disposition of the allegations that

25 shall be entered in the record of the investiga-
16

•HR 3625 IH

1 tion. The Trade Representative, or any member

2 of any special committee constituted under sub3 paragraph (D), may also seek advice from ex4 perts in the field of human rights and worker

5 rights. The advice may be in writing or taken

6 as oral testimony at a public hearing and shall

7 be entered in the record of the investigation.

8 ‘‘(F) After completion of the investigation,

9 and in no event later than 270 days following

10 the date the petition was filed, the Trade Rep11 resentative shall issue a decision whether to

12 grant the relief requested in the petition. The

13 decision must be in writing and clearly ref14 erence the issues presented, the factual findings

15 regarding the allegations, and the standard ap16 plied in determining whether the facts as found

17 required action under subsection (a) or (b). A

18 copy of the decision shall be provided to the pe19 titioner, any other party that submitted infor20 mation relevant to the petition and be made

21 available for public review. A summary of the

22 decision shall be published in the Federal

23 Register.

24 ‘‘(2) INITIATION OF INVESTIGATION BY MEANS

25 OTHER THAN PETITION.—If the Trade Representa-
17

•HR 3625 IH

1 tive determines that an investigation should be initi2 ated with respect to any matter in order to deter3 mine whether the matter requires action under sub4 section (a) or (b), the Trade Representative shall

5 publish such determination in the Federal Register

6 and shall initiate such investigation using the proce7 dures of paragraphs (1)(E) and (F).

8 ‘‘(3) PROMULGATION OF REGULATIONS.—The

9 Trade Representative shall promulgate regulations

10 to implement this subsection. The regulations may

11 include procedures for the creation of special com12 mittees under paragraph (1)(D); coordinating inves13 tigations with other agencies; consolidating multiple

14 petitions concerning the same article, country, or in15 dustry; and holding hearings on similar petitions at

16 the same time in order to efficiently gather informa17 tion. Until such regulations are promulgated, any

18 current regulations in 15 CFR part 2007 that are

19 not inconsistent with any provision of this title may

20 be utilized.

21 ‘‘(4) JUDICIAL REVIEW OF DETERMINATIONS.—

22 ‘‘(A) Except as provided in subparagraph

23 (B), any final decision dismissing or denying a

24 petition requesting action under subsection (a)

25 may be appealed by the petitioner to the United
18

•HR 3625 IH

1 States Court of Appeals for the Federal Circuit

2 for review. The decision shall be reviewed as a

3 final agency action.

4 ‘‘(B) Any final decision dismissing or deny5 ing a petition requesting action under sub6 section (b) may be appealed by the petitioner to

7 the United States Court of Appeals for the Dis8 trict of Columbia Circuit for review. The deci9 sion shall be reviewed as a final agency action

10 Notwithstanding any provision of section 1581

11 of title 28, United States Code, the denial or

12 dismissal of a combined petition filed under

13 subsection (c)(1)(A)(iii) may be appealed in its

14 entirety under this paragraph.’’.

15 (4) Subsection (d) (as redesignated by para16 graph (2)) is amended—

17 (A) by striking out ‘‘(d)(1)’’ and all that

18 follows thereafter in paragraphs (1) and (2)

19 and inserting the following:

20 ‘‘(d) COMPETITIVE NEED LIMITATIONS.—(1) Subject

21 to paragraphs (2) through (7) and subsection (e), when22 ever the President determines that—

23 ‘‘(A) any beneficiary developing country—
19

•HR 3625 IH

1 ‘‘(i) has a per capita gross national prod2 uct of not less than $475 and not more than

3 $1,750, and

4 ‘‘(ii) has exported (directly or indirectly) to

5 the United States—

6 ‘‘(I) during a calendar year a quantity

7 of an eligible article having an appraised

8 value in excess of the applicable competi9 tive need limit amount, or

10 ‘‘(II) a quantity of any eligible article

11 equal to or exceeding 50 percent of the ap12 praised value of the total imports of such

13 article into the United States during any

14 calendar year; or

15 ‘‘(B) any beneficiary developing country—

16 ‘‘(i) has a per capita gross national prod17 uct of not less than $1,750 and not more than

18 $3,000, and

19 ‘‘(ii) has exported (directly or indirectly) to

20 the United States—

21 ‘‘(I) during a calendar year a quantity

22 of an eligible article having an appraised

23 value in excess of the applicable competi24 tive need limit amount, or
20

•HR 3625 IH

1 ‘‘(II) a quantity of any eligible article

2 equal to or exceeding 25 percent of the ap3 praised value of the total imports of such

4 article into the United States during any

5 calendar year;

6 then, not later than July 1 of the next calendar year, such

7 country shall not be treated as a beneficiary developing

8 country with respect to such article.

9 ‘‘(2)(A) For purposes of paragraph (1), the term

10 ‘competitive need limit amount’ means—

11 ‘‘(i) for calendar year 1993—

12 ‘‘(I) for a beneficiary developing country

13 referred to in paragraph (1)(A), $75,000,000,

14 and

15 ‘‘(II) for a beneficiary developing country

16 referred to in paragraph (1)(B), $35,000,000;

17 ‘‘(ii) for paragraph (1)(A) for each calendar

18 year after 1993, the competitive need limit amount

19 is the competitive need limit amount under such

20 paragraph for the preceding calendar year (herein21 after referred to as the ‘base year’) adjusted—

22 ‘‘(I) upwards by $10,000,000 for each .25

23 percent by which the United States unemploy24 ment rate (as determined by the Secretary of

25 Labor) for the base year was lower than the
21

•HR 3625 IH

1 United States unemployment rate for the year

2 preceding the base year; or

3 ‘‘(II) downwards by $10,000,000 for each

4 .25 percent by which the United States unem5 ployment rate for the base year was higher than

6 the United States unemployment rate for the

7 year preceding the base year; and

8 ‘‘(iii) for paragraph (1)(B) for each calendar

9 year after 1993, clause (ii) applies but with

10 ‘$5,000,000’ substituted for ‘$10,000,000’ each

11 place it appears.

12 ‘‘(B)(i) Not later than January 4, 1994, and periodi13 cally thereafter, the President shall conduct a general re14 view of eligible articles based on the considerations de15 scribed in section 501 or 502(c).

16 ‘‘(ii) If, after any review under clause (i), the Presi17 dent determines that this clause should apply because a

18 beneficiary developing country has demonstrated for any

19 calendar year a sufficient degree of competitiveness (rel20 ative to other beneficiary developing countries) with re21 spect to any eligible article, then paragraph (1)(B) (with22 out regard to clause (i)) shall be applied to such country

23 with respect to such article and in computing the competi24 tive need limit amount under subparagraph (A)(iii) for

25 purposes of such application such calendar year shall be
22

•HR 3625 IH

1 treated as being the base year and the competitive need

2 limit for that base year is $25,000,000.’’;

3 (B) by striking out ‘‘President’’ each place

4 it appears and inserting ‘‘Trade Representa5 tive’’;

6 (C) by amending paragraph (3)(B)—

7 (i) by striking out ‘‘and’’ at the end of

8 clause (i),

9 (ii) by striking out the period at the

10 end of clause (ii) and inserting ‘‘, and’’,

11 and

12 (iii) by adding after clause (ii) the fol13 lowing:

14 ‘‘(iii) the extent to which such country is

15 in compliance with internationally recognized

16 worker rights.’’;

17 (D) by amending paragraph (3)(D)—

18 (i) by striking out ‘‘30 percent’’ in

19 clause (i) and inserting ‘‘10 percent’’,

20 (ii) by striking out clause (ii),

21 (iii) by redesignating clause (iii) as

22 clause (ii) and by striking out ‘‘clauses (i)

23 and (ii)’’ in such redesignated clause and

24 inserting ‘‘clause (i)’’;

25 (E) by amending paragraph (4)—
23

•HR 3625 IH

1 (i) by striking out ‘‘and’’ at the end of

2 subparagraph (B),

3 (ii) by striking out the period at the

4 end of subparagraph (C) and inserting ‘‘,

5 and’’, and

6 (iii) by adding after subparagraph (C)

7 the following:

8 ‘‘(D) such country consistently and fully com9 plies with internationally recognized worker rights.’’;

10 and

11 (F) by striking out ‘‘1985’’ in paragraph

12 (6)(B) and inserting ‘‘1993’’.

13 (5) Subsection (e) (as redesignated by para14 graph (2)) is amended—

15 (A) inserting ‘‘INAPPLICABILITY OF LIMI16 TATIONS IF COMPETITIVE ARTICLES NOT PRO17 DUCED IN THE U.S.—’’ after ‘‘(e)’’; and

18 (B) by striking out ‘‘President’’ and insert19 ing ‘‘Trade Representative’’.

20 (6) Subsection (f) (as redesignated by para21 graph (2)) is amended by inserting ‘‘EXCEPTION

22 REGARDING COFFEE IMPORTS INTO PUERTO

23 RICO.—’’.
24

•HR 3625 IH

1 SEC. 6. TERMINATION OF DUTY-FREE TREATMENT AND RE2 PORTS.

3 Section 505 of the Trade Act of 1974 (19 U.S.C.

4 2165) is amended to read as follows:

5 ‘‘SEC. 505. TERMINATION OF DUTY-FREE TREATMENT AND

6 REPORTS.

7 ‘‘(a) TERMINATION.—No duty-free treatment pro8 vided under this title shall remain in effect after July 4,

9 2003.

10 ‘‘(b) GENERAL REPORT.—On or before January 4,

11 1994, and on or before January 4, 1999, the Trade Rep12 resentative shall submit to the Congress a full and com13 plete report regarding the operation of this title, including,

14 but not limited to, a report on the application of sections

15 501 and 502(c), and the actions that have been taken dur16 ing the period covered by the report to withdraw, to sus17 pend, or to limit the application of duty-free treatment

18 with respect to any country that was investigated under

19 section 504 to determine whether it was in compliance

20 with the provisions of section 502(b).

21 ‘‘(c) WORKER RIGHTS REPORTS.—At the time of the

22 submission of the annual report filed pursuant to section

23 lll of the Foreign Assistance Act of lll, the Sec24 retary of Labor shall submit a report to the Congress on

25 the status of internationally recognized worker rights

26 within each beneficiary developing country. The report
25

•HR 3625 IH

1 shall specifically reference the 6 factors required to be met

2 for compliance with internationally recognized worker

3 rights in section 502(e)(4) and shall conclude with respect

4 to each factor whether the country is in compliance. In

5 any case in which the report concludes that any country

6 is not in complete compliance with internationally recog7 nized worker rights, the Trade Representative shall initi8 ate an investigation under section 504.’’.

9 SEC. 7. SPECIAL REPORTS.

10 On or before January 4, 1994, the United States

11 Trade Representative, the Secretary of Commerce, the

12 Secretary of Labor, and the Comptroller General of the

13 United States shall submit to the Congress a joint report

14 that—

15 (1) analyzes the feasibility of developing and

16 implementing a method of tracking the company

17 source of all imports to the United States of eligible

18 articles under title V of the Trade Act of 1974;

19 (2) contains recommendations for coordinating

20 the enforcement of all laws that contain a require21 ment for compliance with internationally recognized

22 worker rights and for amending any existing law to

23 achieve better the effective enforcement of inter24 nationally recognized worker rights; and

25 (3) sets forth in detail—
26

•HR 3625 IH

1 (A) all past actions that have been taken

2 to implement section 506 of the Trade Act of

3 1974 (relating to agricultural exports from ben4 eficiary developing countries), and

5 (B) a plan for the implementation of such

6 section in the future.

7 SEC. 8. TRAINING ON INTERNATIONAL LABOR STANDARDS.

8 (a) LABOR REPORTING OFFICERS.—Any person serv9 ing as the Labor Reporting Officer, or who is responsible

10 for reporting on the status of worker rights, for any Unit11 ed States Embassy shall be required to complete a training

12 course in international labor standards.

13 (b) SPECIAL COMMITTEE MEMBERS.—Any person

14 who sits on any special committee created by the Trade

15 Representative under section 504(c)(1)(D) of title V of the

16 Trade Act of 1974 that considers any petition containing

17 allegations of failure to comply with internationally recog18 nized worker rights shall be required to complete the train19 ing course referred to in subsection (c).

20 (c) TRAINING COURSE.—The training course re21 quired to be taken under subsections (a) and (b) shall be

22 conducted by the Department of Labor and the Depart23 ment of State in a manner to be determined jointly by

24 the Secretary of each such Department.
27

•HR 3625 IH

1 SEC. 9. USTR BUREAU OF TRADE-RELATED STANDARDS.

2 Section 141 of the Trade Act of 1974 (19 U.S.C.

3 2171) is amended as follows:

4 (1) Subsection (b)(2) is amended by striking

5 out ‘‘three Deputy United States Trade Representa6 tives’’ and inserting ‘‘four United States Deputy

7 Trade Representatives’’.

8 (2) Subsections (e), (f), and (g) are redesig9 nated as subsections (f), (g), and (h), respectively.

10 (3) The following new subsection is inserted

11 after subsection (d):

12 ‘‘(e) There is established within the Office a Bureau

13 of Trade-Related Standards which shall be headed by a

14 Deputy United States Trade Representative. The func15 tions of the Bureau are to devise and coordinate United

16 States trade and investment policies that will result in

17 greater international respect for, compliance with, and im18 provement of the labor, environmental, agricultural,

19 consumer, safety, and health standards of the trading na20 tions.

Æ

HR 2625 IH——2

HR 2625 IH——3