II

104TH CONGRESS

2D SESSION S. 2165

To require the President to impose economic sanctions against countries

that fail to eliminate corrupt business practices, and for other purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 30, 1996

Mr. SPECTER introduced the following bill; which was read twice and referred

to the Committee on Foreign Relations

A BILL

To require the President to impose economic sanctions

against countries that fail to eliminate corrupt business

practices, and for other purposes.

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 ‘‘Fair Trade Practices

5 Act of 1996’’.

6 SEC. 2. REPORT BY THE PRESIDENT; SANCTIONS.

7 (a) REPORT.—

8 (1) IN GENERAL.—Not later than 6 months

9 after the date of the enactment of this Act, and an-
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1 nually thereafter, the President shall submit a report

2 to the Congress that—

3 (A) identifies foreign persons and concerns

4 that engage in foreign corrupt trade practices

5 and foreign countries that do not have in effect

6 or do not enforce laws that are similar to the

7 Foreign Corrupt Practices Act of 1977; and

8 (B) contains information regarding—

9 (i) existing corrupt trade practices of

10 foreign persons and concerns; and

11 (ii) efforts by the governments of for12 eign countries to stop corrupt trade prac13 tices by private persons and government

14 officials of those countries through enact15 ment and enforcement of laws similar to

16 the Foreign Corrupt Practices Act of

17 1977.

18 (2) DEFINITION OF CORRUPT TRADE PRAC19 TICE.—For purposes of this section, the term ‘‘cor20 rupt trade practice’’ means a practice that would

21 violate the prohibition described in section 104(h) of

22 the Foreign Corrupt Practices Act of 1977 if en23 gaged in by a domestic concern.

24 (b) SANCTIONS.—
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1 (1) IN GENERAL.—If the President determines

2 that a country identified in subsection (a)(1)(A) is

3 not making a good faith effort to enact or enforce

4 the laws described in subsection (a)(1)(B)(ii), the

5 President is authorized and directed to impose the

6 sanctions described in paragraph (2).

7 (2) SANCTIONS DESCRIBED.—

8 (A) REDUCTION IN FOREIGN AID.—Fifty

9 percent of the assistance made available under

10 part I of the Foreign Assistance Act of 1961

11 and allocated each fiscal year pursuant to sec12 tion 653 of such Act for a country shall be

13 withheld from obligation and expenditure for

14 any fiscal year in which a determination has

15 been made under paragraph (1) with respect to

16 the country.

17 (B) MULTILATERAL DEVELOPMENT BANK

18 ASSISTANCE.—The United States Government

19 shall oppose, in accordance with section 701 of

20 the International Financial Institutions Act (22

21 U.S.C. 262d), the extension of any loan or fi22 nancial or technical assistance by international

23 financial institutions to any country described

24 in paragraph (1).
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1 (c) DURATION OF SANCTIONS.—Any sanction im2 posed against a country under subsection (b)(2) shall re3 main in effect until such time as the President certifies

4 to the Congress that such country has enacted and is en5 forcing the laws described in subsection (a)(1)(B)(ii).

6 (d) WAIVER.—Any sanctions described in subsection

7 (b) may be delayed or waived upon certification of the

8 President to the Congress that it is in the national interest

9 to do so.

10 SEC. 3. SANCTIONS AGAINST PERSONS AND BUSINESS EN11 TITIES.

12 (a) IMPOSITION OF SANCTIONS ON FOREIGN PER13 SONS AND CONCERNS ENGAGING IN CERTAIN CORRUPT

14 BUSINESS PRACTICES.—The President shall impose the

15 sanctions described in subsection (b), to the fullest extent

16 consistent with international obligations, if the President

17 certifies to the Congress that—

18 (1) a foreign person or concern has engaged in

19 the conduct described in section 104(h) of the For20 eign Corrupt Practices Act of 1977, and such con21 duct has placed a United States concern at a com22 petitive disadvantage,

23 (2) the President has consulted with the foreign

24 country having primary jurisdiction over such con25 duct in an effort to get the government of that coun-
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1 try to impose sanctions against such foreign person

2 or concern,

3 (3) a period of 90 days has elapsed since the

4 President first consulted with the foreign country,

5 and

6 (4) the country has not taken action against

7 such person or concern.

8 The 90-day period referred to in the preceding sentence

9 may be extended for an additional 90 days if the President

10 determines sufficient progress has been made in consulta11 tion with the foreign country to justify such an extension.

12 (b) SANCTIONS.—

13 (1) IN GENERAL.—The sanctions to be imposed

14 pursuant to subsection (a) are as follows:

15 (A) PROCUREMENT SANCTION.—The Unit16 ed States Government shall not procure, or

17 enter into any contract for the procurement of,

18 any goods or services from any foreign person

19 or concern that engages in the unlawful conduct

20 described in subsection (a)(1).

21 (B) LICENSE BAN.—The United States

22 Government shall not issue any license or other

23 authority to conduct business in the United

24 States to any foreign person or concern that en-
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1 gages in the unlawful conduct described in sub2 section (a)(1).

3 (2) WAIVER.—Any penalties or sanctions im4 posed under this section may be delayed or waived

5 upon certification of the President to Congress that

6 it is in the national interest to do so.

7 (c) DEFINITIONS.—For purposes of this section—

8 (1) FOREIGN CONCERN.—The term ‘‘foreign

9 concern’’ means any corporation, partnership, asso10 ciation, joint stock company, business trust, unincor11 porated organization, or sole proprietorship which

12 has its principal place of business in a country other

13 than the United States, or which is organized under

14 the laws of a country other than the United States.

15 (2) FOREIGN PERSON.—The term ‘‘foreign per16 son’’ means any individual who is a citizen or na17 tional of a country other than the United States.

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