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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1527 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1527

            To provide for fair trade in financial services.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

            October 7 (legislative day, September 27), 1993

    Mr. Riegle (for himself, Mr. D'Amato, Mr. Bryan, Mr. Kerry, Mr. 
   Domenici, Mr. Sasser, Mr. Shelby, Mr. Campbell, Mrs. Boxer, Mrs. 
Murray, and Mr. Sarbanes) introduced the following bill; which was read 
  twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL

 
            To provide for fair trade in financial services.

    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 ``Fair Trade in 
Financial Services Act of 1993''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Effectuating the principle of national treatment for banking 
                            organizations.
Sec. 3. Effectuating the principle of national treatment for securities 
                            organizations.
Sec. 4. Financial interdependence study.
Sec. 5. Conforming amendments.

SEC. 2. EFFECTUATING THE PRINCIPLE OF NATIONAL TREATMENT FOR BANKING 
              ORGANIZATIONS.

    The International Banking Act of 1978 (12 U.S.C. 3101 et seq.) is 
amended by adding at the end the following new section:

``SEC. 18. NATIONAL TREATMENT.

    ``(a) Purpose.--The purpose of this section is to encourage foreign 
countries to accord national treatment to United States banking 
organizations that operate or seek to operate in those countries.
    ``(b) Identifying Countries That Deny National Treatment to United 
States Banks or Bank Holding Companies.--The Secretary shall identify 
the extent to which foreign countries deny national treatment to United 
States banking organizations--
            ``(1) according to the most recent report under section 
        3602 of the Omnibus Trade and Competitiveness Act of 1988 (or 
        update thereof); or
            ``(2) based on more recent information that the Secretary 
        deems appropriate.
    ``(c) Determining Whether Denial of National Treatment Has 
Significant Adverse Effect.--
            ``(1) In general.--The Secretary shall determine whether 
        the denial of national treatment to United States banking 
        organizations by a foreign country identified under subsection 
        (b) has a significant adverse effect on such organizations.
            ``(2) Factors to be considered.--In determining whether and 
        to what extent a foreign country denies national treatment to 
        United States banking organizations, and in determining the 
        effect of any such denial on such banking organizations, the 
        Secretary shall consider appropriate factors, including--
                    ``(A) the size of the foreign country's markets for 
                the financial services involved, and the extent to 
                which United States banking organizations operate or 
                seek to operate in those markets;
                    ``(B) the extent to which United States banking 
                organizations may participate in developing 
                regulations, guidelines, or other policies regarding 
                new products, services, and markets in the foreign 
                country;
                    ``(C) the extent to which the foreign country 
                issues written regulations, guidelines, or other 
                policies applicable to United States banking 
                organizations operating or seeking to operate in the 
                foreign country that are--
                            ``(i) prescribed after adequate notice and 
                        opportunity for comment;
                            ``(ii) readily available to the public; and
                            ``(iii) prescribed in accordance with 
                        objective standards that effectively prevent 
                        arbitrary and capricious determinations;
                    ``(D) the extent to which United States banking 
                organizations may offer foreign exchange services in 
                the foreign country; and
                    ``(E) the effects of the regulatory policies of the 
                foreign country on--
                            ``(i) the lending policies of the central 
                        bank of that country;
                            ``(ii) capital requirements applicable in 
                        that country;
                            ``(iii) the regulation of deposit interest 
                        rates by that country;
                            ``(iv) restrictions on the operation and 
                        establishment of branches in that country; and
                            ``(v) restrictions on access to automated 
                        teller machine networks in that country.
    ``(d) Determination.--
            ``(1) Publication.--If the Secretary determines that the 
        denial of national treatment to United States banking 
        organizations by a foreign country has a significant adverse 
        effect on such organizations, the Secretary--
                    ``(A) may, after initiating negotiations in 
                accordance with subsection (g), and after consultation 
                with the United States Trade Representative, the 
                Secretary of State, and any other department or agency 
                that the Secretary deems appropriate, publish that 
                determination in the Federal Register;
                    ``(B) shall, not less frequently than annually, in 
                consultation with any department or agency that the 
                Secretary deems appropriate, review each such 
                determination to determine whether it should be 
                rescinded; and
                    ``(C) shall inform State bank supervisors of the 
                publication of that determination.
            ``(2) Exception for countries that are parties to certain 
        agreements governing financial services.--Paragraph (1) shall 
        not apply to a foreign country to the extent that a 
        determination under that paragraph with respect to the foreign 
        country would permit action to be taken under this section that 
        would be inconsistent with a bilateral or multilateral 
        agreement that governs financial services that the President 
        entered into with that country and the Senate and the House of 
        Representatives approved, before the date of enactment of this 
        section.
    ``(e) Sanctions.--
            ``(1) Action by federal banking agency.--If a determination 
        under subsection (d)(1) is in effect with respect to a foreign 
        country and a publication of that determination has been made 
        in accordance with subsection (d)(1)(A), in evaluating an 
        application or notice filed by a person of that foreign 
        country, the appropriate Federal banking agency--
                    ``(A) shall consider the determination and the 
                conclusions of--
                            ``(i) the reports required under section 
                        3602 of the Omnibus Trade and Competitiveness 
                        Act of 1988 (and updates thereto); and
                            ``(ii) the reports submitted in accordance 
                        with subsection (h);
                    ``(B) shall consult with the Secretary concerning 
                such determination and conclusions; and
                    ``(C) may, only with the concurrence of the 
                Secretary, deny the application or disapprove the 
                notice, based on the determination under subsection 
                (d)(1).
            ``(2) Preventing existing entities from being used to evade 
        this section.--
                    ``(A) In general.--If a determination has been 
                published in accordance with subsection (d)(1)(A) with 
                respect to a foreign country, a bank, foreign bank 
                described in section 8(a), branch, agency, commercial 
                lending company, or other affiliated entity that is a 
                person of that country shall not, without prior 
                approval of the appropriate Federal banking agency, 
                after consultation with the State bank supervisor, 
                directly or indirectly, in the United States--
                            ``(i) commence any line of business in 
                        which the person was not engaged as of the date 
                        the determination was published in the Federal 
                        Register; or
                            ``(ii) conduct business from any location 
                        at which the person did not conduct business as 
                        of that date.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                with respect to companies described in section 2(h)(2) 
                of the Bank Holding Company Act of 1956.
    ``(f) Exemptions From Sanctions.--
            ``(1) In general.--Subsection (e) does not apply to the 
        subsidiaries in the United States of a person of a foreign 
        country if the Secretary determines that the banking laws and 
        regulations of the foreign country, as actually applied, meet 
        or exceed--
                    ``(A) the standards for treatment of subsidiaries 
                of United States banking organizations contained in the 
                Second Banking Directive, and in any amendment to the 
                Second Banking Directive, if the Secretary determines 
                that such amendment--
                            ``(i) does not restrict any operation, 
                        activity, or authority to expand any operation 
                        or activity, permitted under those standards, 
                        of any subsidiary in the foreign country of any 
                        such bank or bank holding company; or
                            ``(ii) is in accordance with national 
                        treatment of subsidiaries of such banking 
                        organizations; or
                    ``(B) any set of standards that, taken as a whole, 
                is no less favorable to United States banking 
                organizations than the standards referred to in 
                subparagraph (A).
            ``(2) Standards for exercise of discretion.--In exercising 
        any discretion under this subsection, the Federal banking 
        agencies, after consultation with the Secretary, shall 
        consider, with respect to a bank, foreign bank, branch, agency, 
        commercial lending company, or other affiliated entity that is 
        a person of a foreign country and is operating in the United 
        States--
                    ``(A) the extent to which the foreign country is 
                progressing toward according national treatment to 
                United States banking organizations; and
                    ``(B) whether the foreign country permits United 
                States banking organizations to expand their activities 
                in that country, even if that country determined that 
                the United States did not accord national treatment to 
                the banking organizations of that country.
    ``(g) Negotiations.--
            ``(1) In general.--The Secretary--
                    ``(A) shall initiate negotiations with any foreign 
                country with respect to which a determination made 
                under subsection (d)(1) is in effect; and
                    ``(B) may initiate negotiations with any foreign 
                country which denies national treatment to United 
                States banking organizations to ensure that the foreign 
                country accords national treatment to such 
                organizations.
            ``(2) Exceptions.--Paragraph (1) does not require the 
        Secretary to initiate negotiations with a foreign country if 
        the Secretary--
                    ``(A) determines that the negotiations--
                            ``(i) would be so unlikely to result in 
                        progress toward according national treatment to 
                        United States banking organizations as to be a 
                        waste of effort; or
                            ``(ii) would impair the economic interests 
                        of the United States; and
                    ``(B) gives written notice of that determination to 
                the chairperson and the ranking minority member of the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate and of the Committee on Banking, Finance and 
                Urban Affairs of the House of Representatives.
    ``(h) Report.--
            ``(1) Contents of report.--Not later than December 1, 1994, 
        and biennially thereafter, the Secretary shall submit to the 
        Congress a report that--
                    ``(A) specifies the foreign countries identified 
                under subsection (b);
                    ``(B) if a determination under subsection (d)(1) is 
                in effect with respect to the foreign country, provides 
                the reasons therefor;
                    ``(C) if the Secretary has not made or has 
                rescinded such a determination with respect to the 
                foreign country, provides the reasons therefor;
                    ``(D) describes the results of any negotiations 
                conducted under subsection (g)(1) with the foreign 
                country; and
                    ``(E) discusses the effectiveness of this section 
                in achieving the purpose of this section.
            ``(2) Submission of report.--The report required by 
        paragraph (1) may be submitted as part of a report or update 
        submitted under section 3602 of the Omnibus Trade and 
        Competitiveness Act of 1988.
    ``(i) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Appropriate federal banking agency.--The term 
        `appropriate Federal banking agency'--
                    ``(A) in the case of a noninsured State bank or 
                branch, means the Board of Governors of the Federal 
                Reserve System; and
                    ``(B) in any other case, has the same meaning as in 
                section 3 of the Federal Deposit Insurance Act.
            ``(2) Banking organization.--The term `banking 
        organization' means a bank, including a branch or subsidiary 
        thereof, or a bank holding company.
            ``(3) National treatment.--A foreign country accords 
        `national treatment' to United States banking organizations if 
        it offers them the same competitive opportunities (including 
        effective market access) as are available to its domestic 
        banking organizations.
            ``(4) Person of a foreign country.--The term `person of a 
        foreign country' means--
                    ``(A) a person organized under the laws of the 
                foreign country;
                    ``(B) a person that has its principal place of 
                business in the foreign country;
                    ``(C) an individual who is--
                            ``(i) a citizen of the foreign country, or
                            ``(ii) domiciled in the foreign country; 
                        and
                    ``(D) a person that is directly or indirectly 
                controlled by a person described in subparagraph (A) or 
                (B), or by an individual described in subparagraph (C).
            ``(5) Second banking directive.--The term `Second Banking 
        Directive' means the Second Council Directive of December 15, 
        1989, on the Coordination of Laws, Regulations, and 
        Administrative Provisions Relating to the Taking Up and Pursuit 
        of the Business of Credit Institutions and Amending Directive 
        77/780/EEC (89/646/EEC).
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of the Treasury.''.

SEC. 3. EFFECTUATING THE PRINCIPLE OF NATIONAL TREATMENT FOR SECURITIES 
              ORGANIZATIONS.

    (a) Purpose.--The purpose of this section is to encourage foreign 
countries to accord national treatment to United States securities 
organizations that operate or seek to operate in those countries.
    (b) Identifying Countries That Deny National Treatment to United 
States Securities Organizations.--The Secretary shall identify whether 
and to what extent foreign countries deny national treatment to United 
States securities organizations--
            (1) according to the most recent report under section 3602 
        of the Omnibus Trade and Competitiveness Act of 1988 (or update 
        thereof); or
            (2) based upon more recent information that the Secretary 
        deems appropriate.
    (c) Determining Whether Denial of National Treatment Has 
Significant Adverse Effect.--The Secretary shall determine whether the 
denial of national treatment to United States securities organizations 
by a foreign country identified under subsection (b) has a significant 
adverse effect on such organizations.
    (d) Determination.--
            (1) Publication.--If the Secretary determines that the 
        denial of national treatment to United States securities 
        organizations by a foreign country has a significant adverse 
        effect on such organizations, the Secretary--
                    (A) may, after initiating negotiations in 
                accordance with subsection (g), and after consultation 
                with the United States Trade Representative, the 
                Secretary of State, and any other department or agency 
                that the Secretary deems appropriate, publish that 
                determination in the Federal Register; and
                    (B) shall, not less frequently than annually, in 
                consultation with any department or agency that the 
                Secretary deems appropriate, review each such 
                determination to determine whether it should be 
                rescinded.
            (2) Exception for countries that are parties to certain 
        agreements governing financial services.--Paragraph (1) shall 
        not apply to a foreign country to the extent that a 
        determination under that paragraph with respect to the foreign 
        country would permit action to be taken under this section that 
        would be inconsistent with a bilateral or multilateral 
        agreement that governs financial services that the President 
        entered into with that country and the Senate and the House of 
        Representatives approved, before the date of enactment of this 
        section.
    (e) Sanctions.--
            (1) Recommendation by the secretary.--If a determination 
        under subsection (d)(1) is in effect with respect to a foreign 
        country, the Secretary may, after consultation with the United 
        States Trade Representative, the Secretary of State, and any 
        other department or agency that the Secretary deems 
        appropriate, and subject to the specific direction of the 
        President (if any), recommend to the Commission that the 
        Commission deny any application or notice filed by a person of 
        that foreign country.
            (2) Action by commission.--If a determination under 
        subsection (d)(1) is in effect with respect to a foreign 
        country and a publication of that determination has been made 
        in accordance with subsection (d)(1)(A), in evaluating any 
        application or notice filed by a person of that foreign country 
        concerning which the Commission has received a recommendation 
        from the Secretary under paragraph (1), the Commission--
                    (A) shall consider--
                            (i) the recommendation of the Secretary; 
                        and
                            (ii) the determination and the conclusions 
                        of the reports and updates under section 3602 
                        of the Omnibus Trade and Competitiveness Act of 
                        1988 and the reports submitted in accordance 
                        with subsection (g);
                    (B) shall consult with the Secretary concerning the 
                determinations and conclusions referred to in 
                subparagraph (A)(ii); and
                    (C) may deny the application or disapprove the 
                notice, unless the Commission determines that the 
                denial or disapproval would be inconsistent with the 
                public interest and the protection of investors.
            (3) Notice required to acquire registered securities 
        organization.--
                    (A) In general.--If a determination under 
                subsection (d)(1) is in effect with respect to a 
                foreign country, no person of that foreign country, 
                acting directly or indirectly, may acquire control of 
                any registered securities organization, unless--
                            (i) the Commission has been given notice 
                        not less than 90 days in advance of the 
                        acquisition, in such form as the Commission 
                        shall prescribe by rule and containing such 
                        information as the Commission may require by 
                        rule or order; and
                            (ii) the Commission has not disapproved the 
                        notice under paragraph (2)(C).
                    (B) Notifying secretary.--The Commission shall 
                promptly notify the Secretary of any notice received 
                under subparagraph (A).
                    (C) Extending 90-day period.--The Commission may, 
                by order, extend for an additional 180 days the period 
                during which the Commission may disapprove a notice 
                received under subparagraph (A).
            (4) Standards for exercise of discretion.--In exercising 
        any discretion under this subsection, the Secretary and the 
        Commission shall consider, with respect to a securities 
        organization that is a person of a foreign country and is 
        operating in the United States--
                    (A) the extent to which the foreign country is 
                progressing toward according national treatment to 
                United States securities organizations; and
                    (B) whether the foreign country permits United 
                States securities organizations to expand their 
                activities in that country, even if that country 
                determined that the United States did not accord 
                national treatment to securities organizations of that 
                country.
    (f) Negotiations.--
            (1) In general.--The Secretary--
                    (A) shall initiate negotiations with any foreign 
                country with respect to which a determination under 
                subsection (d)(1) is in effect; and
                    (B) may initiate negotiations with any foreign 
                country which denies national treatment to United 
                States securities organizations to ensure that the 
                foreign country accords national treatment to such 
                organizations.
            (2) Exceptions.--Paragraph (1) does not require the 
        Secretary to initiate negotiations with a foreign country if 
        the Secretary--
                    (A) determines that the negotiations--
                            (i) would be so unlikely to result in 
                        progress toward according national treatment to 
                        United States securities organizations as to be 
                        a waste of effort; or
                            (ii) would impair the economic interests of 
                        the United States; and
                    (B) gives written notice of that determination to 
                the chairperson and the ranking minority member of the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate and of the Committee of Energy and Commerce of 
                the House of Representatives.
    (g) Report.--
            (1) Contents of report.--Not later than December 1, 1994, 
        and biennially thereafter, the Secretary shall submit to the 
        Congress a report that--
                    (A) specifies the foreign countries identified 
                under subsection (b);
                    (B) if a determination under subsection (d)(1) is 
                in effect with respect to the foreign country, provides 
                the reasons therefor;
                    (C) if the Secretary has not made, or has 
                rescinded, a determination under subsection (d)(1) with 
                respect to the foreign country, provides the reasons 
                therefor;
                    (D) describes the results of any negotiations 
                conducted under subsection (f)(1) with the foreign 
                country; and
                    (E) discusses the effectiveness of this section in 
                achieving the purpose of this section.
            (2) Submission of report.--The report required by paragraph 
        (1) may be submitted as part of a report or update submitted 
        under section 3602 of the Omnibus Trade and Competitiveness Act 
        of 1988.
    (h) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Broker.--The term ``broker'' has the same meaning as in 
        section 3(a)(4) of the Securities Exchange Act of 1934.
            (2) Dealer.--The term ``dealer'' has the same meaning as in 
        section 3(a)(5) of the Securities Exchange Act of 1934.
            (3) Commission.--The term ``Commission'' means the 
        Securities and Exchange Commission.
            (4) Investment adviser.--The term ``investment adviser'' 
        has the same meaning as in section 202(a)(11) of the Investment 
        Advisers Act of 1940.
            (5) National treatment.--A foreign country accords 
        ``national treatment'' to United States securities 
        organizations if it offers them the same competitive 
        opportunities (including effective market access) as are 
        available to its domestic securities organizations.
            (6) Person of a foreign country.--The term ``person of a 
        foreign country'' means--
                    (A) a person organized under the laws of the 
                foreign country;
                    (B) a person that has its principal place of 
                business in the foreign country;
                    (C) an individual who is--
                            (i) a citizen of the foreign country; or
                            (ii) domiciled in the foreign country; and
                    (D) a person that is directly or indirectly 
                controlled by a person described in subparagraph (A) or 
                (B), or by an individual described in subparagraph (C).
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (8) Securities organization.--The term ``securities 
        organization'' means a broker, a dealer, or an investment 
        adviser.
    (i) Other Authority Not Affected.--This section does not limit the 
authority of the Commission, the Secretary, or any other department or 
agency under any other provision of Federal law.

SEC. 4. FINANCIAL INTERDEPENDENCE STUDY.

    Subtitle G of title III of the Omnibus Trade and Competitiveness 
Act of 1988 (22 U.S.C. 5351 et seq.) is amended by adding at the end 
the following new section:

``SEC. 3605. FINANCIAL INTERDEPENDENCE STUDY.

    ``(a) Investigation Required.--The Secretary, in consultation and 
coordination with the Securities and Exchange Commission, the Federal 
banking agencies, and any other appropriate Federal department or 
agency designated by the Secretary, shall conduct an investigation to 
determine--
            ``(1) the extent of the interdependence of the financial 
        services sectors of the United States and foreign countries--
                    ``(A) whose financial services institutions provide 
                financial services in the United States; or
                    ``(B) whose persons have substantial ownership 
                interests in United States financial services 
                institutions; and
            ``(2) the economic, strategic, and other consequences of 
        that interdependence for the United States.
    ``(b) Report.--
            ``(1) Report required.--Not later than 3 years after the 
        date of enactment of this section, the Secretary shall submit a 
        report on the results of the investigation under subsection (a) 
        to the President, the Congress, the Securities and Exchange 
        Commission, the Federal banking agencies, and any other 
        appropriate Federal agency or department, as designated by the 
        Secretary.
            ``(2) Contents of report.--The report required under 
        paragraph (1) shall--
                    ``(A) describe the activities and estimate the 
                scope of financial services activities conducted by 
                United States financial services institutions in 
                foreign markets (differentiated according to major 
                foreign markets);
                    ``(B) describe the activities and estimate the 
                scope of financial services activities conducted by 
                foreign financial services institutions in the United 
                States (differentiated according to the most 
                significant home countries or groups of home 
                countries);
                    ``(C) estimate the number of jobs created in the 
                United States by financial services activities 
                conducted by foreign financial services institutions 
                and the number of jobs created in foreign countries by 
                financial service activities conducted by United States 
                financial services institutions;
                    ``(D) estimate the additional jobs and revenues 
                (both foreign and domestic) that would be created by 
                the activities of United States financial services 
                institutions in foreign countries if those countries 
                offered such institutions the same competitive 
                opportunities (including effective market access) as 
                are available to the domestic financial services 
                institutions of those countries;
                    ``(E) describe the extent to which foreign 
                financial services institutions discriminate against 
                United States persons in procurement, employment, the 
                provision of credit or other financial services, or 
                otherwise;
                    ``(F) describe the extent to which foreign 
                financial services institutions and other persons from 
                foreign countries purchase or otherwise facilitate the 
                marketing from the United States of government and 
                private debt instruments and private equity 
                instruments;
                    ``(G) describe how the interdependence of the 
                financial services sectors of the United States and 
                foreign countries affects the autonomy and 
                effectiveness of United States monetary policy;
                    ``(H) describe the extent to which United States 
                companies rely on financing by or through foreign 
                financial services institutions and the consequences of 
                such reliance (including disclosure of proprietary 
                information) for the industrial competitiveness and 
                national security of the United States;
                    ``(I) describe the extent to which foreign 
                financial services institutions, in purchasing high 
                technology products such as computers and 
                telecommunications equipment, favor manufacturers from 
                their home countries over United States manufacturers; 
                and
                    ``(J) contain other appropriate information 
                relating to the results of the investigation required 
                by subsection (a).
    ``(c) Definitions.--For purposes of this section the following 
definitions shall apply:
            ``(1) Depository institution and depository institution 
        holding company.--The terms `depository institution' and 
        `depository institution holding company' have the same meanings 
        as in section 3 of the Federal Deposit Insurance Act.
            ``(2) Federal banking agency.--The term `Federal banking 
        agencies' has the same meaning as in section 3 of the Federal 
        Deposit Insurance Act.
            ``(3) Financial services institution.--The term `financial 
        services institution' means--
                    ``(A) a broker, dealer, underwriter, clearing 
                agency, transfer agent, or information processor with 
                respect to securities, including government and 
                municipal securities;
                    ``(B) an investment company, investment manager, 
                investment adviser, indenture trustee, or any 
                depository institution, insurance company, or other 
                organization operating as a fiduciary, trustee, 
                underwriter, or other financial services provider;
                    ``(C) any depository institution or depository 
                institution holding company; and
                    ``(D) any other entity providing financial 
                services.
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of the Treasury.''.

SEC. 5. CONFORMING AMENDMENTS.

    (a) Reports on Foreign Treatment of United States Financial 
Institutions.--Section 3602 of the Omnibus Trade and Competitiveness 
Act of 1988 (22 U.S.C. 5352) is amended--
            (1) in the first sentence, by inserting ``with updates on 
        significant developments every 2 years following the study 
        conducted in 1994,'' before ``the Secretary of the Treasury''; 
        and
            (2) by adding at the end the following: ``For purposes of 
        this section, a foreign country denies national treatment to 
        United States entities unless the foreign country offers such 
        entities the same competitive opportunities (including 
        effective market access) as are available to the domestic 
        entities of the foreign country.''.
    (b) Negotiations To Promote Fair Trade in Financial Services.--
Section 3603(a)(1) of the Omnibus Trade and Competitiveness Act of 1988 
(22 U.S.C. 5353(a)(1)) is amended by inserting ``effective'' before 
``access''.
    (c) Primary Dealers in Government Debt Instruments.--Section 
3502(b)(1) of the Omnibus Trade and Competitiveness Act of 1988 (22 
U.S.C. 5342(b)(1)) is amended--
            (1) by striking ``does not accord to'' and inserting ``does 
        not offer''; and
            (2) by striking ``as such country accords to'' and 
        inserting ``(including effective market access) as are 
        available to''.

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