I

106TH CONGRESS

1ST SESSION H. R. 1834

To promote the growth of free enterprise and economic opportunity in the

Caribbean Basin region, to increase trade between the region and the

United States, and to encourage the adoption by Caribbean Basin countries of trade and investment policies necessary for participation in the

Free Trade Area of the Americas.

IN THE HOUSE OF REPRESENTATIVES

MAY 18, 1999

Mr. LEWIS of Georgia introduced the following bill; which was referred to the

Committee on Ways and Means

A BILL

To promote the growth of free enterprise and economic opportunity in the Caribbean Basin region, to increase

trade between the region and the United States, and

to encourage the adoption by Caribbean Basin countries

of trade and investment policies necessary for participation in the Free Trade Area of the Americas.

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 ‘‘United States-Carib5 bean Basin Trade Enhancement Act’’.
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1 SEC. 2. FINDINGS AND POLICY.

2 (a) FINDINGS.—The Congress finds that—

3 (1) the Caribbean Basin Economic Recovery

4 Act (‘‘CBERA’’) represents a permanent commit5 ment by the United States to encourage the develop6 ment of strong democratic governments and revital7 ized economies in neighboring countries in the Car8 ibbean Basin;

9 (2) 34 democratically elected leaders agreed at

10 the 1994 Summit of the Americas to conclude nego11 tiation of a Free Trade Area of the Americas

12 (FTAA) by the year 2005;

13 (3) the economic security of the countries in the

14 Caribbean Basin will be enhanced with the comple15 tion of the FTAA;

16 (4) offering temporary benefits to Caribbean

17 Basin countries—

18 (A) will enhance trade between the United

19 States and the Caribbean Basin;

20 (B) will encourage development of trade

21 and investment policies that will facilitate par22 ticipation of Caribbean Basin countries in the

23 FTAA;

24 (C) will preserve the United States’ com25 mitment to Caribbean Basin beneficiary coun26 tries;
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1 (D) will help further their economic devel2 opment; and

3 (E) will accelerate the trend toward more

4 open economies in the region;

5 (5) promotion of the growth of free enterprise

6 and economic opportunity in the Caribbean Basin

7 will enhance the national security interests of the

8 United States; and

9 (6) increased trade and economic activity be10 tween the United States and Caribbean Basin bene11 ficiary countries will create expanding export oppor12 tunities for United States businesses and workers.

13 (b) POLICY.—It is therefore the policy of the United

14 States to offer those Caribbean Basin beneficiary coun15 tries willing to embark on the process of preparing for

16 eventual accession to the FTAA, or a trade agreement

17 comparable to the FTAA, enhanced preferential treat18 ment; and to seek the accession of these beneficiary coun19 tries to the FTAA or a trade agreement comparable to

20 the FTAA at the earliest possible date, with the goal of

21 achieving full participation in the FTAA or a trade agree22 ment comparable to the FTAA by all beneficiary countries

23 by the year 2005.

24 SEC. 3. DEFINITIONS.

25 As used in this Act:
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1 (1) BENEFICIARY COUNTRY.—The term ‘‘bene2 ficiary country’’ has the meaning given that term in

3 section 212(a)(1)(A) of the Caribbean Basin Eco4 nomic Recovery Act (19 U.S.C. 2702(a)(1)(A)).

5 (2) FTAA.—The term ‘‘FTAA’’ means the

6 Free Trade Area of the Americas.

7 (3) NAFTA.—The term ‘‘NAFTA’’ means the

8 North American Free Trade Agreement entered into

9 between the United States, Mexico, and Canada on

10 December 17, 1992.

11 (4) WTO AND WTO MEMBER.—The terms

12 ‘‘WTO’’ and ‘‘WTO member’’ have the meanings

13 given those terms in section 2 of the Uruguay

14 Round Agreements Act (19 U.S.C. 3501).

15 SEC. 4. TEMPORARY PROVISIONS TO PROVIDE ADDITIONAL

16 TRADE BENEFITS TO CERTAIN BENEFICIARY

17 COUNTRIES.

18 (a) TEMPORARY PROVISIONS.—Section 213(b) of the

19 Caribbean Basin Economic Recovery Act (19 U.S.C.

20 2703(b)) is amended to read as follows:

21 ‘‘(b) EXCEPTIONS.—

22 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

23 through (5), the duty-free treatment provided under

24 this title does not apply to—
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1 ‘‘(A) textile and apparel articles which

2 were not eligible articles for purposes of this

3 title on January 1, 1994, as this title was in ef4 fect on that date;

5 ‘‘(B) footwear not designated at the time

6 of the effective date of this title as eligible arti7 cles for the purpose of the generalized system

8 of preferences under title V of the Trade Act of

9 1974;

10 ‘‘(C) tuna, prepared or preserved in any

11 manner, in airtight containers;

12 ‘‘(D) petroleum, or any product derived

13 from petroleum, provided for in headings 2709

14 and 2710 of the HTS;

15 ‘‘(E) watches and watch parts (including

16 cases, bracelets and straps), of whatever type

17 including, but not limited to, mechanical, quartz

18 digital or quartz analog, if such watches or

19 watch parts contain any material which is the

20 product of any country with respect to which

21 HTS column 2 rates of duty apply; or

22 ‘‘(F) articles to which reduced rates of

23 duty apply under subsection (h).

24 ‘‘(2) TRANSITION PERIOD TREATMENT OF CER25 TAIN TEXTILE AND APPAREL ARTICLES.—
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1 ‘‘(A) PREFERENTIAL TARIFF AND QUOTA

2 TREATMENT.—During the transition period—

3 ‘‘(i) clause (ii) applies with respect to

4 a textile or apparel article that is imported

5 into the United States from a CBTEA

6 beneficiary country and that—

7 ‘‘(I) is assembled in a CBTEA

8 beneficiary country from fabrics whol9 ly formed and cut in the United

10 States from yarns formed in the

11 United States, and is imported into

12 the United States—

13 ‘‘(aa) under subheading

14 9802.00.80 of the HTS; or

15 ‘‘(bb) under chapter 61, 62

16 or 63 of the HTS, if after such

17 assembly the article would have

18 qualified for entry under sub19 heading 9802.00.80 of the HTS

20 but for the fact the article was

21 subjected to stone-washing, en22 zyme-washing, acid-washing,

23 perma-pressing, oven-baking,

24 bleaching, embroidery, or gar25 ment-dyeing;
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1 ‘‘(II) is cut in a CBTEA bene2 ficiary country from fabrics wholly

3 formed in the United States from

4 yarns formed in the United States

5 and is assembled in a CBTEA bene6 ficiary country with thread formed in

7 the United States; or

8 ‘‘(III) is identified under sub9 paragraph (B) as a handloomed,

10 handmade, or folklore article of such

11 country and is certified as such by the

12 competent authority of such country;

13 ‘‘(ii) the President may proclaim with

14 respect to an article described in clause (i)

15 a reduction in the rate of duty up to 100

16 percent of the amount of duty that other17 wise would apply to such article; and

18 ‘‘(iii) except as provided in subpara19 graph (D), no quantitative restriction or

20 consultation level may be applied to the

21 importation into the United States of any

22 textile or apparel article that qualifies for

23 preferential tariff treatment under clause

24 (i).
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1 ‘‘(B) HANDLOOMED, HANDMADE, AND

2 FOLKLORE ARTICLES.—For purposes of sub3 paragraph (A), the President, after consultation

4 with the CBTEA beneficiary country concerned,

5 shall determine which, if any, particular textile

6 and apparel goods of the country shall be treat7 ed as being handloomed, handmade, or folklore

8 goods of a kind described in section 2.3 (a), (b),

9 or (c) or Appendix 3.1.B.11 of the Annex.

10 ‘‘(C) TRANSITION PERIOD ADJUSTMENT OF

11 EXISTING QUANTITATIVE RESTRICTIONS.—Dur12 ing the transition period—

13 ‘‘(i) the President, after negotiating

14 with the CBTEA beneficiary country con15 cerned, may reduce the quantities of textile

16 and apparel articles that can be imported

17 into the United States under existing

18 quantitative restrictions to reflect the

19 quantities of textile and apparel articles

20 from such country that are exempt from

21 quota restrictions pursuant to subpara22 graph (A)(iii); and

23 ‘‘(ii) whenever the President finds

24 that transshipment within the meaning of

25 clause (iii) has occurred, the President, fol-
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1 lowing consultations with the CBTEA ben2 eficiary countries through whose territories

3 the President finds transshipment to have

4 occurred, may reduce the quantities of tex5 tile and apparel articles that can be im6 ported into the United States under each

7 existing quantitative restriction with each

8 such country by an amount determined by

9 the President; and

10 ‘‘(iii) transshipment within the mean11 ing of this subparagraph has occurred

12 when preferential tariff treatment for a

13 textile or apparel article under subpara14 graph (A) has been claimed on the basis of

15 material false information concerning the

16 country of origin, manufacture, processing,

17 or assembly of the article or any of its

18 components.

19 For purposes of clause (iii), false information is

20 material if disclosure of the true information

21 would mean or would have meant that the arti22 cle is or was ineligible for preferential tariff

23 treatment under subparagraph (A).

24 ‘‘(D) BILATERAL EMERGENCY ACTIONS.—
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1 ‘‘(i) IN GENERAL.—The President

2 may take—

3 ‘‘(I) bilateral emergency tariff ac4 tions of a kind described in section 4

5 of the Annex with respect to any tex6 tile or apparel article imported from a

7 CBTEA beneficiary country if the ap8 plication of tariff treatment under

9 subparagraph (A) to such an article

10 results in conditions that would be

11 cause for the taking of such actions

12 under that section with respect to an

13 article described in the same 8-digit

14 subheading of the HTS that is im15 ported from Mexico; or

16 ‘‘(II) bilateral emergency quan17 titative restriction actions of a kind

18 described in section 5 of the Annex

19 with respect to imports of any textile

20 or apparel article of a CBTEA bene21 ficiary country, including articles eligi22 ble for preferential tariff treatment

23 under subparagraph (A), if the impor24 tation of such an article into the

25 United States results in conditions
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1 that would be cause for the taking of

2 such actions under that section with

3 respect to an article described in the

4 same 8-digit subheading of the HTS

5 that is imported from Mexico.

6 ‘‘(ii) RULES RELATING TO BILATERAL

7 EMERGENCY ACTION.—For purposes of ap8 plying bilateral emergency action under

9 this subparagraph—

10 ‘‘(I) the requirements of para11 graph 5 of section 4 of the Annex (re12 lating to providing compensation)

13 shall not apply;

14 ‘‘(II) the term ‘transition period’

15 in sections 4 and 5 of the Annex shall

16 have the meaning given that term in

17 paragraph (5)(C) of this subsection;

18 ‘‘(III) the requirements to con19 sult specified in section 4 or 5 of the

20 Annex shall be treated as satisfied if

21 the President requests consultations

22 with the beneficiary country in ques23 tion and the country does not agree to

24 consult within the time period speci-
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1 fied under section 4 or 5, whichever is

2 applicable;

3 ‘‘(IV) during the first 14 months

4 after imports commence from a

5 CBTEA beneficiary country under

6 paragraph (2)(A) (or recommence be7 cause of a redesignation of such coun8 try), the minimum quantity of any

9 textile or apparel article from such

10 country subject to quantitative restric11 tions may be determined under para12 graph 7 of section 5 of the Annex

13 based on a reasonable estimate (using

14 available data where possible) of the

15 quantity of such articles imported

16 from such country during the relevant

17 period (as defined in such paragraph

18 7) that did not qualify or would not

19 have qualified as originating goods;

20 and

21 ‘‘(V) after the 14-month period

22 described in subclause (IV), the min23 imum quantity of articles subject to

24 such quantitative restrictions shall be

25 determined under paragraph 7 of sec-
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1 tion 5 of the Annex based on the most

2 recently available import statistics of

3 the Bureau of the Census.

4 ‘‘(3) PREFERENTIAL TARIFF TREATMENT OF

5 CERTAIN ARTICLES ORIGINATING IN CBTEA BENE6 FICIARY COUNTRIES.—During the transition period,

7 with respect to articles referred to in subparagraphs

8 (B) through (F) of paragraph (1) that are CBTEA

9 originating goods, the following applies:

10 ‘‘(A) The President may proclaim with re11 spect to such articles a reduction in the rate of

12 duty up to 100 percent of the difference be13 tween ‘x’ and ‘y’, with the terms ‘x’ and ‘y’ hav14 ing the meaning given in subparagraph (B).

15 ‘‘(B) For purposes of this paragraph, ‘x’

16 represents the rate of duty that would apply to

17 an article at the time of its importation from a

18 CBTEA beneficiary country but for the enact19 ment of the CBTEA, and ‘y’ represents the tar20 iff treatment for such an article that is ac21 corded to a good of Mexico under Annex 302.2

22 of the NAFTA, as implemented in United

23 States law.

24 ‘‘(C) Subparagraph (A) does not apply to

25 any article accorded duty-free treatment under
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1 U.S. Note 2(b) to subchapter II of chapter 98

2 of the HTS.

3 ‘‘(D) If at any time during the transition

4 period the rate of duty that would (but for ac5 tions taken under subparagraph (A)) apply with

6 respect to any article under subsection (h) is a

7 rate of duty that is lower than the rate of duty

8 resulting from such actions, then such lower

9 rate of duty shall be applied.

10 ‘‘(4) CUSTOMS PROCEDURES.—

11 ‘‘(A) IN GENERAL.—

12 ‘‘(i) REGULATIONS.—Any importer

13 that claims preferential treatment under

14 paragraph (2) or (3) shall comply with

15 customs procedures similar in all material

16 respects to the requirements of Article

17 502(1) of the NAFTA as implemented in

18 United States law, in accordance with reg19 ulations promulgated by the Secretary of

20 the Treasury.

21 ‘‘(ii) DETERMINATION.—In order to

22 qualify for such preferential treatment and

23 for a Certificate of Origin to be valid with

24 respect to articles for which such treat-
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1 ment is claimed, there shall be in effect a

2 determination by the President that—

3 ‘‘(I) the CBTEA beneficiary

4 country from which the article is ex5 ported, and

6 ‘‘(II) each CBTEA beneficiary

7 country in which materials used in the

8 production of the article originate or

9 undergo production that contributes

10 to a claim that the article is a

11 CBTEA originating good,

12 has implemented and follows, or is making

13 substantial progress toward implementing

14 and following, procedures and require15 ments similar in all material respects to

16 the relevant procedures and requirements

17 under Chapter 5 of the NAFTA.

18 ‘‘(B) CERTIFICATE OF ORIGIN.—The Cer19 tificate of Origin that otherwise would be re20 quired pursuant to the provisions of subpara21 graph (A) shall not be required in the case of

22 an article imported under paragraph (2) or (3)

23 if such Certificate of Origin would not be re24 quired under Article 503 of the NAFTA, as im-
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1 plemented in United States law, if the article

2 were imported from Mexico.

3 ‘‘(5) DEFINITIONS AND SPECIAL RULES.—For

4 purposes of this subsection:

5 ‘‘(A) ANNEX.—The term ‘the Annex’

6 means Annex 300–B of the NAFTA.

7 ‘‘(B) TEXTILE OR APPAREL ARTICLE.—

8 The term ‘textile or apparel article’ means any

9 article referred to in paragraph (1)(A) that is

10 a good listed in Appendix 1.1 of the Annex.

11 ‘‘(C) TRANSITION PERIOD.—The term

12 ‘transition period’ means, with respect to a

13 CBTEA beneficiary country, the period that be14 gins on October 1, 1999 and ends on June 30,

15 2001.

16 ‘‘(D) CBTEA BENEFICIARY COUNTRY.—(i)

17 The term ‘CBTEA beneficiary country’ means

18 any ‘beneficiary country,’ as defined by section

19 212(a)(1)(A) of the Caribbean Basin Economic

20 Recovery Act, which the President has deter21 mined has demonstrated commitments—

22 ‘‘(I) to undertake its obligations under

23 the WTO on or ahead of schedule;

24 ‘‘(II) to participate in negotiations to25 ward the completion of the FTAA or a
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1 trade agreement comparable to the FTAA;

2 and

3 ‘‘(III) to undertake other steps nec4 essary for that country’s accession to the

5 FTAA or a trade agreement comparable to

6 the FTAA.

7 ‘‘(ii) In making the determination under

8 clause (i), the President may consider the cri9 teria in sections 212(b) and (c) and other ap10 propriate criteria, including—

11 ‘‘(I) the extent to which the country

12 follows accepted rules of international

13 trade provided for under the agreements

14 listed in section 101(d) of the Uruguay

15 Round Agreements Act;

16 ‘‘(II) the extent to which the country

17 provides protection of intellectual property

18 rights in accordance with—

19 ‘‘(aa) standards established in

20 the Agreement on Trade-Related As21 pects of Intellectual Property Rights

22 described in section 101(d)(15) of the

23 Uruguay Round Agreements Act;

24 ‘‘(bb) standards established in

25 chapter 17 of the NAFTA; and
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1 ‘‘(cc) the grant of the ability to

2 control the importation or sale of im3 ports of products that embody copy4 righted works, the extension to ten

5 years of the ‘reasonable period’ under

6 NAFTA Article 1711(6) for the pro7 tection of test data related to the

8 grant of marketing approval for agri9 cultural chemicals, the protection of

10 trademarks regardless of their subse11 quent designation as geographic indi12 cations, and the availability of en13 forcement against infringing imports

14 at the border;

15 ‘‘(III) the extent to which the country

16 provides protections to investors and in17 vestments of the United States substan18 tially equivalent to those set forth in chap19 ter 11 of the NAFTA;

20 ‘‘(IV) the extent to which the country

21 provides the United States and other WTO

22 members on a most-favored-nation basis

23 with equitable and reasonable market ac24 cess in the product sectors for which bene25 fits are provided under paragraphs (2) and
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1 (3), and in other relevant product sectors

2 as determined by the President;

3 ‘‘(V) the extent to which the country

4 provides internationally recognized worker

5 rights, including the right of association,

6 the right to organize and bargain collec7 tively, a prohibition on the use of any form

8 of coerced or compulsory labor, a minimum

9 age for the employment of children, and

10 acceptable conditions of work with respect

11 to minimum wages, hours of work, and oc12 cupational safety and health;

13 ‘‘(VI) the extent to which the country

14 adopts, maintains, and effectively enforces

15 laws providing for high levels of environ16 mental protection;

17 ‘‘(VII) whether the country has met

18 the counternarcotics certification criteria

19 set forth in section 490 of the Foreign As20 sistance Act of 1961 for eligibility for

21 United States assistance;

22 ‘‘(VIII) the extent to which the coun23 try ratifies and implements the Inter24 American Convention Against Corruption;
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1 ‘‘(IX) the extent to which the country

2 supports the multilateral and regional ob3 jectives of the United States with respect

4 to government procurement, including the

5 negotiation of government procurement

6 provisions of an FTAA and conclusion of a

7 WTO transparency agreement as provided

8 in the declaration of the WTO Ministerial

9 Conference held in Singapore on December

10 9–13, 1996, and applies transparent and

11 competitive procedures in government pro12 curement equivalent to those in the Agree13 ment on Government Procurement de14 scribed in section 101(d)(17) of the Uru15 guay Round Agreements Act;

16 ‘‘(X) the extent to which the country

17 follows the rules on customs valuation set

18 forth in the Agreement on Implementation

19 of Article VII of the GATT 1994 described

20 in section 101(d)(8) of the Uruguay Round

21 Agreements Act; and

22 ‘‘(XI) the extent to which the country

23 affords to products of the United States

24 which the President determines to be of

25 commercial importance to the United
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1 States with respect to such country, and

2 on a most-favored-nation basis to like

3 products of other WTO members, tariff

4 treatment that is no less favorable than

5 the most favorable tariff treatment pro6 vided by the country to any other country

7 pursuant to any free trade agreement

8 other than the Central American Common

9 Market or the Caribbean Community and

10 Common Market.

11 ‘‘(E) CBTEA ORIGINATING GOOD.—The

12 term ‘CBTEA originating good’ means a good

13 that meets the rules of origin for a good set

14 forth in chapter 4 of the NAFTA, as imple15 mented in United States law, and, in the case

16 of a good described in Appendix 6.A of the

17 Annex, the requirements stated in Appendix

18 6.A, as implemented in United States law. In

19 applying chapter 4 or Appendix 6.A with re20 spect to a CBTEA beneficiary country for pur21 poses of this subsection—

22 ‘‘(i) no countries other than the

23 United States and CBTEA beneficiary

24 countries may be treated as being Parties

25 to the NAFTA;
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1 ‘‘(ii) references to trade between the

2 United States and Mexico shall be deemed

3 to refer to trade between the United States

4 and a CBTEA beneficiary country;

5 ‘‘(iii) references to a Party shall be

6 deemed to refer to a CBTEA beneficiary

7 country or the United States, and

8 ‘‘(iv) references to Parties shall be

9 deemed to refer to any combination of

10 CBTEA beneficiary countries or to the

11 United States and a CBTEA beneficiary

12 country (or any combination thereof).’’.

13 (b) DETERMINATION REGARDING RETENTION OF

14 DESIGNATION.—Section 212(e) of the Caribbean Basin

15 Economic Recovery Act (19 U.S.C. 2702(e)) is amended—

16 (1) in paragraph (1)—

17 (A) by inserting ‘‘(A)’’ after ‘‘(1)’’;

18 (B) by redesignating subparagraphs (A)

19 and (B) as clauses (i) and (ii), respectively;

20 (C) by striking all that follows ‘‘such coun21 try’’ and inserting ‘‘no longer satisfies one or

22 more of the conditions for designation as a ben23 eficiary country set forth in subsection (b) or

24 such country fails adequately to meet one or
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1 more of the criteria set forth in subsection

2 (c).’’; and

3 (D) by adding at the end the following:

4 ‘‘(B) The President may, after the requirements of

5 subsection (a)(2) and paragraph (2) have been met—

6 ‘‘(i) withdraw or suspend the designation of any

7 country as a CBTEA beneficiary country; or

8 ‘‘(ii) withdraw, suspend, modify, or limit the ap9 plication of preferential treatment under section

10 213(b)(2) and (3) to any article of any country,

11 if the President determines that such action is appropriate

12 based on an evaluation of the criteria listed in section

13 213(b)(5)(D).’’; and

14 (2) by adding after paragraph (2) the following

15 new paragraphs:

16 ‘‘(3) In the event the President withdraws, suspends,

17 or limits the application of duty-free treatment accorded

18 to a country under the Generalized System of Preferences

19 based on one or more of the eligibility criteria in section

20 502 of the Trade Act of 1974 (19 U.S.C. 2462) that are

21 the same or similar to one or more of the eligibility criteria

22 set forth in this title, the President shall likewise with23 draw, suspend or limit the application of preferential

24 treatment accorded to that country under this title.
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1 ‘‘(4) If preferential treatment under section

2 213(b)(2) and (3) is withdrawn, suspended, or limited

3 with respect to a CBTEA beneficiary country, such coun4 try shall not be deemed to be a ‘Party’ for the purposes

5 of applying section 213(b)(5)(E) to imports of articles for

6 which preferential treatment has been withdrawn, sus7 pended, or limited with respect to such country.’’.

8 (c) REPORTING REQUIREMENTS.—

9 (1) Section 212(f) of the Caribbean Basin Eco10 nomic Recovery Act (19 U.S.C. 2702(f)) is amended

11 to read as follows:

12 ‘‘(f) REPORTING REQUIREMENTS.—Not later than

13 December 1, 2000, and at the close of each 3-year period

14 thereafter, the President shall submit to the Congress a

15 report regarding the operation of this title, including—

16 ‘‘(1) with respect to subsections (b) and (c), the

17 results of a general review of beneficiary countries

18 based on the considerations described in those sub19 sections; and

20 ‘‘(2) the performance of each CBTEA bene21 ficiary country under the criteria in section

22 213(b)(5)(D).’’.

23 (2) Section 203(f) of the Andean Trade Pref24 erence Act (19 U.S.C. 3202(f)) is amended by strik25 ing ‘‘On or before the 3rd, 6th and 9th anniversaries
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1 of the date of the enactment of this title,’’ and in2 serting ‘‘On or before March 1, 2000, and on or be3 fore the close of each 3-year period thereafter during

4 which duty-free treatment under this title remains in

5 effect,’’.

6 (d) INTERNATIONAL TRADE COMMISSION RE7 PORTS.—

8 (1) CBERA REPORTS.—

9 (A) Section 215(a) of the Caribbean Basin

10 Economic Recovery Act (19 U.S.C. 2704(a)) is

11 amended to read as follows:

12 ‘‘(a)(1) The United States International Trade Com13 mission (referred to in this section as the ‘Commission’)

14 shall submit to the Congress and the President triennial

15 reports regarding the economic impact of this Act on

16 United States industries and consumers.

17 ‘‘(2) The first report after the enactment of the

18 CBTEA shall be submitted on September 1, 2000, and

19 subsequent reports shall be submitted on the close of each

20 3-year period thereafter.

21 ‘‘(3) For purposes of this section, industries in the

22 Commonwealth of Puerto Rico and the insular possessions

23 of the United States are considered to be United States

24 industries.’’.
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1 (B) Section 215(c) of the Caribbean Basin

2 Economic Recovery Act (19 U.S.C. 2704(c)) is

3 amended by striking ‘‘(1) Each report’’ and all

4 that follows through ‘‘(2)’’.

5 (2) ATPA REPORTS.—

6 (A) Section 206(a) of the Andean Trade

7 Preference Act (19 U.S.C. 3204(a)) is amended

8 to read as follows:

9 ‘‘(a)(1) The United States International Trade Com10 mission (referred to in this section as the ‘Commission’)

11 shall submit to the Congress and the President triennial

12 reports regarding the economic impact of this Act on

13 United States industries and consumers, and, in conjunc14 tion with other agencies, the effectiveness of this Act in

15 promoting drug-related crop eradication and crop substi16 tution efforts of the beneficiary countries.

17 ‘‘(2) The first report after the enactment of the

18 United States-Caribbean Basin Trade Enhancement Act

19 shall be submitted on September 30, 1999, and subse20 quent reports shall be submitted on the close of each 3-

21 year period thereafter during which duty-free treatment

22 under the Andean Trade Preference Act remains in effect.

23 ‘‘(3) For purposes of this section, industries in the

24 Commonwealth of Puerto Rico and the insular possessions
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1 of the United States are considered to be United States

2 industries.’’.

3 (B) Section 206(c) of the Andean Trade

4 Preference Act (19 U.S.C. 3204(c)) is amended

5 by striking ‘‘(1) Each report’’ and all that fol6 lows through ‘‘(2)’’.

7 (e) IMPACT STUDIES BY THE SECRETARY OF

8 LABOR.—

9 (1) The text of section 216 of the Caribbean

10 Basin Economic Recovery Act (19 U.S.C. 2705) is

11 amended to read as follows:

12 ‘‘(a) The Secretary of Labor, in consultation with

13 other appropriate Federal agencies, shall undertake a con14 tinuing review and analysis of the impact that the imple15 mentation of the provisions of this title has with respect

16 to United States labor, shall review developments in labor

17 conditions in the beneficiary countries, and shall make a

18 triennial report to Congress on the results of such review

19 and analysis.

20 ‘‘(b) The first report after the enactment of the

21 CBTEA shall be submitted on September 1, 2000, and

22 subsequent reports shall be submitted on the close of each

23 3-year period thereafter.

24 ‘‘(c) For purposes of this section, industries in the

25 Commonwealth of Puerto Rico and the insular possessions
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1 of the United States are considered to be United States

2 industries.’’.

3 (2) The text of section 207 of the Andean

4 Trade Preference Act (19 U.S.C. 3205) is amended

5 to read as follows:

6 ‘‘(a) The Secretary of Labor, in consultation with

7 other appropriate Federal agencies, shall undertake a con8 tinuing review and analysis of the impact that the imple9 mentation of the provisions of this title has with respect

10 to United States labor, shall review developments in labor

11 conditions in the beneficiary countries, and shall make a

12 triennial report to Congress on the results of such review

13 and analysis.

14 ‘‘(b) The first report after the enactment of the

15 United States-Caribbean Basin Trade Enhancement Act

16 shall be submitted on September 30, 1999, and subse17 quent reports shall be submitted on the close of each 3-

18 year period thereafter during which duty-free treatment

19 under the Andean Trade Preference Act remains in effect.

20 ‘‘(c) For purposes of this section, industries in the

21 Commonwealth of Puerto Rico and the insular possessions

22 of the United States are considered to be United States

23 industries.’’.

24 (f) CONFORMING AMENDMENTS.—
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1 (1) Section 211 of the Caribbean Basin Eco2 nomic Recovery Act (19 U.S.C. 2701) is amended by

3 inserting ‘‘or other preferential’’ after ‘‘duty-free’’.

4 (2) Section 213(a)(1) of the Caribbean Basin

5 Economic Recovery Act (19 U.S.C. 2703(a)(1)) is

6 amended by inserting ‘‘and except as provided in

7 section 213(b) (2) and (3),’’ after ‘‘Tax Reform Act

8 of 1986,’’.

9 SEC. 5. ADEQUATE AND EFFECTIVE PROTECTION FOR IN10 TELLECTUAL PROPERTY RIGHTS.

11 Section 212(c) of the Caribbean Basin Economic Re12 covery Act (19 U.S.C. 2702(c)) is amended by adding at

13 the end the following flush sentence:

14 ‘‘Notwithstanding any other law, the President may deter15 mine that a country is not providing adequate and effec16 tive protection of intellectual property rights under para17 graph (9), even if the country is in compliance with the

18 country’s obligations under the Agreement on Trade-Re19 lated Aspects of Intellectual Property Rights described in

20 section 101(d)(15) of the Uruguay Round Agreements Act

21 (19 U.S.C. 3511(d)(15)).’’.

22 SEC. 6. DEFINITIONS.

23 Section 212(a)(1) of the Caribbean Basin Economic

24 Recovery Act (19 U.S.C. 2702(a)(1)) is amended by add25 ing at the end the following new subparagraph:
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1 ‘‘(D) The term ‘NAFTA’ means the North

2 American Free Trade Agreement entered into

3 between the United States, Mexico, and Canada

4 on December 17, 1992.

5 ‘‘(E) The term ‘‘CBTEA’’ means the

6 United States-Caribbean Basin Trade Enhance7 ment Act.’’.

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