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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1834 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States-Caribbean Basin Trade 
Enhancement Act''.

SEC. 2. FINDINGS AND POLICY.

    (a) Findings.--The Congress finds that--
            (1) the Caribbean Basin Economic Recovery Act (``CBERA'') 
        represents a permanent commitment by the United States to 
        encourage the development of strong democratic governments and 
        revitalized economies in neighboring countries in the Caribbean 
        Basin;
            (2) 34 democratically elected leaders agreed at the 1994 
        Summit of the Americas to conclude negotiation of a Free Trade 
        Area of the Americas (FTAA) by the year 2005;
            (3) the economic security of the countries in the Caribbean 
        Basin will be enhanced with the completion of the FTAA;
            (4) offering temporary benefits to Caribbean Basin 
        countries--
                    (A) will enhance trade between the United States 
                and the Caribbean Basin;
                    (B) will encourage development of trade and 
                investment policies that will facilitate participation 
                of Caribbean Basin countries in the FTAA;
                    (C) will preserve the United States' commitment to 
                Caribbean Basin beneficiary countries;
                    (D) will help further their economic development; 
                and
                    (E) will accelerate the trend toward more open 
                economies in the region;
            (5) promotion of the growth of free enterprise and economic 
        opportunity in the Caribbean Basin will enhance the national 
        security interests of the United States; and
            (6) increased trade and economic activity between the 
        United States and Caribbean Basin beneficiary countries will 
        create expanding export opportunities for United States 
        businesses and workers.
    (b) Policy.--It is therefore the policy of the United States to 
offer those Caribbean Basin beneficiary countries willing to embark on 
the process of preparing for eventual accession to the FTAA, or a trade 
agreement comparable to the FTAA, enhanced preferential treatment; and 
to seek the accession of these beneficiary countries to the FTAA or a 
trade agreement comparable to the FTAA at the earliest possible date, 
with the goal of achieving full participation in the FTAA or a trade 
agreement comparable to the FTAA by all beneficiary countries by the 
year 2005.

SEC. 3. DEFINITIONS.

    As used in this Act:
            (1) Beneficiary country.--The term ``beneficiary country'' 
        has the meaning given that term in section 212(a)(1)(A) of the 
        Caribbean Basin Economic Recovery Act (19 U.S.C. 
        2702(a)(1)(A)).
            (2) FTAA.--The term ``FTAA'' means the Free Trade Area of 
        the Americas.
            (3) NAFTA.--The term ``NAFTA'' means the North American 
        Free Trade Agreement entered into between the United States, 
        Mexico, and Canada on December 17, 1992.
            (4) WTO and wto member.--The terms ``WTO'' and ``WTO 
        member'' have the meanings given those terms in section 2 of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501).

SEC. 4. TEMPORARY PROVISIONS TO PROVIDE ADDITIONAL TRADE BENEFITS TO 
              CERTAIN BENEFICIARY COUNTRIES.

    (a) Temporary Provisions.--Section 213(b) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703(b)) is amended to read as 
follows:
    ``(b) Exceptions.--
            ``(1) In general.--Subject to paragraphs (2) through (5), 
        the duty-free treatment provided under this title does not 
        apply to--
                    ``(A) textile and apparel articles which were not 
                eligible articles for purposes of this title on January 
                1, 1994, as this title was in effect on that date;
                    ``(B) footwear not designated at the time of the 
                effective date of this title as eligible articles for 
                the purpose of the generalized system of preferences 
                under title V of the Trade Act of 1974;
                    ``(C) tuna, prepared or preserved in any manner, in 
                airtight containers;
                    ``(D) petroleum, or any product derived from 
                petroleum, provided for in headings 2709 and 2710 of 
                the HTS;
                    ``(E) watches and watch parts (including cases, 
                bracelets and straps), of whatever type including, but 
                not limited to, mechanical, quartz digital or quartz 
                analog, if such watches or watch parts contain any 
                material which is the product of any country with 
                respect to which HTS column 2 rates of duty apply; or
                    ``(F) articles to which reduced rates of duty apply 
                under subsection (h).
            ``(2) Transition period treatment of certain textile and 
        apparel articles.--
                    ``(A) Preferential tariff and quota treatment.--
                During the transition period--
                            ``(i) clause (ii) applies with respect to a 
                        textile or apparel article that is imported 
                        into the United States from a CBTEA beneficiary 
                        country and that--
                                    ``(I) is assembled in a CBTEA 
                                beneficiary country from fabrics wholly 
                                formed and cut in the United States 
                                from yarns formed in the United States, 
                                and is imported into the United 
                                States--
                                            ``(aa) under subheading 
                                        9802.00.80 of the HTS; or
                                            ``(bb) under chapter 61, 62 
                                        or 63 of the HTS, if after such 
                                        assembly the article would have 
                                        qualified for entry under 
                                        subheading 9802.00.80 of the 
                                        HTS but for the fact the 
                                        article was subjected to stone-
                                        washing, enzyme-washing, acid-
                                        washing, perma-pressing, oven-
                                        baking, bleaching, embroidery, 
                                        or garment-dyeing;
                                    ``(II) is cut in a CBTEA 
                                beneficiary country from fabrics wholly 
                                formed in the United States from yarns 
                                formed in the United States and is 
                                assembled in a CBTEA beneficiary 
                                country with thread formed in the 
                                United States; or
                                    ``(III) is identified under 
                                subparagraph (B) as a handloomed, 
                                handmade, or folklore article of such 
                                country and is certified as such by the 
                                competent authority of such country;
                            ``(ii) the President may proclaim with 
                        respect to an article described in clause (i) a 
                        reduction in the rate of duty up to 100 percent 
                        of the amount of duty that otherwise would 
                        apply to such article; and
                            ``(iii) except as provided in subparagraph 
                        (D), no quantitative restriction or 
                        consultation level may be applied to the 
                        importation into the United States of any 
                        textile or apparel article that qualifies for 
                        preferential tariff treatment under clause (i).
                    ``(B) Handloomed, handmade, and folklore 
                articles.--For purposes of subparagraph (A), the 
                President, after consultation with the CBTEA 
                beneficiary country concerned, shall determine which, 
                if any, particular textile and apparel goods of the 
                country shall be treated as being handloomed, handmade, 
                or folklore goods of a kind described in section 2.3 
                (a), (b), or (c) or Appendix 3.1.B.11 of the Annex.
                    ``(C) Transition period adjustment of existing 
                quantitative restrictions.--During the transition 
                period--
                            ``(i) the President, after negotiating with 
                        the CBTEA beneficiary country concerned, may 
                        reduce the quantities of textile and apparel 
                        articles that can be imported into the United 
                        States under existing quantitative restrictions 
                        to reflect the quantities of textile and 
                        apparel articles from such country that are 
                        exempt from quota restrictions pursuant to 
                        subparagraph (A)(iii); and
                            ``(ii) whenever the President finds that 
                        transshipment within the meaning of clause 
                        (iii) has occurred, the President, following 
                        consultations with the CBTEA beneficiary 
                        countries through whose territories the 
                        President finds transshipment to have occurred, 
                        may reduce the quantities of textile and 
                        apparel articles that can be imported into the 
                        United States under each existing quantitative 
                        restriction with each such country by an amount 
                        determined by the President; and
                            ``(iii) transshipment within the meaning of 
                        this subparagraph has occurred when 
                        preferential tariff treatment for a textile or 
                        apparel article under subparagraph (A) has been 
                        claimed on the basis of material false 
                        information concerning the country of origin, 
                        manufacture, processing, or assembly of the 
                        article or any of its components.
                 For purposes of clause (iii), false information is 
                material if disclosure of the true information would 
                mean or would have meant that the article is or was 
                ineligible for preferential tariff treatment under 
                subparagraph (A).
                    ``(D) Bilateral emergency actions.--
                            ``(i) In general.--The President may take--
                                    ``(I) bilateral emergency tariff 
                                actions of a kind described in section 
                                4 of the Annex with respect to any 
                                textile or apparel article imported 
                                from a CBTEA beneficiary country if the 
                                application of tariff treatment under 
                                subparagraph (A) to such an article 
                                results in conditions that would be 
                                cause for the taking of such actions 
                                under that section with respect to an 
                                article described in the same 8-digit 
                                subheading of the HTS that is imported 
                                from Mexico; or
                                    ``(II) bilateral emergency 
                                quantitative restriction actions of a 
                                kind described in section 5 of the 
                                Annex with respect to imports of any 
                                textile or apparel article of a CBTEA 
                                beneficiary country, including articles 
                                eligible for preferential tariff 
                                treatment under subparagraph (A), if 
                                the importation of such an article into 
                                the United States results in conditions 
                                that would be cause for the taking of 
                                such actions under that section with 
                                respect to an article described in the 
                                same 8-digit subheading of the HTS that 
                                is imported from Mexico.
                            ``(ii) Rules relating to bilateral 
                        emergency action.--For purposes of applying 
                        bilateral emergency action under this 
                        subparagraph--
                                    ``(I) the requirements of paragraph 
                                5 of section 4 of the Annex (relating 
                                to providing compensation) shall not 
                                apply;
                                    ``(II) the term `transition period' 
                                in sections 4 and 5 of the Annex shall 
                                have the meaning given that term in 
                                paragraph (5)(C) of this subsection;
                                    ``(III) the requirements to consult 
                                specified in section 4 or 5 of the 
                                Annex shall be treated as satisfied if 
                                the President requests consultations 
                                with the beneficiary country in 
                                question and the country does not agree 
                                to consult within the time period 
                                specified under section 4 or 5, 
                                whichever is applicable;
                                    ``(IV) during the first 14 months 
                                after imports commence from a CBTEA 
                                beneficiary country under paragraph 
                                (2)(A) (or recommence because of a 
                                redesignation of such country), the 
                                minimum quantity of any textile or 
                                apparel article from such country 
                                subject to quantitative restrictions 
                                may be determined under paragraph 7 of 
                                section 5 of the Annex based on a 
                                reasonable estimate (using available 
                                data where possible) of the quantity of 
                                such articles imported from such 
                                country during the relevant period (as 
                                defined in such paragraph 7) that did 
                                not qualify or would not have qualified 
                                as originating goods; and
                                    ``(V) after the 14-month period 
                                described in subclause (IV), the 
                                minimum quantity of articles subject to 
                                such quantitative restrictions shall be 
                                determined under paragraph 7 of section 
                                5 of the Annex based on the most 
                                recently available import statistics of 
                                the Bureau of the Census.
            ``(3) Preferential tariff treatment of certain articles 
        originating in cbtea beneficiary countries.--During the 
        transition period, with respect to articles referred to in 
        subparagraphs (B) through (F) of paragraph (1) that are CBTEA 
        originating goods, the following applies:
                    ``(A) The President may proclaim with respect to 
                such articles a reduction in the rate of duty up to 100 
                percent of the difference between `x' and `y', with the 
                terms `x' and `y' having the meaning given in 
                subparagraph (B).
                    ``(B) For purposes of this paragraph, `x' 
                represents the rate of duty that would apply to an 
                article at the time of its importation from a CBTEA 
                beneficiary country but for the enactment of the CBTEA, 
                and `y' represents the tariff treatment for such an 
                article that is accorded to a good of Mexico under 
                Annex 302.2 of the NAFTA, as implemented in United 
                States law.
                    ``(C) Subparagraph (A) does not apply to any 
                article accorded duty-free treatment under U.S. Note 
2(b) to subchapter II of chapter 98 of the HTS.
                    ``(D) If at any time during the transition period 
                the rate of duty that would (but for actions taken 
                under subparagraph (A)) apply with respect to any 
                article under subsection (h) is a rate of duty that is 
                lower than the rate of duty resulting from such 
                actions, then such lower rate of duty shall be applied.
            ``(4) Customs procedures.--
                    ``(A) In general.--
                            ``(i) Regulations.--Any importer that 
                        claims preferential treatment under paragraph 
                        (2) or (3) shall comply with customs procedures 
                        similar in all material respects to the 
                        requirements of Article 502(1) of the NAFTA as 
                        implemented in United States law, in accordance 
                        with regulations promulgated by the Secretary 
                        of the Treasury.
                            ``(ii) Determination.--In order to qualify 
                        for such preferential treatment and for a 
                        Certificate of Origin to be valid with respect 
                        to articles for which such treatment is 
                        claimed, there shall be in effect a 
                        determination by the President that--
                                    ``(I) the CBTEA beneficiary country 
                                from which the article is exported, and
                                    ``(II) each CBTEA beneficiary 
                                country in which materials used in the 
                                production of the article originate or 
                                undergo production that contributes to 
                                a claim that the article is a CBTEA 
                                originating good,
                        has implemented and follows, or is making 
                        substantial progress toward implementing and 
                        following, procedures and requirements similar 
                        in all material respects to the relevant 
                        procedures and requirements under Chapter 5 of 
                        the NAFTA.
                    ``(B) Certificate of origin.--The Certificate of 
                Origin that otherwise would be required pursuant to the 
                provisions of subparagraph (A) shall not be required in 
                the case of an article imported under paragraph (2) or 
                (3) if such Certificate of Origin would not be required 
                under Article 503 of the NAFTA, as implemented in 
                United States law, if the article were imported from 
                Mexico.
            ``(5) Definitions and special rules.--For purposes of this 
        subsection:
                    ``(A) Annex.--The term `the Annex' means Annex 300-
                B of the NAFTA.
                    ``(B) Textile or apparel article.--The term 
                `textile or apparel article' means any article referred 
                to in paragraph (1)(A) that is a good listed in 
                Appendix 1.1 of the Annex.
                    ``(C) Transition period.--The term `transition 
                period' means, with respect to a CBTEA beneficiary 
                country, the period that begins on October 1, 1999 and 
                ends on June 30, 2001.
                    ``(D) CBTEA beneficiary country.--(i) The term 
                `CBTEA beneficiary country' means any `beneficiary 
                country,' as defined by section 212(a)(1)(A) of the 
                Caribbean Basin Economic Recovery Act, which the 
                President has determined has demonstrated commitments--
                            ``(I) to undertake its obligations under 
                        the WTO on or ahead of schedule;
                            ``(II) to participate in negotiations 
                        toward the completion of the FTAA or a trade 
                        agreement comparable to the FTAA; and
                            ``(III) to undertake other steps necessary 
                        for that country's accession to the FTAA or a 
                        trade agreement comparable to the FTAA.
                    ``(ii) In making the determination under clause 
                (i), the President may consider the criteria in 
                sections 212(b) and (c) and other appropriate criteria, 
                including--
                            ``(I) the extent to which the country 
                        follows accepted rules of international trade 
                        provided for under the agreements listed in 
                        section 101(d) of the Uruguay Round Agreements 
                        Act;
                            ``(II) the extent to which the country 
                        provides protection of intellectual property 
                        rights in accordance with--
                                    ``(aa) standards established in the 
                                Agreement on Trade-Related Aspects of 
                                Intellectual Property Rights described 
                                in section 101(d)(15) of the Uruguay 
                                Round Agreements Act;
                                    ``(bb) standards established in 
                                chapter 17 of the NAFTA; and
                                    ``(cc) the grant of the ability to 
                                control the importation or sale of 
                                imports of products that embody 
                                copyrighted works, the extension to ten 
                                years of the `reasonable period' under 
                                NAFTA Article 1711(6) for the 
                                protection of test data related to the 
                                grant of marketing approval for 
                                agricultural chemicals, the protection 
                                of trademarks regardless of their 
                                subsequent designation as geographic 
                                indications, and the availability of 
                                enforcement against infringing imports 
                                at the border;
                            ``(III) the extent to which the country 
                        provides protections to investors and 
                        investments of the United States substantially 
                        equivalent to those set forth in chapter 11 of 
                        the NAFTA;
                            ``(IV) the extent to which the country 
                        provides the United States and other WTO 
                        members on a most-favored-nation basis with 
                        equitable and reasonable market access in the 
                        product sectors for which benefits are provided 
                        under paragraphs (2) and (3), and in other 
relevant product sectors as determined by the President;
                            ``(V) the extent to which the country 
                        provides internationally recognized worker 
                        rights, including the right of association, the 
                        right to organize and bargain collectively, a 
                        prohibition on the use of any form of coerced 
                        or compulsory labor, a minimum age for the 
                        employment of children, and acceptable 
                        conditions of work with respect to minimum 
                        wages, hours of work, and occupational safety 
                        and health;
                            ``(VI) the extent to which the country 
                        adopts, maintains, and effectively enforces 
                        laws providing for high levels of environmental 
                        protection;
                            ``(VII) whether the country has met the 
                        counternarcotics certification criteria set 
                        forth in section 490 of the Foreign Assistance 
                        Act of 1961 for eligibility for United States 
                        assistance;
                            ``(VIII) the extent to which the country 
                        ratifies and implements the Inter-American 
                        Convention Against Corruption;
                            ``(IX) the extent to which the country 
                        supports the multilateral and regional 
                        objectives of the United States with respect to 
                        government procurement, including the 
                        negotiation of government procurement 
                        provisions of an FTAA and conclusion of a WTO 
                        transparency agreement as provided in the 
                        declaration of the WTO Ministerial Conference 
                        held in Singapore on December 9-13, 1996, and 
                        applies transparent and competitive procedures 
                        in government procurement equivalent to those 
                        in the Agreement on Government Procurement 
                        described in section 101(d)(17) of the Uruguay 
                        Round Agreements Act;
                            ``(X) the extent to which the country 
                        follows the rules on customs valuation set 
                        forth in the Agreement on Implementation of 
                        Article VII of the GATT 1994 described in 
                        section 101(d)(8) of the Uruguay Round 
                        Agreements Act; and
                            ``(XI) the extent to which the country 
                        affords to products of the United States which 
                        the President determines to be of commercial 
                        importance to the United States with respect to 
                        such country, and on a most-favored-nation 
                        basis to like products of other WTO members, 
                        tariff treatment that is no less favorable than 
                        the most favorable tariff treatment provided by 
                        the country to any other country pursuant to 
                        any free trade agreement other than the Central 
                        American Common Market or the Caribbean 
                        Community and Common Market.
                    ``(E) CBTEA originating good.--The term `CBTEA 
                originating good' means a good that meets the rules of 
                origin for a good set forth in chapter 4 of the NAFTA, 
                as implemented in United States law, and, in the case 
                of a good described in Appendix 6.A of the Annex, the 
                requirements stated in Appendix 6.A, as implemented in 
                United States law. In applying chapter 4 or Appendix 
                6.A with respect to a CBTEA beneficiary country for 
                purposes of this subsection--
                            ``(i) no countries other than the United 
                        States and CBTEA beneficiary countries may be 
                        treated as being Parties to the NAFTA;
                            ``(ii) references to trade between the 
                        United States and Mexico shall be deemed to 
                        refer to trade between the United States and a 
                        CBTEA beneficiary country;
                            ``(iii) references to a Party shall be 
                        deemed to refer to a CBTEA beneficiary country 
                        or the United States, and
                            ``(iv) references to Parties shall be 
                        deemed to refer to any combination of CBTEA 
                        beneficiary countries or to the United States 
                        and a CBTEA beneficiary country (or any 
                        combination thereof).''.
    (b) Determination Regarding Retention of Designation.--Section 
212(e) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(e)) 
is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``(A)'' after ``(1)'';
                    (B) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively;
                    (C) by striking all that follows ``such country'' 
                and inserting ``no longer satisfies one or more of the 
                conditions for designation as a beneficiary country set 
                forth in subsection (b) or such country fails 
                adequately to meet one or more of the criteria set 
                forth in subsection (c).''; and
                    (D) by adding at the end the following:
    ``(B) The President may, after the requirements of subsection 
(a)(2) and paragraph (2) have been met--
            ``(i) withdraw or suspend the designation of any country as 
        a CBTEA beneficiary country; or
            ``(ii) withdraw, suspend, modify, or limit the application 
        of preferential treatment under section 213(b)(2) and (3) to 
        any article of any country,
if the President determines that such action is appropriate based on an 
evaluation of the criteria listed in section 213(b)(5)(D).''; and
            (2) by adding after paragraph (2) the following new 
        paragraphs:
    ``(3) In the event the President withdraws, suspends, or limits the 
application of duty-free treatment accorded to a country under the 
Generalized System of Preferences based on one or more of the 
eligibility criteria in section 502 of the Trade Act of 1974 (19 U.S.C. 
2462) that are the same or similar to one or more of the eligibility 
criteria set forth in this title, the President shall likewise 
withdraw, suspend or limit the application of preferential treatment 
accorded to that country under this title.
    ``(4) If preferential treatment under section 213(b)(2) and (3) is 
withdrawn, suspended, or limited with respect to a CBTEA beneficiary 
country, such country shall not be deemed to be a `Party' for the 
purposes of applying section 213(b)(5)(E) to imports of articles for 
which preferential treatment has been withdrawn, suspended, or limited 
with respect to such country.''.
    (c) Reporting Requirements.--
            (1) Section 212(f) of the Caribbean Basin Economic Recovery 
        Act (19 U.S.C. 2702(f)) is amended to read as follows:
    ``(f) Reporting Requirements.--Not later than December 1, 2000, and 
at the close of each 3-year period thereafter, the President shall 
submit to the Congress a report regarding the operation of this title, 
including--
            ``(1) with respect to subsections (b) and (c), the results 
        of a general review of beneficiary countries based on the 
        considerations described in those subsections; and
            ``(2) the performance of each CBTEA beneficiary country 
        under the criteria in section 213(b)(5)(D).''.
            (2) Section 203(f) of the Andean Trade Preference Act (19 
        U.S.C. 3202(f)) is amended by striking ``On or before the 3rd, 
        6th and 9th anniversaries of the date of the enactment of this 
        title,'' and inserting ``On or before March 1, 2000, and on or 
        before the close of each 3-year period thereafter during which 
        duty-free treatment under this title remains in effect,''.
    (d) International Trade Commission Reports.--
            (1) CBERA reports.--
                    (A) Section 215(a) of the Caribbean Basin Economic 
                Recovery Act (19 U.S.C. 2704(a)) is amended to read as 
                follows:
    ``(a)(1) The United States International Trade Commission (referred 
to in this section as the `Commission') shall submit to the Congress 
and the President triennial reports regarding the economic impact of 
this Act on United States industries and consumers.
    ``(2) The first report after the enactment of the CBTEA shall be 
submitted on September 1, 2000, and subsequent reports shall be 
submitted on the close of each 3-year period thereafter.
    ``(3) For purposes of this section, industries in the Commonwealth 
of Puerto Rico and the insular possessions of the United States are 
considered to be United States industries.''.
                    (B) Section 215(c) of the Caribbean Basin Economic 
                Recovery Act (19 U.S.C. 2704(c)) is amended by striking 
                ``(1) Each report'' and all that follows through 
                ``(2)''.
            (2) ATPA reports.--
                    (A) Section 206(a) of the Andean Trade Preference 
                Act (19 U.S.C. 3204(a)) is amended to read as follows:
    ``(a)(1) The United States International Trade Commission (referred 
to in this section as the `Commission') shall submit to the Congress 
and the President triennial reports regarding the economic impact of 
this Act on United States industries and consumers, and, in conjunction 
with other agencies, the effectiveness of this Act in promoting drug-
related crop eradication and crop substitution efforts of the 
beneficiary countries.
    ``(2) The first report after the enactment of the United States-
Caribbean Basin Trade Enhancement Act shall be submitted on September 
30, 1999, and subsequent reports shall be submitted on the close of 
each 3-year period thereafter during which duty-free treatment under 
the Andean Trade Preference Act remains in effect.
    ``(3) For purposes of this section, industries in the Commonwealth 
of Puerto Rico and the insular possessions of the United States are 
considered to be United States industries.''.
                    (B) Section 206(c) of the Andean Trade Preference 
                Act (19 U.S.C. 3204(c)) is amended by striking ``(1) 
                Each report'' and all that follows through ``(2)''.
    (e) Impact Studies by the Secretary of Labor.--
            (1) The text of section 216 of the Caribbean Basin Economic 
        Recovery Act (19 U.S.C. 2705) is amended to read as follows:
    ``(a) The Secretary of Labor, in consultation with other 
appropriate Federal agencies, shall undertake a continuing review and 
analysis of the impact that the implementation of the provisions of 
this title has with respect to United States labor, shall review 
developments in labor conditions in the beneficiary countries, and 
shall make a triennial report to Congress on the results of such review 
and analysis.
    ``(b) The first report after the enactment of the CBTEA shall be 
submitted on September 1, 2000, and subsequent reports shall be 
submitted on the close of each 3-year period thereafter.
    ``(c) For purposes of this section, industries in the Commonwealth 
of Puerto Rico and the insular possessions of the United States are 
considered to be United States industries.''.
            (2) The text of section 207 of the Andean Trade Preference 
        Act (19 U.S.C. 3205) is amended to read as follows:
    ``(a) The Secretary of Labor, in consultation with other 
appropriate Federal agencies, shall undertake a continuing review and 
analysis of the impact that the implementation of the provisions of 
this title has with respect to United States labor, shall review 
developments in labor conditions in the beneficiary countries, and 
shall make a triennial report to Congress on the results of such review 
and analysis.
    ``(b) The first report after the enactment of the United States-
Caribbean Basin Trade Enhancement Act shall be submitted on September 
30, 1999, and subsequent reports shall be submitted on the close of 
each 3-year period thereafter during which duty-free treatment under 
the Andean Trade Preference Act remains in effect.
    ``(c) For purposes of this section, industries in the Commonwealth 
of Puerto Rico and the insular possessions of the United States are 
considered to be United States industries.''.
    (f) Conforming Amendments.--
            (1) Section 211 of the Caribbean Basin Economic Recovery 
        Act (19 U.S.C. 2701) is amended by inserting ``or other 
        preferential'' after ``duty-free''.
            (2) Section 213(a)(1) of the Caribbean Basin Economic 
        Recovery Act (19 U.S.C. 2703(a)(1)) is amended by inserting 
        ``and except as provided in section 213(b) (2) and (3),'' after 
        ``Tax Reform Act of 1986,''.

SEC. 5. ADEQUATE AND EFFECTIVE PROTECTION FOR INTELLECTUAL PROPERTY 
              RIGHTS.

    Section 212(c) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2702(c)) is amended by adding at the end the following flush 
sentence:
``Notwithstanding any other law, the President may determine that a 
country is not providing adequate and effective protection of 
intellectual property rights under paragraph (9), even if the country 
is in compliance with the country's obligations under the Agreement on 
Trade-Related Aspects of Intellectual Property Rights described in 
section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 
3511(d)(15)).''.

SEC. 6. DEFINITIONS.

    Section 212(a)(1) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2702(a)(1)) is amended by adding at the end the following new 
subparagraph:
                    ``(D) The term `NAFTA' means the North American 
                Free Trade Agreement entered into between the United 
                States, Mexico, and Canada on December 17, 1992.
                    ``(E) The term ``CBTEA'' means the United States-
                Caribbean Basin Trade Enhancement Act.''.
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