propriate means, including, but not limited to, the
reduction of duties, the President may by Executive
order or Presidential proclamation provide that all
members of such association other than members
which are barred from designation under subsection
(b) shall be treated as 1 country for purposes of this
title.
‘‘(3) The term ‘beneficiary developing country’
means any country with respect to which there is in
effect an Executive order or Presidential proclama-
tion by the President of the United States designat-
ing country as a beneficiary developing country for
purposes of this title.
‘‘(4) The term ‘internationally recognized work-
er rights’ includes—
‘‘(A) the right of association;
‘‘(B) the right to organize and bargain col-
lectively;
‘‘(C) a prohibition on the use of any form
of forced or compulsory labor;
‘‘(D) a prohibition on discrimination based
on race, sex, or religion in hiring, compensation,
promotion or any other term or condition of
employment;
‘‘(E) provision for occupational safety and
health for all workers; and
‘‘(F) acceptable minimum standards with
respect to wages, hours of work, and the age at
which children may be employed.
In determining whether a country has complied with
internationally recognized worker rights, the Trade
Representative shall—
‘‘(i) require a country to comply with each
of the factors listed in subparagraphs (A)
through (F) and shall also apply recognized
international standards, including provisions
applicable to workers in international human
rights instruments and International Labor Or-
ganization Conventions;
‘‘(ii) take into account the laws and regula-
tions of a country, as well as the implementa-
tion and enforcement of those laws and regula-
tions, in determining whether each of the fac-
tors has been complied with; and
‘‘(iii) take into account the findings of
human rights commissions and courts, the an-
nual Human Rights Report of the Department
of State, reports of nongovernmental organiza-
tions, the application of worker rights provi-
sions of other United States laws, worker rights
provisions in voluntary codes of conduct or
other agreements affecting workers, employers
and governments, worker rights provisions in
collective 
bargaining 
agreements 
between
transnational employers and groups of workers,
and the opinions of scholars in the fields of
labor law, comparative labor law, and inter-
national labor law and human rights law.
With respect to the factor set forth in subparagraph
(F), once a country has established acceptable mini-
mum standards, which may take into account the
country’s level of economic development, the country
must continue to make progress and improve the
minimums, commensurate, with its economic devel-
opment. With respect to all of the other factors, the
country must be in complete compliance with inter-
national standards, regardless of its level of eco-
nomic development.
‘‘(5) The term ‘interested persons’ includes, but
is not limited to, domestic firms and workers, rep-
resentatives of workers, both domestic and foreign,
representatives of consumer interests, and represent-
atives of any group that has an interest in promot-
ing respect for internationally recognized worker
rights, without regard to any showing of an eco-
nomic or other injury.’’.
SEC. 4. ELIGIBLE ARTICLES.
Section 503 of the Trade Act of 1974 (19 U.S.C.
2163) is amended as follows:
(1) Subsection (a) is amended—
(A) by inserting ‘‘LISTS OF ARTICLES TO
BE CONSIDERED FOR DESIGNATION.—’’ after
‘‘(a)’’,
(B) by striking out ‘‘President’’ each place
it appears and inserting ‘‘Trade Representa-
tive’’,
(C) by striking out ‘‘he’’ and inserting
‘‘the Trade Representative’’, and
(D) by striking out ‘‘Executive order or
Presidential proclamation’’ and inserting ‘‘pub-
lishing a list of such articles in the Federal
Register’’.
(2) Subsection (b) is amended—
(A) by inserting ‘‘DUTY FREE TREAT-
MENT
FOR
ELIGIBLE
ARTICLES.—’’ after
‘‘(b)’’, and
(B) by striking out ‘‘Secretary of the
Treasury, after consultation with the United
States Trade Representative,’’ and inserting
‘‘Trade Representative’’.
(3) Subsection (c) is amended—
(A) by inserting ‘‘ARTICLES NOT ELIGI-
BLE
FOR DESIGNATION
AS ELIGIBLE ARTI-
CLES.—’’ after ‘‘(c)’’, and
(B) by adding at the end the following new
paragraph:
‘‘(3) No article shall be an eligible article for purposes
of this title from any country where such article has been
made under conditions that violate internationally recog-
nized worker rights.’’.
SEC. 5. LIMITATIONS ON PREFERENTIAL TREATMENT.
Section 504 of the Trade Act of 1974 (19 U.S.C.
2164) is amended as follows:
(1) Subsections (a) and (b) are amended to
read as follows:
‘‘(a) WITHDRAWAL, SUSPENSION, OR LIMITATION OF
DUTY-FREE TREATMENT OF ELIGIBLE ARTICLES.—The
Trade Representative may withdraw, suspend, or limit the
application of the duty-free treatment accorded under sec-
tion 501 with respect to any article generally or with re-
spect to exports of any article from a particular country
or countries; except that no rate of duty may be estab-
lished in respect of any article pursuant to this section
other than the rate which would apply but for this title.
In taking any action under this subsection, the Trade Rep-
resentative shall consider the factors set forth in sections
501, 502(c), and 503, and must withdraw or suspend
duty-free treatment for any article that no longer meets
the requirements of section 503(b) and (c).
‘‘(b) WITHDRAWAL OR SUSPENSION OF DESIGNA-
TION AS BENEFICIARY DEVELOPING COUNTRY.—The des-
ignation of a country as a beneficiary developing country
under this title shall be withdrawn or suspended if, after
any investigation initiated under subsection (c), a decision
is issued that the country is no longer in complete compli-
ance with the prerequisites contained in section 502(b) for
designation as a beneficiary developing country. Such
country shall cease to be a beneficiary developing country
on the day on which the Trade Representative issues the
decision under subsection (c). The Trade Representative
shall promptly publish the text of any such decision in the
Federal Register and shall submit a copy of the decision
to the Congress. Within 30 days after the date of publica-
tion of the decision under the preceding sentence, the
President shall issue an Executive order or Presidential
proclamation revoking the designation of such country
under section 502.’’.
(2) Subsections (c), (d), (e), and (f) are redesig-
nated as subsections (d), (e), (f), and (g), respec-
tively.
(3) The following new subsection is added after
subsection (b):
‘‘(c) PETITIONS; INVESTIGATIONS; JUDICIAL RE-
VIEW.—
‘‘(1) PETITIONS.—
‘‘(A) Any interested person may at any
time file a petition with the Trade Representa-
tive requesting that action be taken under sub-
section (a) or (b) and setting forth the allega-
tions in support of the request. Petitions alleg-
ing the failure to comply with internationally
recognized worker rights may seek—
‘‘(i) the removal of articles from the
list of eligible articles with respect to one
or more countries or industry or industries
within a country or countries under sub-
section (a);
‘‘(ii) the withdrawal of the designation
as a beneficiary developing country of one
or more countries under subsection (b); or
‘‘(iii) action under both clauses (i)
and (ii).
‘‘(B) The Trade Representative shall re-
view the allegations in any petition filed under
subsection (a) and, not later than 45 days after
the date on which the Trade Representative re-
ceives the petition, shall initiate an investigation
unless the petition is dismissed under para-
graph (C).
‘‘(C) The Trade Representative may deter-
mine not to initiate an investigation with re-
spect to a petition only upon issuing a finding
that the petition is frivolous. This finding shall
be made without regard to whether similar alle-
gations were made in a previously reviewed pe-
tition and shall focus exclusively on whether the
facts alleged in a petition, if true, would fail to
establish a prima facie case for noncompliance
with this Act. Only if the facts alleged in a peti-
tion, if true, fail to make out a prima facie
case, or if a petition contains only conclusory
allegations with no allegation of supporting
facts, shall a petition be dismissed as frivolous.
If the Trade Representative does find a petition
to be frivolous, the Trade Representative shall
issue a written decision indicating the specific
reasons therefor and shall publish notice of the
determination, together with a summary of such
reasons, in the Federal Register. A copy of the
decision shall be sent to the petitioner and shall
be made available for public review.
‘‘(D) The Trade Representative may con-
stitute one or more special committees to review
petitions under investigation and make written
recommendations with respect to each petition.
The written recommendations shall be available
to the public. The members of the special com-
mittees may be drawn from other agencies with-
in the executive branch, and each member shall
have the necessary expertise relevant to the is-
sues raised in any petitions to be considered.
The Trade Representative, any Deputy Trade
Representative, or other designee of the Trade
Representative shall be the chair of any special
committee constituted under this section. Any
special committee that reviews a petition con-
taining allegations of worker rights violations
shall include at least one member designated by
the Deputy Undersecretary for International
Labor Affairs of the Department of Labor, and
at least one member designated by the Assist-
ant Secretary of State for Human Rights.
‘‘(E)(i) The investigation of a petition con-
ducted under this subsection shall commence
with the Trade Representative publishing a
summary of the petition in the Federal Reg-
ister, along with a request for any person to
submit information relevant to the petition. Fol-
lowing publication, the Trade Representative
shall conduct an independent investigation and
gather information from all available sources.
As part of the review process, the Trade Rep-
resentative shall, as soon as practicable, and in
no event later than 90 days following the filing
of the petition, provide opportunity for the pres-
entation of information concerning the issues,
including a public hearing if requested in the
petition.
‘‘(ii) With respect to any petition alleging
a violation of internationally recognized worker
rights, the Trade Representative shall consult
with the Secretary of Labor as to whether such
violations have occurred or are occurring. The
Secretary of Labor shall provide the Trade Rep-
resentative with a written recommendation re-
garding the disposition of the allegations that
shall be entered in the record of the investiga-
tion. The Trade Representative, or any member
of any special committee constituted under sub-
paragraph (D), may also seek advice from ex-
perts in the field of human rights and worker
rights. The advice may be in writing or taken
as oral testimony at a public hearing and shall
be entered in the record of the investigation.
‘‘(F) After completion of the investigation,
and in no event later than 270 days following
the date the petition was filed, the Trade Rep-
resentative shall issue a decision whether to
grant the relief requested in the petition. The
decision must be in writing and clearly ref-
erence the issues presented, the factual findings
regarding the allegations, and the standard ap-
plied in determining whether the facts as found
required action under subsection (a) or (b). A
copy of the decision shall be provided to the pe-
titioner, any other party that submitted infor-
mation relevant to the petition and be made
available for public review. A summary of the
decision shall be published in the Federal
Register.
‘‘(2) INITIATION OF INVESTIGATION BY MEANS
OTHER THAN PETITION.—If the Trade Representa-
tive determines that an investigation should be initi-
ated with respect to any matter in order to deter-
mine whether the matter requires action under sub-
section (a) or (b), the Trade Representative shall
publish such determination in the Federal Register
and shall initiate such investigation using the proce-
dures of paragraphs (1)(E) and (F).
‘‘(3) PROMULGATION
OF
REGULATIONS.—The
Trade Representative shall promulgate regulations
to implement this subsection. The regulations may
include procedures for the creation of special com-
mittees under paragraph (1)(D); coordinating inves-
tigations with other agencies; consolidating multiple
petitions concerning the same article, country, or in-
dustry; and holding hearings on similar petitions at
the same time in order to efficiently gather informa-
tion. Until such regulations are promulgated, any
current regulations in 15 CFR part 2007 that are
not inconsistent with any provision of this title may
be utilized.
‘‘(4) JUDICIAL REVIEW OF DETERMINATIONS.—
‘‘(A) Except as provided in subparagraph
(B), any final decision dismissing or denying a
petition requesting action under subsection (a)
may be appealed by the petitioner to the United
States Court of Appeals for the Federal Circuit
for review. The decision shall be reviewed as a
final agency action.
‘‘(B) Any final decision dismissing or deny-
ing a petition requesting action under sub-
section (b) may be appealed by the petitioner to
the United States Court of Appeals for the Dis-
trict of Columbia Circuit for review. The deci-
sion shall be reviewed as a final agency action
Notwithstanding any provision of section 1581
of title 28, United States Code, the denial or
dismissal of a combined petition filed under
subsection (c)(1)(A)(iii) may be appealed in its
entirety under this paragraph.’’.
(4) Subsection (d) (as redesignated by para-
graph (2)) is amended—
(A) by striking out ‘‘(d)(1)’’ and all that
follows thereafter in paragraphs (1) and (2)
and inserting the following:
‘‘(d) COMPETITIVE NEED LIMITATIONS.—(1) Subject
to paragraphs (2) through (7) and subsection (e), when-
ever the President determines that—
‘‘(A) any beneficiary developing country—
‘‘(i) has a per capita gross national prod-
uct of not less than $475 and not more than
$1,750, and
‘‘(ii) has exported (directly or indirectly) to
the United States—
‘‘(I) during a calendar year a quantity
of an eligible article having an appraised
value in excess of the applicable competi-
tive need limit amount, or
‘‘(II) a quantity of any eligible article
equal to or exceeding 50 percent of the ap-
praised value of the total imports of such
article into the United States during any
calendar year; or
‘‘(B) any beneficiary developing country—
‘‘(i) has a per capita gross national prod-
uct of not less than $1,750 and not more than
$3,000, and
‘‘(ii) has exported (directly or indirectly) to
the United States—
‘‘(I) during a calendar year a quantity
of an eligible article having an appraised
value in excess of the applicable competi-
tive need limit amount, or
‘‘(II) a quantity of any eligible article
equal to or exceeding 25 percent of the ap-
praised value of the total imports of such
article into the United States during any
calendar year;
then, not later than July 1 of the next calendar year, such
country shall not be treated as a beneficiary developing
country with respect to such article.
‘‘(2)(A) For purposes of paragraph (1), the term
‘competitive need limit amount’ means—
‘‘(i) for calendar year 1993—
‘‘(I) for a beneficiary developing country
referred to in paragraph (1)(A), $75,000,000,
and
‘‘(II) for a beneficiary developing country
referred to in paragraph (1)(B), $35,000,000;
‘‘(ii) for paragraph (1)(A) for each calendar
year after 1993, the competitive need limit amount
is the competitive need limit amount under such
paragraph for the preceding calendar year (herein-
after referred to as the ‘base year’) adjusted—
‘‘(I) upwards by $10,000,000 for each .25
percent by which the United States unemploy-
ment rate (as determined by the Secretary of
Labor) for the base year was lower than the
United States unemployment rate for the year
preceding the base year; or
‘‘(II) downwards by $10,000,000 for each
.25 percent by which the United States unem-
ployment rate for the base year was higher than
the United States unemployment rate for the
year preceding the base year; and
‘‘(iii) for paragraph (1)(B) for each calendar
year after 1993, clause (ii) applies but with
‘$5,000,000’ substituted for ‘$10,000,000’ each
place it appears.
‘‘(B)(i) Not later than January 4, 1994, and periodi-
cally thereafter, the President shall conduct a general re-
view of eligible articles based on the considerations de-
scribed in section 501 or 502(c).
‘‘(ii) If, after any review under clause (i), the Presi-
dent determines that this clause should apply because a
beneficiary developing country has demonstrated for any
calendar year a sufficient degree of competitiveness (rel-
ative to other beneficiary developing countries) with re-
spect to any eligible article, then paragraph (1)(B) (with-
out regard to clause (i)) shall be applied to such country
with respect to such article and in computing the competi-
tive need limit amount under subparagraph (A)(iii) for
purposes of such application such calendar year shall be
treated as being the base year and the competitive need
limit for that base year is $25,000,000.’’;
(B) by striking out ‘‘President’’ each place
it appears and inserting ‘‘Trade Representa-
tive’’;
(C) by amending paragraph (3)(B)—
(i) by striking out ‘‘and’’ at the end of
clause (i),
(ii) by striking out the period at the
end of clause (ii) and inserting ‘‘, and’’,
and
(iii) by adding after clause (ii) the fol-
lowing:
‘‘(iii) the extent to which such country is
in compliance with internationally recognized
worker rights.’’;
(D) by amending paragraph (3)(D)—
(i) by striking out ‘‘30 percent’’ in
clause (i) and inserting ‘‘10 percent’’,
(ii) by striking out clause (ii),
(iii) by redesignating clause (iii) as
clause (ii) and by striking out ‘‘clauses (i)
and (ii)’’ in such redesignated clause and
inserting ‘‘clause (i)’’;
(E) by amending paragraph (4)—
(i) by striking out ‘‘and’’ at the end of
subparagraph (B),
(ii) by striking out the period at the
end of subparagraph (C) and inserting ‘‘,
and’’, and
(iii) by adding after subparagraph (C)
the following:
‘‘(D) such country consistently and fully com-
plies with internationally recognized worker rights.’’;
and
(F) by striking out ‘‘1985’’ in paragraph
(6)(B) and inserting ‘‘1993’’.
(5) Subsection (e) (as redesignated by para-
graph (2)) is amended—
(A) inserting ‘‘INAPPLICABILITY OF LIMI-
TATIONS IF COMPETITIVE ARTICLES NOT PRO-
DUCED IN THE U.S.—’’ after ‘‘(e)’’; and
(B) by striking out ‘‘President’’ and insert-
ing ‘‘Trade Representative’’.
(6) Subsection (f) (as redesignated by para-
graph (2)) is amended by inserting ‘‘EXCEPTION
REGARDING
COFFEE
IMPORTS
INTO
PUERTO
RICO.—’’.
SEC. 6. TERMINATION OF DUTY-FREE TREATMENT AND RE-
PORTS.
Section 505 of the Trade Act of 1974 (19 U.S.C.
2165) is amended to read as follows:
‘‘SEC. 505. TERMINATION OF DUTY-FREE TREATMENT AND
REPORTS.
‘‘(a) TERMINATION.—No duty-free treatment pro-
vided under this title shall remain in effect after July 4,
2003.
‘‘(b) GENERAL REPORT.—On or before January 4,
1994, and on or before January 4, 1999, the Trade Rep-
resentative shall submit to the Congress a full and com-
plete report regarding the operation of this title, including,
but not limited to, a report on the application of sections
501 and 502(c), and the actions that have been taken dur-
ing the period covered by the report to withdraw, to sus-
pend, or to limit the application of duty-free treatment
with respect to any country that was investigated under
section 504 to determine whether it was in compliance
with the provisions of section 502(b).
‘‘(c) WORKER RIGHTS REPORTS.—At the time of the
submission of the annual report filed pursuant to section
lll of the Foreign Assistance Act of lll, the Sec-
retary of Labor shall submit a report to the Congress on
the status of internationally recognized worker rights
within each beneficiary developing country. The report
shall specifically reference the 6 factors required to be met
for compliance with internationally recognized worker
rights in section 502(e)(4) and shall conclude with respect
to each factor whether the country is in compliance. In
any case in which the report concludes that any country
is not in complete compliance with internationally recog-
nized worker rights, the Trade Representative shall initi-
ate an investigation under section 504.’’.
SEC. 7. SPECIAL REPORTS.
On or before January 4, 1994, the United States
Trade Representative, the Secretary of Commerce, the
Secretary of Labor, and the Comptroller General of the
United States shall submit to the Congress a joint report
that—
(1) analyzes the feasibility of developing and
implementing a method of tracking the company
source of all imports to the United States of eligible
articles under title V of the Trade Act of 1974;
(2) contains recommendations for coordinating
the enforcement of all laws that contain a require-
ment for compliance with internationally recognized
worker rights and for amending any existing law to
achieve better the effective enforcement of inter-
nationally recognized worker rights; and
(3) sets forth in detail—
(A) all past actions that have been taken
to implement section 506 of the Trade Act of
1974 (relating to agricultural exports from ben-
eficiary developing countries), and
(B) a plan for the implementation of such
section in the future.
SEC. 8. TRAINING ON INTERNATIONAL LABOR STANDARDS.
(a) LABOR REPORTING OFFICERS.—Any person serv-
ing as the Labor Reporting Officer, or who is responsible
for reporting on the status of worker rights, for any Unit-
ed States Embassy shall be required to complete a training
course in international labor standards.
(b) SPECIAL COMMITTEE MEMBERS.—Any person
who sits on any special committee created by the Trade
Representative under section 504(c)(1)(D) of title V of the
Trade Act of 1974 that considers any petition containing
allegations of failure to comply with internationally recog-
nized worker rights shall be required to complete the train-
ing course referred to in subsection (c).
(c) TRAINING COURSE.—The training course re-
quired to be taken under subsections (a) and (b) shall be
conducted by the Department of Labor and the Depart-
ment of State in a manner to be determined jointly by
the Secretary of each such Department.
SEC. 9. USTR BUREAU OF TRADE-RELATED STANDARDS.
Section 141 of the Trade Act of 1974 (19 U.S.C.
2171) is amended as follows:
(1) Subsection (b)(2) is amended by striking
out ‘‘three Deputy United States Trade Representa-
tives’’ and inserting ‘‘four United States Deputy
Trade Representatives’’.
(2) Subsections (e), (f), and (g) are redesig-
nated as subsections (f), (g), and (h), respectively.
(3) The following new subsection is inserted
after subsection (d):
‘‘(e) There is established within the Office a Bureau
of Trade-Related Standards which shall be headed by a
Deputy United States Trade Representative. The func-
tions of the Bureau are to devise and coordinate United
States trade and investment policies that will result in
greater international respect for, compliance with, and im-
provement of the labor, environmental, agricultural,
consumer, safety, and health standards of the trading na-
tions.
Æ
HR 2625 IH——2
HR 2625 IH——3