I
105TH CONGRESS
1ST SESSION
H. R. 2096
To promote the growth of free enterprise and economic opportunity in the
Caribbean Basin region, increase trade and investment between the Car-
ibbean Basin region and the United States, and encourage the adoption
by Caribbean Basin countries of policies necessary for participation in
the free trade area of the Americas.
IN THE HOUSE OF REPRESENTATIVES
JUNE 26, 1997
Mr. RANGEL (by request) 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 op-
portunity in the Caribbean Basin region, increase trade
and investment between the Caribbean Basin region and
the United States, and encourage the adoption by Carib-
bean Basin countries of policies necessary for participa-
tion in the free trade area of the Americas.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘United States-Carib-
bean Basin Trade Enhancement Act’’.
SEC. 2. FINDINGS AND POLICY.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) The Caribbean Basin Economic Recovery
Act (referred to in this Act as ‘‘CBERA’’) rep-
resents a permanent commitment by the United
States to encourage the development of strong demo-
cratic governments and revitalized economies in
neighboring countries in the Caribbean Basin.
(2) Thirty-four democratically elected leaders
agreed at the 1994 Summit of the Americas to con-
clude negotiation of a Free Trade Area of the Amer-
icas (referred to in this Act as ‘‘FTAA’’) by the year
2005.
(3) The economic security of the countries in
the Caribbean Basin will be enhanced by the comple-
tion of the FTAA.
(4) Offering temporary benefits to Caribbean
Basin countries will enhance trade between the Unit-
ed States and the Caribbean Basin, encourage devel-
opment of trade and investment policies that will fa-
cilitate participation of Caribbean Basin countries in
the FTAA, preserve the United States commitment
to Caribbean Basin beneficiary countries, help fur-
ther economic development in the Caribbean Basin
region, and 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.
(6) Increased trade and economic activity be-
tween the United States and Caribbean Basin bene-
ficiary countries will create expanding export oppor-
tunities for United States businesses and workers.
(b) POLICY.—It is the policy of the United States
to—
(1) offer Caribbean Basin beneficiary countries
willing to prepare to become a party to the FTAA
or a comparable trade agreement, tariff treatment
essentially equivalent to that accorded to products of
NAFTA countries for products not currently eligible
for duty-free treatment under the CBERA; and
(2) seek the participation of Caribbean Basin
beneficiary countries in the FTAA or a trade agree-
ment comparable to the FTAA at the earliest pos-
sible date, with the goal of achieving full participa-
tion in such agreement not later than 2005.
SEC. 3. DEFINITIONS.
In this Act:
(1) BENEFICIARY COUNTRY.—The term ‘‘bene-
ficiary country’’ has the meaning given the term in
section 212(a)(1)(A) of the Caribbean Basin Eco-
nomic Recovery Act (19 U.S.C. 2702(a)(1)(A)).
(2) CBTEA.—The term ‘‘CBTEA’’ means the
United States-Caribbean Basin Trade Enhancement
Act.
(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) NAFTA COUNTRY.—The term ‘‘NAFTA
country’’ means any country with respect to which
the NAFTA is in force.
(5) 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) IMPORT-SENSITIVE ARTICLES.—
‘‘(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 ef-
fect on that date;
‘‘(B) footwear not designated at the time
of the effective date of this title as eligible arti-
cles 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 CER-
TAIN TEXTILE AND APPAREL ARTICLES.—
‘‘(A) PREFERENTIAL TARIFF AND QUOTA
TREATMENT.—During the transition period—
‘‘(i) GOODS
ORIGINATING
IN
BENE-
FICIARY
COUNTRY.—Clause (iii) applies
with respect to a textile or apparel article
that is a CBTEA originating good.
‘‘(ii) CERTAIN OTHER GOODS.—Clause
(iii) applies with respect to a textile or ap-
parel article that is imported into the Unit-
ed States from a CBTEA beneficiary coun-
try and that—
‘‘(I) is assembled in a CBTEA
beneficiary country from fabrics whol-
ly formed and cut in the United
States from yarns formed in the Unit-
ed 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 sub-
heading 9802.00.80 of the HTS
but for the fact the article was
subjected to stone-washing, en-
zyme-washing, 
acid-washing,
perma-pressing, 
oven-baking,
bleaching, embroidery, or gar-
ment-dyeing; or
‘‘(II) is identified under subpara-
graph (C) as a handloomed, hand-
made, or folklore article of such coun-
try and is certified as such by the
competent authority of such country.
‘‘(iii) TARIFF TREATMENT.—
‘‘(I) IN
GENERAL.—The Presi-
dent shall proclaim—
‘‘(aa) with respect to an ar-
ticle described in clause (i) im-
ported into the United States
from a CBTEA beneficiary coun-
try, a rate of duty equal to the
lesser of ‘x’ or the amount deter-
mined by using the formula
‘.5(x¥y)+y’, in which the terms
‘x’ and ‘y’ have the meanings
given such terms in subclause
(IV); and
‘‘(bb) with respect to an ar-
ticle described in clause (ii), im-
ported into the United States
from a CBTEA beneficiary coun-
try, a rate of duty equal to 50
percent of the amount of duty
that otherwise would apply to
such article.
‘‘(II) 
ADDITIONAL
REDUC-
TIONS.—On or after the date on
which the President submits to Con-
gress the first report required under
section 212(f), the President may pro-
claim further reductions in duty for
an article described in clause (i) or
(ii) that is a product of a CBTEA
beneficiary country if the President
determines that the performance of
the country is satisfactory under the
criteria listed in paragraph (5)(C)(ii).
The rate of duty proclaimed by the
President shall be no less than—
‘‘(aa) with respect to an ar-
ticle described in clause (i), the
amount determined under sub-
clause (III); and
‘‘(bb) with respect to an ar-
ticle described in clause (ii), zero.
‘‘(III) RATE OF DUTY FOR ARTI-
CLES DESCRIBED IN CLAUSE (i).—For
purposes of subclause (II)(aa), the
amount of duty that the President
may proclaim under such subclause
with respect to an article described in
clause (i) shall be the lesser of—
‘‘(aa) the rate of duty that
would apply to an article at the
time of importation from a
CBTEA beneficiary country but
for 
the 
enactment 
of 
the
CBTEA, or
‘‘(bb) the tariff treatment
that is accorded to a like article
of Mexico under section 2 of the
Annex as implemented pursuant
to United States law.
‘‘(IV) CERTAIN
DEFINITIONS.—
For purposes of this clause, the term
‘x’ means the rate of duty described in
subclause (III)(aa) and the term ‘y’
means the tariff treatment described
in subclause (III)(bb).
‘‘(iv) NO
QUANTITATIVE
RESTRIC-
TIONS.—Except as provided in subpara-
graph (E), no quantitative restriction or
consultation level may be applied to the
importation into the United States of any
textile or apparel article that—
‘‘(I) is a CBTEA originating
good, or
‘‘(II) qualifies for preferential
tariff treatment under clause (ii)(I) or
(II).
‘‘(B) TRANSITION PERIOD TREATMENT OF
CERTAIN
NONORIGINATING
TEXTILE
AND
AP-
PAREL ARTICLES.—
‘‘(i) REQUEST
FOR
PREFERENTIAL
TARIFF TREATMENT.—At any time during
the transition period, an interested United
States person may submit in writing to the
President a request that the President pro-
claim preferential tariff treatment de-
scribed in clauses (iii) and (iv) with respect
to any eligible textile or apparel article de-
scribed in clause (ii). Upon receiving the
request, the President shall determine
promptly whether the article is eligible for
preferential tariff treatment. If the Presi-
dent determines that the article is eligible
for preferential treatment, the President
shall proclaim such treatment with respect
to the article. If the President does not
make a determination within 120 days
after the date a request is received, the re-
quest shall be treated as approved and all
articles listed in the request that are de-
scribed in clause (ii) shall be accorded the
preferential treatment described in clauses
(iii) and (iv).
‘‘(ii) ELIGIBLE ARTICLES.—An article
is described in this clause if it is an ap-
parel article provided for in chapter 61 or
62 of the HTS and if—
‘‘(I) it is a product of a CBTEA
beneficiary country but does not qual-
ify as a CBTEA originating good;
‘‘(II) it is an article described in
the same 8-digit subheading of the
HTS as an article that would be eligi-
ble for the preferential tariff treat-
ment under Appendix 6.B of the
Annex, as implemented pursuant to
United States law, if the article were
imported from Mexico in quantities
that are less than or equal to the
quantities specified in Schedule 6.B.1;
and
‘‘(III) the President determines
that—
‘‘(aa) the fabric from which
the article is made is not com-
mercially available from produc-
ers in the United States, or
‘‘(bb) if the article is knit-
to-shape in a CBTEA beneficiary
country, the yarn from which it
is knit is not commercially avail-
able from producers in the Unit-
ed States.
‘‘(iii) PREFERENTIAL TARIFF TREAT-
MENT.—The amount of duty imposed dur-
ing the transition period on an article re-
ceiving preferential tariff treatment under
this subparagraph shall be identical to the
tariff treatment that would apply to the
article under subparagraph (A)(iii) if the
article were a CBTEA originating good.
‘‘(iv) QUANTITY
OF
ELIGIBLE
ARTI-
CLES
RECEIVING
PREFERENTIAL
TREAT-
MENT.—In any 12-month period, the
quantity of eligible articles in any category
imported from a CBTEA beneficiary coun-
try that may receive the preferential tariff
treatment described in clause (iii) may not
exceed ten percent of the quantity of arti-
cles in such category imported from such
country under subheading 9802.00.80 of
the HTS, excluding articles that qualified
for preferential tariff treatment under sub-
paragraph (A)(ii) (or would have qualified
for such treatment if that paragraph had
been in effect with respect to imports of
such articles from such country), in the
preceding 12-month period.
‘‘(C) 
HANDLOOMED, 
HANDMADE, 
AND
FOLKLORE
ARTICLES.—For purposes of sub-
paragraph (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 treat-
ed 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.
‘‘(D) TRANSITION
PERIOD
ADJUSTMENT
OF EXISTING QUANTITATIVE RESTRICTIONS.—
‘‘(i) IN GENERAL.—During the transi-
tion period, the President, after negotiat-
ing with the CBTEA beneficiary country
concerned, may reduce the quantities of
textile and apparel articles that can be im-
ported into the United States from that
country under existing quantitative restric-
tions to reflect the quantities of textile and
apparel articles from such country that are
exempt from quota restrictions pursuant to
subparagraph (A)(iv).
‘‘(ii) 
TRANSSHIPMENTS.—Whenever
the President finds, based on sufficient evi-
dence, that transshipment within the
meaning of clause (iii) has occurred, the
President, after consultations with the
CBTEA 
beneficiary 
countries 
through
whose territories the President finds trans-
shipment to have occurred, may reduce the
quantities of textile and apparel articles
that can be imported into the United
States from each such country by such
amount as the President determines.
‘‘(iii) TRANSSHIPMENT DESCRIBED.—
Transshipment within the meaning of this
clause has occurred when preferential tar-
iff treatment for a textile or apparel article
under subparagraph (A) or (B) has been
claimed on the basis of material false in-
formation concerning the country of origin,
manufacture, processing, or assembly of
the article or any of its components. For
purposes of this clause, false information is
material if disclosure of the true informa-
tion would mean or would have meant that
the article is or was ineligible for pref-
erential tariff treatment under subpara-
graph (A) or (B).
‘‘(E) BILATERAL EMERGENCY ACTIONS.—
‘‘(i) IN
GENERAL.—The President
may take—
‘‘(I) bilateral emergency tariff ac-
tions of a kind described in section 4
of the Annex with respect to any tex-
tile or apparel article imported from a
CBTEA beneficiary country if the ap-
plication of tariff treatment under
subparagraph (A) to such article re-
sults in conditions that would be
cause for the taking of such actions
under such section 4 with respect to a
like article described in the same 8-
digit subheading of the HTS that is
imported from Mexico; or
‘‘(II) bilateral emergency quan-
titative 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 bene-
ficiary country, including articles eligi-
ble for preferential tariff treatment
under subparagraph (A), if the impor-
tation of such an article into the Unit-
ed States results in conditions that
would be cause for the taking of such
actions under such section 5 with re-
spect to a like 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 ap-
plying bilateral emergency action under
this subparagraph—
‘‘(I) the requirements of para-
graph (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)(G) of this subsection;
‘‘(III) the requirements to con-
sult specified in section 4 or 5 of the
Annex shall be treated as satisfied if
the President requests consultations
with the beneficiary country in ques-
tion and the country does not agree to
consult within the time period speci-
fied 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 be-
cause of a redesignation of such coun-
try), the minimum quantity of any
textile or apparel article from such
country subject to quantitative restric-
tions may be determined under para-
graph 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 mini-
mum quantity of articles subject to
such quantitative restrictions shall be
determined under paragraph 7 of sec-
tion 5 of the Annex based on the most
recently available Bureau of the Cen-
sus import statistics.
‘‘(3) PREFERENTIAL
TARIFF
TREATMENT
OF
CERTAIN OTHER ARTICLES ORIGINATING IN CBTEA
BENEFICIARY COUNTRIES.—
‘‘(A) IN GENERAL.—During the transition
period, the President shall proclaim a rate of
duty, with respect to any article referred to in
any of subparagraphs (B) through (F) of para-
graph (1) that is a CBTEA originating good,
equal to the lesser of—
‘‘(i) ‘x’, or
‘‘(ii) the amount determined by using
the formula ‘.5(x¥y)+y’.
For purposes of the preceding sentence, the
terms ‘x’ and ‘y’ have the meanings given such
terms in subparagraph (C).
‘‘(B) ADDITIONAL REDUCTIONS.—
‘‘(i) IN GENERAL.—On or after the
date on which the President submits to
Congress the first report required under
section 212(f), the President may proclaim
further reductions in the rate of duty for
any article described in subparagraph (A)
in accordance with this subparagraph if
the President determines that the perform-
ance of the country is satisfactory under
the criteria listed in paragraph (5)(C)(ii).
‘‘(ii) RATE
OF
DUTY.—The rate of
duty proclaimed by the President under
this subparagraph shall be no less than the
lesser of—
‘‘(I) the rate of duty that would
apply to the article at the time of im-
portation from the country but for the
enactment of the CBTEA, or
‘‘(II) the tariff treatment that is
accorded a like article of Mexico
under Annex 302.2 of NAFTA as im-
plemented pursuant to United States
law.
‘‘(C) CERTAIN
DEFINITIONS.—For pur-
poses of subparagraph (A), the term ‘x’ means
the rate of duty described in subparagraph
(B)(ii)(I) and the term ‘y’ means the tariff
treatment 
described 
in 
subparagraph
(B)(ii)(II).
‘‘(D) EXCEPTION.—Paragraphs (A) and
(B) do not apply to any article accorded duty-
free treatment under U.S. Note 2(b) to sub-
chapter II of chapter 98 of the HTS.
‘‘(E) RELATIONSHIP
TO
DUTY
REDUC-
TIONS UNDER SUBSECTION (h).—If at any time
during the transition period the rate of duty
that would (but for action taken under subpara-
graph (A) or (B)) apply with respect to any ar-
ticle under subsection (h) is a rate of duty that
is lower than the rate of duty resulting from
such action, then such lower rate of duty shall
be applied.
‘‘(4) CUSTOMS PROCEDURES.—
‘‘(A) IN GENERAL.—
‘‘(i) 
REGULATIONS.—Any 
importer
that claims preferential tariff treatment
under paragraph (2) or (3) shall comply
with customs procedures similar in all ma-
terial respects to the requirements of Arti-
cle 502(1) of the NAFTA as implemented
pursuant to United States law, in accord-
ance with regulations promulgated by the
Secretary of the Treasury.
‘‘(ii) DETERMINATION.—In order to
qualify for such preferential tariff treat-
ment and for a Certificate of Origin to be
valid with respect to any article 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 ex-
ported, 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 imple-
mented and follows, or is making sub-
stantial progress toward implementing
and following, procedures and require-
ments similar in all material respects
to the relevant procedures and re-
quirements under chapter 5 of the
NAFTA.
‘‘(B) CERTIFICATE OF ORIGIN.—The Cer-
tificate of Origin that otherwise would be re-
quired pursuant to the provisions of subpara-
graph (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 re-
quired under Article 503 of the NAFTA (as im-
plemented pursuant to 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) CATEGORY.—For purposes of para-
graph (2)(B)(iv), ‘category’ means a category
that is described in the most current edition of
the Correlation: Textile and Apparel Categories
with the Harmonized Tariff Schedule of the
United States, prepared by the Department of
Commerce.
‘‘(C) CBTEA BENEFICIARY COUNTRY.—
‘‘(i) 
IN
GENERAL.—The 
term
‘CBTEA beneficiary country’ means any
‘beneficiary country’, as defined by section
212(a)(1)(A) of this title, which the Presi-
dent determines has demonstrated a com-
mitment to—
‘‘(I) undertake its obligations
under the WTO on or ahead of sched-
ule;
‘‘(II) participate in negotiations
toward the completion of the FTAA
or a comparable trade agreement; and
‘‘(III) undertake other steps nec-
essary for that country to become a
party to the FTAA or a comparable
trade agreement.
‘‘(ii) 
CRITERIA
FOR
DETERMINA-
TION.—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 Agree-
ments Act;
‘‘(II) the extent to which the
country provides protection of intellec-
tual property rights—
‘‘(aa) in accordance with
standards 
established 
in 
the
Agreement on Trade-Related As-
pects of Intellectual Property
Rights 
described 
in 
section
101(d)(15) 
of 
the 
Uruguay
Round Agreements Act;
‘‘(bb) in accordance with
standards established in chapter
17 of the NAFTA; and
‘‘(cc) by granting the hold-
ers of copyrights the ability to
control the importation and sale
of products that embody copy-
righted works, extending the pe-
riod set forth in Article 1711(6)
of NAFTA for protecting test
data for agricultural chemicals to
10 years, protecting trademarks
regardless of their subsequent
designation as geographic indica-
tions, and providing enforcement
against the importation of in-
fringing products at the border;
‘‘(III) the extent to which the
country provides protections to inves-
tors 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 nondiscrim-
inatory, equitable, and reasonable
market access with respect to the
products for which benefits are pro-
vided 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 recog-
nized worker rights, including—
‘‘(aa) the right of associa-
tion,
‘‘(bb) the right to organize
and bargain collectively,
‘‘(cc) prohibition on the use
of any form of coerced or com-
pulsory labor,
‘‘(dd) a minimum age for
the employment of children, and
‘‘(ee) acceptable conditions
of work with respect to minimum
wages, hours of work, and occu-
pational safety and health;
‘‘(VI) the extent to which the
country adopts, maintains, and effec-
tively enforces laws providing for high
levels of environmental protection;
‘‘(VII) whether the country has
met the counter-narcotics 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 becomes a party to and imple-
ments the Inter-American Convention
Against 
Corruption, 
and 
becomes
party to a convention regarding the
extradition of its nationals.
‘‘(IX) the extent to which the
country enters into and implements
an agreement with the United States
for the exchange of tax information,
as described in section 274(h)(6)(C)
of the Internal Revenue Code;
‘‘(X) the extent to which the
country—
‘‘(aa) supports the multilat-
eral and regional objectives of the
United States with respect to
government procurement, includ-
ing the negotiation of government
procurement provisions as part of
the 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
‘‘(bb) 
applies 
transparent
and competitive procedures in
government procurement equiva-
lent to those contained in the
WTO Agreement on Government
Procurement (described in sec-
tion 101(d)(17) of the Uruguay
Round Agreements Act);
‘‘(XI) the extent to which the
country follows the rules on customs
valuation set forth in the WTO Agree-
ment on Implementation of Article
VII of the GATT 1994 (described in
section 101(d)(8) of the Uruguay
Round Agreements Act);
‘‘(XII) the extent to which the
country affords to products of the
United States which the President de-
termines to be of commercial impor-
tance to the United States with re-
spect to such country, and on a non-
discriminatory basis to like products
of other WTO members, tariff treat-
ment 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 to which such country is a
party, other than the Central Amer-
ican Common Market or the Carib-
bean Community and Common Mar-
ket.
‘‘(D) CBTEA ORIGINATING GOOD.—
‘‘(i) 
IN
GENERAL.—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 pursuant to United States
law, and, in the case of a good described
in Appendix 6.A of the Annex, the require-
ments stated in Appendix 6.A as imple-
mented pursuant to United States law.
‘‘(ii) APPLICATION
OF
CHAPTER
AND ANNEX 6.A.—In applying chapter 4
and Appendix 6.A with respect to a
CBTEA beneficiary country for purposes
of this subsection—
‘‘(I) no country other than the
United States and a CBTEA bene-
ficiary country may be treated as
being a party to the NAFTA;
‘‘(II) any reference to trade be-
tween the United States and Mexico
shall be deemed to refer to trade be-
tween the United States and a
CBTEA beneficiary country;
‘‘(III) any reference to a party
shall be deemed to refer to a CBTEA
beneficiary country or the United
States; and
‘‘(IV) any reference to parties
shall be deemed to refer to any com-
bination of CBTEA beneficiary coun-
tries or to the United States and a
CBTEA beneficiary country (or any
combination thereof).
‘‘(E) INTERESTED
UNITED
STATES
PER-
SON.—For purposes of paragraph (2)(B)(i), the
term ‘interested United States person’ means—
‘‘(i) a person doing business in the
United States as—
‘‘(I) an importer of wearing ap-
parel or fabric piece goods, or
‘‘(II) a producer of wearing ap-
parel, or
‘‘(ii) a labor union representing work-
ers employed in the United States in the
production of wearing apparel.
‘‘(F) 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.
‘‘(G) TRANSITION
PERIOD.—The term
‘transition period’ means, with respect to a
CBTEA beneficiary country, the period that be-
gins on the date of enactment of the CBTEA
and ends on the earlier of—
‘‘(i) September 30, 2005, or
‘‘(ii) the date on which the FTAA or
a comparable trade agreement enters into
force with respect to the United States and
the CBTEA beneficiary country.
‘‘(H) CBTEA.—The term ‘CBTEA’ means
the United States-Caribbean Basin Trade En-
hancement Act.
‘‘(I) FTAA.—The term ‘FTAA’ means the
Free Trade Area of the Americas.’’.
(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 redesignating subparagraphs (A)
and (B) as clauses (i) and (ii), respectively;
(B) by inserting ‘‘(A)’’ after ‘‘(1)’’;
(C) by striking ‘‘would be barred’’ and all
that follows through the end period and insert-
ing: ‘‘no longer satisfies one or more of the con-
ditions 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 coun-
try, or
‘‘(ii) withdraw, suspend, or limit the appli-
cation of preferential tariff treatment under
section 213(b) (2) and (3) to any article of any
country, if, after such designation, the Presi-
dent determines that as a result of changed cir-
cumstances, the performance of such country is
not satisfactory under the criteria set forth in
section 213(b)(5)(C).’’; and
(2) by adding after paragraph (2) the following
new paragraph:
‘‘(3) If preferential treatment under section
213(b) (2) and (3) is withdrawn, suspended, or lim-
ited 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)(D) to im-
ports of articles for which preferential treatment has
been withdrawn, suspended, or limited with respect
to such country.’’.
(c) REPORTING REQUIREMENTS.—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 15, 2000, and at the end of each 3-year period
thereafter, the President shall submit to 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 such sub-
sections; and
‘‘(2) the performance of each CBTEA bene-
ficiary country with respect to the criteria set forth
in section 213(b)(5)(C)(ii).’’.
(d) 
INTERNATIONAL
TRADE
COMMISSION
RE-
PORTS.—
(1) Section 215(a) of the Caribbean Basin Eco-
nomic Recovery Act (19 U.S.C. 2704(a)) is amended
to read as follows:
‘‘(a) REPORTING REQUIREMENT.—
‘‘(1) IN GENERAL.—The United States Inter-
national Trade Commission (in this section referred
to as the ‘Commission’) shall submit to Congress
and the President, biennial reports regarding the
economic impact of this title on United States indus-
tries and consumers.
‘‘(2) FIRST REPORT.—The first report shall be
submitted not later than September 30 of the year
following the year in which the Caribbean Basin
Trade Enhancement Act is enacted. No report shall
be required under this section after September 30,
2005.
‘‘(3) TREATMENT OF PUERTO RICO, ETC.—For
purposes of this section, industries in the Common-
wealth of Puerto Rico and the insular possessions of
the United States are considered to be United States
industries.’’.
(2) Section 206(a) of the Andean Trade Pref-
erence Act (19 U.S.C. 3204(a)) is amended to read
as follows:
‘‘(a) REPORTING REQUIREMENTS.—
‘‘(1) IN GENERAL.—The United States Inter-
national Trade Commission (in this section referred
to as the ‘Commission’) shall submit to Congress
and the President, biennial reports regarding the
economic impact of this title on United States indus-
tries and consumers, and, in conjunction with other
agencies, the effectiveness of this title in promoting
drug-related crop eradication and crop substitution
efforts of the beneficiary countries.
‘‘(2) SUBMISSION.—During the period that this
title is in effect, the report required by paragraph
(1) shall be submitted on September 30 of each year
that the report required by section 215 of the Carib-
bean Basin Economic Recovery Act is not submitted.
‘‘(3) TREATMENT OF PUERTO RICO, ETC.— For
purposes of this section, industries in the Common-
wealth of Puerto Rico and the insular possessions of
the United States are considered to be United States
industries.’’.
(e) CONFORMING AMENDMENTS.—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 subsection (b) (2) and (3)’’ after ‘‘Tax Re-
form Act of 1986,’’.
SEC. 5. ADEQUATE AND EFFECTIVE PROTECTION FOR IN-
TELLECTUAL PROPERTY RIGHTS.
Section 212(c) of the Caribbean Basin Economic Re-
covery 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 deter-
mine that a country is not providing adequate and effec-
tive protection of intellectual property rights under para-
graph (9), even if the country is in compliance with the
country’s obligations under the Agreement on Trade-Re-
lated 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 add-
ing 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 terms ‘WTO’ and ‘WTO mem-
ber’ have the meanings given those terms in
section 2 of the Uruguay Round Agreements
Act (19 U.S.C. 3501).’’.
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