I
106TH CONGRESS
1ST SESSION
H. R. 1834
To promote the growth of free enterprise and economic opportunity in the
Caribbean Basin region, to increase trade between the region and the
United States, and to encourage the adoption by Caribbean Basin coun-
tries 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 op-
portunity 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 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.—The Congress finds that—
(1) the Caribbean Basin Economic Recovery
Act (‘‘CBERA’’) represents a permanent commit-
ment by the United States to encourage the develop-
ment of strong democratic governments and revital-
ized economies in neighboring countries in the Car-
ibbean Basin;
(2) 34 democratically elected leaders agreed at
the 1994 Summit of the Americas to conclude nego-
tiation 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 comple-
tion 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 par-
ticipation of Caribbean Basin countries in the
FTAA;
(C) will preserve the United States’ com-
mitment to Caribbean Basin beneficiary coun-
tries;
(D) will help further their economic devel-
opment; 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 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 therefore the policy of the United
States to offer those Caribbean Basin beneficiary coun-
tries willing to embark on the process of preparing for
eventual accession to the FTAA, or a trade agreement
comparable to the FTAA, enhanced preferential treat-
ment; and to seek the accession of these beneficiary coun-
tries 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 agree-
ment 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 ‘‘bene-
ficiary country’’ has the meaning given that term in
section 212(a)(1)(A) of the Caribbean Basin Eco-
nomic 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 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) 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 whol-
ly 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 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;
‘‘(II) is cut in a CBTEA bene-
ficiary country from fabrics wholly
formed in the United States from
yarns formed in the United States
and is assembled in a CBTEA bene-
ficiary country with thread formed in
the United States; or
‘‘(III) is identified under sub-
paragraph (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 other-
wise would apply to such article; and
‘‘(iii) except as provided in subpara-
graph (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 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.
‘‘(C) TRANSITION PERIOD ADJUSTMENT OF
EXISTING QUANTITATIVE RESTRICTIONS.—Dur-
ing the transition period—
‘‘(i) the President, after negotiating
with the CBTEA beneficiary country con-
cerned, 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 subpara-
graph (A)(iii); and
‘‘(ii) whenever the President finds
that transshipment within the meaning of
clause (iii) has occurred, the President, fol-
lowing consultations with the CBTEA ben-
eficiary countries through whose territories
the President finds transshipment to have
occurred, may reduce the quantities of tex-
tile and apparel articles that can be im-
ported 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 mean-
ing of this subparagraph has occurred
when preferential tariff treatment for a
textile or apparel article under subpara-
graph (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 arti-
cle 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 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 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 im-
ported 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
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 ap-
plying bilateral emergency action under
this subparagraph—
‘‘(I) the requirements of para-
graph 5 of section 4 of the Annex (re-
lating 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 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 min-
imum 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 import statistics of
the Bureau of the Census.
‘‘(3) PREFERENTIAL
TARIFF
TREATMENT
OF
CERTAIN ARTICLES ORIGINATING IN CBTEA BENE-
FICIARY 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 re-
spect to such articles a reduction in the rate of
duty up to 100 percent of the difference be-
tween ‘x’ and ‘y’, with the terms ‘x’ and ‘y’ hav-
ing 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 enact-
ment of the CBTEA, and ‘y’ represents the tar-
iff treatment for such an article that is ac-
corded 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 ac-
tions 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 reg-
ulations 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 treat-
ment 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 implemented and follows, or is making
substantial progress toward implementing
and following, procedures and require-
ments similar in all material respects to
the relevant procedures and requirements
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 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 be-
gins 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 deter-
mined has demonstrated commitments—
‘‘(I) to undertake its obligations under
the WTO on or ahead of schedule;
‘‘(II) to participate in negotiations to-
ward the completion of the FTAA or a
trade agreement comparable to the FTAA;
and
‘‘(III) to undertake other steps nec-
essary 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 cri-
teria in sections 212(b) and (c) and other ap-
propriate 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 As-
pects 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 im-
ports of products that embody copy-
righted works, the extension to ten
years of the ‘reasonable period’ under
NAFTA Article 1711(6) for the pro-
tection of test data related to the
grant of marketing approval for agri-
cultural chemicals, the protection of
trademarks regardless of their subse-
quent designation as geographic indi-
cations, and the availability of en-
forcement against infringing imports
at the border;
‘‘(III) the extent to which the country
provides protections to investors and in-
vestments of the United States substan-
tially equivalent to those set forth in chap-
ter 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 ac-
cess in the product sectors for which bene-
fits 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 collec-
tively, 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 oc-
cupational safety and health;
‘‘(VI) the extent to which the country
adopts, maintains, and effectively enforces
laws providing for high levels of environ-
mental protection;
‘‘(VII) whether the country has met
the counternarcotics certification criteria
set forth in section 490 of the Foreign As-
sistance Act of 1961 for eligibility for
United States assistance;
‘‘(VIII) the extent to which the coun-
try ratifies and implements the Inter-
American Convention Against Corruption;
‘‘(IX) the extent to which the country
supports the multilateral and regional ob-
jectives 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 pro-
curement equivalent to those in the Agree-
ment on Government Procurement de-
scribed in section 101(d)(17) of the Uru-
guay 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 pro-
vided 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 imple-
mented 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 re-
spect to a CBTEA beneficiary country for pur-
poses 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 coun-
try’’ and inserting ‘‘no longer satisfies one or
more of the conditions for designation as a ben-
eficiary country set forth in subsection (b) or
such country fails adequately to meet one or
‘‘(4) 
If 
preferential 
treatment 
under 
section
213(b)(2) and (3) is withdrawn, suspended, or limited
with respect to a CBTEA beneficiary country, such coun-
try 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, sus-
pended, or limited with respect to such country.’’.
(c) REPORTING REQUIREMENTS.—
(1) Section 212(f) of the Caribbean Basin Eco-
nomic 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 sub-
sections; and
‘‘(2) the performance of each CBTEA bene-
ficiary country under the criteria in section
213(b)(5)(D).’’.
(2) Section 203(f) of the Andean Trade Pref-
erence Act (19 U.S.C. 3202(f)) is amended by strik-
ing ‘‘On or before the 3rd, 6th and 9th anniversaries
of the date of the enactment of this title,’’ and in-
serting ‘‘On or before March 1, 2000, and on or be-
fore the close of each 3-year period thereafter during
which duty-free treatment under this title remains in
effect,’’.
(d) 
INTERNATIONAL
TRADE
COMMISSION
RE-
PORTS.—
(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 Com-
mission (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 Com-
mission (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 conjunc-
tion with other agencies, the effectiveness of this Act in
promoting drug-related crop eradication and crop substi-
tution 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 subse-
quent 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 fol-
lows 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 con-
tinuing review and analysis of the impact that the imple-
mentation 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 con-
tinuing review and analysis of the impact that the imple-
mentation 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 subse-
quent 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 Eco-
nomic 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 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: