I
104TH CONGRESS
1ST SESSION
H. R. 1654
To renew the Generalized System of Preferences.
IN THE HOUSE OF REPRESENTATIVES
MAY 17, 1995
Mr. CRANE (for himself and Mr. RANGEL) introduced the following bill; which
was referred to the Committee on Ways and Means
A BILL
To renew the Generalized System of Preferences.
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 ‘‘GSP Renewal Act of
1995’’.
SEC. 2. GENERALIZED SYSTEM OF PREFERENCES.
(a) IN GENERAL.—Title V of the Trade Act of 1974
is amended to read as follows:
‘‘TITLE V—GENERALIZED
SYSTEM OF PREFERENCES
‘‘SEC. 501. AUTHORITY TO EXTEND PREFERENCES.
‘‘The President may provide duty-free treatment for
any eligible article from any beneficiary developing coun-
try in accordance with the provisions of this title. In tak-
ing any such action, the President shall have due regard
for—
‘‘(1) the effect such action will have on further-
ing the economic development of developing coun-
tries through the expansion of their exports;
‘‘(2) the extent to which other major developed
countries are undertaking a comparable effort to as-
sist developing countries by granting generalized
preferences with respect to imports of products of
such countries;
‘‘(3) the anticipated impact of such action on
United States producers of like or directly competi-
tive products; and
‘‘(4) the extent of the beneficiary developing
country’s competitiveness with respect to eligible ar-
ticles.
‘‘SEC. 502. DESIGNATION OF BENEFICIARY DEVELOPING
COUNTRIES.
‘‘(a) AUTHORITY TO DESIGNATE COUNTRIES.—
‘‘(1) BENEFICIARY DEVELOPING COUNTRIES.—
The President is authorized to designate countries
as beneficiary developing countries for purposes of
this title.
‘‘(2) LEAST-DEVELOPED BENEFICIARY DEVEL-
OPING COUNTRIES.—The President is authorized to
designate countries as least-developed beneficiary de-
veloping countries for purposes of this title, based on
the considerations in section 501 and subsection (c)
of this section.
‘‘(b) COUNTRIES INELIGIBLE FOR COUNTRY DES-
IGNATION.—
‘‘(1) 
SPECIFIC
COUNTRIES.—The 
following
countries may not be designated as beneficiary devel-
oping countries for purposes of this title:
‘‘(A) Australia.
‘‘(B) Canada.
‘‘(C) European Union member states.
‘‘(D) Iceland.
‘‘(E) Japan.
‘‘(F) Monaco.
‘‘(G) New Zealand.
‘‘(H) Norway.
‘‘(I) Switzerland.
‘‘(2) OTHER BASES FOR INELIGIBILITY.—The
President shall not designate any country a bene-
ficiary developing country under this title if any of
the following applies:
‘‘(A) Such country is a Communist coun-
try, unless—
‘‘(i) the products of such country re-
ceive nondiscriminatory treatment,
‘‘(ii) such country is a WTO Member
(as such term is defined in section 2 of the
Uruguay Round Agreements Act,) and a
member of the International Monetary
Fund, and
‘‘(iii) such country is not dominated
or controlled by international communism.
‘‘(B) Such country is a party to an ar-
rangement of countries and participates in any
action pursuant to such arrangement, the effect
of which is—
‘‘(i) to withhold supplies of vital com-
modity resources from international trade
or to raise the price of such commodities
to an unreasonable level, and
‘‘(ii) to cause serious disruption of the
world economy.
‘‘(C) Such country affords preferential
treatment to the products of a developed coun-
try, other than the United States, which has, or
is likely to have, a significant adverse effect on
United States commerce.
‘‘(D)(i) Such country—
‘‘(I) has nationalized, expropriated, or
otherwise seized ownership or control of
property, including patents, trademarks, or
copyrights, owned by a United States citi-
zen or by a corporation, partnership, or as-
sociation which is 50 percent or more ben-
eficially owned by United States citizens,
‘‘(II) has taken steps to repudiate or
nullify an existing contract or agreement
with a United States citizen or a corpora-
tion, partnership, or association which is
50 percent or more beneficially owned by
United States citizens, the effect of which
is to nationalize, expropriate, or otherwise
seize ownership or control of property, in-
cluding patents, trademarks, or copyrights,
so owned, or
‘‘(III) has imposed or enforced taxes
or other exactions, restrictive maintenance
or operational conditions, or other meas-
ures with respect to property, including
patents, trademarks, or copyrights, so
owned, the effect of which is to nationalize,
expropriate, or otherwise seize ownership
or control of such property,
unless clause (ii) applies.
‘‘(ii) This clause applies if the President
determines that—
‘‘(I) prompt, adequate, and effective
compensation has been or is being made to
the citizen, corporation, partnership, or as-
sociation referred to in clause (i),
‘‘(II) good faith negotiations to pro-
vide prompt, adequate, and effective com-
pensation under the applicable provisions
of international law are in progress, or the
country described in clause (i) is otherwise
taking steps to discharge its obligations
under international law with respect to
such citizen, corporation, partnership, or
association, or
‘‘(III) a dispute involving such citizen,
corporation, partnership, or association
over compensation for such a seizure has
been submitted to arbitration under the
provisions of the Convention for the Settle-
ment of Investment Disputes, or in an-
other mutually agreed upon forum,
and the President promptly furnishes a copy of
such determination to the Senate and House of
Representatives.
‘‘(E) Such country fails to act in good
faith in recognizing as binding or in enforcing
arbitral awards in favor of United States citi-
zens or a corporation, partnership, or associa-
tion which is 50 percent or more beneficially
owned by United States citizens, which have
been made by arbitrators appointed for each
case or by permanent arbitral bodies to which
the parties involved have submitted their dis-
pute.
‘‘(F) Such country aids or abets, by grant-
ing sanctuary from prosecution to, any individ-
ual or group which has committed an act of
international terrorism.
‘‘(G) Such country has not taken or is not
taking steps to afford internationally recognized
worker rights to workers in the country (includ-
ing any designated zone in that country).
Subparagraphs (D), (E), (F), and (G) shall not pre-
vent the designation of any country as a beneficiary
developing country under this title if the President
determines that such designation will be in the na-
tional economic interest of the United States and re-
ports such determination to the Congress with the
reasons therefor.
‘‘(c) FACTORS
AFFECTING
COUNTRY
DESIGNA-
TION.—In determining whether to designate any country
as a beneficiary developing country under this title, the
President shall take into account—
‘‘(1) an expression by such country of its desire
to be so designated;
‘‘(2) the level of economic development of such
country, including its per capita gross national prod-
uct, the living standards of its inhabitants, and any
other economic factors which the President deems
appropriate;
‘‘(3) the extent to which other major developed
countries are extending generalized preferential tar-
iff treatment to such country;
‘‘(4) the extent to which such country has as-
sured the United States that it will provide equitable
and reasonable access to the markets and basic com-
modity resources of such country and the extent to
which such country has assured the United States
that it will refrain from engaging in unreasonable
export practices;
‘‘(5) whether such country is providing ade-
quate and effective protection of intellectual property
rights;
‘‘(6) the extent to which such country has taken
action to—
‘‘(A) reduce trade distorting investment
practices and policies (including export per-
formance requirements); and
‘‘(B) reduce or eliminate barriers to trade
in services; and
‘‘(7) whether or not such country has taken or
is taking steps to afford to workers in that country
(including any designated zone in that country)
internationally recognized worker rights.
A country may be found to not provide adequate and effec-
tive protection of intellectual property rights under para-
graph (5) and section 503(d)(2)(B), notwithstanding the
fact that it may be in compliance with the specific obliga-
tions of the Agreement on Trade-Related Aspects of Intel-
lectual Property Rights referred to in section 101(d)(15)
of the Uruguay Round Agreements Act.