Parties shall be deemed to refer to any
combination of partnership countries and
the United States.’’.
(b) DETERMINATION REGARDING RETENTION
OF
DESIGNATION.—Section 212(e)(1) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2702(e)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’;
(2) by redesignating subparagraphs (A) and
(B) as clauses (i) and (ii), respectively;
(3) by adding at the end the following:
‘‘(B)(i) Based on the President’s review and
analysis described in subsection (f), the President
may determine if the preferential treatment under
section 213(b)(2) and (3) should be withdrawn, sus-
pended, or limited with respect to any article of a
partnership country. Such determination shall be in-
cluded in the report required by subsection (f).
‘‘(ii) Withdrawal, suspension, or limitation of
the preferential treatment under section 213(b)(2)
and (3) with respect to a partnership country shall
be taken only after the requirements of subsection
(a)(2) and paragraph (2) of this subsection have
been met.’’.
(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 1
year after the date of the enactment of the United States-
Caribbean Trade Partnership Act and at the close of each
3-year period thereafter, the President shall submit to the
Congress a complete report regarding the operation of this
title, including—
‘‘(1) with respect to subsections (b) and (c) of
this section, the results of a general review of bene-
ficiary countries based on the considerations de-
scribed in such subsections;
‘‘(2) with respect to subsection (c)(4), the de-
gree to which a country follows accepted rules of
international trade provided for under the WTO
Agreement and the multilateral trade agreements
(as such terms are defined in paragraphs (9) and
(4), respectively, of section 2 of the Uruguay Round
Agreements Act);
‘‘(3) with respect to subsection (c)(9), the ex-
tent to which beneficiary countries are providing or
taking steps to provide protection of intellectual
property rights comparable to the protection pro-
vided to the United States in bilateral intellectual
property rights agreements;
‘‘(4) with respect to subsection (b)(2) and sub-
section (c)(5), the extent that beneficiary countries
are providing or taking steps to provide protection of
investment and investors comparable to the protec-
tion provided to the United States in bilateral in-
vestment treaties;
‘‘(5) with respect to subsection (c)(3), the ex-
tent that beneficiary countries are providing the
United States and other WTO members (as such
term is defined in section 2(10) of the Uruguay
Round Agreements Act (19 U.S.C. 3501(10)) with
equitable and reasonable market access in the prod-
uct sectors for which benefits are provided under
this title;
‘‘(6) with respect to subsection (c)(11), the ex-
tent that beneficiary countries are cooperating with
the United States in administering the provisions of
section 213(b); and
‘‘(7) with respect to subsection (c)(8), the ex-
tent that beneficiary countries are meeting the inter-
nationally recognized worker rights criteria under
such subsection.
In the first report under this subsection, the President
shall include a review of the implementation of section
213(b), and his analysis of whether the benefits under
paragraphs (2) and (3) of such section further the objec-
tives of this title.’’.
(d) CONFORMING AMENDMENT.—Section 213(a)(1)
of the Caribbean Basin Economic Recovery Act is amend-
ed by inserting ‘‘and except as provided in section
213(b)(2) and (3),’’ after ‘‘Tax Reform Act of 1986,’’.
SEC. 105. EFFECT OF NAFTA ON SUGAR IMPORTS FROM
BENEFICIARY COUNTRIES.
The President shall monitor the effects, if any, that
the implementation of the NAFTA has on the access of
beneficiary countries under the Caribbean Basin Economic
Recovery Act to the United States market for sugars, syr-
ups, and molasses. If the President considers that the im-
plementation of the NAFTA is affecting, or will likely af-
fect, in an adverse manner the access of such countries
to the United States market, the President shall
promptly—
(1) take such actions, after consulting with in-
terested parties and with the appropriate committees
of the House of Representatives and the Senate, or
(2) propose to the Congress such legislative ac-
tions,
as may be necessary or appropriate to ameliorate such ad-
verse effect.
SEC. 106. DUTY-FREE TREATMENT FOR CERTAIN BEV-
ERAGES MADE WITH CARIBBEAN RUM.
Section 213(a) of the Caribbean Basin Economic Re-
covery Act (19 U.S.C. 2703(a)) is amended—
(1) in paragraph (5), by striking ‘‘chapter’’ and
inserting ‘‘title’’; and
(2) by adding at the end the following new
paragraph:
‘‘(6) Notwithstanding paragraph (1), the duty-free
treatment provided under this title shall apply to liqueurs
and spirituous beverages produced in the territory of Can-
ada from rum if—
‘‘(A) such rum is the growth, product, or manu-
facture of a beneficiary country or of the Virgin Is-
lands of the United States;
‘‘(B) such rum is imported directly from a ben-
eficiary country or the Virgin Islands of the United
States into the territory of Canada, and such li-
queurs and spirituous beverages are imported di-
rectly from the territory of Canada into the customs
territory of the United States;
‘‘(C) when imported into the customs territory
of the United States, such liqueurs and spirituous
beverages are classified in subheading 2208.90 or
2208.40 of the HTS; and
‘‘(D) such rum accounts for at least 90 percent
by volume of the alcoholic content of such liqueurs
and spiritous beverages.’’.
SEC. 107. MEETINGS OF TRADE MINISTERS AND USTR.
(a) SCHEDULE OF MEETINGS.—The President shall
take the necessary steps to convene a meeting with the
trade ministers of the partnership countries in order to
establish a schedule of regular meetings, to commence as
soon as is practicable, of the trade ministers and the
Trade Representative, for the purpose set forth in sub-
section (b).
(b) PURPOSE.—The purpose of the meetings sched-
uled under subsection (a) is to reach agreement between
the United States and partnership countries on the likely
timing and procedures for initiating negotiations for part-
nership countries to accede to the NAFTA, or to enter
into mutually advantageous free trade agreements with
the United States that contain provisions comparable to
those in the NAFTA and would make substantial progress
in achieving the negotiating objectives set forth in section
108(b)(5) of the North American Free Trade Agreement
Implementation Act (19 U.S.C. 3317(b)(5)).
SEC. 108. REPORT ON ECONOMIC DEVELOPMENT AND MAR-
KET ORIENTED REFORMS IN THE CARIB-
BEAN.
(a) IN GENERAL.—The Trade Representative shall
make an assessment of the economic development efforts
and market oriented reforms in each partnership country
and the ability of each such country, on the basis of such
efforts and reforms, to undertake the obligations of the
NAFTA. The Trade Representative shall, not later than
2 years after the date of the enactment of this Act, submit
to the President and to the Committee on Finance of the
Senate and the Committee on Ways and Means of the
House of Representatives a report on that assessment.
(b) ACCESSION TO NAFTA.—
(1) ABILITY
OF
COUNTRIES
TO
IMPLEMENT
NAFTA.—The Trade Representative shall include in
the report under subsection (a) a discussion of pos-
sible timetables and procedures pursuant to which
partnership countries can complete the economic re-
forms necessary to enable them to negotiate acces-
sion to the NAFTA. The Trade Representative shall
also include an assessment of the potential phase-in
periods that may be necessary for those partnership
countries with less developed economies to imple-
ment the obligations of the NAFTA.
(2) FACTORS IN ASSESSING ABILITY TO IMPLE-
MENT NAFTA.—In assessing the ability of each part-
nership country to undertake the obligations of the
NAFTA, the Trade Representative should consider,
among other factors—
(A) whether the country has joined the
WTO;
(B) the extent to which the country pro-
vides equitable access to the markets of that
country;
(C) the degree to which the country uses
export subsidies or imposes export performance
requirements or local content requirements;
(D) macroeconomic reforms in the country
such as the abolition of price controls on traded
goods and fiscal discipline;
(E) progress the country has made in the
protection of intellectual property rights;
(F) progress the country has made in the
elimination of barriers to trade in services;
(G) whether the country provides national
treatment to foreign direct investment;
(H) the level of tariffs bound by the coun-
try under the WTO (if the country is a WTO
member);
(I) the extent to which the country has
taken other trade liberalization measures; and
(J) the extent which the country works to
accommodate market access objectives of the
United States.
(c) PARITY REVIEW IN THE EVENT A NEW COUNTRY
ACCEDES TO NAFTA.—If—
(1) a country or group of countries accedes to
the NAFTA, or
(2) the United States negotiates a comparable
free trade agreement with another country or group
of countries,
the Trade Representative shall provide to the committees
referred to in subsection (a) a separate report on the eco-
nomic impact of the new trade relationship on partnership
countries. The report shall include any measures the
Trade Representative proposes to minimize the potential
for the diversion of investment from partnership countries
to the new NAFTA member or free trade agreement part-
ner.
TITLE II—FOREIGN ASSISTANCE
FOR CENTRAL AMERICA AND
THE CARIBBEAN
Subtitle A—Microcredit and
Agricultural Assistance
SEC. 201. DECLARATION OF POLICY.
It is the policy of the United States, consistent with
title XII of chapter 2 of part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2220a), to support the govern-
ments of Central American countries and Caribbean coun-
tries, United States and nongovernmental organizations,
universities, businesses, and international organizations,
to help ensure the availability of basic nutrition and eco-
nomic opportunities for individuals in the affected areas
of Central America and the Caribbean, through sustain-
able agriculture and rural development.
SEC. 202. MICROENTERPRISE ASSISTANCE.
(a) BILATERAL ASSISTANCE.—In providing disaster
assistance in the aftermath of Hurricane Georges and
Hurricane Mitch, the Administrator of the United States
Agency for International Development shall, to the extent
practicable, use credit and microcredit assistance to reha-
bilitate agriculture production in the affected areas of
Central America and the Caribbean. In providing such as-
sistance, the Administrator should use the applied re-
(D) utilizing existing equity funds to sup-
port developmental private sector projects.
(c) TECHNICAL AMENDMENTS.—Section 234 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2194) is
amended—
(1) by redesignating subsection (c) (the second
place it appears) as paragraph (5);
(2) by amending the heading of paragraph (5),
as redesignated by paragraph (1) of this subsection,
to read as follows:
‘‘(5) CREATION OF FUND FOR ACQUISITION OF
EQUITY.—’’; and
(3) by indenting paragraph (5), as redesignated
by paragraph (1) of this subsection, one full meas-
ure.
Subtitle C—Economic Support
Fund Assistance
SEC. 221. ECONOMIC SUPPORT FUND ASSISTANCE.
(a) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the President for fiscal
year 1999 $611,000,000 to carry out chapter 4 of part
II of the Foreign Assistance Act of 1961 (22 U.S.C. 2346
et seq.) for reconstruction and disaster mitigation assist-
ance for affected areas of Central America and the Carib-
bean.