SEC. 103. DEFINITIONS.
As used in this title:
(1) PARTNERSHIP COUNTRY.—The term ‘‘part-
nership country’’ means a beneficiary country as de-
fined in section 212(a)(1)(A) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2702(a)(1)(A)).
(2) NAFTA.—The term ‘‘NAFTA’’ means the
North American Free Trade Agreement entered into
between the United States, Mexico, and Canada on
December 17, 1992.
(3) TRADE REPRESENTATIVE.—The term ‘‘Trade
Representative’’ means the United States Trade Rep-
resentative.
(4) WTO 
AND
WTO
MEMBER.—The terms
‘‘WTO’’ and ‘‘WTO member’’ have the meanings given
those terms in section 2 of the Uruguay Round Agree-
ments Act (19 U.S.C. 3501).
SEC. 104. TEMPORARY PROVISIONS TO PROVIDE NAFTA
PARITY TO PARTNERSHIP 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 effect on
that date;
‘‘(B) footwear not designated at the time of
the effective date of this title as eligible articles
for the purpose of the generalized system of pref-
erences 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 in-
cluding, 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) EQUIVALENT
TARIFF
AND
QUOTA
TREATMENT.—During the transition period—
‘‘(i) the tariff treatment accorded at
any time to any textile or apparel article
that originates in the territory of a partner-
ship country shall be identical to the tariff
treatment that is accorded at such time
under section 2 of the Annex to an article
described in the same 8-digit subheading of
the HTS that is a good of Mexico and is
imported into the United States;
‘‘(ii) duty-free treatment under this
title shall apply to any textile or apparel
article that is imported into the United
States from a partnership country and
that—
‘‘(I) is assembled in a partnership
country, from fabrics wholly formed
and cut in the United States from
yarns formed in the United States, and
is entered—
‘‘(aa) 
under 
subheading
9802.00.80 of the HTS; or
‘‘(bb) under chapter 61, 62,
or 63 of the HTS if, after such as-
sembly, the article would have
qualified for treatment under sub-
heading 9802.00.80 of the HTS,
but for the fact the article was
subjected to bleaching, garments
dyeing, stone-washing, enzyme-
washing, acid-washing, perma-
pressing, oven-baking, or embroi-
dery;
‘‘(II) is knit-to-shape in a part-
nership country from yarns wholly
formed in the United States;
‘‘(III) is made in a partnership
country from fabric knit in a partner-
ship country from yarns wholly formed
in the United States;
‘‘(IV) is cut and assembled in a
partnership country from fabrics whol-
ly formed in the United States from
yarns wholly formed in the United
States; or
‘‘(V) is identified under subpara-
graph (C) as a handloomed, hand-
made, or folklore article of a partner-
ship country and is certified as such
by the competent authority of such
country; and
‘‘(iii) no quantitative restriction or
consultation level may be applied to the im-
portation into the United States of any tex-
tile or apparel article that—
‘‘(I) originates in the territory of
a partnership country, or
‘‘(II) qualifies for duty-free treat-
ment under subclause (I), (II), (III),
(IV), or (V) of clause (ii).
‘‘(B) TRANSITION PERIOD TREATMENT OF
OTHER NONORIGINATING TEXTILE AND APPAREL
ARTICLES.—
‘‘(i) PREFERENTIAL
TARIFF
TREAT-
MENT.—Subject to clause (ii), the President
may place in effect at any time during the
transition period with respect to any textile
or apparel article that—
‘‘(I) is a product of a partnership
country, but
‘‘(II) does not qualify as a good
that originates in the territory of a
partnership country or is eligible for
benefits under subparagraph (A)(ii),