‘‘(II) Except as provided in subclause
(III), the amounts set forth in subclause (I)
shall be allocated among the 7 partnership
countries with the largest volume of exports
to the United States of textile and apparel
goods in calendar year 1997, based upon a
pro rata share of the volume of textile and
apparel goods of each of those 7 countries
that entered the United States under sub-
heading 9802.00.80 of the HTS during the
first 12 months of the 14-month period end-
ing on the date of the enactment of the
United States-Caribbean Trade Partnership
Act.
‘‘(III) Five percent of the amounts set
forth in subclause (I) shall be allocated
among the partnership countries, other than
those to which subclause (II) applies, based
upon a pro rata share of the exports to the
United States of textile and apparel goods
of each of those countries during the first 12
months of the 14-month period ending on
the date of the enactment of the United
States-Caribbean Trade Partnership Act.
‘‘(iii) 
PRIOR
CONSULTATION.—The
President may implement the preferential
tariff treatment described in clause (i) only
after consultation with representatives of the
United States textile and apparel industry
and other interested parties regarding—
‘‘(I) the specific articles to which
such treatment will be extended,
‘‘(II) the annual quantities of
such articles that may be imported at
the preferential duty rates described in
clause (i), and
‘‘(III) the allocation of such an-
nual quantities among partnership
countries.
‘‘(C) HANDLOOMED, HANDMADE, AND FOLK-
LORE ARTICLES.—For purposes of subparagraph
(A)(ii)(V), the Trade Representative shall consult
with representatives of a partnership country for
the purpose of identifying particular textile and
apparel goods that are mutually agreed upon 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) BILATERAL EMERGENCY ACTIONS.—(i)
The President may take—
‘‘(I) bilateral emergency tariff actions
of a kind described in section 4 of the
Annex with respect to any textile or apparel
article imported from a partnership country
if the application of tariff treatment under
subparagraph (A) to such article results in
conditions that would be cause for the tak-
ing of such actions under such section 4
with respect to an article described in the
same 8-digit subheading of the HTS that is
imported from Mexico; or
‘‘(II) bilateral emergency quantitative
restriction actions of a kind described in
section 5 of the Annex with respect to im-
ports of any textile or apparel article de-
scribed in subparagraphs (B)(i) (I) and (II)
if the importation of such article into the
United States results in conditions that
would be cause for the taking of such ac-
tions under such section 5 with respect to a
like article that is a product of Mexico.
‘‘(ii) The requirement in paragraph (5) of
section 4 of the Annex (relating to providing
compensation) shall not be deemed to apply to a
bilateral emergency action taken under this sub-
paragraph.
‘‘(iii) For purposes of applying bilateral
emergency action under this subparagraph—
‘‘(I) the term ‘transition period’ in sec-
tions 4 and 5 of the Annex shall be deemed
to be the period defined in paragraph
(5)(E); and
‘‘(II) any requirements to consult spec-
ified in section 4 or 5 of the Annex are
deemed to be satisfied if the President re-
quests consultations with the partnership
country in question and the country does
not agree to consult within the time period
specified under such section 4 or 5, which-
ever is applicable.
‘‘(3) NAFTA TRANSITION
PERIOD
TREATMENT
OF CERTAIN OTHER ARTICLES ORIGINATING IN BENE-
FICIARY COUNTRIES.—
‘‘(A) EQUIVALENT TARIFF TREATMENT.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), the tariff treatment accorded at any
time during the transition period to any
article referred to in any of subparagraphs
(B) through (F) of paragraph (1) that
originates in the territory of a partnership
country shall be identical to the tariff treat-
ment that is accorded at such time under
Annex 302.2 of the NAFTA to an article de-
scribed in the same 8-digit subheading of
the HTS that is a good of Mexico and is
imported into the United States.
‘‘(ii) EXCEPTION.—Clause (i) does 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.
‘‘(B) RELATIONSHIP
TO
SUBSECTION (h)
DUTY REDUCTIONS.—If at any time during the
transition period the rate of duty that would
(but for action taken under subparagraph (A)(i)
in regard to such period) 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 action, then such lower rate of duty shall be
applied for the purposes of implementing such
action.
‘‘(4) CUSTOMS PROCEDURES.—
‘‘(A) IN GENERAL.—