United States-Canada Free-Trade Agreement Implementation Act of 1988
PL 100-449 (H.R.5090), enacted 09/28/1988

PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1851 
Public Law 100-449 
100th Congress 
An Act 
To implement the United States-Canada Free-Trade Agreement. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the "United States-
Canada Free-Trade Agreement Implementation Act of 1988". 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title and table of contents. 
Sec. 2. Purposes. 
TITLE I—APPROVAL OF UNITED STATES-CANADA FREE-TRADE AGREE-
MENT AND RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW 
Sec. 101. Approval of United States-Canada Free-Trade Agreement. 
Sec. 102. Relationship of the £igreement to United States law. 
Sec. 103. Consultation and lay-over requirements for, and effective date of, pro-
claimed actions. 
Sec. 104. Harmonized System. 
Sec. 105. Implementing actions in anticipation of entry into force. 
TITLE II—TARIFF MODIFICATIONS, RULES OF ORIGIN, USER FEES, 
DRAWBACK, ENFORCEMENT, AND OTHER CUSTOMS PROVISIONS 
Sec. 201. Tariff modifications. 
Sec. 202. Rules of origin. 
Sec. 203. Customs user fees. 
Sec. 204. Drawback. 
Sec. 205. Enforcement. 
Sec. 206. Exemption from lottery ticket embargo. 
Sec. 207. Production-based duty remission programs with respect to automotive 
products. 
TITLE III—APPLICATION OF AGREEMENT TO SECTORS AND SERVICES 
Sec. 301. 
Sec. 302. 
Sec. 303. 
Sec. 304. 
Sec. 305. 
Sec. 306. 
Sec. 307. 
Sec. 308. 
Sec. 309. 
Agriculture. 
Relief from imports. 
Acts identified in national trade estimates. 
Negotiations regarding certain sectors; biennial reports. 
Energy. 
Lowered threshold for Grovemment procurement under Trade Agreements 
Act of 1979 in the case of certain Canadian products. 
Temporary entry for business persons. 
Amendment to section 5136 of the Revised Statutes. 
Steel products. 
Sept. 28, 1988 
[H.R. 5090] 
United States-
Canada Free-
Trade 
Agreement 
Implementation 
Act of 1988. 
Exports. 
Imports. 
19 u s e 2112 
note. 
TITLE IV—BINATIONAL PANEL DISPUTE SETTLEMENT IN ANTIDUMPING 
AND COUNTERVAILING DUTY CASES 
Sec. 401. Amendments to section 516A of the Tariff Act of 1930. 
Sec. 402. Amendments to title 28, United States Code. 
Sec. 403. Conforming amendments to the Tariff Act of 1930. 
Sec. 404. Amendments to antidumping and countervailing duty law. 
Sec. 405. Organizational and administrative provisions regarding the implementa* 
tion of chapters 18 and 19 of the Agreement. 
Sec. 406. Authorization of appropriations for the Secretariat, the panels, and the 
committees. 
Sec. 407. Testimony and production of papers in extraordinary chfdlenges. 
102 STAT. 1852 
PUBLIC LAW 100-449—SEPT. 28, 1988 
Sec. 408. Requests for review of Canadian antidumping and countervailing duty 
determinations. 
Sec 409. Subsidies. 
Sec. 410. Termination of agreement. 
TITLE V—EFFECTIVE DATES AND SEVERABILITY 
Sec. 501. Effective dates. 
Sec. 502. Severability. 
19 use 2112 
SEC. 2. PURPOSES. 
^°^' 
The purposes of this Act are— 
(1) to approve and implement the Free-Trade Agreement 
between the United Stat^ and Canada n^otiated under the 
authority of section 102 of the Trade Act of 1974; 
(2) to strengthen and develop economic relations between the 
United States and Canada for their mutual benefit; 
(3) to establish a free-trade area between the two nations 
through the reduction and elimination of barriers to trade in 
goods and services and to investment; and 
(4) to lay the foundation for further cooperation to expand 
and enhance the benefits of such Agreement. 
19 use 2112 
note. 
TITLE I—APPROVAL OF UNITED STATES-
CANADA FREE-TRADE AGREEMENT AND 
RELATIONSHIP OF AGREEMENT TO 
UNITED STATES LAW 
SEC. 101. APPROVAL 
OF 
UNITED 
STATES-CANADA 
FREE-TRADE 
AGREEMENT. 
(a) APPROVAL OF AGREEMENT AND STATEMENT OF ADMINISTRATIVE 
ACTION.—Pursuant to sections 102 and 151 of the Trade Act of 1974 
(19 U.S.C. 2112 and 2191), the Congress approves— 
(1) the United StatesOanada Free-Trade Agreement (herein-
after in this Act referred to as the "Agreement") entered into 
on January 2, 1988, and submitted to the Congress on July 25, 
1988; 
(2) the letters exchanged between the Governments of the 
United States and (Canada— 
(A) dated January 2,1988, relating to n^otiations regard-
ing articles 301 (Rules of Origin) and 401 (Tariff Elimi-
nation) of the Agreement, and 
(B) dated January 2,1988, relating to n^otiations regard-
ing article 2008 (Plywood Standards) of the Agreement; and 
(3) the statement of administrative action proposed to imple-
ment the Agreement that was submitted to the Congress on 
July 25,1988. 
President of U.S. 
(b) CONDITIONS FOR E N T R Y I N T O F O R C E OF THE AGREEMENT.—At 
such time as the President determines that Canada has taken 
measures necessary to comply with the obligations of the Agree-
ment, the President is authorized to exchange notes with the 
Government of Canada providing for the entry into force, on or after 
January 1,1989, of the Agreement with respect to the United States, 
(c) REPORT ON CANADIAN PnAcncaES.—Within 60 dajrs after the 
date of the enactment of this Act (but not later than December 15, 
1988), the United States Trade Representative shall submit to the 
^ J > ^ ^ 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1853 
Congress a report identifying, to the maximum extent practicable, 
major current Canadian practices (and the l^al authority for 
such practices) that, in the opinion of the United States Trade 
Representative— 
(1) are not in conformity with the Agreement; and 
(2) require a change of Canadian law, regulation, policy, or 
practice to enable Canada to conform with its international 
obligations under the Agreement. 
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES LAW. 
(a) UNITED STATES LAWS TO PREVAIL IN CONFUCT.—No provision 
of the Agreement, nor the application of any such provision to any 
person or circumstance, which is in conflict with any law of the 
United States shall have effect. 
(b) RELATIONSHIP OF AGREEI«IENT TO STATE AND LOCAL LAW.— 
(1) The provisions of the Agreement prevail over— 
(A) any conflicting State law; and 
(B) any conflicting application of any State law to any 
person or circumstance; 
to the extent of the confUct. 
(2) Upon the enactment of this Act, the President shall, in President of U.S. 
accordance with section 306(cX2XA) of the Trade and Tariff Act 
of 1984 (19 U.S.C. 2114c), initiate consultations with the State 
governments on the implementation of the obligations of the 
United States under the Agreement. Such consultations shall be 
held— 
(A) through the intergovernmental policy advisory 
committees on trade established under such section for the 
purpose of achieving conformity of State laws and practices 
with the Agreement; and 
(B) with the individual States as necessary to deal with 
particular questions that may arise. 
(3) The United States may bring an action challenging any 
provision of State law,' or the application thereof to any person 
or circumstance, on the ground that the provision or application 
is inconsistent with the Agreement. 
(4) For purposes of this subsection, the term "State law" 
includes— 
(A) any law of a political subdivision of a State; and 
(B) any State law r^ulating or taxing the business of 
insurance. 
(c) EFFECT OF AcREEikfENT WITH RESPECT TO PRIVATE REMEDIES.— 
No person other than the United States shall— 
(1) have any cause of action or defense under the Agreement 
or by virtue of congressional approval thereof, or 
(2) challenge, in any action brought under any provision of 
law, any action or inaction by any department, agency, or other 
instrumentality of the United States, any State, or any political 
subdivision of a State on the ground that such action or inaction 
is inconsistent with the Agreement. 
(d) INITIAL IMPLEMENTING REGULATIONS.—Initial r^ulations nec-
essary or appropriate to carry out the actions proposed in the 
statement of administrative action submitted under section 101(aX3) 
to implement the Agreement shall, to the maximum extent feasible, 
be issued vdthin 1 year after the date of entry into force of the 
Agreement. In the case of any implementing action that takes effect 
after the date of entry into force of the Agreement, initial r^ula-
102 STAT. 1854 
PUBLIC LAW 100-449—SEPT. 28, 1988 
Reports. 
Federal 
Register, 
publication. 
Tariff Schedules 
of the U.S. 
tions to cany out that action shall, to the maximum extent feasible, 
be issued within 1 year after such effective date. 
(e) CHANGES IN STATUTES To IMPLEMENT A REQUIREMENT, AMEND-
MENT, O
R RECOMMENDATION.—The provisions of section 3(c) of the 
Trade Agreements Act of 1979 (19 U.S.C. 2504(c)) shall apply as if 
the Agreement were an agreement approved under section 2(a) of 
that Act whenever the President determines that it is necessary or 
appropriate to amend, repeal, or enact a statute of the United States 
in order to implement any requirement of, amendment to, or rec-
ommendation, finding or opinion under, the Agreement; but such 
provisions shall not apply to any bill to implement any such require-
ment, amendment, recommendation, finding, or opinion that is 
submitted to the Congress after the close of the 30th month after the 
month in which the Agreement enters into force. 
SEC. 103. CONSULTATION AND LAY-OVER REQUIREMENTS FOR, AND 
EFFECTIVE DATE OF, PROCLAIMED ACTIONS. 
(a) CONSULTATION AND LAY-OVER REQUIREMENTS.—If a provision of 
this Act provides that the implementation of an action by the 
President by proclamation is subject to the consultation and lay-over 
requirements of this section, such action may be proclaimed only 
if— 
(1) the President has obtained advice regarding the proposed 
action from— 
(A) the appropriate advisory committees established 
under section 135 of the Trade Act of 1974, and 
(B) the United States International Trade Commission; 
(2) the President has submitted a report to the Committee on 
Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate that sets forth— 
(A) the action proposed to be proclaimed and the resisons 
therefor, and 
(B) the advice obtained under paragraph (1); 
(3) a period of at least 60 calendar days that begins on the first 
day on which the President has met the requirements of para-
graphs (1) and (2) with respect to such action has expired; and 
(4) the President has consulted with such Committees regard-
ing the proposed action during the period referred to in para-
graph (3). 
(b) EFFECTIVE DATE OF CERTAIN PROCLAIMED ACTIONS.—No action 
proclaimed by the President under the authority of this Act, if such 
action is not subject to the consultation and lay-over requirements 
under subsection (a), may take effect before the 15th day after the 
date on which the text of the proclamation is published in the 
Federal Register. 
SEC. 104. HARMONIZED SYSTEM. 
(a) DEFINITION.—As used in this Act, the term "Harmonized 
System" means the nomenclature system established under the 
International Convention on the Harmonized C!ommodity Descrip-
tion and Coding System (done at Brussels on June 14, 1983, and the 
protocol thereto, done at Brussels on June 24, 1986) as implemented 
under United States law. 
(b) INTERIM APPUCATION OF TSUS.—The following apply if the 
International Convention, and the protocol thereto, referred to in 
subsection (a) are not implemented under United States law before 
the Agreement enters into force: 
• -~'4g-«^ 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1855 
(1) The President, subject to subsection (c), shall proclaim 
President of U.S. 
such modifications to the Teiriff Schedules of the United States 
(19 U.S.C. 1202) as may be necessary to give effect, until such 
time as such Convention and protocol are so implemented, to 
the rules of origin, schedule of rate reductions, and other provi-
sions that would, but for the absence of such implementation, be 
proclaimed under the authority of this Act to, or in terms of, the 
Harmonized Sjrstem to implement the obligations of the United 
States under the Agreement. 
(2) Until such time as such Convention and protocol are so 
implemented, any reference in this Act to the nomenclature of 
such Convention and protocol shall be treated as a reference to 
the corresponding nomenclature of the Tariff Schedules of the 
United States as modified under paragraph (1). 
(c) RESTRICTIONS.— 
(1) No modification described in subsection ObXD that is to 
Federal 
take effect concurrently with the entry into force of the Agree- Register, 
ment may be proclaimed unless the text of the modification is 
publication. 
published in the Federal Register at least 30 days before the 
date of entry into force. 
(2) All modifications proclaimed under the authority of 
subsection (bXD after the Agreement enters into force with 
respect to the United States are subject to the consultation and 
lay-over requirements of section 103(a). 
SEC. 105. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO 
FORCE. 
Subject to section 103 or 104(c), as appropriate, and any other 
applicable restriction or limitation in this Act on the proclaiming of 
actions or the issuing of r^ulations to carry out this Act or any 
amendment made by this Act, after the date of the enactment of this 
Act— 
(1) the President may proclaim such actions; and 
(2) other appropriate officers of the United States Govern-
ment may issue such r^ulations; 
as may be necessary to ensure that any provision of this Act, or 
amendment made by this Act, that takes effect on the date the 
Agreement enters into force is appropriately implemented on such 
date, but no such proclamation or regulation may have an effective 
date earlier than the date of entry into force. 
TITLE 
II—TARIFF 
MODIFICATIONS, 1
9 use 2
1
1
2 
RULES OF ORIGIN, USER FEES, DRAW- '
^
°
*
" 
BACK, 
ENFORCEMENT, 
AND 
OTHER 
CUSTOMS PROVISIONS 
SEC. 201. TARIFF MODIFICATIONS. 
(a) TARIFF MODIFICATIONS SPECIFIED IN THE AGREEMENT.—^The 
President may proclaim— 
(1) such modifications or continuance of any existing duty; 
(2) such continuance of existing duty-free or excise treatment; 
or 
(3) such additional duties; 
102 STAT. 1856 
PUBLIC LAW 100-449—SEPT. 28, 1988 
as the President determines to be necessary or appropriate to carry 
out article 401 of the Agreement and the schedule of duty reductions 
with respect to Canada set forth in Annexes 401.2 and 401.7 to the 
Agreement, as approved under section lOl(aXl). For purposes of 
proclaiming necessary modifications under such Annex 401.2, any 
article covered under subheading 9813.00.05 (contained in the 
United States Schedule in such Annex) shall, unless such article is a 
drawback eligible good under section 204(a), be treated as being 
subject to any otherwise applicable customs duty if the article, or 
merchandise incorporating such article, is exported to Canada. 
(b) OTHER TARIFF MODIFICATIONS.—Subject to the consultation 
and lay-over requirements of section 103(a), the President may 
proclaim— 
(1) such modifications as the United States and Canada may 
agree to regarding the staging of any duty treatment set forth 
in Annexes 401.2 and 401.7 of the Agreement; 
(2) such modifications or continuance of any existing duty; 
(3) such continuance of existing duty-free or excise treatment; 
or 
(4) such additional duties; 
as the President determines to be necessary or appropriate to 
maintain the general level of reciprocal and mutually advantageous 
concessions with respect to Canada provided for by the Agreement. 
(c) MODIFICATIONS AFFECTING PLYWOOD.— 
(1) The Congress encourages the President to facilitate the 
preparation, and the implementation with Canada, of common 
performance standards for the use of softwood plywood and 
other structural panels in construction applications in the 
United States and Canada. 
President of U.S. 
(2) The President shall report to the Congress on the incorpo-
Reports. 
ration of common plywood performance standards into building 
codes in the United States and Canada and may implement the 
provisions of article 2008 of the Agreement when he determines 
that the necessary conditions have been met. 
(3) Any tariff reduction undertaken pursuant to paragraph (2) 
shall be in equal annual increments ending January 1, 1998, 
unless those reductions commence after January 1, 1991. 
SEC. 202. RULES OF ORIGIN. 
(a) IN GENERAL.— 
(1) For purposes of implementing the tariff treatment con-
templated under the Agreement, goods originate in the terri-
tory of a Party i
f
— 
(A) they are wholly obtained or produced in the territory 
of either Party or both Parties; or 
(B) they— 
(i) have been transformed in the territory of either 
Party or both Parties so as to be subject to a change in 
tariff classification as described in the Annex rules or 
to such other requirements as the Annex rules may 
provide when no change in tariff classifications occurs, 
and 
(ii) meet the other conditions set out in the Annex. 
(2) A good shall not be considered to originate in the territory 
of a party under paragraph (1)(B) merely by virtue of having 
undergone— 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1857 
(A) simple packaging or, except as expressly provided by 
the Annex rules, combining operations; 
(B) mere dilution with water or another substance that 
does not materially alter the characteristics of the good; or 
(C) any process or work in respect of which it is estab-
lished, or in respect of which the facts as ascertained 
clearly justify the presumption, that the sole object was to 
circumvent the provisions of chapter 3 of the Agreement. 
(3) Accessories, spare parts, or tools delivered with any piece 
Motor vehicles. 
of equipment, machinery, apparatus, or vehicle that form part 
of its standard equipment shall be treated as having the same 
origin as that equipment, machinery, apparatus, or vehicle if 
the quantities and values of such accessories, spare parts, or 
tools are customary for the equipment, machuiery, apparatus, 
or vehicle. 
(b) TRANSSHIPMENT.—(roods exported from the territory of one 
Party originate in the territory of that Party only if— 
(1) the goods meet the applicable requirements of subsection 
(a) and are shipped to the territory of the other Party without 
having entered the commerce of any third country; 
(2) the goods, if shipped through the territory of a third 
country, do not undergo any operation other than unloading, 
reloadmg, or any operation necessary to transport them to the 
territory of the other Party or to preserve them in good condi-
tion; and 
(3) the documents related to the exportation and shipment of 
the goods from the territory of a Party show the territory of the 
other Party as their final destination. 
(c) INTERPRETATION.—In interpreting this section, the following 
apply: 
(1) Whenever the processing or assembly of goods in the 
territory of either Party or both Parties results in one of the 
changes in tarifT classification described in the Annex rules, 
such goods shall be considered to have been transformed in the 
territory of that Party and shall be treated as goods originating 
in the territory of that Party if^ 
(A) such processing or assembly occurs entirely within 
the territory of either Party or both Parties; and 
(B) such goods have not subsequently undergone any 
processing or assembly outside the territories of the Parties 
that improves the goods in condition or advances them in 
value. 
(2) Whenever the assembly of goods in the territory of a Party 
fails to result in a change of tariff classification because 
either— 
(A) the goods were imported into the territory of the 
Party in an unassembled or a disassembled form and were 
classified as unassembled or disassembled goods pursuant 
to General Rule of Interpretation 2(a) of the Harmonized 
System; or 
(B) the tariff subheading for the goods provides for both 
the goods themselves and their parts; 
such goods shall not be treated as goods originating in the 
territory of a Party. 
(3) Notwithstanding paragraph (2), goods described in that 
paragraph shall be considered to have been transformed in the 
102 STAT. 1858 
PUBLIC LAW 100-449—SEPT. 28, 1988 
President of U.S. 
President of U.S. 
Regulations. 
territory of a Party and be treated as goods originating in the 
territory of the Party if— 
(A) the value of materials originating in the territory of 
either Party or both Parties used or consumed in the 
production of the goods plus the direct cost of assembling 
the goods in the territory of either Party or both Parties 
constitute not less than 50 percent of the value of the goods 
when exported to the territory of the other Party; and 
(B) the goods have not subsequent to assembly undergone 
processing or further assembly in a third country and they 
meet the requirements of subsection (b). 
(4) The provisions of paragraph (3) shall not apply to goods of 
chapters 61-63 of the Harmonized System. 
(5) In making the determination required by paragraph (3XA) 
and in making the same or a similar determination when 
required by the Annex rules, where materials originating in the 
territory of either Party or both Parties and materials obtained 
or produced in a third country are used or consumed together in 
the production of goods in the territory of a Party, the value of 
materials originating in the territory of either Party or both 
Parties may be treated as such only to the extent that it is 
directly attributable to the goods under consideration. 
(6) In applying the Annex rules, a specific rule shall take 
precedence over a more general rule. 
(d) ANNEX RULES.— 
(1) The President is authorized to proclaim, as a part of the 
Harmonized System, the rules set forth under the heading 
"Rules" in Annex 301.2 of the Agreement. For purposes of 
carrying out this paragraph— 
(A) the phrase "headings 2207-2209" in paragraph 7 of 
section IV of such Annex 301.2 shall be treated as a ref-
erence to headings 2203-2209; and 
(B) the phrase "any other heading" in paragraph 11 of 
section XV in such Annex 301.2 shall be treated as a 
reference to any other heading of chapter 74 of the Har-
monized System. 
(2) Subject to the consultation and lay-over requirements of 
section 103, the President is authorized to proclaim such modi-
fications to the rules as may from time-to-time be agreed to by 
the United States and Canada. 
(e) AUTOMOTIVE PRODUCTS.— 
(1) The President is authorized to proclaim such modifications 
to the definition of Canadian articles (relating to the adminis-
tration of the Automotive Products Trade Act of 1965) in the 
general notes of the Harmonized System as may be necessary to 
conform that definition with chapter 3 of the Agreement. 
(2) For purposes of administering the value requirement (as 
defined in section 304(cX3)) with respect to vehicles, the Sec-
retary of the Treasury shall prescribe regulations governing the 
averaging of the value content of vehicles of the same class, or 
of sister vehicles, assembled in the same plant as an alternative 
to the calculation of the value content of each vehicle. 
(0 DEFINITIONS.—For purposes of this section: 
(1) The term "Annex ' means— 
(A) the interpretative guidelines set forth in subsection 
(c); and 
(B) the Annex rules. 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1859 
(2) The term "Annex rules" means the rules proclaimed 
under subsection (d). 
(3) The term "direct cost of processing or direct cost of assem-
bling" means the costs directly incurred in, or that can reason-
ably be allocated to, the production of goods, including— 
(A) the cost of all labor, including benefits and on-the-job 
training, labor provided in connection with supervision, 
quality control, shipping, receiving, storage, packaging, 
management at the location of the process or assembly, and 
other like labor, whether provided by employees or 
independent contractors; 
(B) the cost of inspecting and testing the goods; 
(C) the cost of energy, fuel, dies, molds, tooling, and the 
depreciation and maintenance of machinery and equip-
ment, without regard to whether they originate within the 
territory of a Party; 
(D) development, design, and engineering costs; 
(E) rent, mortgage interest, depreciation on buildings, 
property insurance premiums, maintenance, taxes and the 
cost of utilities for real property used in the production of 
goods; and 
(F) royalty, licensing, or other like payments for the right 
to the goods; 
but not including— 
(i) costs relating to the general expense of doing 
business, such as the cost of providing executive, finan-
cial, sales, advertising, marketing, accounting and legal 
services, and insurance; 
(ii) brokerage charges relating to the importation and 
exportation of goods; 
(iii) the costs for telephone, mail, and other means of 
communication; 
(iv) packing costs for exporting the goods; 
(v) royalty payments related to a licensing agreement 
to distribute or sell the goods; 
(vi) rent, mortgage interest, depreciation on build-
ings, property insurance premiums, 
maintenance, 
taxes, and the cost of utilities for real property used by 
personnel charged with administrative functions; or 
(vii) profit on the goods. 
(4) The term "goods wholly obtained or produced in the 
territory of either Party or both Parties" means— 
(A) mineral goods extracted in the territory of either 
Party or both Parties; 
(B) goods harvested in the territory of either Party or 
both Parties; 
(C) live animals born and raised in the territory of either 
Party or both Parties; 
(D) goods (fish, shellfish, and other marine life taken 
from the sea by vessels registered or recorded with a Party 
and flying its flag; 
(E) goods produced on board factory ships from the goods 
referred to in subparagraph (D) provided such factory ships 
are registered or recorded with that Party and fly its flag; 
(F) goods taken by a Party or a person of a Party from the 
seabed or beneath the seabed outside territorial waters, 
provided that Party has rights to exploit such seabed; 
102 STAT. 1860 
PUBLIC LAW 100-449—SEPT. 28, 1988 
(G) goods taken from space, provided they are obtained by 
a Party or a person of a Party and not processed in a third 
country; 
(H) waste and scrap derived from manufacturing oper-
ations and used goods, provided they were collected in the 
territory of either Party or both Parties and are fit only for 
the recovery of raw materials; and 
(I) goods produced in the territory of either Party or both 
Parties exclusively from goods referred to in subparagraphs 
(A) to (H) inclusive or from their derivatives, at any stage of 
production. 
(5) The term "materials" means goods, other than those 
included as part of the direct cost of processing or assembling, 
used or consumed in the production of other goods. 
(6) The term "Party" means Canada or the United States. 
(7) The term "territory" means— 
(A) with respect to Canada, the territory to which its 
customs laws apply, including any areas beyond the terri-
torial seas of Canada within which, in accordance with 
international law and its domestic laws, Canada may exer-
cise rights with respect to the seabed and subsoil and their 
natural resources; and 
(B) with respect to the United States— 
(i) the customs territory of the United States, which 
includes 4he fifty States, the District of Columbia and 
the Commonwealth of Puerto Rico, 
(ii) the foreign trade zones located in the United 
States, and the Commonwealth of Puerto Rico, and 
(iii) any area beyond the territorial seas of the United 
States within which, in accordance with international 
law and its domestic laws, the United States may 
exercise rights with respect to the seabed and subsoU 
and their natural resources. 
(8) The term "third country" means any country other than 
Canada or the United States or any territory not a part of the 
territory of either. 
(9) The term "value of materials originating in the territory of 
eitiier Party or both Parties" means the aggregate of— 
(A) the price paid by the producer of an exported good for 
materials originating in the territory of either Party or 
both Parties or for materials imported from a third country 
used or consumed in the production of such originating 
materials; and 
(B) when not included in that price, the following costs 
related thereto— 
(i) fi*eight, insurance, packing, and all other costs 
incurred in transporting any of the materials referred 
to in subparagraph (A) to the location of the producer; 
(ii) duties, taxes, and brokerage fees on such mate-
rials paid in the territory of ei^er Party or both 
Parties; 
"^ 
(iii) the cost of waste or spoUage resulting from the 
use or consumption of such materials, less the value of 
renewable scrap or byproduct; and 
(iv) the value of goods and services relating to such 
materials determined in accordance with subparagraph 
1(b) of article 8 of the Agreement on Implementation of 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1861 
article VII of the General Agreement on Tariffs and 
Trade. 
(10) The term "value of the goods when exported to the 
territory of the other Party" means the aggregate o
f
— 
(A) the price paid by the producer for all materials, 
whether or not the materials originate in either Party or 
both Parties, and, when not included in the price paid for 
the materials, the costs related to— 
(i) freight, insurance, packing, and all other costs 
incurred in transporting all materials to the location of 
the producer; 
(ii) duties, taxes, and brokerage fees on all materials 
psdd in the territory of either Party or both Parties; 
(iii) the cost of waste or spoilage resulting from the 
use or consumption of such materials, less the value of 
renewable scrap or byproduct; and 
(iv) the value of goods and services relating to all 
materials determined in accordance with subparagraph 
1(b) of article 8 of the Agreement on Implementation of 
article VII of the Greneral Agreement on Tariffs and 
Trade; and 
(B) the direct cost of processing or the direct cost of 
assembling the goods. 
(g) SPECIAL PROVISION REGARDING APPUCATION OF RULES OF 
ORIGIN TO CJERTAIN APPAREL.—The Secretary of Commerce is au- Regulations. 
thorized to issue regulations governing the exportation to Canada of 
apparel products that are cut, or knit to shape, and sewn, or 
otherwise assembled, in either Party from fabric produced or ob-
tained in a third country for the purpose of establishing which 
exports of such products shall be permitted to claim preferential 
tariff treatment under the rules of origin of the Agreement, to the 
extent that the Agreement provides for quantitative limits on the 
availability of preferential tariff treatment for such products. 
SEC. 203. CUSTOMS USER FEES. 
Section 13031(b) of the Consolidated Omnibus Reconciliation Act 
of 1985 (19 U.S.C. 58c(b)) is amended by adding at the end thereof the 
following new paragraph: 
"(10) The fee charged under subsection (aXlO) of this section with 
respect to goods of Canadian origin (as determined under section 202 
of the United States-Canada Free-Trade Agreement Implementation 
Act of 1988) shall be in accordance with article 403 of the United 
States-Canada Free-Trade Agreement. Any service for which an 
exemption from such fee is provided by reason of this paragraph 
may not be funded with money contained in the Customs User Fee 
Account.". 
SEC. 204. DRAWBACK. 
(a) DEFINITION.—For purposes of this section, the term "drawback 
eligible goods" means— 
(1) goods provided for under paragraph 8 of article 404 of the 
Agreement; 
(2) goods provided for under paragraphs 4 and 5 of such 
article; and 
(3) goods other than those referred to in paragraphs (1) and (2) 
that the United States and Canada agree are not subject to 
paragraphs 1, 2, and 3 of such article. 
102 STAT. 1862 
PUBLIC LAW 100-449—SEPT. 28, 1988 
No drawback may be paid with respect to countervailing duties or 
antidumping duties imposed on drawback eligible goods. 
President of U.S. 
(b) 
IMPLEMENTATION 
OF ARTICLE 
404.—The 
President 
is 
authorized— 
(1) to proclaim the identity, in accordance with the nomen-
clature of the Harmonized System, of goods referred to in 
subsection (aXD; and 
(2) subject to the consultation and lay-over requirements of 
section 103(a), to proclaim— 
(A) the identity, in accordance with the nomenclature of 
the Harmonized System, of goods referred to in subsection 
(a)(3); and 
(B) a delay in the taking effect of article 404 of the 
Agreement to a date later than January 1, 1994, with 
respect to any merchandise if the United States and 
Canada agree to the delay under paragraph 7 of such 
article. 
(c) CONSEQUENTIAL AMENDMENTS.— 
(1) BONDED MANUFACTURING WAREHOUSES.—Section 311 of the 
Tariff Act of 1930 (19 U.S.C. 1311) is amended by adding at the 
end thereof the following new paragraph: 
"No article manufactured in a bonded warehouse, except to the 
extent that such article is made from an article that is a drawback 
eligible good under section 204(a) of the United States-Canada Free-
Trade Agreement Implementation Act of 1988, may be withdrawn 
from such warehouse for exportation to Canada on or after January 
1, 1994, or such later date as may be proclaimed by the President 
under section 2040t>)(2)(B) of such Act of 1988, without payment of a 
duty on such imported merchandise in its condition, and at the rate 
of duty in effect, at the time of importation.". 
(2) BONDED SMELTING AND REFINING WAREHOUSES.—Section 
312 of the Tariff Act of 1930 (19 U.S.C. 1312) is further 
amended— 
(A) by inserting after "exportation" in each of paragraphs 
(1) and (4) of subsection (b) the following: "(other than 
exportation to Canada on or after January 1, 1994, or such 
later date as may be proclaimed by the President under 
section 204(bX2XB) of the United States-Canada Free-Trade 
Agreement Implementation Act of 1988, except to the 
extent that the metal-bearing materials were of Canadian 
origin as determined in accordance with section 202 of such 
Act of 1988)"; and 
(B) by inserting after "exportation" in subsection (d) the 
following: "(other than exportation to Canada on or after 
January 1, 1994, or such later date as may be proclaimed by 
the President under section 204(bX2XB) of the United 
States-Canada Free-Trade Agreement Implementation Act 
of 1988, except to the extent that the product is a drawback 
eligible good under section 204(a) of such Act of 1988)". 
(3) DRAWBACK.—Section 313 of the Tariff Act of 1930 
(19 
U.S.C. 1313) is amended by adding at the end thereof the 
following new subsections: 
"(n) For purposes of subsections (a), (b), (f), (h), and (jX2), the 
shipment on or after January 1, 1994, or such later date as may be 
proclaimed by the President under section 204(bX2XB) of the United 
States-Canada Free-Trade Agreement Implementation Act of 1988, 
to Canada of an article made from or substituted for, as appropriate, 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1863 
a drawback eligible good under section 204(a) of such Act of 1988 
does not constitute an exportation. 
"(o) For purposes of subsection (g), vessels built for Canadian 
account and ownership, or for the Government of Canada, may not 
be considered to be built for any foreign account and ownership, or 
for the government of any foreign country, except to the extent that 
the materials in such vessels are drawback eligible goods under 
section 204(a) of the United States-Canada Free-Trade Agreement 
Implementation Act of 1988.". 
(4) MANIPULATION IN WAREHOUSE.—The second sentence of 
section 562 of the Tariff Act of 1930 (19 U.S.C. 1562) is amended 
by striking out the proviso thereto and the colon preceding such 
proviso and inserting the following: "; except that upon permis-
sion therefor being granted by the Secretary of the Treasury, 
and under customs supervision, at the expense of the proprietor, 
merchandise may be cleaned, sorted, repacked, or otherwise 
changed in condition, but not manufactured, in bonded ware-
houses established for that purpose and be withdrawn there-
from without payment of duties— 
"(1) for exportation to Canada, but on or after January 1, 
1994, or such later date as may be proclaimed by the 
President under section 2040t)X2XB) of the United States-
Canada Free-Trade Agreement Implementation Act of 1988, 
such exemption from the payment of duties applies only in 
the case of the exportation to Canada of merchandise that— 
"(A) is only cleaned, sorted, or repacked in a bonded 
warehouse, or 
"(B) is a drawback eligible good under section 204(a) 
of such Act of 1988; 
"(2) for exportation to any foreign country except Canada; 
and 
"(3) for shipment to the Virgin Islands, American Samoa, 
Wake Island, Midway Island, Kingman Reef, Johnston 
Island or the island of Guam. 
Merchandise may be withdrawn from bonded warehouse for 
consumption, or for exportation to Canada if the duty exemp-
tion under paragraph (1) of the preceding sentence does not 
apply, upon the payment of duties accruing thereon, in its 
condition and quantity, and at its weight, at the time of with-
drawal from warehouse, with such additions to or deductions 
from the final appraised value as may be necessary by reason of 
change in condition.". 
(5) FOREIGN TRADE ZONES.—Section 3(a) of the Act of June 18, 
1934 (commonly known as the "Foreign Trade Zones Act"; 19 
U.S.C. 81c) is further amended by adding before the period at 
the end thereof the following: "Provided, further, That with the 
exception of drawback eligible goods under section 204(a) of the 
United States-Canada Free-Trade Agreement Implementation 
Act of 1988, no article manufactured or otherwise changed in 
condition (except a change by cleaning, testing or repacking) 
shall be exported to Canada on or after January 1,1994, or such 
later date as may be proclaimed by the President under section 
204(bX2)(B) of such Act of 1988, without the payment of a duty 
that shall be payable on the article in its condition and quan-
tity, and at its weight, at the time of its exportation to Canada 
unless the privilege in the first proviso to this subsection was 
requested.". 
Maritime 
affairs. 
Territories, U.S. 
102 STAT. 1864 
PUBLIC LAW 100-449—SEPT. 28, 1988 
SEC. 205. ENFORCEMENT. 
Records. 
(a) CERTIFICATIONS OF ORIGIN.— 
(1) Any person that certifies in writing that goods exported to 
Canada meet the rules of origin under section 202 of the United 
States-Canada Free-Trade Agreement Implementation Act of 
1988 shall provide, upon request by any customs official, a copy 
of that certification. 
(2) Any person that fails to provide a copy of a certification 
requested under paragraph (1) shall be liable to the United 
States for a civil penalty not to exceed $10,000. 
Fraud. 
(3) Any person that certifies falsely that goods exported to 
Canada meet the rules of origin under such section 202 shall be 
liable to the United States for the same civil penalties provided 
under section 592 of the Tariff Act of 1930 (19 U.S.C. 1592) for a 
violation of section 592(a) of such Act by fraud, gross negligence, 
or negligence, as the case may be. The procedures and provi-
sions of section 592 of such Act that are applicable to a violation 
under section 592(a) of such Act shall apply with respect to such 
false certification. 
(b) RECORDKEEPING REQUIREMENTS.—Section 508 of the Tariff Act 
of 1930 (19 U.S.C. 1508) is amended— 
(1) by redesignating subsections (b) and (c) as subsections (c) 
and (d), respectively; 
(2) by inserting "and (b)" after "(a)" in subsection (c), as so 
redesignated; 
(3) by adding after subsection (a) the following new subsection: 
"(b) Any person who exports, or who knowingly causes to be 
exported, any merchandise to Canada shall make, keep, and render 
for examination and inspection such records (including certifications 
of origin or copies thereof) which pertain to such exportations."; and 
(4) by adding at the end thereof the following new subsection: 
"(e) Any person who fails to retain records required by subsection 
(b) or the regulations issued to implement that subsection shall be 
liable to a civil penalty not to exceed $10,000.". 
SEC. 206. EXEMPTION FROM LOTTERY TICKET EMBARGO. 
Section 305(a) of the Tariff Act of 1930 (19 U.S.C. 1305(a)) is 
amended by striking out the period at the end of the first paragraph 
Effective date. 
and inserting the folloMring: ": Provided further. That effective 
January 1, 1993, this section shall not apply to any lottery ticket, 
printed paper that may be used as a lottery ticket, or advertisement 
of any lottery, that is printed in Canada for use in connection with a 
lottery conducted in the United States.". 
SEC. 207. PRODUCTION-BASED 
DUTY 
REMISSION 
PROGRAMS WITH 
RESPECT TO AUTOMOTIVE PRODUCTS. 
(a) USTR STUDY.—The United States Trade Representative 
shall— 
(1) undertake a study to determine whether any of the produc-
tion-based duty remission programs of Canada with respect to 
automotive products is either— 
(A) inconsistent with the provisions of, or otherwise 
denies the benefits to the United States under, the General 
Agreement on Tariffs and Trade, or 
(B) being implemented inconsistently with the obligations 
under article 1002 of the Agreement not— 
(i) to expand the extent or the application, or 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1865 
(ii) to extend the duration, 
of such programs; and 
(2) determine whether to initiate an investigation under sec-
tion 302 of the Trade Act of 1974 with respect to any of such 
production-based duty remission programs. 
0)) REPORT AND MONITORING.— 
(1) The United States Trade Representative shall submit a 
report to Congress no later than June 30,1989 (or no later than 
September 30, 1989, if the Trade Representative considers an 
extension to be necessary) containing— 
(A) the results of the study under subsection (aXD, as well 
as a description of the basis used for measuring and verify-
ing compliance with the obligations referred to in subsec-
tion (aXlXB); and 
(B) any determination made under subsection (aX2) and 
the reasons therefor. 
(2) Notwithstanding the submission of the report under para-
graph (1), the Trade Representative shall continue to monitor 
the degree of compliance with the obligations referred to in 
subsection (aXlXB). 
TITLE III—APPLICATION OF AGREEMENT 
TO SECTORS AND SERVICES 
19 use 2112 
note. 
SEC. 301. AGRICULTURE. 
(a) 
SPECIAL 
TARIFF 
PROVISIONS 
FOR 
FRESH 
FRUITS 
AND 
VEGETABLES.— 
(1) The Secretary of Agriculture (hereafter in this section 
referred to as the "Secretary") may recommend to the President 
the imposition of a temporary duty on any Canadian fresh fruit 
or vegetable entered into the United States if the Secretary 
determines that both of the following conditions exist at the 
time that imposition of the duty is recommended: 
(A) For each of 5 consecutive working days the import 
price of the Canadian fresh fruit or vegetable is below 90 
percent of the corresponding 5-year avergige monthly 
import price for such fruit or vegetable. 
(B) The planted acreage in the United States for the like 
fresh fruit or vegetable is no higher than the average 
planted acreage over the preceding 5 years, excluding the 
years with the highest and lowest acreage. For the purposes 
of applying this subpar^raph, any acreage increase attrib-
uted directly to a reduction in the acreage that w£is planted 
to wine grapes as of October 4, 1987, shall be excluded. 
Whenever the Secretary makes a determination that the condi- Federal 
tions referred to in subparagraphs (A) and (B) regarding any 
Register, 
Canadian fresh fruit or vegetable exist, the Secretary shall 
Publication. 
promptly submit for publication in the Federal Register notice 
of the determination. 
(2) In determining whether to recommend the imposition of a 
temporary duty to the President under par£igraph (1), the Sec-
retary shall consider whether the conditions in subparagraphs 
(A) and (B) of such paragraph have led to a distortion in trade 
between the United States and Canada of the fresh fruit or 
vegetable and, if so, whether the imposition of the duty is 
102 STAT. 1866 
PUBLIC LAW 100-449—SEPT. 28, 1988 
President of U.S. 
Termination 
date. 
appropriate, including consideration of whether it would signifi-
cantly correct this distortion. 
(3) Not later than 7 days after receipt of a recommendation of 
the Secretary under paragraph (1), the President, after taking 
into account the national economic interests of the United 
States, shaU determine whether to impose a temporary duty on 
the Canadian fresh fruit or v^etable concerned. If the deter-
mination is affirmative, the President shall proclaim the im-
position and the rate of the temporary duty, but such duty shall 
not apply to the entry of articles that were in transit to the 
United States on the fost day on which the temporary duty is in 
effect. 
(4) A temporary duty imposed under paragraph (3) shall cease 
to apply with respect to articles that are entered on or after the 
earlier of— 
(A) the day following the last of 5 consecutive working 
days with respect to which the Secretary determines that 
the point of shipment price in Canada for the Canadian 
fruit or v^etable concerned exceeds 90 percent of the 
corresponding 5-year average monthly import price; or 
(B) the 180th day after the date on which the temporary 
duty first took effect. 
(5) No temporary duty may be imposed under this subsection 
on a Canadian fresh fruit or vegetable during such time as 
import relief is provided with respect to such fresh fruit or 
v^etable under chapter 1 of title II of the Trade Act of 1974. 
(6) For purposes of this subsection: 
(A) The term "Canadian fresh fruit or vegetable" means 
any article originating in Canada (as determined in accord-
ance with section 202) and classified within any of the 
following headings of the Harmonized S3rstem: 
(i) 07.01 (relating to potatoes, fresh or chilled); 
(ii) 07.02 (relating to tomatoes, fresh or chilled); 
(iii) 07.03 (relating to onions, shallots, garlic, leeks 
and other alliaceous vegetables, fresh or chilled); 
(iv) 07.04 (relating to cabbages, cauliflowers, kohlrabi, 
kale and similar edible brassicas, fresh or chilled); 
(v) 07.05 (relating to lettuce (lactuca sativa) and chic-
ory (cichorium spp.), fresh or chilled); 
(vi) 07.06 (relating to carrots, salad beets or beetroot, 
salsify, celeriac, radishes and similar edible roots 
(excluding turnips), fresh or chilled); 
(vii) 07.07 (relating to cucumbers and gherkins, fresh 
or chilled); 
(viii) 07.08 (relating to leguminous vegetables, shelled 
or unshelled, fresh or chilled); 
(ix) 07.09 (relating to other v^etables (excluding truf-
fles), fresh or chilled); 
(x) 08.06.10 (relating to grapes, fresh); 
(xi) 08.08.20 (relating to pears and quinces, fresh); 
(xii) 08.09 (relating to apricots, cherries, peaches 
(including nectarines), plums and sloes, fresh); and 
(xiii) 08.10 (relating to other fruit (excluding cran-
berries and blueberries), fresh). 
(B) The term "corresponding 5-year average monthly 
import price" for a particular day means the average 
import price of a Canadian fresh fruit or v^etable, for the 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1867 
calendar month in which that day occurs, for that month in 
each of the preceding 5 years, excluding the years with the 
highest and lowest monthly averages. 
(C) The term "import price" h£is the meaning given such 
term in article 711 of the Agreement. 
(D) The rate of a temporary duty imposed under this 
subsection with respect to a Canadian fresh fruit or vegeta-
ble means a rate that, including the rate of any other duty 
in effect for such fruit or vegetable, does not exceed the 
lesser of— 
(i) the duty that was in effect for the fresh fruit or 
vegetable before January 1, 1989, under column one of 
the Tariff Schedules of the United States for the ap-
plicable season in which the temporary duty is applied; 
or 
(ii) the duty in effect for the fresh fruit or vegetable 
under column one of such Schedules, or column 1 
(General) of the Harmonized System, at the time the 
temporary duty is applied. 
(7XA) The Secretary shall, to the extent practicable, admin-
ister the provisions of this subsection to the 8-digit level of 
classification under the Harmonized System. 
(B) The Secretary may issue such regulations as may be 
necessary to implement the provisions of this subsection. 
(8) For purposes of assisting the Secretary in carrying out this 
suljsection, the Commissioner of Customs and the Director of 
the Bureau of Census shall cooperate in providing the Secretary 
with timely information and data relating to the importation of 
Canadian fresh fruits and vegetables. 
(9) The authority to impose temporary duties under this 
subsection expires on the 20th anniversary of the date on which 
the Agreement enters into force. 
OJ) MEAT IMPORT ACT OF 1979.—The Meat Import Act of 1979 (19 
U.S.C. 2253 note) is amended— 
(1) by inserting at the end of subsection (bX2) the following 
flush sentence: 
"Such term does not include any article described in subpara-
graph (A), (B), or (C) originating in Canada (as determined in 
accordance with section 202 of the United States-Canada Free-
Trade Agreement Implementation Act of 1988)."; 
(2) by striking out '^ 1,204,600,000" in subsection (c) and insert-
ing "1,147,600,000"; 
(3) by striking out "1,250,000,000 pounds" in subsection (fXD 
and inserting "(A) 1,193,000,000 pounds if no import limitation 
on Canadian products is in effect under subsection (1), or (B) 
1,250,000,000 pounds if an import limitation on Canadian prod-
ucts is in effect under subsection (1)"; 
(4) by inserting "other than Canada" after "countries" each 
place it appears in subsection (i); and 
(5) by amending subsection (1) to read £is follows: 
"a) If the President— 
"(l)has— 
"(A) proclaimed limitations on meat articles under the 
preceding provisions of this section, or 
"(B) entered into one or more agreements other than with 
Canada regarding meat articles pursuant to section 204 of 
the Agricultural Act of 1956; and 
Tariff Schedules 
oftheU.S. 
Termination 
date. 
102 STAT. 1868 
PUBLIC LAW 100-449—SEPT. 28, 1988 
Diseases. 
Hazardous 
materials. 
Hazardous 
materials. 
Pests and 
pesticides. 
"(2) determines that the Government of Canada has not taken 
equivalent action; 
the President may by proclamation limit the total quantities of 
articles described in subsection (bX2) (A), (B), and (C) and originating 
in Canada (as determined in accordance with section 202 of the 
United States-Canada Free-Trade Agreement Implementation Act 
of 1988) that may enter the United States. A limitation imposed 
under the preceding sentence shall be only to the extent that, and 
only for such period of time as, the President determines sufficient 
to prevent frustration of the limitations placed on meat articles 
imported from other countries under this section or actions taken 
with respect to meat articles under agreements negotiated pursuant 
to section 204 of the Agricultural Act of 1956.". 
(c) AGRICULTURAL ADJUSTMENT ACT.—Section 22(f) of the Agricul-
tural Adjustment Act, as reenacted with amendments by the Agri-
cultural Marketing Agreement Act of 1937 (7 U.S.C. 624(f)), is 
amended by inserting immediately after "section" the following: 
"; except that the President may, pursuant to articles 705.5 and 707 
of the United States-Canada Free-Trade Agreement, exempt prod-
ucts of Canada from any import restriction imposed under this 
section". 
(d) IMPORTATION OP ANIMAL VACCINES.—The second sentence of 
the eighth paragraph of the matter under the heading "BUREAU 
OF ANIMAL INDUSTRY" of the Act of March 4,1913 (37 Stat. 832, 
chapter 145; 21 U.S.C. 152) is amended to read as follows: "The 
importation into the United States of any virus, serum, toxin, or 
analogous product for use in the treatment of domestic animals, and 
the importation of any worthless, contaminated, dangerous, or 
harmful virus, serum, toxin, or analogous product for use in the 
treatment of domestic animals, is prohibited without (1) a permit 
from the Secretary of Agriculture, or (2) in the case of an article 
originating in Canada, such permit or, in lieu of such permit, such 
certification by Canada as may be prescribed by the Secretary of 
Agriculture.". 
(e) IMPORTATION OP SEEDS.—Subsection (e) of section 302 of the 
Federal Seed Act (7 U.S.C. 1582(e)) is amended to read as follows: 
"(e) The provisions of this title requiring certain seeds to be 
stained shall not apply— 
"(1) to alfalfa or clover seed originating in Canada, or 
"(2) when seeds otherwise required to be stained will not be 
sold within the United States and will be used for seed produc-
tion only by or for the importer or consignee and the importer 
of record or consignee files a statement in accordance with the 
rules and regulations prescribed under section 402 certifying 
that such seeds will be used only for seed production by or for 
the importer or consignee.". 
(f) PLANT AND ANIMAL HEALTH REGULATIONS.— 
(1) Section 103 of the Federal Plant Pest Act (7 U.S.C. 150bb) 
is amended— 
(A) in subsection (a), by striking out "No" and inserting 
in lieu thereof "Except as provided in subsection (c), no'; 
and 
(B) by adding at the end thereof the following new 
subsection: 
"(c) No person shall move any plant pest from Canada into or 
through the United States or accept delivery of any plant pest 
moving from Canada into or through the United States, unless such 
"a^f!.*? 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1869 
movement is made in accordance with such regulations as the 
Secretary may promulgate under this section to prevent the dissemi-
nation into the United States of plant pests.". 
(2) Section 104 of the Federal Plant Pest Act (7 U.S.C. 150cc) is 
amended— 
(A) in subsection (a), by striking out "Any letter" and 
inserting in lieu thereof "Except as provided in subsection 
0>), any letter"; 
(B) by redesignating subsections 0)) and (c) as subsections 
(c) and (d), respectively; and 
(C) by inserting after subsection (a) the following new 
subsection: 
"OJ) Any letter, parcel, box, or other package from Canada 
containing any plant pest, whether sealed as letter-rate postal 
matter or not, is declared to be nonmailable, and shall not know-
ingly be conveyed in the mail or delivered from any post office or by 
any mail carrier, except in accordance with such regulations as the 
Secretary may promulgate under this section to prevent the dissemi-
nation into the United States of plant pests.". 
(3) The Act of August 20, 1912 (37 Stat. 315, chapter 308; 
7 U.S.C. 154 et seq.) is amended— 
(A) in the first section (7 U.S.C. 154), by striking out 
"Provided" the first place it appears and inserting in lieu 
thereof "Provided, That the Secretary of Agriculture may 
waive the permit requirement for nursery stock imported 
or offered for entry from Canada: Provided further'; and 
(B) by adding at the end of section 2 (7 U.S.C. 156) the 
following new sentence: "This section shall not apply to 
nursery stock that arrives from, or is imported from, 
Canada.". 
(4) Subsection (a) of section 4 of the Federal Noxious Weed Act 
of 1974 (7 U.S.C. 2803(a)) is amended to read as follows: 
"(a) No person shall knowingly move any noxious weed identified 
in a regulation promulgated by the Secretary into or through the 
United States or interstate, unless such movement is— 
"(1) from Canada, or authorized under general or specific 
permit from the Secretary; and 
"(2) made in accordance with such conditions as the Secretary 
may prescribe in the permit and in such regulations as the 
Secretary may prescribe under this Act to prevent the dissemi-
nation into the United States, or interstate, of such noxious 
(5) Section 306 of the Tariff Act of 1930 (19 U.S.C. 1306) is 
amended by inserting after subsection (a) the following new 
subsection: 
"(b) Notwithstanding subsection (a), the Secretary of Agriculture 
may permit, subject to such terms and conditions as the Secretary of 
Agriculture determines appropriate, the importation of cattle, 
sheep, or other ruminants, or swine (including embryos of such 
animals) or the fresh, chilled, or frozen meat of such animals from a 
region of Canada notwithstanding the existence of rinderpest or 
foot-and-mouth disease in Canada, i
f
— 
"(1) the United States and Canada have entered into an 
agreement delineating the criteria for recognizing that a geo-
graphical region of either country is free from rinderpest or 
foot-and-mouth disease; and 
Mail. 
Pests and 
pesticides. 
Meat. 
Diseases. 
10-101 n—91—Part '. 
102 STAT. 1870 
PUBLIC LAW 100-449—SEPT. 28, 1988 
Reports. 
Public 
information. 
Classified 
information. 
Federal 
Register, 
publication. 
"(2) the appropriate official of the government of Canada 
certifies that the region of Canada from which the animal or 
meat originated is free from rinderpest and foot-and-mouth 
disease.". 
SEC. 302. RELIEF FROM IMPORTS. 
(a) RELIEF FROM IMPORTS OF CANADIAN ARTICLES.— 
(1) A petition requesting action under this section for the 
purpose of adjusting to the obligations of the United States 
under the A^*eement may be filed with the United States 
International Trade Commission (hereafter in this section re-
ferred to as the "Commission") by an entity, including a trade 
association, firm, certified or recognized union, or group of 
workers, which is representative of an industry. The Commis-
sion shall transmit a copy of any petition filed under this 
paragraph to the United States Trade Representative. 
(2XA) Upon the filing of a petition under paragraph (1), the 
Commission shall promptly initiate an investigation to deter-
mine whether, as a result of a reduction or elimination of a duty 
provided for under the United States-Canada Free-Trade Agree-
ment, an article originating in Canada is being imported into 
the United States in such increased quantities, in absolute 
terms, and under such conditions, so that imports of such 
Canadian article, alone, constitute a substantial cause of serious 
injury to the domestic industry producing an article like, or 
directly competitive with, the imported article. 
(B) The provisions of— 
(i) paragraphs (2), (3), (4), (6), and (7) of subsection (b), 
other than paragraph (2XB), and 
Cii) subs6ctjioii (c) 
of section 201 of the Trade Act of 1974 (19 U.S.C. 2251), as in 
effect on June 1,1988, shaU apply with respect to any investiga-
tion initiated under subparagraph (A). 
(C) By no later than the date that is 120 days after the date on 
which an investigation is initiated under subparagraph (A), the 
(Dommission shall make a determination under subparagraph 
(A) with respect to such investigation. 
(D) If the determination made by the (Dommission under 
subparagraph (A) with respect to imports of an article is 
affirmative, the Commission shall find and recommend to the 
President the amount of import relief that is necessary to 
remedy the injury found by the Commission in such affirmative 
determination, which shall be limited to that set forth in para-
graph (3XC). 
(EXi) By no later than the date that is 30 da3rs after the date 
on which a determination is made under subparagraph (A) with 
respect to an investigation, the O)mmission shall submit to the 
President a report on the determination and the basis for the 
determination. The report shall include any dissenting or sepa-
rate views and a transcript of the hearings and any briefs which 
were submitted to the Commission in the course of the inves-
tigation initiated under subparagraph (A). 
(ii) Any finding made under subparagraph (D) shall be in-
cluded in the report submitted to the President under clause (i). 
(F) Upon submitting a report to the President under subpara-
graph (E), the Commission shall promptly make public such 
report (with the exception of information which the O)minission 
•-^ WiWH^^IWfW^T-T ;4" " 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1871 
determines to be confidential) and shall cause a summary 
thereof to be published in the Federal Register. 
(G) For purposes of this subsection— 
(i) The provisions of paragraphs (1), (2), and (3) of section 
330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)) shall be 
applied with respect to determinations and findings made 
under this paragraph as if such determinations and find-
ings were made under section 201 of the Trade Act of 1974 
(19 U.S.C. 2251). 
(ii) The determination of whether an article originates in 
Canada shall be made in accordance with section 202 
(including any proclamations issued under section 202). 
(3XA) By no later than the date that is 30 days after the date 
President of U.S. 
on which the President receives the report of the Commission 
containing an affirmative determination made by the Commis-
sion under paragraph (2XA), the President shall provide relief 
from imports of the article originating in Canada that is the 
subject of such determination to the extent that, and for such 
time (not to exceed 3 years) as the President determines to be 
necessary to remedy the injury found by the Commission. 
(B) The President is not required to provide import relief by 
reason of this paragraph if the President determines that the 
provision of such import relief is not in the national economic 
interest. 
(C) The import relief that the President is authorized to 
provide by reason of this paragraph with respect to an article 
originating in Canada is limited to— 
(i) the suspension of any further reductions provided for 
under the Agreement in the duty imposed on such article 
originating in Canada, 
(ii) an increase in the rate of duty imposed on such article 
originating in Canada to a level that does not exceed the 
lesser of— 
(I) the most-favored-nation rate of duty that is im-
posed by the United States on such article from any 
other foreign country at the time such import relief is 
provided, or 
(II) the most-favored-nation rate of duty that is im-
posed by the United States on such article from any 
other foreign country on the day before the date on 
which the Agreement enters into force, or 
(iii) in the case of a duty applied on a seasonal basis to 
such article originating in Canada, an increase in the rate 
of duty imposed on such article originating in Canada to a 
level that does not exceed the most-favored-nation rate of 
duty imposed by the United States on such article originat-
ing in Canada for the corresponding season immediately 
prior to the date on which the Agreement enters into force. 
(4)(A) No investigation may be initiated under paragraph 
(2XA) with respect to any article for which import relief has 
been provided under this subsection. 
(B) No import relief may be provided under this subsection 
after the date that is 10 years after the date on which the 
Agreement enters into force. 
(5) For purposes of section 123 of the Trade Act of 1974 (19 
U.S.C. 2133), any import relief provided by the President under 
102 STAT. 1872 
PUBLIC LAW 100-449—SEPT. 28, 1988 
paragraph (3) shall be treated as action taken under chapter I of 
title II of such Act. 
Business and 
(b) R E U E F F R O M IMPORTS F R O M A L L COUNTRIES.— 
industry. 
dXA) If, in any investigation initiated under chapter 1 of title 
Reports. 
u of the Trade Act of 1974, the Commission makes an affirma-
tive determination (or a determination which is treated as an 
affirmative determination under such chapter by reason of 
section 330(d) of the Tariff Act of 1930) that an article is being 
imported into the United States in such increased quantities as 
to be a substantial cause of serious injury, or the threat thereof, 
to the domestic industry, the (Commission shall also find (and 
report to the President at the time such injury determination is 
submitted to the President), whether imports from Canada of 
the article that is the subject of such investigation are substan-
tial and are contributing importantly to such injury or threat 
thereof. 
(B)(i) In determining under subparagraph (A) whether im-
ports of an article from Canada are substantial, the ([!!ommission 
shedl not normally consider imports from Canada in the range 
of 5 to 10 percent or less of total imports of such article to be 
substantial. 
(ii) For purposes of this paragraph, the term "contributing 
importantly" means an important cause, but not necessarily the 
most important cause, of the serious injury or threat thereof 
caused by imports. 
(2XA) In determining whether to take action under chapter 1 
of title II of the Trade Act of 1974 with respect to imports from 
Canada, the President shall determine whether imports from 
Canada of such article are substantial and contributing impor-
tantly to the serious injury or threat of serious injury found by 
the (Commission. 
(B) In determining the nature and extent of action to be taken 
under chapter 1 of title II of the Trade Act of 1974, the Presi-
dent shall exclude from such action imports from Canada if the 
President has made a negative determination under subpara-
graph (A) regarding imports from Canada. 
(3XA) If, under paragraph (2XB), the President excludes im-
ports from Canada from action taken under chapter 1 of title II 
of the Trade Act of 1974, the President may, if the President 
thereafter determines that a surge in imports from Canada of 
the article that is the subject of the action is undermining the 
effectiveness of the action, take appropriate action under such 
chapter with respect to such imports from Canada to include 
such imports in such action. 
(BXi) If, under paragraph (2)(B), the President excludes im-
ports from Canada from action taken under chapter 1 of title II 
of the Trade Act of 1974, any entity, including a trade associa-
tion, firm, certified or recognized union, or group of workers, 
that is representative of an industry for which such action is 
' 
being taken under such chapter may request the Commission to 
conduct an investigation of imports from Canada of the article 
that is the subject of such action. 
(ii) Upon receiving a request under clause (i), the Commission 
shall conduct an investigation to determine whether a surge in 
imports from Canada of the article that is the subject of action 
being taken under chapter 1 of title II of the Trade Act of 1974 
undermines the effectiveness of such action. The Commission 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1873 
shall submit the findings of such investigation to the President 
by no later than the date that is 30 days after the date on which 
such request is received by the Commission. 
(C) For purposes of this paragraph, the term "surge" means a 
significant increcise in imports over the trend for a reasonable, 
recent base period for which data are available, 
(c) Any entity that is representative of an industry may submit a 
petition for relief under subsection (a), under chapter 1 of title II of 
the Trade Act of 1974, or under both subsection (a) and such chapter 
at the same time. If petitions are submitted by such an entity under 
subsection (a) and such chapter at the same time, the Commission 
shall consider such petitions jointly. 
SEC. 303. ACTS IDENTIFIED IN NATIONAL TRADE ESTIMATES. 
With respect to any act, policy, or practice of Canada that is 
identified in the annual report submitted under section 181 of the 
Trade Act of 1974 (19 U.S.C. 2241), the United States Trade Rep-
resentative shall include— 
(1) information with respect to the action taken regarding 
such act, policy, or practice, including but not limited to— 
(A) any action under section 301 of the Trade Act of 1974 
(including resolution through appropriate dispute settle-
ment procedures), 
(B) any action under section 307 of the Trade and Tariff 
Act of 1984, and 
(C) negotiations or consultations, whether on a bilatered 
or multilateral basis; or 
(2) the reasons that no action was taken regarding such act, 
policy, or practice. 
SEC. 304. NEGOTIATIONS REGARDING CERTAIN SECTORS; BIENNIAL 
REPORTS. 
(a) IN GENERAL.— 
(1) The President is authorized to enter into negotiations with 
the Government of Canada for the purpose of concluding an 
agreement (including an agreement amending the Agreement) 
or agreements to— 
(A) liberalize trade in services in accordance with article 
1405 of the Agreement; 
(B) liberalize investment rules; 
(C) improve the protection of intellectual property rights; 
(D) incroEise the value requirement applied for purposes 
of determining whether an automotive product is treated as 
originating in Canada or the United States; and 
(E) liberalize government procurement practices, particu-
larly with regard to telecommunications. 
(2) As an exercise of the foreign relations powers of the 
President under the Constitution, the President will enter into 
immediate consultations with the Government of Canada to 
obtain the exclusion from the transport rates established under 
Canada's Western Grain Transportation Act of agricultural 
goods that originate in Canada and are shipped via east coast 
ports for consumption in the United States. 
O
t
»
) NEGOTIATING OBJECTIVES REGARDING SERVICES, INVESTMENT, 
AND INTELLECTUAL PROPERTY RIGHTS.— 
President of U.S. 
Securities. 
Patents and 
trademarks. 
Motor vehicles. 
Contracts. 
Communications 
and tele-
communications. 
Transportation. 
Agriculture and 
agricultural 
commodities. 
102 STAT. 1874 
PUBLIC LAW 100-449—SEPT. 28, 1988 
(1) The objectives of the United States in negotiations con-
ducted under subsection (aXlXA) to liberalize trade in services 
include— 
(A) with respect to developing services sectors not covered 
in the Agreement, the elimination of those tariff, nontariff, 
and subsidy trade distortions that have potential to affect 
significant bilateral trade; 
(B) the elimination or reduction of measures grand-
fathered by the Agreement that deny or restrict national 
treatment in the provision of services; 
(C) the elimination of local presence requirements; and 
(D) the liberalization of government procurement of 
services. 
In conducting such negotiations, the President shall consult 
with the services advisory committees established under section 
135 of the Trade Act of 1974 (19 U.S.C. 2155). 
(2) The objectives of the United States in any negotiations 
conducted under subsection (aXl)(B) to liberalize investment 
rules include— 
(A) the elimination of direct investment screening; 
(B) the extension of the principles of the Agreement to 
energy and cultural industries, to the extent such indus-
tries are not currently covered by the Agreement; 
(C) the elimination of technology transfer requirements 
and other performance requirements not currently barred 
by the Agreement; and 
(D) the subjection of all investment disputes to dispute 
resolution under chapter 18 of the Agreement. 
In conducting such negotiations, the President shall consult 
with persons representing diverse interests in the United States 
in investment. 
(3) The objectives of the United States in any negotiations 
conducted under subsection (aXlXC) to improve the protection of 
intellectual property rights include— 
(A) the recognition and adequate protection of intellec-
tual property, including copyrights, patents, process pat-
ents, trademarks, mask works, and trade secrets; and 
(B) the establishment of dispute resolution procedures 
and 
binational 
enforcement 
of intellectual 
property 
standards. 
In conducting such negotiations, the President shall consult 
with persons representing diverse interests in the United States 
in intellectual property, 
(c) NEGOTIATING OBJECTIVES REGARDING AUTOMOTIVE PRODUCTS.— 
(1) In conducting negotiations under subsection (aXlXD) 
regarding the value requirement for automotive products, the 
President shall seek to conclude an agreement by no later than 
January 1, 1990, to increase the vgdue requirement from 50 
percent to at least 60 percent. 
(2) The President is authorized, through January 1, 1999, to 
proclaim any agreed increase in the value requirement. 
(3) As used in this section, the term "value requirement" 
means the minimum percenta^ge of the value of an automotive 
product that must be accounted for by the value of the mate-
rials in the product that originated in the United States or 
Csuiada, or both, plus the direct cost of processing or assembly 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1875 
performed in the United States or Canada, or both, with respect 
to the product. 
(d) NEGOTIATION OF LIMITATION ON POTATO TRADE.— 
(1) During the 5-year period beginning on the date of enact-
ment of this Act, the President is authorized to enter into 
negotiations with Canada for the purpose of obtaining an agree-
ment to limit the exportation and importation of all potatoes 
between the United States and Canada, including seed potatoes, 
fresh, chilled or frozen potatoes, dried, desiccated or dehydrated 
potatoes, and potatoes otherwise prepared or preserved. Any 
agreement negotiated under this subsection shall provide for an 
annual limitation divided equally into each half of the year. 
(2) For the purpose of conducting negotiations under para-
graph (1), the Secretary of Agriculture and the United States 
Trade Representative shall consult with representatives of the 
potato producing industry, including the Ad Hoc Potato 
Advisory Group and the United States/Canada Horticultural 
Industry Advisory Committee, to solicit their views on negotia-
tions with Canada for reciprocal quantitative limits on the 
potato trade. 
(3) The President is authorized to direct the Secretary of the 
Treasury to— 
(A) carry out such actions as may be necessary or appro-
priate to ensure the attainment of the objectives of any 
agreement that is entered into under this section; and 
(B) enforce any quantitative limitation, restriction, and 
other terms contained in the agreement. 
Such actions may include, but are not limited to, requirements 
Records, 
that valid export licenses or other documentation issued by a 
foreign government be presented as a condition for the entry 
into the United States of any article that is subject to the 
agreement. 
(4) The provisions of section 1204 of the Agriculture and Food 
Act of 1981 (7 U.S.C. 1736J) and the last sentence of section 812 
of the Agricultural Act of 1970 (7 U.S.C. 612c-3) shall not apply 
in the case of actions taken pursuant to this subsection. 
(e) CANADIAN CONTROLS ON FISH.— 
(1) Within 30 days of the application by Canada of export 
controls on unprocessed fish under statutes exempted from the 
Agreement under article 1203, or the application of landing 
requirements for fish caught in Canadian waters, the President 
shall take appropriate action to enforce United States rights 
under the General Agreement on Tariffs and Trade that are 
retained in article 1205 of the Agreement. 
(2) In enforcing the United States rights referred to in para-
graph (1), the President has discretion to— 
(A) bring a challenge to the offending CanadiEui practices 
before the GATT; 
(B) retaliate against such offending practices; 
(C) seek resolution directly with Canada; 
(D) refer the matter for dispute resolution to the Canada-
United States Trade Commission; or 
(E) take other action that the President considers appro-
priate to enforce such United States rights. 
(f) BIENNIAL REPORT.—The President shall submit to the Congress, 
at the close of each biennial period occurring after the date on which 
the Agreement enters into force, a report regarding— 
102 STAT. 1876 
PUBLIC LAW 100-449—SEPT 28, 1988 
Transportation. 
Maritime 
affairs. 
(1) the status of the negotiations regarding agreements that 
the President is authorized to enter into with Canada under this 
section; 
(2) the effectiveness and operation of any agreement entered 
into under section 304 that is in force with respect to the United 
States; 
(3) the effectiveness of operation of the Agreement generally; 
and 
(4) the actions taken by the United States and Canada to 
implement further the objectives of the Agreement. 
SEC. 305. ENERGY. 
(a) ALASKAN OIL.—Section 7(dXl) of the Export Administration 
Act of 1979 (50 U.S.C. App. 2406(dXl)) is amended— 
(1) by striking "or" before "(B)"; and 
(2) by inserting after "reenters the United States" the follow-
ing: ", or (C) is transported to Canada, to be consumed therein, 
in amounts not to exceed an annual average of 50,000 barrels 
per day, in addition to exports under subparagraphs (A) and (B), 
except that any ocean trsuisportation of such oil shall be by 
vessels documented under section 12106 of title 46, United 
States Code". 
(b) URANIUM.—Section 161(v) of the Atomic Energy Act of 1954 (42 
U.S.C. 2201(v)) is amended by inserting "For purposes of this subsec-
tion and of section 305 of Public Law 99-591 (100 Stat. 3341-209, 
210), 'foreign origin' excludes source or special nuclear material 
originating in Canada." before "The Commission shall establish". 
SEC. 3
0
6
. 
LOWERED THRESHOLD FOR GOVERNMENT PROCUREMENT 
UNDER 
TRADE 
AGREEMENTS 
ACT 
OF 
1
9
7
9 
I
N 
THE 
CASE 
OF 
CERTAIN 
CANADIAN 
PRODUCTS. 
Section 308(4) of the Trade Agreements Act of 1979 (19 U.S.C. 
2518(4)) is amended by inserting after subparagraph (C) the follow-
ing new subparagraph: 
"(D) 
LOWERED THRESHOLD FOR CERTAIN PRODUCTS AS A 
CONSEQUENCE OF UNITED STATES-CANADA FREE-TRADE AGREE-
MENT.—Except as otherwise agreed by the United States 
and Canada under paragraph 3 of article 1304 of the United 
States-Canada Free-Trade Agreement, the term 'eligible 
product' includes a product or service of Canada having a 
contract value of $25,000 or more that would be covered for 
procurement by the United States under the GATT Agree-
ment on CJovernment Procurement, but for the SDR thresh-
old provided for in article I(l)(b) of the GATT Agreement on 
Government Procurement.". 
SEC. 307. TEMPORARY ENTRY FOR BUSINESS PERSONS. 
(a) NONIMMIGRANT TRADERS AND INVESTORS.—Upon a basis of 
reciprocity secured by the United States^anada Free-Trade Agree-
ment, a citizen of Canada, and the spouse and children of any such 
citizen if accompanying or following to join such citizen, may, if 
otherwise eligible for a visa and if otherwise admissible into the 
United States under the Immigration and Nationality Act (8 U.S.C. 
1101 et seq.), be considered to be classifiable as a nonimmigrant 
under section 101(aX15XE) of such Act (8 U.S.C. 1101(aX15XE)) if 
entering solely for a purpose specified in Annex 1502.1 (United 
States of America), Part B—Traders and Investors, of such Agree-
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1877 
ment, but only if any such purpose shall have been specified in such 
Annex as of the date of entry into force of such Agreement. 
(b) NONIMMIGRANT PROPESSIONAM.—Section 214 of the Immigra-
tion and Nationality Act (8 U.S.C. 1184) is amended by adding at the 
end thereof the following new subsection: 
"(e) Notwithstanding any other provision of this Act, an alien who 
is a citizen of Canada and seeks to enter the United States under 
and pursuant to the provisions of Annex 1502.1 (United States of 
America), Part C—Professionals, of the United States-Canada Free-
Trade Agreement to engage in business activities at a professional 
level as provided for therein may be admitted for such purpose 
under regulations of the Attorney General promulgated after con-
sultation with the Secretaries of State and Labor.". 
SEC. 308. AMENDMENT TO SECTION 5136 OF THE REVISED STATUTES. 
Paragraph "Seventh" of section 5136 of the Revised Statutes (12 
U.S.C. 24 (Seventh)) is amended by adding at the end thereof the 
following: 
"A national banking association may deal in, underwrite, and Banks and 
purchase for such association's own account qualified Canadian banking. 
government obligations to the same extent that such association Securities. 
may deal in, underwrite, and purchase for such association's own 
account obligations of the United States or general obligations of 
any State or of any political subdivision thereof. For purposes of this 
paragraph— 
"(1) the term 'qualified Canadian government obligations' 
means any debt obligation which is backed by Canada, any 
Province of Canada, or any political subdivision of any such 
Province to a degree which is comparable to the liability of the 
United States, any State, or any political subdivision thereof for 
any obligation which is backed by the full faith and credit of the 
United States, such State, or such political subdivision, and 
such term includes any debt obligation of any agent of Canada 
or any such Province or any political subdivision of such Prov-
ince i
f
— 
"(A) the obligation of the agent is assumed in such 
agent's capacity as agent for Canada or such Province or 
such political subdivision; and 
"(B) Canada, such Province, or such political subdivision 
on whose behalf such agent is acting with respect to such 
obligation is ultimately and unconditionally liable for such 
obligation; £md 
"(2) the term 'Province of Canada' means a Province of 
Canada and includes the Yukon Territory and the Northwest 
Territories and their successors.". 
SEC. 309. STEEL PRODUCTS. 
Nothing in this Act shall preclude any discussion or negotiation 
between the United States and Canada in order to conclude vol-
untary restraint agreements or mutually agreed quantitative 
restrictions on the volume of steel products entering the United 
States from Canada. 
102 STAT. 1878 
PUBLIC LAW 100-449—SEPT. 28, 1988 
1
9 use 2
1
1
2 
TITLE IV—BINATIONAL PANEL DISPUTE 
note 
SETTLEMENT IN ANTIDUMPING AND 
COUNTERVAILING DUTY CASES. 
SEC. 401. AMENDMENTS TO SECTION 516A OF THE TARIFF ACT OF 1930. 
(a) TIME LIMITS.—Section 516A(a) of the Tariff Act of 1930 (19 
U.S.C. 1516a(a)) is amended by adding at the end thereof the follow-
ing new paragraph. 
"(5) TIME UMITS IN CASES INVOLVING CANADIAN MERCHAN-
DISE.—Notwithstanding any other provision of this subsection, 
in the case of a determination to which the provisions of 
subsection (g) apply, an action under this subsection may not be 
commenced, and the time limits for commencing an action 
under this subsection shall not begin to run, until the 31st day 
after— 
Federal 
"(A) the date of publication in the Federal Register o
f
— 
Register, 
"(1) notice of any determination described in para-
publication, 
graph (IXB) or a determination described in clause (ii) 
or (iii) of paragraph (2XB), or 
"(ii) an antidumping or countervailing duty order 
based upon any determination described in clause (i) of 
paragraph (2XB), or 
"(B) the date on which the Government of Canada re-
ceives notice of a determination described in clause (vi) of 
paragraph (2XB).". 
(b) DEFINITIONS.—Section 516A(0 of the Tariff Act of 1930 (19 
U.S.C. 1516a(0) is amended by adding at the end thereof the follow-
ing new paragraphs: 
"(5) AGREEMENT.—The term 'Agreement' means the United 
Stat^-Canada Free-Trade Agreement. 
"(6) UNITED STATES SECRETARY.—The term 'United States Sec-
retary' means the secretary provided for in paragraph 4 of 
article 1909 of the Agreement. 
"(7) CANADIAN SECRETARY.—The term 'Canadian Secretary' 
means the secretary provided for in paragraph 5 of article 1909 
of the Agreement.". 
(c) REVIEW REGARDING CANADIAN MERCHANDISE.—Section 516A of 
the Tariff Act of 1930 (19 U.S.C. 1516a) is amended by adding at the 
end thereof the following new subsection: 
"(g) REVIEW OF COUNTERVAIUNG DUTY AND ANTIDUMPING DUTY 
DETERMINATIONS INVOLVING CANADIAN MERCHANDISE.— 
"(1) DEFINITION OF DETERMINATION.—For purposes of this 
subsection, the term 'determination' means a determination 
described in— 
"(A) paragraph (IXB) of subsection (a), or 
"(B) clause (i), (ii), (iii), or (vi) of paragraph (2XB) of 
subsection (a), 
if made in connection with a proceeding regarding a class or 
kind of Canadian merchandise, as determined by the admin-
istering authority. 
"(2) EXCLUSIVE REVIEW OF DETERMINATION BY BINATIONAL 
PANELS.—If binational panel review of a determination is re-
quested pursuant to article 1904 of the Agreement, then, except 
as provided in paragraphs (3) and (4)— 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1879 
"(A) the determination is not reviewable under subsec-
tion (a), and 
"(B) no court of the United States has power or jurisdic-
tion to review the determination on any question of law or 
fact by an action in the nature of mandamus or otherwise. 
"(3) EXCEPTION TO EXCLUSIVE BINATIONAL PANEL REVIEW.— 
"(A) IN GENERAL.—A determination is reviewable under 
subsection (a) if the determination sought to be reviewed 
is— 
"(i) a determination as to which neither the United 
States nor Canada requested review by a binational 
panel pursuant to article 1904 of the Agreement, 
"(ii) a revised determination issued as a direct result 
of judicial review, commenced pursuant to subsection 
(a), if neither the United States nor Canada requested 
review of the original determination, or 
"(iii) a determination issued as a direct result of 
judicial review that was commenced pursuant to 
subsection (a) prior to the entry into force of the Agree-
ment. 
"(B) 
SPECIAL 
RULE.—A determination 
described in 
subparagraph (AXi) is reviewable under subsection (a) only 
if the party seeking to commence review has provided 
timely notice of its intent to commence such review to the 
United States Secretary, the Canadian Secretary, all in-
terested parties who were parties to the proceeding in 
connection with which the matter arises, and the admin-
istering authority or the Commission, as appropriate. Such 
notice is provided timely if the notice is delivered by no 
later than the date that Is 20 days after the date described 
in subparagraph (A) or (B) of subsection (aX5) that is ap-
plicable to such determination. Such notice shall contain 
such information, and be in such form, manner, and style, 
as the administering authority, in consultation with the 
Commission, shall prescribe by regulations. 
"(4) EXCEPTION TO EXCLUSIVE BINATIONAL PANEL REVIEW FOR 
CONSTITUTIONAL ISSUES.— 
"(A) CONSTITUTIONALITY OF BINATIONAL PANEL REVIEW 
SYSTEM.—An action for declaratory judgment or injunctive 
relief, or both, regarding a determination on the grounds 
that any provision of, or amendment made by, the United 
States-Canada Free-Trade Implementation Agreement Act 
of 1988 implementing the binational panel dispute settle-
ment system under chapter 19 of the Agreement violates 
the Constitution may be brought in the United States Court 
of Appeals for the District of Columbia Circuit. Any action 
brought under this subparagraph shall be heard and deter-
mined by a 3-judge court in accordance with section 2284 of 
title 28, United States Code. 
"(B) OTHER CONSTITUTIONAL REVIEW.—Review is available 
under subsection (a) with respect to a determination solely 
concerning a constitutional issue (other than an issue to 
which subparagraph (A) applies) arising under any law of 
the United States as enacted or applied. An action for 
review under this subparEigraph shall be assigned to a 3-
judge panel of the United States Court of International 
rade. 
Regulations. 
Courts, U.S. 
District of 
Columbia. 
Courts, U.S. 
jud 
Trc 
102 STAT. 1880 
PUBLIC LAW 100-449—SEPT. 28, 1988 
Federal 
Register, 
publication. 
Courts, U.S. 
"(C) COMMENCEMENT OF REVIEW.—Notwithstanding the 
time limits in subsection (a), within 30 days after the date of 
publication in the Federal Register of notice that binational 
panel review has been completed, an interested party who 
is a party to the proceeding in connection with which the 
matter arises may commence an action under subpara-
graph (A) or (B) by filing an action in accordance with the 
rules of the court. 
"(D) TRANSFER OF ACTIONS TO APPROPRIATE COURT.— 
Whenever an action is filed in a court under subparagraph 
(A) or (B) and that court finds that the action should have 
been filed in the other court, the court in which the action 
was filed shall transfer the action to the other court and the 
action shall proceed as if it had been filed in the. court to 
which it is transferred on the date upon which it was 
actually filed in the court from which it is transferred. 
"(E) FRIVOLOUS CLAIMS.—Frivolous claims brought under 
subparagraph (A) or (B) are subject to dismissal and sanc-
tions as provided under section 1927 of title 28, United 
States Code, and the Federal Rules of Civil Procedure. 
"(F) SECURITY.— 
"(i) 
SUBPARAGRAPH 
(A) 
ACTIONS.—The 
security 
requirements of rule 65(c) of the Federal Rules of Civil 
Procedure apply with respect to actions commenced 
under subparagraph (A). 
"(ii) SUBPARAGRAPH (B) ACTIONS.—No claim shall be 
heard, and no temporary restraining order or tem-
porary or permanent injunction shall be issued, under 
an action commenced under subparagraph (B), unless 
the party seeking review first files an undertaking with 
adequate security in an amount to be fixed by the court 
sufficient to recompense parties affected for any loss, 
expense, or damage caused by the improvident or erro-
neous issuance of such order or injunction. If a court 
upholds the constitutionality of the determination in 
question in such action, the court shall award to a 
prevailing party fees and expenses, in addition to any 
costs incurred by that party, unless the court finds that 
the position of the other party was substantially justi-
fied or that special circumstances make an award 
unjust. 
"(G) PANEL RECORD.—The record of proceedings before 
the binational panel shall not be considered part of the 
record for review pursuant to subparagraph (A) or (B). 
"(H) APPEAL TO SUPREME COURT OF COURT ORDERS ISSUED 
IN SUBPARAGRAPH 
(A) ACTIONS.—Notwithstanding any 
other provision of law, any final judgment of the United 
States Court of Appeals for the District of Columbia Circuit 
which is issued pursuant to an action brought under 
subparagraph (A) shall be reviewable by appeal directly to 
the Supreme Court of the United States. Any such appeal 
shall be taken by a notice of appeal filed within 10 days 
after such order is entered; and the jurisdictional statement 
shall be filed within 30 days after such order is entered. No 
stay of an order issued pursuant to an action brought under 
subparagraph (A) may be issued by a single Justice of the 
Supreme Court. 
•.-.rf»*-s*„l^ j'^/^^BgfcC?*"'''*"''"•""*'-- "^-"^ 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1881 
'(5) LIQUIDATION OF ENTRIES.— 
"(A) APPUCATION.—In the case of a determination for 
which binational panel review is requested pursuant to 
article 1904 of the Agreement, the rules provided in this 
paragraph shall apply, notwithstanding the provisions of 
subsection (c). 
"(B) GENERAL RULE.—In the case of a determination for Federal 
which binational panel review is requested pursuant to Register, 
article 1904 of the Agreement, entries of merchandise cov- Publication. 
ered by such determination shall be liquidated in accord-
ance with the determination of the administering authority 
or the Commission, if they are entered, or withdrawn from 
warehouse, for consumption on or before the date of 
publication in the Federal Register by the administering 
authority of notice of a final decision of a binational panel, 
or of an extraordinary challenge committee, not in har-
mony with that determination. Such notice of a decision 
shall be published within 10 days of the date of the issuance 
of the panel or committee decision. 
"(C) SUSPENSION OF LIQUIDATION.— 
"(i) IN GENERAL.—Notwithstanding the provisions of 
subparagraph (B), in the case of a determination de-
scribed in clause (iii) or (vi) of subsection (aX2XB) for 
which binational panel review is requested pursuant to 
article 1904 of the Agreement, the administering 
authority, upon request of an interested party who was 
a party to the proceeding in connection with which the 
matter arises and who is a participant in the binational 
panel review, shall order the continued suspension of 
liquidation of those entries of merchandise covered by 
the determination that are involved in the review pend-
ing the final disposition of the review. 
"(ii) NOTICE.—At the same time as the interested 
party makes its request to the administering authority 
under clause (i), that party shall serve a copy of ite 
request on the United States Secretary, the Canadian 
Secretary, and all interested parties who were parties 
to the proceeding in connection with which the matter 
arises. 
"(iii) APPLICATION OF SUSPENSION.—If the interested 
party requesting continued suspension of liquidation 
under clause (i) is a foreign manufacturer, producer, or 
exporter, or a United States importer, the continued 
suspension of liquidation shall apply only to entries of 
merchandise manufactured, produced, exported, or im-
ported by that particular manufacturer, producer, ex-
porter, or importer. If the interested party requesting 
the continued suspension of liquidation under clause (i) 
is an interested party described in subparagraph (C), 
(D), (E), or (F) of section 771(9), the continued suspen-
sion of liquidation shall apply only to entries which 
could be affected by a decision of the binational panel 
convened under chapter 19 of the Agreement. 
"(iv) JUDICIAL REVIEW.—Any action taken by the 
administering authority or the United States Customs 
Service under this subparagraph shall not be subject to 
judicial review, and no court of the United States shall 
102 STAT. 1882 
PUBLIC LAW 100-449—SEPT. 28, 1988 
have power or jurisdiction to review such action on any 
question of law or fact by an action in the nature of 
mandamus or otherwise. 
"(6) INJUNCTIVE REUEF.—Except for cases under paragraph 
(4XB), in the case of a determination for which binational panel 
review is requested pursuant to article 1904 of the Agreement, 
the provisions of subsection (cX2) shall not apply. 
"(7) IMPLEMENTATION OF INTERNATIONAL OBUGATIONS UNDER 
ARTICLE 1904.— 
"(A) IN GENERAL.—If a determination is referred to a 
binational panel or extraordinary challenge committee 
under the Agreement and the panel or committee makes a 
decision remanding the determination to the administering 
authority or the Commission, the administering authority 
or the Commission shall, within the period specified by the 
panel or committee, take action not inconsistent with the 
decision of the panel or committee. Any action taken by the 
administering authority or the Commission under this 
paragraph shall not be subject to judicial review, and no 
court of the United States shall have power or jurisdiction 
to review such action on any question of law or fact by an 
action in the nature of mandamus or otherwise. 
"(B) APPUCATION IF SUBPARAGRAPH (A) HELD UNCONSTITU-
TIONAL.—In the event that the provisions of subparagraph 
(A) are held unconstitutional under the provisions of sub-
paragraphs (A) and (H) of paragraph (4), the provisions of 
this subparagraph shall take effect. In such event, the 
President is authorized on behalf of the United States to 
accept, as a whole, the decision of a binational panel or 
extraordinary challenge committee remanding the deter-
mination to the administering authority or the Commission 
within the period specified by the panel or committee. Upon 
acceptance by the President of such a decision, the admin-
istering authority or the Commission shall, within the 
period specified by the panel or committee, take action not 
inconsistent with such decision. Any action taken by the 
President, the administering authority, or the Commission 
under this subparagraph shall not be subject to judicial 
review, and no court of the United States shall have power 
or jurisdiction to review such action on any question of 
law or fact by an action in the nature of mandamus or 
otherwise. 
"(8) REQUESTS FOR BINATIONAL PANEL REVIEW.— 
"(A) INTERESTED PARTY REQUESTS FOR BINATIONAL PANEL 
REVIEW.—An interested party who was a party to the 
proceeding in which a determination is made may request 
binational panel review of such determination by filing a 
request with the United States Secretary by no later than 
the date that is 30 days after the date described in subpara-
graph (A) or (B) of subsection (aX5) that is applicable to such 
determination. Receipt of such request by the United States 
Secretary shall be deemed to be a request for binational 
panel review within the meaning of article 1904(4) of the 
Regulations. 
Agreement. Such request shall contain such information 
and be in such form, manner, and style as the administer-
ing authority, in consultation with the Commission, shall 
prescribe by regulations. 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1883 
"(B) 
SERVICE 
OF 
REQUEST 
FOR 
BINATIONAL 
PANEL 
REVIEW.— 
"(i) SERVICE BY INTERESTED PARTY.—If a request for Mail, 
binational panel review of a determination is filed 
under subparagraph (A), the party making the request 
shall serve a copy, by mail or personal service, on any 
other interested party who w£is a party to the proceed-
ing in connection with which the matter arises, and on 
the administering authority or the Commission, as 
appropriate. 
(ii) SERVICE BY UNITED STATES SECRETARY.—If an 
interested party to the proceeding requests binational 
panel review of a determination by filing a request 
with the Canadian Secretary, the United States Sec-
retary shall serve a copy of the request by mail on any 
other interested party who was a party to the proceed-
ing in connection with which the matter arises, and on 
the administering authority or the Commission, as 
appropriate. 
"(C) 
LIMITATION ON REQUEST FOR BINATIONAL PANEL 
REVIEW.—Absent a request by an interested party under 
subparagraph (A), the United States may not request bi-
national panel review under article 1904 of the Agreement 
of a determination. 
"(9) REPRESENTATION IN PANEL PROCEEDINGS.—In the case of 
binational panel proceedings convened under chapter 19 of the 
Agreement, the administering authority and the Commission 
shall be represented by attorneys who are employees of the 
administering authority or the Commission, respectively. In-
terested parties who were parties to the proceeding in connec-
tion with which the matter arises shall have the right to appear 
and be represented by counsel before the binational panel. 
"(10) NOTIFICATION OF CLASS OR KIND RUUNGS.—In the case of 
a determination which is described in paragraph (2XBXvi) of 
subsection (a) and which is subject to the provisions of para-
graph (2), the administering authority, upon request, shall 
inform any interested person of the date on which the Govern-
ment of Canada received notice of the determination under 
article 1904(4) of the Agreement.", 
(d) STANDARDS OF REVIEW.—Section 516A0)) of the Tariff Act of 
1930 (19 U.S.C. 1516a(b)) is amended by adding a new paragraph (3) 
as follows: 
"(3) EFFECT OF DECISIONS BY UNITED STATES-CANADA BI- Courts, U.S. 
NATIONAL PANELS.—In making a decision in any action brought 
under subsection (a), a court of the United States is not bound 
by, but may take into consideration, a fingd decision of a bi-
national panel or extraordinary challenge committee convened 
pursuEuit to article 1904 of the Agreement.". 
SEC. 402. AMENDMENTS TO TITLE 28, UNITED STATES CODE. 
(a) JURISDICTION OF COURT OF INTERNATIONAL TRADE.—Section 
1581(i) of title 28, United States Code, is amended by adding at the 
end thereof the following flush sentence: "This subsection shall not 
confer jurisdiction over an antidumping or countervailing duty 
determination which is reviewable either by the Court of Inter-
national Trade under section 516A(a) of the Tariff Act of 1930 or by 
a binational panel under article 1904 of the United States-Canada 
102 STAT. 1884 
PUBLIC LAW 100-449—SEPT. 28, 1988 
Ck)urts, U.S. 
Records. 
Classified 
information. 
Free-Trade Agreement and section 516A(g) of the Tariff Act of 
1930.". 
(b) RELIEF IN COURT OF INTERNATIONAL TRADE.—Section 2643(c) of 
title 28, United States Code, is amended— 
(1) by striking out "and (4)" in paragraph (1) and inserting in 
Ueu thereof "(4), and (5)"; and 
(2) by adding at the end thereof the following new paragraph: 
"(5) In any civil action involving an antidumping or counter-
vailing duty proceeding regarding a class or kmd of Ceuiadian 
merchandise, as determined by the administering authority, the 
Court of International Trade may not order declaratory relief.". 
(c) DECLARATORY JUDGMENTS.—Subsection (a) of section 2201 of 
title 28, United States Code, is amended— 
(1) by striking out "1954 or" and inserting in lieu thereof 
"1986,''; and 
(2) by inserting "or in any civil action involving an antidump-
ing or countervailing duty proceeding regarding a class or kind 
of Canadian merchandise, as determined by the administering 
authority," after "of title 11,". 
(d) ACTIONS UNDER THE AGREEMENT.— 
(1) Chapter 95 of title 28, United States Code, is amended by 
inserting after section 1583 the following new section: 
'*§ 1584. Civil actions under the United States-Canada Free-Trade 
Agreement 
"The United States Court of International Trade shall have exclu-
sive jurisdiction of any civil action which arises under section 777(d) 
of the Tariff Act of 1930 and is commenced by the United States to 
enforce administrative sanctions levied for violation of a protective 
order or an undertaking.". 
(2) The table of contents for chapter 95 of title 28, United States 
Code, is amended by inserting after the item relating to section 1583 
the following new item: 
"1584. Civil actions under the United States-Canada Free-Trade Agreement". 
SEC. 403. CONFORMING AMENDMENTS TO THE TARIFF ACT OF 1930. 
(a) Section 5020>) of the Tariff Act of 1930 (19 U.S.C. 1502(b)) is 
amended by striking out all after "recommending the same," and 
inserting in lieu thereof "a final decision of the United States (Dourt 
of International Trade, or a final decision of a binational panel 
pursuant to article 1904 of the United States-Canada Free-Trade 
(b) Section'5140)) of the Tariff Act of 1930 (19 U.S.C. 1514(b)) is 
amended by inserting ", or review by a binational panel of a 
determination to which section 516A(gX2) applies is commenced 
pursuant to section 516A(g) and article 1904 of the United States-
Canada Free-Trade Agreement" after "International Trade". 
(c) Section 777 of the Tariff Act of 1930 (19 U.S.C. 1677f) is 
amended by adding at the end thereof the following new subsection: 
"(d) Disax)suRE O
F PROPRIETARY INFORMATION UNDER PROTEC-
TIVE ORDERS ISSUED PURSUANT TO THE UNFFED STATES-CANADA 
AGREEMENT.— 
"(1) ISSUANCE OF PROTECTIVE ORDERS.— 
"(A) IN GENERAL.—If binational panel review of a deter-
mination under this title is requested pursuant to article 
1904 of the United States-Canada Agreement, or an 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1885 
extraordinary challenge committee is convened under 
Annex 1904.13 of the United States-Canada Agreement, the 
administering authority or the Commission, as appropriate, 
may make available to authorized persons, under a protec-
tive order described in paragraph (2), a copy of all propri-
etary material (but not privileged material as defined by 
the rules of procedure referred to in article 1904(14) of the 
United States-Canada Agreement) in the administrative 
record made during the proceeding in question. 
"(B) AUTHORIZED PERSONS.—For purposes of this subsec-
tion, the term "authorized persons" means— 
"(i) the members of, and the appropriate staff of, the 
binational 
panel or the extraordinary 
challenge 
committee, as the case may be, and the Secretariat, 
"(ii) counsel for parties to such panel or conmiittee 
proceeding, and employees of such counsel, and 
"(iii) any officer or employee of the United States 
Government designated by the administering authority 
or the Commission, as appropriate, to whom disclosure 
is necessary in order to implement the United States-
Canada Agreement with respect to such proceeding. 
"(C) REVIEW.—A decision concerning the disclosure or 
nondisclosure of material under protective order by the 
administering authority or the Commission shall not be 
subject to judicial review, and no court of the United States 
shall have power or jurisdiction to review such decision on 
any question of law or fact by an action in the nature of 
mandamus or otherwise. 
"(2) CONTENTS OF PROTECTIVE ORDER.—Each protective order 
issued under this subsection shall be in such form and contain 
such requirements as the administering authority or the 
Commission may determine by regulation to be appropriate. 
The administering authority and the Commission shall ensure 
that regulations issued pursuant to this paragraph shall be 
designed to provide an opportunity for participation in the 
binational panel proceeding equivalent to that available for 
judicial review of determinations by the administering author-
ity or the Commission that are not subject to review by a 
binational panel. 
"(3) PROHIBITED ACTS.—It is unlawful for any person to vio-
late, or to induce the violation of, any provision of a protective 
order issued under this subsection or to violate, or to induce the 
violation of, any provision of an undertaking entered into with 
an authorized agency of Canada to protect proprietary material 
during binational panel review pursuant to article 1904 of the 
United States-Canada Agreement. 
"(4) SANCTIONS FOR VIOLATION OF PROTECTIVE ORDERS.—Any 
person who is found by the administering authority or the 
Commission, as appropriate, after notice and an opportunity for 
a hearing in accordance with section 554 of title 5, United States 
Code, to have committed an act prohibited by paragraph (3) 
shall be liable to the United States for a civil penalty and shall 
be subject to such other administrative sanctions, including, but 
not limited to, debarment from practice before the administer-
ing authority or the Commission, as the administering author-
ity or the Commission determines to be appropriate. The 
amount of the civil penalty shall not exceed $100,()00 for each 
102 STAT. 1886 
PUBLIC LAW 100-449—SEPT. 28, 1988' 
Mail. 
Records. 
Records. 
violation. Each day of a continuing violation shall constitute a 
separate violation. The amount of such civil penalty and other 
sanctions shall be assessed by the administering authority or 
the Commission by written notice, except that assessment shall 
be made by the administering authority for violation, or induce-
ment of a violation, of an undertaking entered into by any 
person with an authorized agency of Canada. 
"(5) REVIEW OF SANCTIONS.—Any person against whom sanc-
tions are imposed under paragraph (4) may obtain review of 
such sanctions by filing a notice of appeal in the United States 
Court of International Trade within 30 days from the date of the 
order imposing the sanction and by simultaneously sending a 
copy of such notice by certified mail to the administering 
authority or the Commission, as appropriate. The administering 
authority or the Commission shall promptly file in such court a 
certified copy of the record upon which such violation was found 
or such sanction imposed, as provided in section 2112 of title 28, 
United States Code. The findings and order of the administering 
authority or the Commission shall be set aside by the court only 
if the court finds that such findings and order are not supported 
by substantial evidence, as provided in section 706(2) of title 5, 
United States Code. 
"(6) ENFORCEMENT OF SANCTIONS.—If any person fails to pay 
an assessment of a civil penalty or to comply with other 
administrative sanctions after the order imposing such sanc-
tions becomes a final and unappealable order, or after the 
United States Court of International Trade has entered final 
judgment in favor of the administering authority or the 
Commission, an action may be filed in such court to enforce the 
sanctions. In such action, the validity and appropriateness of 
the final order imposing the sanctions shall not be subject to 
review. 
"(7) TESTIMONY AND PRODUCTION OF PAPERS.— 
"(A) AUTHORITY TO OBTAIN INFORMATION.—For the pur-
pose of conducting any hearing and carrjdng out other 
functions and duties under this subsection, the administer-
ing authority and the Commission, or their duly authorized 
agents— 
"(i) shall have access to and the right to copy any 
pertinent document, paper, or record in the possession 
of any individual, partnership, corporation, association, 
organization, or other entity, 
(ii) may summon witnesses, take testimony, and 
administer oaths, 
"(iii) and may require any individual or entity to 
produce pertinent documents, books, or records. 
Any member of the Commission, and any person so des-
ignated 
by 
the 
administering 
authority, 
may 
sign 
subpoenas, and members and agents of the administering 
authority and the Commission, when authorized by the 
administering authority or the Commission, as appropriate, 
may administer oaths and affirmations, examine witnesses, 
take testimony, and receive evidence. 
"(B) WITNESSES AND EVIDENCE.—The attendance of wit-
nesses who are authorized to be summoned, and the produc-
tion of documentary evidence authorized to be ordered, 
under subparagraph (A) may be required from any place in 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1887 
the United States at any designated place of hearing. In the 
case of disobedience to a subpoena issued under subpara-
graph (A), an action may be filed in any district or terri-
torial court of the United States to require the attendance 
and testimony of witnesses and the production of documen-
tary evidence. Such court, within the jurisdiction of which 
such inquiry is carried on, may, in case of contumacy or 
refusal to obey a subpoena issued to any individual, part-
nership, corporation, association, organization or other 
entity, issue any order requiring such individual or entity 
to appear before the administering authority or the 
Commission, or to produce documentary evidence if so or-
dered or to give evidence concerning the matter in question. 
Any failure to obey such order of the court may be punished 
by the court as a contempt thereof. 
"(C) MANDAMUS.—Any court referred to in subparagraph 
(B) shall have jurisdiction to issue writs of mandamus 
commanding compliance with the provisions of this subsec-
tion or any order of the administering authority or the 
Commission made in pursuance thereof. 
"(D) DEPOSITIONS.—For purposes of carrjdng out any func-
tions or duties under this subsection, the administering 
authority or the Commission may order testimony to be 
taken by deposition. Such deposition may be taken before 
any person designated by the administering authority or 
Commission and having power to administer oaths. Such 
testimony shall be reduced to writing by the person taking 
the deposition, or under the direction of such person, and 
shall then be subscribed by the deponent. Any individual, 
partnership, corporation, association, organization or other 
entity may be compelled to appear and depose and to 
produce documentary evidence in the same manner as 
witnesses may be compelled to appear and testify and 
produce documentary evidence before the administering 
authority or Commission, as provided in this paragraph. 
"(E) FEES AND MILEAGE OF WITNESSES.—Witnesses sum-
moned before the administering authority or the Commis-
sion shedl be paid the same fees and mileage that are paid 
witnesses in the courts of the United States.", 
(d) Section 771 of the Tariff Act of 1930 (19 U.S.C. 1677) is 
amended by adding at the end thereof the following new paragraph 
(18): 
"(18) UNITED STATES-CANADA AGREEMENT.—The term 'United 
States-Canada Agreement' means the United States-Canada 
Free-Trade Agreement.". 
SEC. 404. AMENDMENTS TO ANTIDUMPING AND COUNTERVAILING DUTY 
LAW. 
Any amendment enacted after the Agreement enters into force 
with respect to the United States that is made to— 
(1) section 303 or title VII of the Tariff Act of 1930, or any 
successor statute, or 
(2) any other statute which— 
(A) provides for judicial review of final determinations 
under such section, title, or statute, or 
(B) indicates the standard of review to be applied, 
102 STAT. 1888 
PUBLIC LAW 100-449—SEPT. 28, 1988 
shall apply to Canada only to the extent speciHed in such 
amendment. 
Establishment. 
SEC. 405. ORGANIZATIONAL AND ADMINISTRATIVE PROVISIONS REGARD-
ING THE IMPLEMENTATION OF CHAPTERS 18 AND 19 OF THE 
AGREEMENT. 
(a) APPOINTMENT OF INDIVIDUALS TO PANELS AND COMMITTEES.— 
(IXA) There is established within the interagency organiza-
tion established under section 242 of the Trade Expansion Act of 
1962 (19 U.S.C. 1872) an interagency group which shall— 
(i) be chaired by the United States Trade Representative 
(hereafter in this section referred to as the "Trade Rep-
resentative"), and 
(ii) consist of such officers (or the designees thereof) of the 
(jfovemment of the United States as the Trade Representa-
tive considers appropriate. 
(B) The interagency group established under subparagraph 
(A) shall, in a manner consistent with chapter 19 of the 
Agreement— 
(i) prepare by January 3 of each calendar year— 
(I) a list of individuals who are qualified to serve as 
members of binational panels convened under chapter 
19 of the Agreement, and 
(II) a list of individuals who are qualified to serve on 
extraordinary challenge committees convened under 
such chapter, 
(ii) if the Trade Representative makes a request under 
paragraph (5XAXi) with respect to a final candidate list 
during any calendar year, prepare by July 1 of such cal-
endar year a list of those individuals who are qualified to be 
added to that final candidate list, 
(iii) exercise oversight of the administration of the United 
States Secretariat that is authorized to be established under 
subsection (e), and 
(iv) make recommendations to the Trade Representative 
r^arding 
the 
convening of extraordinary 
challenge 
committees under chapter 19 of the Agreement. 
(2XA) The Trade Representative shall select individuals from 
the respective lists prepared by the interagency group under 
paragraph (l)(BXi) for placement on a preliminary candidate list 
of individuals eligible to serve as members of binational panels 
under Annex 1901.2 of the Agreement and a preliminary can-
didate list of individuals eligible for selection as members of 
extraordinary challenge committees under Annex 1904.13 of the 
Agreement. 
(B) The selection of individuals for— 
(i) placement on lists prepared by the interagency group 
under clause (i) or (ii) of paragraph (IXB), 
(ii) placement on preliminary candidate lists under 
subparagraph (A), 
(iii) placement on final candidate lists under para-
graph (3), 
(iv) placement by the Trade Representative on the rosters 
described in Annex 1901.2(1) and Annex 1904.13(1) of the 
Agreement, and 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1889 
(v) appointment by the Trade Representative for service 
on binational panels and extraordinary challenge commit-
tees convened under chapter 19 of the Agreement, 
shall be made on the basis of the criteria provided in Annex 
1901.2(1) and Annex 1904.13(1) of the Agreement and shall be 
made without regard to political affiliation. 
(C) For purposes of applying section 1001 of title 18, United 
States Code, the written or oral responses of individuals to 
inquiries of the interagency group established under paragraph 
(1) or the Trade Representative regarding their personal and 
professional qualifications, and financial and other relevant 
interests, that bear on their suitability for the placements and 
appointments described in subparagraph (B), shall be treated as 
matters within the jurisdiction of an agency of the United 
States. 
(3XA) By no later than January 3 of each calendar year, the 
Trade Representative shall submit to the Committee on Finance 
of the Senate and the Committee on Ways and Means of the 
House of Representatives (hereafter in this section referred to 
as the "appropriate Congressional Committees") the prelimi-
nary candidate lists of those individuals selected by the Trade 
Representative under paragraph (2XA) to be candidates eligible 
to serve on binational panels or extraordinary challenge 
committees convened pursuant to chapter 19 of the Agreement 
during the 1-year period beginning on April 1 of such calendar 
year. 
(B) Upon submission of the preliminary candidate lists under 
subparagraph (A) to the appropriate (Congressional Ck)mmittees, 
the Trade Representative shall consult with the appropriate 
Congressional C!ommittees with regard to the individuals listed 
on the preliminary candidate lists. 
(C) TTie Trade Representative may add or delete individuals 
from the preliminary candidate lists submitted under subpara-
graph (A) after consulting the appropriate Congressional 
(Committees with regard to such addition or deletion. The Trade 
Representative shall provide to the appropriate Congressional 
C!ommittees written notice of any addition or deletion of an 
individual from the preliminary candidate lists. 
(4XA) By no later than March 31 of each calendar year, the 
Trade Representative shall submit to the appropriate (Congres-
sional (Committees the final candidate lists of those individuals 
selected by the Trade Representative to be candidates eligible to 
serve on binational panels and extraordinary challenge commit-
tees convened pursuant to chapter 19 of the Agreement during 
the 1-year period beginning on April 1 of such calendar year. An 
individu£d may be included on a final candidate list only if 
written notice of the addition of such individual to the prelimi-
nary candidate list was submitted to the appropriate (Congres-
sional (Committees at least 15 days before the date on which 
that final candidate list is submitted to the appropriate 
(Congressional (Committees under this subparagraph. 
(B) Except as provided in paragraph (5), no additions may be 
made to the final candidate lists after the final candidate lists 
are submitted to the appropriate (Congressional (Committees 
under subparagraph (A). 
(5XA) If, after the Trade Representative has submitted the 
final candidate lists to the appropriate Congressional Commit-
102 STAT. 1890 
PUBLIC LAW 100-449—SEPT. 28, 1988 
Effective date. 
Effective date. 
tees under paragraph (4XA) for a calendar year and before July 
1 of such calendar year, the Trade Representative determines 
that additional individuals need to be added to a final candidate 
list, the Trade Representative shall— 
(i) request the interagency group established under para-
graph (IXA) to prepare a list of individuals who are 
qualified to be added to such candidate list, 
(ii) select individuals from the list prepared by the inter-
agency group under paragraph (IXBXii) to be included in a 
proposed amendment to such final candidate list, and 
(iii) by no later than July 1 of such calendar year, submit 
to the appropriate Congressional Committees the proposed 
amendments to such final candidate list developed by the 
Trade Representative under clause (ii). 
(B) Upon submission of a proposed amendment under 
subparagraph (AXiii) to the appropriate Congressional Commit-
tees, the Trade Representative shall consult with the appro-
priate Congressional Committees with regard to the individuals 
included in the proposed amendment. 
(C) The Trade Representative may add or delete individuals 
from any proposed amendment submitted under subparagraph 
(AXiii) after consulting the appropriate Congressional (Commit-
tees with regard to such addition or deletion. The Trade Rep-
resentative shall provide to the appropriate (Congressional 
Committees written notice of any addition or deletion of an 
individual from the proposed amendment. 
(DXi) If the Trade Representative submits under subpara-
graph (AXiii) in any calendar year a proposed amendment to a 
final candidate list, the Trade Representative shall, by no later 
than September 30 of such calendar year, submit to the appro-
priate Congressional (Committees the final form of such amend-
ment. On October 1 of such calendar year, such amendment 
shall take effect and the individuals included in the final form 
of such amendment shall be added to the final candidate list. 
(ii) An individual may be included in the final form of an 
Eunendment submitted under clause (i) only if written notice of 
the addition of such individual to the proposed form of such 
amendment was submitted to the appropriate Congressional 
(Committees at least 15 days before the date on which the final 
form of such amendment is submitted under clause (i). 
(iii) Individuals added to a final candidate list under clause (i) 
shall be eligible to serve on binational panels or extraordinary 
challenge committees convened pursuant to chapter 19 of the 
Agreement, as the case may be, during the 6-month period 
beginning on October 1 of the calendar year in which such 
addition occurs. 
(iv) No additions may be made to the final form of an amend-
ment described in clause (i) after the final form of such amend-
ment is submitted to the appropriate Congressional Committees 
under clause (i). 
(6XA) The Trade Representative is the only officer of the 
Government of the United States authorized to act on behalf of 
the Government of the United States in making any selection or 
appointment of an individual to— 
(i) the rosters described in Annex 1901.2(1) and Annex 
1904.13(1) of the Agreement, or 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1891 
(ii) the binational panels or extraordinary challenge 
committees convened pursuant to chapter 19 of the 
Agreement, 
that is to be made solely or jointly by the Government of the 
United States under the terms of the Agreement. 
(B) Except as otherwise provided in paragraph (7KB), the 
Trade Representative may— 
(i) select an individual for placement on the rosters de-
scribed in Annex 1901.2(1) and Annex 1904.13(1) of the 
Agreement during the 1-year period beginning on April 1 of 
any calendar year, 
(ii) appoint an individual to serve as one of those mem-
bers of any binational panel or extraordinary challenge 
committee convened pursuant to chapter 19 of the Agree-
ment during such 1-year period who, under the terms of the 
Agreement, are to be appointed solely by the Government 
of the United States, or 
(iii) act to make a joint appointment with the Govern-
ment of Canada, under the terms of the Agreement, of any 
individual who is a citizen or national of the United States 
to serve as any other member of such a panel or committee, 
only if such individual is on the appropriate final candidate list 
that was submitted to the appropriate Congressional (Dommit-
tees under paragraph (4XA) during such calendar year or on 
such list as it may be amended under paragraph (5XDXi). 
(7XA) Except as otherwise provided in this paragraph, no 
individual may— 
(i) be selected by the Government of the United States for 
placement on the rosters described in Annex 1901.2(1) and 
Annex 1904.13(1) of the Agreement, or 
(ii) be appointed solely or jointly by the Government of 
the United States to serve as a member of a binational 
panel or extraordinary chgdlenge committee convened 
pursuant to chapter 19 of the Agreement, 
during the 1-year period beginning on April 1 of any calendar 
year for which the Trade Representative has not met the 
requirements of this subsection. 
(BXi) Notwithstanding paragraphs (3), (4), or (6XB) (other than 
paragraph (3XA)), individuals listed on the preliminary can-
didate lists submitted to the appropriate Congressional (Commit-
tees under paragraph (3XA) may— 
(I) be selected by the Trade Representative for placement 
on the rosters described in Annex 1901.2(1) and Annex 
1904.13(1) of the Agreement during the 3-month period 
beginning on the date on which the Agreement enters into 
force, and 
(II) be appointed solely or jointly by the Trade Represent-
ative under the terms of the Agreement to serve as mem-
bers of binational panels or extraordinary 
challenge 
committees that are convened pursuant to chapter 19 of the 
Agreement during such 3-month period. 
(ii) If the Agreement enters into force after January 3, 1989, 
the provisions of this subsection shall be applied with respect to 
the calendar year in which the Agreement enters into force— 
(I) by substituting "the date that is 30 days after the date 
on which the Agreement enters into force for "January 3 
of each calendar year" in paragraphs (IXBXi) and (3XA), and 
102 STAT. 1892 
PUBLIC LAW 100-449—SEPT. 28, 1988 
Government 
organization and 
employees. 
(II) by substituting "the date that is 3 months after the 
date on which the Agreement enters into force" for "March 
31 of each calendar year" in paragraph (4XA). 
(b) STATUS OF PANELISTS.—Notwithstanding any other provision of 
law, individuals appointed by the United Stetes to serve on panels 
or committees convened pursuant to chapter 19 of the Agreement, 
and individuals designated to assist such appointed individuals, 
shall not be considered to be employees or special employees of, or to 
be otherwise affihated with, the Government of the United States. 
(c) IMMUNITY OF PANELISTS.—With the exception of acts described 
in section 777f(dX3) of the Tariff Act of 1930, as added by this Act, 
individuals serving on panels or committees convened pursuant to 
chapter 19 of the Agreement, and individuals designated to assist 
the individuals serving on such panels or committees, shall be 
immune from suit and legal process relating to acts performed by 
such individuals in their official capacity and within the scope of 
their functions as such panelists or committee members or assist-
ants to such panelists or committee members. 
(d) REGULATIONS.—The administering authority under title VII of 
the Tariff Act of 1930, the United States International Trade 
Commission, and the United States Trade Representative may 
promulgate such regulations as are necessary or appropriate to 
carry out actions in order to implement their respective responsibil-
ities under chapters 18 and 19 of the Agreement. Initial regulations 
to carry out such functions shall be issued prior to the date of entry 
into force of the Agreement. 
(e) ESTABLISHMENT OF UNITED STATES SECRETARIAT.— 
(1) The President is authorized to establish within any depart-
ment or agency of the FedergJ Government a United States 
Secretariat which, subject to the oversight of the interagency 
group established under subsection (aXlXA), shall facilitate— 
(A) the operation of chapters 18 and 19 of the Agreement, 
and 
(B) the work of the binational panels and extraordinary 
challenge committees convened under chapters 18 and 19 of 
the Agreement. 
(2) The United States Secretariat established by the President 
under paragraph (1) shall not be considered to be an agency for 
purposes of section 552 of title 5, United States Code. 
SEC. 406. AUTHORIZATION OF APPROPRIATIONS FOR THE SECRETARIAT, 
THE PANELS, AND THE COMMITTEES. 
(a) THE SECRETARIAT.—^There are authorized to be appropriated to 
the department or agency within which the United States Secretar-
iat described in chapter 19 of the Agreement is established the lesser 
of— 
(1) such sums as may be necessary, or 
(2) $5,000,000, 
for each fiscal year succeeding fiscal year 1988 for the establishment 
and operations of such United States Secretariat and for the pay-
ment of the United States share of the expenses of the dispute 
settlement proceedings under chapter 18 of the Agreement. 
0>) PANELS AND COMMITTEES.— 
(1) There are authorized to be appropriated to the Office of 
the United States Trade Representative for fiscal year 1989 
such sums as may be necessary to pay during such fiscal year 
the United States share of the expenses of binational panels and 
.m^'Wi 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1893 
extraordinary challenge committees convened pursuant to 
chapter 19 of the Agreement. 
(2) The United States Trade Representative is authorized to 
transfer funds appropriated pursuant to the authorization pro-
vided under paragraph (1) to any department or agency of the 
United States in order to facilitate pa5rment of the expenses 
described in paragraph (1). 
(3) Funds appropriated for the pajonent of expenses described 
in paragraph (1) during any fiscal year may be expended only to 
the extent such funds do not exceed the amount authorized to 
be appropriated under paragraph (1) for such fiscal year. This 
paragraph shall apply, notwithstanding any law enacted after 
the date of enactment of this Act, unless such subsequent law 
specifically provides that this paragraph shall not apply and 
specifically cites this paragraph. 
SEC. 407. TESTIMONY AND PRODUCTION OF PAPERS IN EXTRAORDINARY Records. 
CHALLENGES. 
(a) AUTHORITY OF EXTRAORDINARY CHALLENGE COMMITTEE TO 
OBTAIN INFORMATION.—If an extraordinary chedlenge committee 
Oiereinafter referred to in this section as the "committee") is con-
vened pursuant to article 1904(13) of the Agreement, and the allega-
tions before the committee include a matter referred to in article 
1904(13XaXi) of the Agreement, for the purposes of carrying out its 
functions and duties under Annex 1904.13 of the Agreement, the 
committee— 
(1) shall have access to, and the right to copy, any document, 
paper, or record pertinent to the subject matter under consider-
ation, in the possession of any individual, partnership, corpora-
tion, Eissociation, organization, or other entity, 
(2) may summon witnesses, take testimony, and administer 
oaths, 
(3) may require any individual, partnership, corporation, 
association, organization, or other entity to produce documents, 
books, or records relating to the matter in question, and 
(4) may require any individual, partnership, corporation, 
association, organization, or other entity to furnish in writing, 
in such detail and in such form as the committee may prescribe, 
information in its possession pertaining to the matter. 
Any member of the committee may sign subpoenas, and members of 
the committee, when authorized by the committee, may administer 
oaths £ind affirmations, examine witnesses, take testimony, and 
receive evidence. 
Qo) WITNESSES AND EVIDENCE.—The attendance of witnesses who 
are authorized to be summoned, and the production of documentary 
evidence authorized to be ordered, under subsection (a) may be 
required from any place in the United States at any designated 
place of hearing. In the case of disobedience to a subpoena au-
thorized under subsection (a), the committee may request the Attor-
ney General of the United States to invoke the aid of any district or 
territorial court of the United States in requiring the attendance 
and testimony of witnesses and the production of documentary 
evidence. Such court, within the jurisdiction of which such inquiry is 
carried on, may, in case of contumacy or refusal to obey a subpoena 
issued to any individual, partnership, corporation, association, 
organization, or other entity, issue an order requiring such individ-
ual or entity to appear before the committee, or to produce docu-
102 STAT. 1894 
PUBLIC LAW 100-449—SEPT. 28, 1988 
Law 
enforcement and 
crime. 
Regulations. 
President of U.S. 
Contracts. 
mentary evidence if so ordered or to give evidence concerning the 
matter in question. Any failure to obey such order of the court may 
be punished by such court as a contempt thereof. 
(c) MANDAMUS.—Any court referred to in subsection (b) shall have 
jurisdiction to issue writs of mandamus commanding compliance 
with the provisions of this section or any order of the committee 
made in pursuance thereof. 
(d) DEPOSITIONS.—The committee may order testimony to be taken 
by deposition at any st£ige of the committee review. Such deposition 
may be taken before any person designated by the committee and 
having power to administer oaths. Such testimony shall be reduced 
to writing by the person taking the deposition, or under the direc-
tion of such person, and shall then be subscribed by the deponent. 
Any individual, partnership, corporation, association, organization 
or other entity may be compelled to appear and depose and to 
produce documentary evidence in the same manner as witnesses 
may be compelled to appear and testify and produce documentary 
evidence before the committee, as provided in this section. 
SEC. 408. REQUESTS FOR REVIEW OF CANADIAN ANTIDUMPING AND 
COUNTERVAILING DUTY DETERMINATIONS. 
(a) REQUESTS FOR REVIEW BY THE UNITED STATES.—In the case of a 
final antidumping or countervailing duty determination of a com-
petent investigating authority of Canada, as defined in article 1911 
of the Agreement, requests by the United States for binational panel 
review under article 1904 of the Agreement shall be made by the 
United States Secretary, described in article 1909(4) of the 
Agreement. 
Ot)) REQUESTS FOR REVIEW BY A PERSON.—In the case of a final 
antidumping or countervailing duty determination of a competent 
investigating authority of Canada, as defined in article 1911 of the 
Agreement, a person, within the meaning of article 1904(5) of the 
Agreement, may request a binational panel review of such deter-
mination by filing with the United States Secretary, described in 
article 1909(4) of the Agreement, such a request within the time 
limit provided for in article 1904(4) of the Agreement. The receipt of 
such request by the United States Secretary shall be deemed to be a 
request for binational panel review within the meaning of article 
1904(4) of the Agreement. Such request shsdl contain such informa-
tion and be in such form, manner, and style as the administering 
authority shall prescribe by regulations. The request for such panel 
review shall not preclude the United States, Canada, or any other 
person from challenging before a binational panel the basis for a 
particular request for review. 
(c) SERVICE OF REQUEST FOR REVIEW.—Whenever binational panel 
review is requested under this section, the United States Secretary 
shall serve a copy of the request on all persons who would be 
regarded as interested parties to the proceeding if the determination 
in question had been made under title VII of the Tariff Act of 1930. 
SEC. 409. SUBSIDIES. 
(a) NEGOTIATING AUTHORITY.— 
(1) The President is authorized to enter into an agreement 
with Canada, including an sigreement to amend the Agreement, 
on rules applicable to trade between the United States and 
Canada that— 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1895 
(A) deal with unfair pricing and government subsidiza-
tion, and 
(B) provide for increased discipline on subsidies. 
(2XA) The objectives of the United States in negotiating an 
agreement under paragraph (1) include (but are not limited 
to)— 
(i) achievement, on an expedited basis, of increased dis-
cipline on government production and export subsidies that 
have a significant impact, directly or indirectly, on bilateral 
trade between the United States and Canada; and 
"
^ 
(ii) attainment of increased and more effective discipline 
on those Canadian Government (including provincial) sub-
sidies having the most significant adverse impact on United 
States producers that compete with subsidized products of 
Canada in the markets of the United States and Canada. 
(B) Special emphasis should be given in negotiating £in agree- Business and 
ment under paragraph (1) to obtain discipline on Canadian industry. 
subsidy programs that adversely affect United States industries 
which directly compete with subsidized imports. 
(3) The United States members of the working group estab-
lished under article 1907 of the Agreement shall— 
(A) consult regularly with the Committee on Finance of 
the Senate, the Committee on Ways and Means of the 
House of Representatives, and advisory committees estab-
lished under section 135 of the Trade Act of 1974 (19 U.S.C. 
2155) regarding— 
(i) the issues being considered by the working group, 
and 
(ii) as appropriate, the objectives and strategy of the 
United States in the negotiations, and 
(B) beginning in January 1990, submit an annual report Reports. 
to such Congressional C!ommittees on the progress being 
made in the negotiations to obtain an agreement that meete 
the objectives described in paragraph (2). 
(4) Notwithstanding any other provision of this Act or of any 
other law, the provisions of section 151 of the Trade Act of 1974 
(19 U.S.C. 2191) shall not apply to any bill or joint resolution 
that implements an agreement entered into under paragraph 
(1), unless the President determines and notifies the Congress 
that such agreement— 
(A) will provide greater discipline over government sub-
sidies and no less discipline over unfair pricing practices by 
producers than that provided by the agreements described 
in paragraphs (5) and (6) of section 2 of the Trade Agree-
ments Act of 1979 (the Subsidies Code and Antidumping 
Code), respectively, taking into account the effects of the 
Agreement, and 
(B) will neither undermine such multilateral discipline 
nor detract from United States efforts to increase such 
discipline on a multilateral basis in, or subsequent to, the 
Uruguay Round of multilateral trade negotiations. 
O
k
)
) IDENTIFICATION OF INDUSTRIES FACING SUBSIDIZED IMPORTS.— 
(1) Any entity, including a trade Eissociation, firm, certified or 
recc^nized union, or group of workers, that is representative of 
a United States industry and has reason to believe that— 
(AXi) as a result of implementation of provisions of the 
Agreement, the industry is likely to face increased competi-
102 STAT. 1896 
PUBLIC LAW 100-449—SEPT. 28, 1988 
Records. 
tion from subsidized Canadian imports with which it di-
rectly competes; or 
(ii) the industry is likely to face increased competition 
from subsidized imports with which it directly competes 
from any other country designated by the President, follow-
ing consultations with the Congress, as benefitting from a 
reduction of tariffs or other trade barriers under a trade 
agreement that enters into force after January 1,1989; and 
(B) the industry is likely to experience a deterioration of 
its competitive position before rules and disciplines relating 
to the use of government subsidies have been developed 
with respect to such country; 
may file a petition with the United States Trade Representative 
(hereafter referred to in this section as the "Trade Representa-
tive") to be identified under this section. 
(2) Within 90 days of receipt of a petition under paragraph (1), 
the Trade Representative, in consultation with the Secretary of 
Commerce, shall decide whether to identify the industry on the 
basis that there is a reasonable likelihood that the industry may 
face both the subsidization described in paragraph (IXA) and the 
deterioration described in paragraph (IXB). 
(3) At the request of an entity that is representative of an 
industry identified under paragraph (2), the Trade Representa-
tive shall— 
(A) compile and make available to the industry informa-
tion under section 305 of the Trade Act of 1974, 
(B) recommend to the President that an investigation by 
the United States International Trade Commission be re-
quested under section 332 of the Tariff Act of 1930, or 
(C) take actions described in both subparagraphs (A) 
and(B). 
The industry may request the Trade Representative to take 
appropriate action to update (as often as annually) any informa-
tion obtained under subparagraph (A) or (B), or both, as the case 
may be, until an agreement on adequate rules and disciplines 
relating to government subsidies is reached. 
(4XA) The Trade Representative and the Secretary of Com-
merce shall review information obtained under paragraph (3) 
and consult with the industry identified under paragraph (2) 
with a view to deciding whether any action is appropriate under 
section 301 of the Trade Act of 1974, including the initiation of 
an invest^ation under section 302(c) of that Act (in the case of 
the Trade Representative), or under subtitle A of title VII of the 
Tariff Act of 1930, including the initiation of an investigation 
under section 702(a) of that Act (in the case of the Secretary of 
Commerce). 
(B) In determining whether to initiate any investigation 
under section 301 of the Trade Act of 1974 or any other trade 
law, other than title VII of the Tariff Act of 1930, the Trade 
Representative, after consultation with the Secretary of 
Commerce— 
(i) shall seek the advice of the advisory committees estab-
lished under section 135 of the Trade Act of 1974; 
(ii) shall consult with the Committee on Finance of the 
Senate and the Committee on Ways and Means of the 
House of Representatives; 
PUBLIC LAW 100-449—SEPT. 28, 1988 
102 STAT. 1897 
(iii) shall coordinate with the interagency committee 
established under section 242 of the Trade Expansion Act of 
1962; and 
(iv) may ask the President to request advice from the 
United States International Trade Commission. 
(C) In the event an investigation is initiated under section President of U.S. 
302(c) of the Trade Act of 1974 as a result of a review under this 
paragraph and the President, following such investigation 
(including any applicable dispute settlement proceedings under 
the Agreement or any other trade agreement), determines to 
take action imder section 301(a) of such Act, the President shall 
give preference to actions that most directly affect the products 
that benefit from governmental subsidies and were the subject 
of the investigation, unless there are no significant imports of 
such products or the President otherwise determines that ap-
plication of the action to other products would be more effective. 
(5) Any decision, whether positive or negative, or any action 
by the Trade Representative or the Secretary of Commerce 
under this section shall not in any way— 
(A) prejudice the right of any industry to file a petition 
under any trade law, 
(B) prejudice, affect, or substitute for, any proceeding, 
investigation, determination, or action by the Secretary of 
Commerce, the United States Intemationed Trade (Commis-
sion, or the Trade Representative pursuant to such a 
petition, 
(C) prejudice, affect, substitute for, or obviate any 
proceeding, investigation, or determination under section 
301 of the Trade Act of 1974, title VII of the Tariff Act of 
1930, or any other trade law. 
(6) Nothing in this subsection may be construed to alter in 
any manner the requirements in effect before the enactment of 
this Act for standing under any law of the United States or to 
add any additional requirements for standing under any law of 
the United States. 
SEC. 410. TERMINATION OF AGREEMENT. 
(a) IN GENERAL.—If^ 
(1) no agreement is entered into between the United States 
and Canada on a substitute system of rules for antidumping and 
countervailing duties before the date that is 7 years after the 
date on which the Agreement enters into force, and 
(2) the President decides not to exercise the rights of the 
United States under article 1906 of the Agreement to terminate 
the Agreement, 
the President shall submit to the Congress a report on such decision 
which explains why continued adherence to the Agreement is in the 
national economic interest of the United States. 
(b) TRANSITION PROVISIONS.— 
(1) If on the date on which the ^reement should cease to be 
in force an investigation or enforcement proceeding concerning 
the violation of a protective order issued under section 777(d) of 
the Tariff Act of 1930 (as amended by this Act) or a Canadian 
undertaking is pending, such investigation or proceeding shall 
continue and sanctions may continue to be imposed in accord-
ance with the provisions of such section. 
President of U.S. 
Reports. 
102 STAT. 1898 
PUBLIC LAW 100-449—SEPT. 28, 1988 
(2) If on the date on which the Agreement should cease to be 
in force a binational panel review under article 1904 of the 
Agreement is pending, or has been requested, with respect to a 
determination to which section 516A(g)(2) of the Tariff Act of 
1930 (as added by this Act) applies, such determination shall be 
reviewable under section 516A(a) of the Tariff Act of 1930. In 
the case of a determination to which the provisions of this 
paragraph apply, the time limits for commencing an action 
under section 516A(a)(2)(A) of the Tariff Act of 1930 shall not 
begin to run until the date on which the Agreement ceases to be 
in force. 
19 u s e 2112 
note. 
TITLE V—EFFECTIVE DATES AND 
SEVERABILITY 
SEC. 501. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as provided in subsection (b), the provi-
sions of this Act, and the amendments made by this Act, shall take 
effect on the date the Agreement enters into force. 
(h) EXCEPTIONS.—Sections 1 and 2, title I, section 304 (except 
subsection (f)), section 309, this section and section 502 shall take 
effect on the date of enactment of this Act. 
(c) TERMINATION OF PROVISIONS AND AMENDMENTS IF AGREEMENT 
TERMINATES.—On the date on which the Agreement ceases to be in 
force, the provisions of this Act (other than this subsection and 
section 410(b)), and the amendments made by this Act, shall cease to 
have effect. 
SEC. 502. SEVERABILITY. 
If any provision of this Act, any amendment made by this Act, or 
the application of such a provision or amendment to any person or 
circumstances is held to be invalid, the remainder of this Act, the 
remaining amendments made by this Act, and the application of 
such provision or amendment to persons or circumstances other 
than those to which it is held invalid, shall not be affected thereby. 
Approved September 28, 1988. 
LEGISLATIVE HISTORY—H.R. 5090: 
HOUSE REPORTS: No. 100-816, Pt. 1 (Comm. on Ways and Means), Pt. 2 (Comm. on 
Interior and Insular Affairs), Pt. 3 (Comm. on Foreign Affairs), 
Pt. 4 (Comm. on the Judiciary), Pt. 5 (Comm. on Banking, Finance 
and Urban Affairs), Pt. 6 (Comm. on Government Operations), Pt. 
7 (Comm. on Energy and Commerce), and Pt. 8 (Comm. on 
Agriculture). 
SENATE REPORTS: No. 100-509 (Comm. on Finance; Comm. on Agriculture, Nutri-
tion, and Forestry; Comm. on Energy and Natural Resources; 
and Comm. on Governmental Affairs). 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
Aug. 9, considered and passed House. 
Sept. 19, considered and p£issed Senate.