GOVERNMENT PROCUREMENT.

SEC. 381. GOVERNMENT PROCUREMENT. (a) In General.— Section 301 of the Trade Agreements Act of 1979 (19 U.S.C. 2511) is amended— (1) in subsection (a) by striking “The President” and inserting “Subject to subsection (f) of this section, the President”; (2) by inserting “or the North American Free Trade Agreement” after “the Agreement” in paragraph (1) of subsection (b); and (3) by adding at the end the following new subsections: “(e) Procurement Procedures by Certain Federal Agencies.— Notwithstanding any other provision of law, the President may direct any agency of the United States listed in Annex 1001.1a–2 of the North American Free Trade Agreement to procure eligible 107 STAT. 2129products in compliance with the procedural provisions of chapter 10 of such Agreement. “(f) Small Business and Minority Preferences.— The authority of the President under subsection (a) of this section to waive any law, regulation, procedure, or practice regarding Government procurement does not authorize the waiver of any small business or minority preference.”. (b) Reciprocal Competitive Procurement Practices.— Section 302(a) of such Act (19 U.S.C. 2512(a)) is amended by striking “would otherwise be eligible products” in paragraph (1) and inserting “are products covered under the Agreement for procurement by the United States”. (c) Definition of Eligible Product.— Section 308(4)(A) of such Act (19 U.S.C. 2518(4)(A)) is amended to read as follows: “(A) In general.— The term ‘eligible product’ means, with respect to any foreign country or instrumentality that is— “(i) a party to the Agreement, a product or service of that country or instrumentality which is covered under the Agreement for procurement by the United States; or “(ii) a party to the North American Free Trade Agreement, a product or service of that country or instrumentality which is covered under the North American Free Trade Agreement for procurement by the United States.”. (d) Conforming Amendments.— Section 401 of the Rural Electrification Act of 1938 (7 U.S.C. 903 note) is amended by inserting “, Mexico, or Canada” after “the United States” each place it appears. (e) Effective Date.— The provisions of this subtitle take effect on the date the Agreement enters into force with respect to the United States.