AMENDMENTS TO TITLE HI OF THE TRADE ACT OF 1974.

SEC. 314. AMENDMENTS TO TITLE HI OF THE TRADE ACT OF 1974. (a) Scope of Authority.— (1) In general.—Subsections (a)(1) and (b)(2) of section 301 of the Trade Act of 1974 (19 U.S.C. 2411(a)(1) and (b)(2)) are each amended by adding the following sentence at the end: “Actions may be taken that are within the power of the President with respect to trade in any goods or services, or with respect to any other area of pertinent relations with the foreign country.”. (2) Import restrictions.—Section 301(c)(5) of the Trade Act of 1974 (19 U.S.C. 2411(c)(5)) is amended by striking the matter preceding subparagraph (B) and inserting the following: “(5) If the Trade Representative determines that actions to be taken under subsection (a) or (b) are to be in the form of import restrictions, the Trade Representative shall— “(A) give preference to the imposition of duties over the imposition of other import restrictions, and”. (b) Relationship With Other Authorities.—Section 301(c) of the Trade Act of 1974 (19 U.S.C. 2411(c)) is amended— (1) in paragraph (1)— (A) in subparagraph (B), by striking “or” after the semicolon at the end; (B) by redesignating subparagraph (C) as subparagraph (D); and (C) by inserting after subparagraph (B) the following: “(C) in a case in which the act, policy, or practice also fails to meet the eligibility criteria for receiving duty-free treatment under subsections (b) and (c) of section 502 of this Act, subsections (b) and (c) of section 212 of the Caribbean Basin Economic Recovery Act (19 U.S.C. 108 STAT. 49402702(b) and (c)), or subsections (c) and (d) of section 203 of the Andean Trade Preference Act (19 U.S.C. 3202(c) and (d)), withdraw, limit, or suspend such treatment under such provisions, notwithstanding the provisions of subsection (a)(3) of this section; or”. (c) Definition of an Unreasonable Act, Policy, or Practice.—Section 301(d)(3) of the Trade Act of 1974 (19 U.S.C. 241 l(d)(3)) is amended— (1) in subparagraph (B)(i) by striking subclauses (II) and (III) and inserting the following: “(II) provision of adequate and effective protection of intellectual property rights notwithstanding the fact that the foreign country may be in compliance with the specific obligations of the Agreement on Trade-Related Aspects of Intellectual Property Rights referred to in section 101(d)(15) of the Uruguay Round Agreements Act, “(III) nondiscriminatory market access opportunities for United States persons that rely upon intellectual property protection, or “(IV) market opportunities, including the toleration by a foreign government of systematic anticompetitive activities by enterprises or among enterprises in the foreign country that have the effect of restricting, on a basis that is inconsistent with commercial considerations, access of United States goods or services to a foreign market,”; and (2) by adding at the end the following: “(F)(i) For the purposes of subparagraph (B)(i)(II), adequate and effective protection of intellectual property rights includes adequate and effective means under the laws of the foreign country for persons who are not citizens or nationals of such country to secure, exercise, and enforce rights and enjoy commercial benefits relating to patents, trademarks, copyrights and related rights, mask works, trade secrets, and plant breeder’s rights. “(ii) For purposes of subparagraph (B)(i)(IV), the denial of fair and equitable nondiscriminatory market access opportunities includes restrictions on market access related to the use, exploitation, or enjoyment of commercial benefits derived from exercising intellectual property rights in protected works or fixations or products embodying protected works.”. (d) Time Limits For Determinations of Unfair Trade Practices.—Section 304(a) of the Trade Act of 1974 (19 U.S.C. 2414(a)) is amended— (1) in subparagraph (A) of paragraph (2), by striking “(other than the agreement on subsidies and countervailing measures described in section 2(c)(5) of the Trade Agreements Act of 1979)”, (2) (A) in subparagraph (A) of paragraph (3), by inserting “does not consider that a trade agreement, including the Agreement on Trade-Related Aspects of Intellectual Property (referred to in section 101(d)(15) of the Uruguay Round Agreements Act), is involved or” after “the Trade Representative” the first place it appears, and (B) in subparagraph (B) of paragraph (3), in the matter preceding clause (i), by striking “any investigation initiated 108 STAT. 4941by reason of section 302(b)(2)” and inserting “an investigation initiated by reason of section 302(b)(2) (other than an investigation involving a trade agreement)”, and (3) in paragraph (4), by striking “(other than the agreement on subsidies and countervailing measures described in section 2(c)(5) of the Trade Agreements Act of 1979)”. (e) Monitoring of Foreign Compliance.—Subsections (a) and (b) of section 306 of the Trade Act of 1974 (19 U.S.C. 2416) are amended to read as follows: “(a) In General.—The Trade Representative shall monitor the implementation of each measure undertaken, or agreement that is entered into, by a foreign country to provide a satisfactory resolution of a matter subject to investigation under this chapter or subject to dispute settlement proceedings to enforce the rights of the United States under a trade agreement providing for such proceedings. “(b) Further Action — “(1) In general.—If, on the basis of the monitoring carried out under subsection (a), the Trade Representative considers that a foreign country is not satisfactorily implementing a measure or agreement referred to in subsection (a), the Trade Representative shall determine what further action the Trade Representative shall take under section 301(a). For purposes of section 301, any such determination shall be treated as a determination made under section 304(a)(1).”. “(2) WTO dispute settlement recommendations.—If the measure or agreement referred to in subsection (a) concerns the implementation of a recommendation made pursuant to dispute settlement proceedings under the World Trade Organization, and the Trade Representative considers that the foreign country has failed to implement it, the Trade Representative shall make the determination in paragraph (1) no later than 30 days after the expiration of the reasonable period of time provided for such implementation under paragraph 21 of the Understanding on Rules and Procedures Governing the Settlement of Disputes that is referred to in section 101(d)(16) of the Uruguay Round Agreements Act”. (f) Extension of Section 310 of the Trade Act of 1974.—Section 310 of the Trade Act of 1974 (19 U.S.C. 2420) is amended to read as follows: “SEC. 310. IDENTIFICATION OF TRADE EXPANSION PRIORITIES. “(a) Identification.— “(1) Within 180 days after the submission in calendar year 1995 of the report required by section 181(b), the Trade Representative shall— “(A) review United States trade expansion priorities, “(B) identify priority foreign country practices, the elimination of which is likely to have the most significant potential to increase United States exports, either directly or through the establishment of a beneficial precedent, and “(C) submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives and publish in the Federal Register a report on the priority foreign country practices identified. 108 STAT. 4942 “(2) In identifying priority foreign country practices under paragraph (1) of this section, the Trade Representative shall take into account all relevant factors, including— “(A) the major barriers and trade distorting practices described in the National Trade Estimate Report required under section 181(b); “(B) the trade agreements to which a foreign country is a party and its compliance with those agreements; “(C) the medium- and long-term implications of foreign government procurement plans; and “(D) the international competitive position and export potential of United States products and services. “(3) The Trade Representative may include in the report, if appropriate— “(A) a description of foreign country practices that may in the future warrant identification as priority foreign country practices; and “(B) a statement about other foreign country practices that were not identified because they are already being addressed by provisions of United States trade law, by existing bilateral trade agreements, or as part of trade negotiations with other countries and progress is being made toward the elimination of such practices. “(b) Initiation of Investigations.—By no later than the date which is 21 days after the date on which a report is submitted to the appropriate congressional committees under subsection (a)(l), the Trade Representative shall initiate under section 302(b)(1) investigations under this chapter with respect to all of the priority foreign country practices identified. “(c) Agreements for the Elimination of Barriers.—In the consultations with a foreign country that the Trade Representative is required to request under section 303(a) with respect to an investigation initiated by reason of subsection (b), the Trade Representative shall seek to negotiate an agreement that provides for the elimination of the practices that are the subject of the investigation as quickly as possible or, if elimination of the practices is not feasible, an agreement that provides for compensatory trade benefits. “(d) Reports.—The Trade Representative shall include in the semiannual report required by section 309 a report on the status of any investigations initiated pursuant to subsection (b) and, where appropriate, the extent to which such investigations have led to increased opportunities for the export of products and services of the United States.”.